terrence lee colbert matsumoto mark kikuchi also in...
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HETHONOLUlU AUTHORITY fo RAPID TRANSPORTATION
MINUTES
Board of Directors MeetingAli’i Place, Suite 150
1099 Alakea Street, Honolulu, HawaiiThursday, January 19, 2017, 8:30 a.m.
PRESENT: Damien Kim Tern FujiiTerrence Lee Colbert MatsumotoJohn Henry Felix William “Buzz” HongMark Kikuchi
ALSO IN ATTENDANCE: Krishniah Murthy Barbra AimentroutCharles “Sam” Carnaggio Rose PouKai Nani Kraut Natalie IwasaKevin Cox William NakamatsuJoyce Oliveira Michelle CarterRandall Ishikawa Cindy Matsushita
EXCUSED: Kathy Sokugawa Ford Fuchigami
I. Call to Order by Chair
HART Board Chair Damien Kim called the meeting to order at 9:34 a.m.
Mr. Kim welcomed new Board member and Acting Director of the Department of TransportationServices (DTS) Mark Kikuchi.
II. Public Testimony on all Agenda Items
Mr. Kim called for public testimony.
Natalie Iwasa provided testimony encouraging the Board to provide consistency in the figures itprovides, noting an error in the numbers contained in the Project Management OversightContractor’s (PMOC)
Barbra Armentrout testified regarding her confidence in the Board.
HART Board of Directors MeetingJanuary 19, 2017
III. Approval of Meeting MinutesA. October 27, 2016 Meeting of the Board of DirectorsB. November 10, 2016 Meeting of the Board of Directors
Mr. Kim called for any corrections to the minutes of the October 27, 2016 and November 10, 2016meetings of the Board of Directors. Board member Tern Fujii said that the November 10, 2016minutes incorrectly lists her as absent.
Mr. Kim called for the approval of the minutes, noting the amendment indicating the Ms. Fujii waspresent at the November 10, 2016 meeting. All being in favor, the minutes were adopted.
IV. Committee Membership
Mr. Kim said that he would be appointing members to vacant standing committee positions.
Mr. Kim said that Board member Terrence Lee would remain the Chair of the GovernmentAffairs/Audit/Legal Matters Committee. Board member Tern Fujii would serve as Vice Chair, withBoard member Glenn Nohara appointed as a member.
The Finance Committee would be chaired by Ms. Fujii; Mr. Lee would serve as Vice Chair. Boardmembers Ford Fuchigami and John Henry Felix would be members.
Mr. Kim said that he would continue to serve as Chair of the Project Oversight Committee, with Mr.Lee serving as Vice Chair. Board member William “Buzz” Hong and Mr. Nohara were members.
Mr. Hong would remain the Chair of the Transit Oriented Development Committee, and Mr.Matsumoto would be Vice Chair. Mr. Lee and Mr. Felix would be added as members.
Finally, Board member Colbert Matsumoto would serve as Chair of the Human ResourcesCommittee, with Mr. Kim serving as Vice Chair. Mr. Hong and Mr. Lee would serve as members.
V. Independent Financial Audit Update
HART Fiscal Officer Bruce Sakihama introduced Wilcox Choy, partner at KMH LLP (KMH), whowould be presenting the Independent Financial Audit report to the Board, attached hereto asAttachment A.
Mr. Choy said that the audit had been conducted in accordance with generally accepted accountingprinciples and government auditing standards. He indicated that page four of the financial statementcontains KMH’s unqualified opinion.
Mr. Choy also referred to KMH’s “SAS 114” letter dated December 16, 2016, which contained itemsrequired to be communicated by KMH to HART. He noted that under the section entitled“Management’s Judgments and Accounting Estimates,” KMH had suggested that HART monitor
HART Board of Directors MeetingJanuary 19, 2017
accounting significant estimates that include intergovernmental receivables, construction delayclaims, and net pension liability. Mr. Choy said that the letter indicates that no audit or pastadjustments were made. He noted that KMH had experienced no difficulties in dealing withmanagement during the audit.
Mr. Choy reported that the audit was conducted under government auditing standards. The auditincluded an examination of HART’s accounting practices.
Mr. Choy reported that page 52 contained a finding relating the Davis-Bacon Act, which requiresHART to obtain weekly payrolls from its contractors. He explained that this report opinion straddledFiscal Years 2015 and 2016, and that the audit sample selection had been bifurcated into pre-Marchand post-March, when HART management had become aware of the finding and implementedpractices and procedures to address it. Post-March, the number of instances in which certifiedpayrolls were not submitted within seven days were greatly reduced. Page 53 describesmanagement’s changes to address the issue.
Mr. Choy reported on KMH’s management comment letter, which differed from a finding in that it isnot as severe. KMH had discovered that there was a portion of unpaid reimbursement of federalfunds not being computed correctly. Approximately $9.8 million in funds had not been timelyrequested. Although HART’s financial statement had recorded payment of the funds, the request forreimbursement of those funds was not done correctly.
Mr. Matsumoto asked about the reason for the discrepancy. Mr. Sakihama responded that theprevious grants manager had submitted for reimbursement those payments that had cleared the bank,but did not go back to previous months to submit payments that had subsequently cleared the bank.The aggregation of those missed reimbursements was $9.8 million. HART’s current grants managerhad subsequently submitted all requests for reimbursements such that HART was not up to date.New processes and procedures have been instituted to ensure timeliness and additional reviews toensure this does not occur again. Mr. Choy clarified that the recording of the receivable was donecorrectly; the process of requesting the reimbursement was not done correctly or timely.
Mr. Lee asked how long it took from the time of request to reimbursement. Mr. Sakihama repliedthat it took approximately three days.
Mr. Kim asked about the definition of the term “trivial” when referring to uncorrected misstatements.Mr. Choy explained that according to audit methodology, there is a computation for materiality; apercentage of that materiality is considered de minimus or trivial, which is allowable underaccounting standards. That number is so small that is not listed, based on practicality. Mr. Kimasked whose standard that was. Mr. Choy said that each audit firm had its own methodology incomputing triviality. Ms. Fujii added that it is a standard practice to provide for an amount so smallthat it is not recorded in financial statements.
HART Board of Directors MeetingJanuary 19, 2017
Mr. Matsumoto asked whether “trivial” was equivalent to “immaterial,” and Mr. Choy respondedthat it was less than immaterial.
Mr. Lee asked whether a $10,000 adjustment would be considered trivial. Mr. Choy said that for thesize of HART’s financial statement, it would. He noted that there were no trivial amounts on the pastadjustment sheet.
Mr. Kim called for public testimony.
Natalie Iwasa asked why, as of the end of the year, only $53 million in receivables had beencollected of the $11 I million reported as of June 30, 2016. She noted that reimbursements should bereceived as soon as possible if HART was paying debt costs, and asked about the breakdown offinance and interest costs. She commented that revenues and expenses should tie to what is reportedin the audit.
VI. Dissolution of Updated Financial Plan Permitted Interaction Group and Formation of newUpdated Financial Plan Permitted Interaction Group due to Change in Membership
Mr. Kim said that Updated Financial Plan Permitted Interaction Group (Group) would need to bedissolved and reformed, as there had been a change in the Board’s membership. Due to advice fromthe Office of Information Practices, it is recommended that the current Updated Financial Plan Groupbe dissolved and a new one created with current and new members. The current Group was in theprocess of investigating and updating the financial plan, and had not completed its investigation. Thenew Group will continue the investigation where the current Group left off; the scope of the newGroup will be exactly the same as before.
Existing Updated Financial Plan Group members include Tern Fujii, Damien Kim, and former Boardmembers Mike Formby, Ivan Lui-Kwan, and Colleen Hanabusa.
Mr. Kim called for a motion to dissolve the existing Updated Financial Plan Group, to create a newUpdated Financial Plan Group, to appoint Terrence Lee, Glenn Nohara, Tern Fujii, Damien Kim, andJohn Henry Felix as members of the new Group, and to have the new Group pick up where the oldGroup left off. The scope of the investigation of the Group will be to investigate and update theFinancial Plan. All Group members are authorized to participate in meetings about these issues andto assist in preparing an oral or written report to the full Board with the Group’s findings andrecommendations as to HART’s Updated Financial Plan.
Mr. Felix so moved, and Ms. Fujii seconded the motion. All being in favor, the motion carriedunanimously.
Mr. Kim called for public testimony. There was none.
HART Board of Directors MeetingJanuary 19, 2017
VII. Right of Way Update
Director of Planning, Permitting and Right of Way Abbey Mayer introduced himself, as the formerdirector of the State Office of Planning. He offered to provide a bi-monthly or quarterly right of wayupdate to the Board. He introduced Deputy Director of Right of Way Morris Atta, who would bepresenting the Right of Way update, attached hereto as Attachment B.
Mr. Atta presented HART’s goals in acquiring right of way. He said that HART had been focusingon acquisitions on the east side of the alignment, beginning with the Airport Section. Access to 88%of the area required in the Airport Section had been acquired, consisting of 44 TMKs. There weresix open acquisitions, three of which were in or entering escrow.
In the City Center Section, site access to 65% of the required area in the Dillingham corridor hadbeen acquired. For the remainder of the City Center Section, 35% of the area had been acquired.
Mr. Atta reported that the budget forecast for right of way remained the same. He noted that a recentagreement with the U.S. Postal Service would soon change those figures.
Mr. Lee asked about the timing of acquisition and construction. Mr. Atta said that the practice ofcorridor preservation, in which right of way is typically acquired long before the completion ofdesign — sometimes years in advance — is typical of a project like the Honolulu rail project. Howevernumerous delays hampered that approach in Honolulu. Lack of access, he pointed out, hindersdesign decisions that must precede construction; therefore, corridor preservation must continue, eventhough it is unknown whether the project will continue to Ala Moana. HART was activelydiscussing and coordinating land acquisition, particularly in the City Center Section, with landownersand tenants.
Mr. Lee suggested investigating alternatives for accommodating tenants to reduce the inconvenienceto them, or finding interim uses for HART-acquired properties that are not immediately needed forconstruction. Mr. Atta said that the Uniform Relocation Act, which requires relocation assistance,was a highly successful program that provides for a leaseback program and relocation assistance.
Mr. Kim suggested that vacant parcels could be utilized as storage or parking. Mr. Atta respondedthat HART is actively pursuing that possibility. He provided an example in which HART recentlyput out a solicitation for a parking lot, for which it had received no response. The solicitation,however, has since been canceled due to contractors’ requests for a lay-down area.
VIII. Construction and Traffic Update
HART West Side Project Manager Kai Nani Kraut and East Area Construction Manager Kevin Cox,presented the Construction and Traffic Update, attached hereto as Attachment C.
HART Board of Directors MeetingJanuary 19, 2017
Ms. Kraut reported that work on the West Oahu/Farrington Highway guideway was 90% complete,with a March 2017 completion deadline. She said that there had been a delay in the isolation pad andshim order, for which the contractor had submitted an extension. A report had been received fromcontractor Kiewit on its tendon evaluation. The West Oahu Station Group was 12% complete, and1-IART was anticipating a time extension request due to access issues. The Farrington HighwayStation Group was 4% complete; HART was anticipating a similar time extension request. TheKamehameha Highway guideway was 85% complete, with 80% of the trackwork installed; it wasexpected to be complete in May 2017. The H2R2 ramp was 32% complete; a time extension is beingsought due to unforeseen hazardous materials in the area.
The Kamehameha Highway Station Group was 5% complete, with method shaft work complete. TheWaiawa Stream best management practices maintenance work and stream diversion work was 95%complete.
Ms. Kraut reported that work on the punch list for the Maintenance and Storage Facility (MSF) isunderway, with final acceptance scheduled for March 1, 2017. Final acceptance is dependent onclosure of the isolation pads issue, which were purchased under the MSF contract. Thecommissioning and testing of equipment is occurring.
Mr. Hong asked about HART’s confidence in the quality of the replacement shims. Ms. Kraut saidthat Kiewit had provided test results to assure HART that the isolation pads meet contractspecifications. She added that HART had requested test results for each batch of pads, instead of thecontractor’s mere certification that the isolation pads met specifications.
Mr. Hong requested specific station construction schedules, as well as information on the MSFsubstation.
Mr. Kim asked whether the time extensions and delays were HART’s or the contractor’s fault. Ms.Kraut responded that it depended on the reason for the time extension. Mr. Kim suggestedrequesting liquidated damages from the contractor when appropriate. Ms. Kraut acknowledged thesuggestion, but stated that HART must also recognize its role in the delays. HART ExecutiveDirector and CEO Krishniah Murthy added that delays were one of his major areas of focus.
HART Deputy Director of Core Systems Justin Garrod provided an update on core systems. Hereported that the second train was 95% complete. Work on the first train had been done on theprovision trucks. Mr. Garrod reported that Hitachi had been performing an analysis on the extrusionissue previously reported.
Mr. Hong asked whether the Federal Transit Administration (FTA) provided any oversight orguidelines on the matter. Mr. Garrod confirmed that the FTA will provide review, and the State ofHawaii would provide safety oversight.
HART Board of Directors MeetingJanuary 19, 2017
Mr. Garrod went on to report on the capabilities of the Honolulu rail system in light of the recenttrain accident in New York, in which a train failed to brake and derailed. He said that the Honolulurail signaling system would have multiple layers designed to prevent such an accident. Theautomatic train protection system is designed to provide a zero speed command if the train speedexceeds a command. Friction buffers are also available to engage the train with braking mechanismsto stop the train safely. Speed control, separation of train controls between blocks, as well as brakingprotections, provide additional safety measures.
Mr. Lee asked about hacking safeguards. Mr. Garrod responded that the signaling system would beseparated from the internet, and was additionally broken up into 12 separate signaling houses toprovide safeguards against hacking.
Mr. Cox continued with an update on the east side of the project. Utility work in the Airport Sectionwas substantially complete, and going through a financial closeout. Notice to proceed on the AirportGuideway and Stations contract had been given, and the contractor was mobilizing its team. Accessdelay issues learned in the west section were being applied in the east section; the guideway andstations were being built by the same contractor.
Ms. Kraut provided an update on construction-related closures and delays along KamehamehaHighway.
Mr. Kim called for public testimony.
Rose Pou reiterated her testimony from the previous month requesting a longer length of pedestriancrossing signals in Pearl City. She said that she understood that the Kapolei Station would only haveone elevator that is not a freight elevator. HART Project Director Charles “Sam” Carnaggio said thathe would look into the matter and report back at the next meeting. He said that HART TrafficEngineer Nick Ching had addressed the pedestrian signal length matter, and that he would advise Ms.Pou.
Ms. Armentrout testified regarding the need for elevators to accommodate mobility devices. Sheasked about the parking spaces, elevators, and restrooms at the Pearl Highlands Garage. Mr.Carnaggio suggested an Americans with Disabilities Act update on all stations at a future meeting.
IX. December Monthly Progress Report
Mr. Murthy stated that the Board had been provided copies of the December Monthly ProgressReport, and that staff was available to answer any questions. A copy is attached hereto asAttachment D.
HART Board of Directors MeetingJanuary 19, 2017
X. November Project Management Oversight Consultant Report
Mr. Murthy stated that the Board had also been provided copies of the November ProjectManagement Oversight Consultant (PMOC) Report; staff was available to answer any questionsregarding that report as well. A copy is attached hereto as Attachment E.
Mr. Kim reiterated Ms. Iwasa’s request that staff check on the numbers presented in those reports forconsistency. Mr. Carnaggio reminded the Board that the PMOC was the author of the PMOC report,but committed to checking it prior to its release.
XI. Interim Executive Director and CEO’s Report
Mr. Murthy reported that in accordance with the FTA’s request that the American PublicTransportation Association conduct a peer review of the Honolulu rail project, HART selected apanel of three members: Jack Collins from Metrolinx in Toronto, Carolyn Gonot of Santa ClaraValley Transportation Authority, and Nysore Nagaraja of New York MTA Capital Projects. Thepeer review had been conducted January 9 through 12, 2017, with a focus on management capacityand capability, contract management, change order and claims management, and additional areas ofconcern. The team held various meetings with HART senior management, HART’s Board Chair andVice Chair, and was given free access to staff and documents. The peer review final report was duemid-February, which would be shared with the Board. Its preliminary findings include reevaluationof project organization in support of project delivery, loss of institutional knowledge due to staffturnovers and expiration of consultant contracts prior to project completion, and better managementof master schedule and proactive construction management. They were impressed with the quality ofthe construction observed on the guideway and at the MSF.
Mr. Murthy also reported that outreach activities had occurred at the Sony Open the previous week,which was sponsored by Move Oahu Forward. HART also had a presence at the Taste of Kalihicelebration the previous weekend.
A tour of the ROC had been given that week to elected officials and their staff, as well as prominentbusiness leaders, in coordination with the Chamber of Commerce and Move Oahu Forward.Feedback from attendees was largely positive.
Board member Glenn Nohara requested that Mr. Murthy provide a written copy of his report, andMr. Murthy agreed to do so. A copy is attached hereto as Attachment F.
Mr. Kim called for public testimony.
Ms. Armentrout suggested that HART participate in the upcoming Chinese New Year celebrations toprovide outreach. Mr. Murthy said that HART was scheduled to attend.
HART Board of Directors MeetingJanuary 19, 2017
XII. Recruitment, Solicitation of Interest, Screening, Negotiation re: Executive Director andChief Executive Officer and Legislative Update on HART Staff and Personnel
Mr. Matsumoto said that a search firm had been engaged to assist with the recruitment for HART’spermanent Executive Director and CEO. He said that the goal was to have a candidate identified bythe end of June 2017.
Mr. Kim asked if there was a reason for executive session. There was none.
XIII. Adjournment
There being no further business before the Board, Mr. Kim adjourned the meeting at 10:55 a.m.
Respectfully Submitted,
indy MahitaBoard Ex’utive Officer
Approved:
Damien T.K. KimBoard Chair
FEB 16 2017Date
ATTACHMENT A
Financial Statements and Independent Auditor’s Report
Honolulu Authority for Rapid Transportation
(a component unit of the City and County of Honolulu) June 30, 2016 and 2015
A Hawaii Limited Liability Partnership
1 1003 Bishop Street Suite 2400 Honolulu, HI 96813 Telephone: 808-526-2255 Fax: 808-536-5817 www.kmhllp.com
December 16, 2016 To the Board of Directors Honolulu Authority for Rapid Transportation City and County of Honolulu Ladies and Gentlemen: We have completed our financial audit of the Honolulu Authority for Rapid Transportation, a component unit of the City and County of Honolulu, (HART) as of and for the fiscal year ended June 30, 2016. The audit was performed in accordance with our agreement dated June 21, 2016. Objective of the audit The primary purpose of our audit was to form an opinion on the fairness of the presentation of HART’s financial statements as of and for the fiscal year ended June 30, 2016. Scope of the audit Our audit was performed in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. The scope of our audit included an examination of the transactions and accounting records of HART for the fiscal year ended June 30, 2016. Organization of the report This report is organized into five parts: PART I. FINANCIAL STATEMENTS
PART II. REQUIRED SUPPLEMENTARY INFORMATION
PART III. REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS
PART IV. SCHEDULE OF FINDINGS
PART V. RESPONSE OF THE AFFECTED AGENCY
At this time, we wish to thank HART’s personnel for their cooperation and assistance extended to us. We will be happy to respond to any questions that you may have on this report.
Very truly yours,
KMH LLP
Honolulu Hawaii December 16, 2016
Contents Page PART I FINANCIAL STATEMENTS
Independent Auditor’s Report 4 Management's Discussion and Analysis 6 Basic Financial Statements
Statements of Net Position 12 Statements of Revenues, Expenses and Changes in Net Position 13 Statements of Cash Flows 14
Notes to Financial Statements 16 PART II REQUIRED SUPPLEMENTARY INFORMATION
Schedule of the HART’s Proportionate Share of the Net Pension Liability 44 Schedule of the HART’s Contributions 45 Notes to Schedule of the HART’s Proportionate Share of the Net Pension Liability 46 Schedule of Funding Progress for the Hawaii Employer-Union
Health Benefits Trust Fund 47 PART III REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 49
PART IV SCHEDULE OF FINDINGS 52 PART V RESPONSE OF THE AFFECTED AGENCY 54
3
PART I FINANCIAL STATEMENTS
A Hawaii Limited Liability Partnership
4 1003 Bishop Street Suite 2400 Honolulu, HI 96813 Telephone: 808-526-2255 Fax: 808-536-5817 www.kmhllp.com
Independent Auditor’s Report To the Board of Directors Honolulu Authority for Rapid Transportation City and County of Honolulu Report on the Financial Statements
We have audited the accompanying financial statements of the Honolulu Authority for Rapid Transportation (HART), a component unit of the City and County of Honolulu, as of and for the years ended June 30, 2016 and 2015, and the related notes to the financial statements, which collectively comprise the HART’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Honolulu Authority for Rapid Transportation, as of June 30, 2016 and 2015, and the changes in its financial position and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
5
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 6 through 11 and the schedule of the HART’s proportionate share of the net pension liability, schedule of the HART’s contributions, notes to the schedule of the HART’s proportionate share of the net pension liability and schedule of funding progress for the Hawaii Employer-Union Health Benefits Trust Fund on pages 44, 45, 46 and 47, respectively be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 16, 2016 on our consideration of the HART's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering HART’s internal control over financial reporting and compliance.
KMH LLP Honolulu, Hawaii December 16, 2016
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2016 and 2015
6
The Honolulu Authority for Rapid Transportation (HART) is a semi-autonomous government unit of the City and County of Honolulu (City), which came into being on July 1, 2011 pursuant to a 2010 amendment to the Revised Charter of the City and County of Honolulu (RCH). HART consists of a board of directors (Board), executive director, and staff. HART is authorized under the RCH to “develop, operate, maintain and expand the city fixed guideway system...” The Honolulu Rail Transit Project (the Project) consists of design and construction of a 20-mile, grade-separated fixed rail system from East Kapolei to the Ala Moana Center in Honolulu, Hawaii. The Project begins in East Kapolei, proceeds to the University of Hawaii at West Oahu, then turns east to Pearl Harbor and the Honolulu International Airport, and ends at Kona Street adjacent to the Ala Moana Center. The Project will operate in an exclusive right-of-way and will be elevated except for a 0.6-mile, at-grade section near Leeward Community College. The Project includes 21 transit stations; a maintenance and storage facility; 80 light metro fully automated (driverless) rail vehicles and associated core systems; and four park-and-ride facilities at several locations. This section presents the management’s discussion and analysis of HART’s financial condition and activities for the fiscal years ended June 30, 2016 and 2015. This summary is designed to provide an introduction to the financial statements and the financial condition of HART. This information should be read in conjunction with the financial statements. Prior to July 1, 2011, the financial position and results of operations of the Project were reported as a governmental fund in the City’s Comprehensive Annual Financial Reports. Overview of the Financial Statements The financial statements are presented using the economic resources measurement focus and the accrual basis of accounting, whereby revenues and expenses are recognized in the period earned or incurred. The basic financial statements include statements of net position, statements of revenues, expenses and changes in net position, statements of cash flows, and notes to the financial statements. The statements of net position present the resources and obligations of HART at June 30, 2016 and 2015 respectively. The statement of revenues, expenses and changes in net position present information showing how HART’s net position changed during the past two fiscal years. The statements of cash flows present changes in cash and cash equivalents resulting from operating, investing, capital and related financing activities, and non-capital financing activities. The notes to the financial statements provide required disclosures and other information necessary for the fair presentation of the financial statements. The notes detail information about HART’s significant accounting policies, account balances, related party transactions, employee benefit plans, commitments, contingencies, and other significant events. Supplementary information on post-employment benefits is also included.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
June 30, 2016 and 2015
7
Financial Highlights Condensed Statements of Revenues, Expenses and Changes in Net Position
Increase %
2016 2015 (decrease) ChangeOperating expenses
Administration and general 13,584,993$ 11,721,853$ 1,863,140$ 16%Fringe benefits 4,364,512 4,383,253 (18,741) 0%Contractual services 465,111 357,133 107,978 30%Insurance 71,051 1,092,851 (1,021,800) -93%Other operating expense 91,830 175,808 (83,978) -48%
Total operating expenses 18,577,497 17,730,898 846,599 5%
Operating loss (18,577,497) (17,730,898) (846,599) 5%
Non-operating revenues and expensesCounty surcharge 233,323,231 223,666,342 9,656,889 4%Federal grants 186,998,546 158,034,519 28,964,027 18%Net interest income & other 603,214 573,117 30,097 5%Debt financing fees (982,624) - (982,624) N/A
Total non-operating revenues & expenses 419,942,367 382,273,978 37,668,389 10%
Increase in net position 401,364,870 364,543,080 36,821,790 10%
Net position at beginning of year 1,943,835,476 1,579,292,396 364,543,080 N/A
Net position at end of year 2,345,200,346$ 1,943,835,476$ 401,364,870$ 21%
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
June 30, 2016 and 2015
8
Financial Highlights (continued)
HART’s primary non-operating revenue sources are the 0.5% county surcharge on the State of Hawaii’s General Excise Tax (GET) and grant assistance from the U.S. Department of Transportation’s Federal Transit Administration (FTA). Pursuant to Section 248-2.6 of the Hawaii Revised Statutes, the State Department of Taxation remits 90% of the surcharge to the City on a quarterly basis. During FY 2016 and FY 2015, HART recognized $233,323,231 and $223,666,342, respectively from the GET county surcharge. In FY 2016 and FY 2015 HART also recognized $186,998,546 and $158,034,519, respectively in FTA grant assistance.
$-
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
OperatingRevenues
OperatingExpenses
Non-operatingRevenues
Debt FinancingFees
Increase in NetPosition
Statements of Revenues, Expenses and Changes in Net Position
2016
2015
$-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
GET SurchargeRevenue
Federal Grant Revenue Interest and other
Sources of Non-Operating Revenue
2016
2015
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
June 30, 2016 and 2015
9
Financial Highlights (continued) Condensed Statements of Net Position
Increase %
2016 2015 (decrease) Change
Assets
Current assetsCash and cash equivalents 94,658,680$ 293,010,823$ (198,352,143)$ -68%Receivables 167,143,549 133,672,108 33,471,441 25%Prepaid and other assets 42,955,931 27,800,740 15,155,191 55%Capital assets, net 2,259,675,220 1,708,618,647 551,056,573 32%
DEFERRED OUTFLOWS OF RESOURCES 3,253,105 2,913,149 339,956 12%
Total assets 2,567,686,485$ 2,166,015,467$ 401,671,018$ 19%
LiabilitiesCurrent liabilities 193,451,408 171,750,169$ 21,701,239$ 13%Other long-term liabilities - noncurrent 28,066,246 48,757,933 (20,691,687) -42%DEFERRED INFLOWS OF RESOURCES 968,485 1,671,889 (703,404) -42%
Total liabilities 222,486,139 222,179,991 306,148 0%
Net position 2,345,200,346 1,943,835,476 401,364,870 21%
Total liabilities and net position 2,567,686,485$ 2,166,015,467$ 401,671,018$ 19%
$-
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000
Current Assets Capital Assets, net Current Liabilities Other Long TermLiabilities
Statements of Net Position
2016
2015
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
June 30, 2016 and 2015
10
Financial Highlights (continued) Total assets at year-end FY 2016 and FY 2015 were $2,567,686,485 and $2,166,015,467, respectively. Total liabilities at year-end FY 2016 and FY 2015 were $222,486,139 and $222,179,991, respectively. Net position increased by $401,364,870 primarily due to intergovernmental revenues and federal grants. As of June 30, 2016 the overall project progress (design, utilities and construction of active contracts) is approximately 50.4% complete. Construction is approximately 43.6% complete, design is approximately 89.5% complete and utilities are approximately 45.7% complete. Approximately nine miles of the elevated guideway is up, with crews having built more than 420 columns and stressed nearly 400 spans throughout the West O’ahu/Farrington Highway and Kamehameha Highway Guideway sections. The Maintenance and Storage Facility is now substantially complete. The 43-acre site in Waipahu contains the four main buildings where the fleet of 80 rail cars will be maintained and from which the rail system will be operated and monitored. The project requires approximately 219 parcels of real property totaling approximately 14.7 million square feet. As of June 30, 2016, HART has completed acquisitions of 72 parcels totaling 10.4 million square feet.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
June 30, 2016 and 2015
11
Financial Highlights (continued) Capital Assets and Long-Term Debt As of the end of FY 2016, HART had $2,260 million invested in capital assets. This amount represents an increase (including additions and deductions) of just over $551 million, or 32%, over last year.
Increase %2016 2015 (decrease) Change
Equipment and machinery 51,132$ 68,778$ (17,646)$ -26%Land 113,504,869 91,102,437 22,402,432 25%Construction in progress 2,146,119,219 1,617,447,432 528,671,787 33%
Total 2,259,675,220$ 1,708,618,647$ 551,056,573$ 32%
HART has not issued any long-term bonds. Additional information on HART’s capital assets and long-term liabilities can be found in notes D and F to the financial statements. Risks On June 29, 2012, HART submitted the City’s request to the FTA for a Full Funding Grant Agreement (FFGA) which was awarded on December 19, 2012. The maximum Federal New Starts financial contribution under the FFGA is $1.55 billion for the Project; however the annual appropriation amounts may be reduced and appropriated over a longer period than planned. The project faces the normal risks associated with a multi-year, major construction project that includes unanticipated construction delays, cost inflation over the period of construction, and economic downturns that impact revenues. See Notes J and L for a discussion on pending litigation and the liquidity risk to the project. Request for Information This financial report is designed to provide a general overview of HART’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Honolulu Authority for Rapid Transportation, 1099 Alakea Street, Suite 1700, Honolulu, Hawaii 96813.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
STATEMENTS OF NET POSITION
June 30, 2016 and 2015
12
2016 2015
ASSETSCurrent assets:
Cash & cash equivalents 94,658,680$ 293,010,823$ Receivables 167,143,549 133,672,108 Prepaid and Other Assets 15,311,579 19,001,176 Cash Collateral Escrow Deposits Other 27,644,352 8,799,564
Total current assets 304,758,160 454,483,671 Capital assets:
Equipment and machinery 171,540 171,540 Accumulated depreciation (120,408) (102,762)
51,132 68,778 Land 113,504,869 91,102,437 Construction work in progress 2,146,119,219 1,617,447,432
Capital assets, net 2,259,675,220 1,708,618,647
Total assets 2,564,433,380 2,163,102,318
DEFERRED OUTFLOWS OF RESOURCES 3,253,105 2,913,149
Total assets and deferred outflows of resources 2,567,686,485$ 2,166,015,467$
LIABILITIESCurrent liabilities:
Accounts payable 186,224,443$ 137,921,888$ Accrued liabilities 400,211 373,203 Other long-term liabilities 6,826,754 33,455,078
Total current liabilities 193,451,408 171,750,169
Other long-term liabilities - noncurrent 28,066,246 48,757,933 Total liabilities 221,517,654 220,508,102
DEFERRED INFLOWS OF RESOURCES 968,485 1,671,889
Total liabilities and deferred inflows of resources 222,486,139 222,179,991
NET POSITIONNet investment in capital assets 2,259,675,220 1,708,618,647 Unrestricted 85,525,126 235,216,829
Total net position 2,345,200,346 1,943,835,476
Total liabilities, deferred inflows of resources, and net position 2,567,686,485$ 2,166,015,467$
The accompanying notes are an integral part of these financial statements.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
Years ended June 30, 2016 and 2015
13
2016 2015OPERATING EXPENSES
Administration and general 13,584,993$ 11,721,853$ Fringe benefits 4,364,512 4,383,253 Contractual services 465,111 357,133 Insurance 71,051 1,092,851 Materials and supplies 64,267 69,422 Depreciation 17,646 17,722 Maintenance 5,152 5,074 Utilities 4,765 83,590
Total operating expenses 18,577,497 17,730,898
Operating loss (18,577,497) (17,730,898)
NON-OPERATING REVENUES AND EXPENSESIntergovernmental revenues:
County surcharge 233,323,231 223,666,342 Federal grants 186,998,546 158,034,519
Interest income 423,639 208,245 Other revenue 179,575 364,872 Debt financing fees (982,624) -
Total nonoperating revenues & exprenses 419,942,367 382,273,978
Change in net position 401,364,870 364,543,080
Net position at beginning of year 1,943,835,476 1,579,292,396
Net position at end of year 2,345,200,346$ 1,943,835,476$
The accompanying notes are an integral part of these financial statements.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
STATEMENTS OF CASH FLOWS
Years ended June 30, 2016 and 2015
14
2016 2015
Cash flows from operating activities:Cash payments to suppliers for goods and services (5,369,608)$ (1,926,619)$ Cash payments to employees (12,514,466) (12,301,128)
Net cash used in operating activities (17,884,074) (14,227,747)
Cash flows from noncapital financing activities --Intergovernmental revenues 387,102,990 376,704,770
Net cash provided by noncapital financing activities 387,102,990 376,704,770
Cash flows from capital and related financing activities:Acquisition and construction of capital assets (490,230,171) (436,870,527) Payments for prepaid and other assets (18,934,314) (30,912,707) Payments for accrued liabilities (57,847,589) (42,902,530) Debt financing fees (982,624) -
Net cash used in capital and related financing activities (567,994,698) (510,685,764)
Cash flows from investing activities --Interest on cash and cash equivalents 423,639 208,245
Net cash provided by investing activities 423,639 208,245
NET DECREASE INCASH AND CASH EQUIVALENTS (198,352,143) (148,000,496)
Cash and cash equivalents at beginning of year 293,010,823 441,011,319
Cash and cash equivalents at end of year 94,658,680$ 293,010,823$
The accompanying notes are an integral part of these financial statements.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
STATEMENTS OF CASH FLOWS (continued)
Years ended June 30, 2016 and 2015
15
2016 2015
Reconciliation of operating loss to net cash used in operating activitiesOperating loss (18,577,497)$ (17,730,898)$ Adjustments to reconcile operating loss to
net cash used in operating activitiesDepreciation 17,646 17,722 Changes in assets and liabilities
Increase in deferred outflows of resources (339,956) (1,311,007) (Decrease) increase in deferred inflows of resources (703,404) 1,671,889 (Increase) decrease in receivables (73,079) 1,680,689 Decrease in prepaid and other assets - 1,217,390 Increase (decrease) in accounts payable 110,317 (46,782) Increase (decrease) in accrued liabilities 27,008 (19,334) Increase in other liabilities 1,654,891 292,584
Total adjustments 693,423 3,503,151
Net cash used in operating activities (17,884,074)$ (14,227,747)$
Non-cash capital financing activities:
As of June 30, 2016, accounts payable, increases in accrued liability estimates and amortization of prepaid and other assets related to construction in progress was $48,192,238, $8,872,687 and $3,779,123, respectively.
As of June 30, 2015, accounts payable, increases in accrued liability estimates and amortization of prepaid and other assets related to construction in progress was $22,415,768, $61,601,511 and $3,111,967, respectively.
The accompanying notes are an integral part of these financial statements.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
NOTES TO FINANCIAL STATEMENTS
June 30, 2016 and 2015
16
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1. Operations The Revised Charter of the City and County of Honolulu authorizes the Honolulu Authority for Rapid Transportation (HART) to develop, operate, maintain and expand the city fixed guideway system. HART is a semi-autonomous government unit of the City and County of Honolulu (City). It is a component unit of the City. HART is in the process of developing the rail transit system and has not begun revenue operations.
2. Financial Statement Presentation
The accounting policies of HART conform to accounting principles generally accepted in the United States of America as applicable to enterprise activities of governmental units, as promulgated by the Government Accounting Standards Board (GASB).
Recently Issued Accounting Pronouncements In February 2015, GASB issued Statement No. 72, Fair Value Measurement and Application. This Statement enhances the comparability of financial statements among governments by requiring measurement of certain assets and liabilities at fair value using a consistent and more detailed definition of fair value and accepted valuation techniques. The provisions of this Statement are effective for periods beginning after June 15, 2015. Management implemented the provisions of GASB 72 as of June 30, 2016. In June 2015, GASB issued Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets that are not within the Scope of GASB Statement 68, and amendments to Certain Provisions of GASB Statements 67 and 68. GASB 73 applies the accounting and financial reporting established in GASB 68 to all defined benefit and defined contribution pensions that are not within the scope of GASB 68. GASB 73 will be effective for the year ending June 30, 2017. Management has not yet determined the effect the adoption of this Statement will have on its financial statements. In June 2015, GASB issued Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, replacing Statement No. 45 Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, as amended, and Statement No. 57 OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans, for OPEB. This statement establishes new accounting and financial reporting requirements for OPEB plans. This Statement requires governments providing defined benefit OPEB plans to recognize their long-term obligation for OPEB as a liability for the first time, and to more comprehensively and comparably measure the annual cost of OPEB benefits. The provisions of this Statement are effective for periods beginning after June 15, 2017. Management has not yet determined the effect the adoption of this Statement will have on its financial statements.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2016 and 2015
17
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
2. Financial Statement Presentation (continued) In August 2015, GASB issued Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. This statement supersedes Statement No. 55, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. The objective of this Statement is to identify the hierarchy of generally accepted principles used to prepare financial statements of state and local governments. As a result, governments will apply financial reporting guidance with less variation, which will improve the usefulness of financial statements. The provisions of this Statement are effective for periods beginning after June 15, 2015. Management implemented the provisions of GASB 76 as of June 30, 2016. In March 2016, GASB issued Statement No. 82, Pension Issues – an amendment of GASB Statements No. 67, No. 68, and No. 73. The objective of this Statement is to address certain issues that have been raised with respect to Statements No. 67, Financial Reporting for Pension Plans, No. 68 and No. 73, and Amendments to Certain Provisions of GASB Statements 67 and 68. The provisions of this Statement are effective for periods beginning after June 15, 2016, except for the requirements of paragraph 7 in a circumstance in which an employer’s pension liability is measured as of a date other than the employer’s most recent fiscal year-end. In that circumstance, the requirements of paragraph 7 are effective for that employer in the first reporting period in which the measurement date of the pension liability is on or after June 15, 2017. Management has not yet determined the effect the adoption of this Statement will have on its financial statements.
3. Basis of Accounting
The accompanying financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The operating revenues of HART are the result of providing services in connection with the delivery of transportation services of the rail system, which is not yet operational. The operating expenses of HART include the cost of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2016 and 2015
18
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
4. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Specifically, management has made estimates based on assumptions for intergovernmental receivables, construction delay claims and environmental remediation liabilities. Actual results could differ from those estimates.
5. Deferred Outflows and Inflows of Resources
Deferred outflows of resources represent consumptions of net position that apply to future periods and will not be recognized as an outflow of resources (expenditures) until then. Deferred inflows represent acquisitions of net position that apply to future periods and will not be recognized as an inflow of resources (revenues). According to paragraph 33 of GASB No. 68, differences between expected and actual experience and changes in assumptions are recognized in pension expense using a systematic and rational method over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the pension plan (active and inactive employees) determined as of the beginning of the measurement period. The average of expected remaining service lives for the purposes of recognizing the applicable deferred outflows and inflows of resources established in the 2015 fiscal year is 5.5095 years. Additionally, differences between projected and actual earnings on pension plan investments are recognized in pension expense using a systematic and rational method over a closed five-year period. Contributions to the pension plan from the employer subsequent to the measurement date of the net pension liability and before the end of the reporting period are reported as deferred outflows.
6. Revenue Recognition
Revenue sources that are considered susceptible to accrual when earned include a county surcharge on the State of Hawaii’s General Excise Tax (GET) and grant assistance from the U.S. Department of Transportation’s Federal Transit Administration (FTA). GET revenue is recognized when earned. Revenues on cost reimbursement contracts are recognized when allowable and reimbursable expenses are incurred, and upon meeting the legal and contractual requirements of the funding source. No allowance for doubtful accounts was recorded as of June 30, 2016 and 2015.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2016 and 2015
19
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
7. Cash and Cash Equivalents
HART considers all cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition to be cash and cash equivalents.
8. Prepaid and Other Assets
Prepaid expenses and other assets are comprised of prepaid insurance payments and cash collateral related to HART’s construction insurance program and escrow deposits for land purchases. Prepaid insurance is amortized on a straight-line basis over various periods through August 2020. During the years ended June 30, 2016 and 2015, amortization of prepaid insurance of approximately $3,779,000 and $3,112,000, respectively was included in work in progress. At June 30, 2016, escrow deposits and cash collateral were approximately $15,472,000 and $12,172,000, respectively. At June 30, 2015, escrow deposits and cash collateral were approximately $1,587,000 and $7,213,000, respectively.
9. Capital Assets
Capital assets are generally those assets with an individual price in excess of $5,000 for equipment and machinery and $100,000 for infrastructure, buildings, and structures with a useful life of more than one year. Capital assets are stated at cost and include contributions by governmental agencies at cost or estimated value. Additions, improvements, and other capital outlays that significantly extend the useful life of an asset are capitalized. Other costs related to repairs and maintenance is expensed as incurred. Assets are depreciated over the individual asset’s estimated useful life using the straight-line method. Depreciation on both purchased and contributed assets is charged against operations Depreciation on all assets is provided for on the straight-line basis over the following estimated useful lives:
Years
Infrastructure 50-75 Buildings and improvements 30-50 Equipment and machinery 5-25 Rail vehicles 25-35
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2016 and 2015
20
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
10. Compensated Absences and Sick Leave HART accrues accumulated vacation when earned by the employee. Vacation benefits accrue at a rate of one and three-quarters working days per month. Each employee is allowed to accumulate a maximum of 90 days of accrued vacation as of the end of the calendar year (see Note F). Sick leave accumulates at the rate of one and three-quarters working days for each month. Sick leave is taken only in the event of illness and is not convertible to pay; accordingly, sick leave is not accrued in the accompanying financial statements. Employees who retire or leave government service in good standing with 60 or more unused sick leave days are entitled to an additional service credit in the retirement system. At June 30, 2016 and 2015, accumulated sick leave amounted to approximately $2,386,000 and $2,063,000, respectively.
11. Deferred Compensation Plan
All full-time employees of HART are eligible to participate in the City and County of Honolulu’s Public Employees’ Deferred Compensation Program (Plan), adopted pursuant to Internal Revenue Code Section 457. The Plan permits eligible employees to defer a portion of their salary until future years by contributing to a fund managed by a plan administrator. The deferred compensation amounts are not available to employees until termination, retirement, death, or unforeseeable emergency. A trust fund was established to protect Plan assets from claims of general creditors and from diversion to any uses other than paying benefits to participants and beneficiaries. HART’s portion of the Plan’s assets was approximately $3,190,000 and $3,497,000, respectively, and is not reported in the accompanying financial statements at June 30, 2016 and 2015, respectively.
12. Net Position
Net position comprises the various net earnings (losses) from operating and non-operating revenues, expenses and contributed capital. Net position is classified in the following two components: net investment in capital assets or unrestricted net position. Net investment in capital assets consists of capital assets, net of accumulated depreciation and reduced by outstanding debt that is attributable to the acquisition, construction, or improvement of those assets. Unrestricted net position consists of all other net position not included in net investment in capital assets.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2016 and 2015
21
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
13. Risk Management HART is exposed to various risks for losses related to torts; theft of or damage to, or destruction of assets; errors or omissions; natural disasters; and injuries to employees. A liability for a claim for a risk of loss is established if the information indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss is reasonably estimable.
14. Reclassifications Certain reclassifications were made to prior year’s financial statements to conform to the 2016 presentation. Such reclassifications had no impact on the previously reported change in net position.
15. Subsequent Events Management has evaluated subsequent events through December 16, 2016, the date on which the financial statements were available to be issued.
NOTE B - CASH AND CASH EQUIVALENTS
Cash deposited with the City is maintained by the Department of Budget and Fiscal Services of the City. The City maintains a cash and investment pool that is used by all of the City’s funds and HART. Information pertaining to the fair value, credit risk and interest rate risk is available for only the total cash and investment pool, which is disclosed in the City’s Comprehensive Annual Financial Report (CAFR) available at the City’s website: www.honolulu.gov/budget/budget-cafr.html. The respective portion of this pool is displayed in the accompanying financial statements as cash and cash equivalents. The Hawaii Revised Statutes (HRS) provide for the City’s Director of Budget and Fiscal Services to deposit the cash with any national or state bank or federally insured financial institution authorized to do business in the State of Hawaii, provided that all deposits are fully insured or collateralized with securities held by the City or its agents in the City’s name.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2016 and 2015
22
NOTE B - CASH AND CASH EQUIVALENTS (continued)
State statutes also authorize the City to invest in obligations of the U.S. Treasury and U.S. agencies, obligations of other states, cities and counties, mutual funds and bank repurchase agreements. Investments in repurchase agreements are primarily U.S. government or federal agency securities. Maturity dates for substantially all investments is less than one year.
NOTE C – RECEIVABLES
Receivables as of June 30, 2016 and 2015 were comprised of the following amounts:
2016 2015Intergovernmental
General excise tax 56,309,373$ 52,330,383$ Federal grants 110,685,195 81,265,823
166,994,568 133,596,206Other 148,981 75,902
Total receivables 167,143,549$ 133,672,108$
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2016 and 2015
23
NOTE D - CAPITAL ASSETS Capital assets activity during 2016 and 2015 were as follows:
Balance Balance July 1, 2015 Additions Deletions June 30, 2016
Equipment and machinery 171,540$ -$ -$ 171,540$ Less accumulated depreciation (102,762) (17,646) - (120,408)
68,778 (17,646) - 51,132 Land 91,102,437 22,402,432 - 113,504,869 Construction in progress 1,617,447,432 528,671,787 - 2,146,119,219
Capital assets, net 1,708,618,647$ 551,056,573$ -$ 2,259,675,220$
Balance Balance July 1, 2014 Additions Deletions June 30, 2015
Equipment and machinery 171,540$ -$ -$ 171,540$ Less accumulated depreciation (85,040) (17,722) - (102,762)
86,500 (17,722) - 68,778 Land 64,768,559 26,333,878 - 91,102,437 Construction in progress 1,119,781,537 497,665,895 - 1,617,447,432
Capital assets, net 1,184,636,596$ 523,982,051$ -$ 1,708,618,647$
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2016 and 2015
24
NOTE E - COMMITMENTS
1. Leases
HART leases office space and equipment under operating leases expiring through fiscal year 2021. The future minimum rental payments for operating leases at June 30, 2016 are approximately as follows:
Fiscal Year Annual2017 1,142,0002018 755,0002019 771,0002020 795,0002021 342,000
Total Minimum Payments 3,805,000$
Additionally, these leases provide for payment of common area charges. Equipment and office rental expenses, including common area charges, were approximately $2,317,000 and $2,172,000 for the years ended June 30, 2016 and 2015, respectively, and are included in administration and general expenses in the accompanying statements of revenues, expenses and changes in net position.
2. Other Commitments
HART has contractual commitments at June 30, 2016 of approximately $1,775,521,000. These include contracts for construction, design, and professional services.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2016 and 2015
25
NOTE F – OTHER LONG-TERM LIABILITIES
The following is a summary of changes in other long-term liabilities during the fiscal years ended June 30, 2016 and 2015:
Approximateamounts due
Balance Balance withinJuly 1, 2015 Additions Reductions June 30, 2016 one year
Accrued vacation 1,166,646$ 589,114$ 507,925$ 1,247,835$ 110,096$ Other postemployment benefits 2,099,481 581,000 195,000 2,485,481 - Delayed claims 59,695,935 2,043,312 55,022,589 6,716,658 6,716,658 Environmental remediation 4,845,000 8,849,375 4,845,000 8,849,375 - Net pension liability 14,405,949 1,187,702 - 15,593,651 -
82,213,011$ 13,250,503$ 60,570,514$ 34,893,000$ 6,826,754$
Approximateamounts due
Balance Balance withinJuly 1, 2014 Additions Reductions June 30, 2015 one year
Accrued vacation 1,043,092$ 622,708$ 499,154$ 1,166,646$ 94,128$ Other postemployment benefits 1,652,481 544,000 97,000 2,099,481 - Delayed claims 44,341,954 58,256,511 42,902,530 59,695,935 33,360,950 Environmental remediation 1,500,000 3,345,000 - 4,845,000 - Net pension liability 14,683,919 - 277,970 14,405,949 -
63,221,446$ 62,768,219$ 43,776,654$ 82,213,011$ 33,455,078$
NOTE G - EMPLOYEE BENEFIT PLANS
1. Defined Benefit Plan
Description of Plan
All eligible employees of the State and counties are provided with pensions through a cost-sharing multiple-employer defined benefit pension plan administered by the ERS. Benefit terms, eligibility, and contribution requirements are established by HRS Chapter 88 and can be amended through legislation. The ERS issues a publicly available financial report that can be obtained at ERS’s website at http://ers.ehawaii.gov/.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2016 and 2015
26
NOTE G - EMPLOYEE BENEFIT PLANS (continued)
1. Defined Benefit Plan (continued)
Benefits Provided
The ERS provides retirement, disability, and death benefits that are covered by the provisions of the noncontributory, contributory, and hybrid retirement membership classes. The three classes provide a monthly retirement allowance equal to the benefit multiplier (generally 1.25% or 2%) multiplied by the average final compensation multiplied by years of credited service. The benefit multiplier decreased by 0.25% for new hybrid and contributory plan members hired after June 30, 2012. Average final compensation is an average of the highest salaries during any 3 years of credited service, excluding any salary paid in lieu of vacation for employees hired January 1, 1971 or later and the average of the highest salaries during any five years of credited service including any salary paid in lieu of vacation for employees hired prior to January 1, 1971. For members hired before July 1, 2012, the original retirement allowance is increased by 2.5% each July 1 following the calendar year of retirement. This cumulative benefit is not compounded and increases each year by 2.5% of the original retirement allowance without a ceiling (2.5% of the original retirement allowance the first year, 5.0% the second year, 7.5% the third year, etc.). For members hired after June 30, 2012 the post-retirement annuity increase was decreased to 1.5% per year. Retirement benefits for certain groups, such as police officers, firefighters, some investigators, sewer workers, judges, and elected officials, vary from general employees.
Noncontributory Class:
Retirement Benefits
General employees’ retirement benefits are determined as 1.25% of average final compensation multiplied by the years of credited service. Employees with 10 years of credited service are eligible to retire at age 62. Employees with 30 years of credited service are eligible to retire at age 55.
Disability Benefits
Members are eligible for service-related disability benefits regardless of length of service and receive a lifetime pension of 35% of their average final compensation. Ten years of credited service is required for ordinary disability. Ordinary disability benefits are determined in the same manner as retirement benefits but are payable immediately, without an actuarial reduction, and at a minimum of 12.5% of average final compensation.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2016 and 2015
27
NOTE G - EMPLOYEE BENEFIT PLANS (continued)
1. Defined Benefit Plan (continued)
Death Benefits
For service-connected deaths, the surviving spouse/reciprocal beneficiary receives a monthly benefit of 30% of the average final compensation until remarriage or re-entry into a new reciprocal beneficiary relationship. Additional benefits are payable to surviving dependent children up to age 18. If there is no spouse/reciprocal beneficiary or dependent children, no benefit is payable. Ten years of credited service is required for ordinary death benefits. For ordinary death benefits, the surviving spouse/reciprocal beneficiary (until remarriage/reentry into a new reciprocal beneficiary relationship) and dependent children (up to age 18) receive a benefit equal to a percentage of member’s accrued maximum allowance unreduced for age or, if the member was eligible for retirement at the time of death, the surviving spouse/reciprocal beneficiary receives 100% joint and survivor lifetime pension.
Contributory Class for Employees Hired prior to July 1, 2012:
Retirement Benefits
General employees’ retirement benefits are determined as 2% of average final compensation multiplied by the years of credited service. General employees with 5 years of credited service are eligible to retire at age 55.
Disability Benefits
Members are eligible for service-related disability benefits regardless of length of service and receive a one-time payment of the member’s contributions and accrued interest plus a lifetime pension of 50% of their average final compensation. Ten years of credited service is required for ordinary disability. Ordinary disability benefits are determined as 1.75% of average final compensation multiplied by the years of credited service but are payable immediately, without an actuarial reduction, and at a minimum of 30% of average final compensation.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2016 and 2015
28
NOTE G - EMPLOYEE BENEFIT PLANS (continued)
1. Defined Benefit Plan (continued)
Death Benefits
For service-connected deaths, the designated beneficiary receives a lump sum payment of the member’s contributions and accrued interest plus a monthly benefit of 50% of the average final compensation until remarriage or re-entry into a new reciprocal beneficiary relationship. If there is no surviving spouse/reciprocal beneficiary, surviving children (up to age 18) or dependent parents are eligible for the monthly benefit. If there is no spouse/reciprocal beneficiary or dependent children/parents, the death benefit is payable to the designated beneficiary. Ordinary death benefits are available to employees who were active at time of death with at least 1 year of service. Ordinary death benefits consist of a lump sum payment of the member’s contributions and accrued interest plus a percentage of the salary earned in the 12 months preceding death, or 50% Joint and Survivor lifetime pension if the member was not eligible for retirement at the time of death but was credited with at least 10 years of service and designated one beneficiary, or 100% Joint and Survivor lifetime pension if the member was eligible for retirement at the time of death and designated one beneficiary.
Contributory Class for Employees Hired After June 30, 2012:
Retirement Benefits
General employees’ retirement benefits are determined as 1.75% of average final compensation multiplied by the years of credited service. General employees with 10 years of credited service are eligible to retire at age 60.
Disability and Death Benefits
Disability and death benefits for contributory class members hired after June 30, 2012 are generally the same as those for contributory class members hired June 30, 2012 and prior.
Hybrid Class for Employees Hired Prior to July 1, 2012:
Retirement Benefits
General employees’ retirement benefits are determined as 2% of average final compensation multiplied by the years of credited service. General employees with 5 years of credited service are eligible to retire at age 62. General employees with 30 years of credited service are eligible to retire at age 55.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2016 and 2015
29
NOTE G - EMPLOYEE BENEFIT PLANS (continued)
1. Defined Benefit Plan (continued)
Disability Benefits
Members are eligible for service-related disability benefits regardless of length of service and receive a lifetime pension of 35% of their average final compensation plus refund of their contributions and accrued interest. Ten years of credited service is required for ordinary disability. Ordinary disability benefits are determined in the same manner as retirement benefits but are payable immediately, without an actuarial reduction, and at a minimum of 25% of average final compensation.
Death Benefits
For service-connected deaths, the surviving spouse/reciprocal beneficiary receives a lump sum payment of the member’s contributions and accrued interest plus a monthly benefit of 50% of the average final compensation to the surviving spouse/reciprocal beneficiary until remarriage or re-entry into a new reciprocal beneficiary relationship. If there is no surviving spouse/reciprocal beneficiary, surviving children (up to age 18) or dependent parents are eligible for the monthly benefit. If there is no spouse/reciprocal beneficiary or dependent children/parents, the ordinary death benefit is payable to the designated beneficiary. Ordinary death benefits are available to employees who were active at time of death with at least 5 years of service. Ordinary death benefits consist of a lump sum payment of the member’s contributions and accrued interest plus a percentage multiplied by 150%, or 50% Joint and Survivor lifetime pension if the member was not eligible for retirement at the time of death but was credited with at least 10 years of service and designated one beneficiary, or 100% Joint and Survivor lifetime pension if the member was eligible for retirement at the time of death and designated one beneficiary.
Hybrid Class for Employees Hired After June 30, 2012:
Retirement Benefits
General employees’ retirement benefits are determined as 1.75% of average final compensation multiplied by the years of credited service. General employees with 10 years of credited service are eligible to retire at age 65. Employees with 30 years of credited service are eligible to retire at age 60. Sewer workers, water safety officers, and EMTs may retire with 25 years of credited service at age 55.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2016 and 2015
30
NOTE G - EMPLOYEE BENEFIT PLANS (continued)
1. Defined Benefit Plan (continued)
Disability and Death Benefits
Provisions for disability and death benefits generally remain the same except for ordinary death benefits. Ordinary death benefits are available to employees who were active at time of death with at least 10 years of service. Ordinary death benefits consist of a lump sum payment of the member’s contributions and accrued interest plus a percentage multiplied by 120%, or 50% Joint and Survivor lifetime pension if the member was not eligible for retirement at the time of death but was credited with at least 10 years of service and designated one beneficiary, or 100% Joint and Survivor lifetime pension if the member was eligible for retirement at the time of death and designated one beneficiary or if less than 10 years of service, return of member’s contributions and accrued interest.
Contributions
Contributions are established by HRS Chapter 88 and may be amended through legislation. The employer rate is set by statute based on the recommendations of the ERS actuary resulting from an experience study conducted every five years. Since July 1, 2005, the employer contribution rate is a fixed percentage of compensation, including the normal cost plus amounts required to pay for the unfunded actuarial accrued liabilities. The HART’s contributions requirements as of June 30, 2016, 2015 were approximately $1,385,000 and $1,279,000, respectively. The contribution rate was 17.00 and 16.50 percent for the years ended June 30, 2016 and 2015, respectively. The employer is required to make all contributions for members in the noncontributory plan. For contributory class employees hired prior to July 1, 2012, general employees are required to contribute 7.8% of their salary. For contributory class employees hired after June 30, 2012 are required to contribute 9.8% of their salary. Hybrid members hired prior July 1, 2012 are required to contribute 6.0% of their salary. Hybrid members hired after June 30, 2012 are required to contribute 8.0% of their salary. Pension Liabilities, Pension Expense, and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
At June 30, 2016 and 2015, HART reported a liability of approximately $15.6 million and $14.4 million, respectively for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2015 and 2014, respectively, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. HART’s proportion of the net pension liability was based on a projection of HART’s long-term share of contributions to the pension plan relative to the projected contributions of all participating members of ERS, actuarially determined. At June 30, 2015, HART’s proportionate share was .178% which was a decrease of 0.001% from its proportionate share measured as of June 30, 2014. At June 30, 2014, HART’s proportionate share was .179% which was an increase of .02% from its proportionate share measured as of June 30, 2013
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2016 and 2015
31
NOTE G - EMPLOYEE BENEFIT PLANS (continued)
1. Defined Benefit Plan (continued)
There were no changes in other assumptions and inputs that affected the measurement of the total pension liability since the prior measurement date. There were no changes between the measurement date, June 30, 2015 and the reporting date, June 30, 2016 that are expected to have a significant effect on the proportionate share of the net pension liability. For the fiscal years ended June 30, 2016 and 2015, HART recognized pension expense of approximately $2,015,000 and $1,862,000, respectively. At June 30, 2016, HART reported deferred outflows and inflows of resources related to pensions from the following sources:
DeferredOutflows ofResources
DeferredInflows ofResources
Differences between expected and actual experience 146,054$ 436,379$ Net difference between projected and actual earnings on pension plan investments - 532,106 Changes of assumptions 368,095 - Changes in proportion and differences between HART contributions and proportionate share of contributions 867,980 - HART contributions subsequent to the measurement date 1,870,976 -
Total 3,253,105$ 968,485$
At June 30, 2015, HART reported deferred outflows and inflows of resources related to pensions from the following sources:
DeferredOutflows ofResources
DeferredInflows ofResources
Differences between expected and actual experience 183,192$ -$ Net difference between projected and actual earnings on pension plan investments - 1,671,889 Changes in proportion and differences between HART contributions and proportionate share of contributions 950,760 - HART contributions subsequent to the measurement date 1,779,197 -
Total 2,913,149$ 1,671,889$
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2016 and 2015
32
NOTE G - EMPLOYEE BENEFIT PLANS (continued) 1. Defined Benefit Plan (continued)
$1.87 million reported as deferred outflows of resources related to pensions at June 30, 2016 resulting from HART contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2017. Other amounts reported as deferred outflows and inflows of resources related to pension will be recognized in pension expense as follows:
Years ending June 30:
2016 $ 10,546 2017 10,546 2018 10,546 2019 2020
376,537 5,469
$ 413,644
Actuarial Assumptions
The total pension liability in the June 30, 2015 and 2014 actuarial valuations were determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 3.00%
Projected Salary Increases, including inflation 4.00% to 8.00%
Investment Rate of Return, including inflation 7.65% and 7.75%, respectively
Payroll Growth Rate 3.50%
The same rates were applied to all periods. There were no changes to ad hoc postemployment benefits including COLA. Post-retirement mortality rates are based on Client Specific Tables and the 1994 US Group Annuity Mortality Statistic Tables for police and firefighters. Pre-retirement mortality rates are based on the RP-2000 tables. The actuarial assumptions used in the June 30, 2015 and 2014 valuations were based on the results of an actuarial experience study for the five year period ended June 30, 2010. As a result of the 2010 actuarial experience study, the expectation of life after disability was adjusted in the June 30, 2010 actuarial valuation to more closely reflect actual experience. ERS updates their experience study every five years.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2016 and 2015
33
NOTE G - EMPLOYEE BENEFIT PLANS (continued) 1. Defined Benefit Plan (continued)
The discount rate used to measure the net pension liability at June 30, 2016 and 2015 was 7.65% and 7.75%, respectively. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at statutorily required rates, actuarially determined. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
The following presents HART’s proportionate share of the net pension liability calculated using the single discount rate of 7.65%, as well as what HART’s proportionate share of the net pension liability would be if it were calculated using a single discount rate that is 1-percentage point lower or 1-percentage-point higher than the current rates:
1 percent
Decrease (6.65%)
Current Discount
Rate (7.65%)
1 percent Increase (8.65%)
HART’s proportionate share of the net pension liability $ 19,631,869 $ 15,593,651 $ 11,555,433
The long-term expected rate of return on pension plan investments was determined using a “top down approach” of the Bespoke Client-Constrained Simulation-based Optimization Model (a statistical technique known as “re-sampling with replacement” that directly keys in on specific plan-level risk factors as stipulated by the ERS Board) in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2016 and 2015
34
NOTE G - EMPLOYEE BENEFIT PLANS (continued) 1. Defined Benefit Plan (continued)
The target allocation and best estimates of arithmetic real rates of return for each major asset class used in the actuarial valuation as of June 30, 2015 and 2014 valuations are summarized in the following table:
Long – Term Expected Real Rate
of Return
Asset Class
Long-Term Target
Allocation
2015 2014
Domestic equity 30% 8.5% 8.5% International equity 26 9.3 9.0 Fixed income 20 3.1 3.1 Real estate 7* 9.2 8.5 Private equity 7* 11.9 11.8 Real return 5* 6.7 6.1 Covered calls 5 7.7 7.7
Total 100%
*The real estate, private equity, and real return targets will be the percent age actually invested up to 7%, 7%, and 5%, respectively, of the total fund. Changes in the real estate, private equity, and real return targets will be offset by an equal percentage change in the large cap domestic equity target.
Pension plan fiduciary net position
The pension plan’s fiduciary net position is determined on the same basis used by the pension plan. The ERS financial statements are prepared using the accrual basis of accounting under which expenses are recorded when the liability is incurred, and revenues are recorded in the accounting period in which they are earned and become measurable. Employer and member contributions are recognized in the period in which the contributions are due. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Investment purchases and sales are recorded as of their trade date. Administrative expenses are financed exclusively with investment income. There were no significant changes after the report measurement date. Detailed information about the pension plan’s fiduciary net position is available in the separately issued ERS financial report. ERS’s complete financial statements are available at http://www.ers.ehawaii.gov.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2016 and 2015
35
NOTE G - EMPLOYEE BENEFIT PLANS (continued) 1. Defined Benefit Plan (continued)
Payables to the Pension Plan
As of June 30, 2016 and 2015, HART had no payable to ERS.
2. Post-Retirement Health Care and Life Insurance Benefits The HART provides certain other postemployment benefits (OPEB) other than pensions to all qualified employees. Pursuant to Chapter 87A of the HRS, the HART contributes to the Hawaii Employer-Union Health Benefits Trust Fund (EUTF) an agent multi-employer defined benefit plan. The EUTF was established to provide a single delivery system of health benefits for state and county workers, retirees and their dependents. The EUTF currently provides medical, dental, vision, and life insurance benefits. The EUTF issues an annual financial report that is available to the public. That report may be obtained by writing to the EUTF at 201 Merchant Street, Suite 1520, Honolulu, Hawaii 96813.
Eligibility
For employees hired before July 1, 1996, the HART pays 100% of the monthly health care premium for employees retiring with 10 or more years of credited service, and 50% of the monthly premium for employees retiring with fewer than 10 years of credited service.
For employees hired after June 30, 1996 and retiring with 25 years or more of service, the HART pays the entire health care premium. For employees retiring with at least 15 years of service but fewer than 25 years of service, the HART pays 75% of the monthly Medicare or non-Medicare premium. For those retiring with at least 10 years but less than 15 years of service, the HART pays 50% of the retired employees’ monthly Medicare or non-Medicare premium. For those retiring with less than 10 years of service, the HART makes no contributions.
For employees hired after June 30, 2001 and retiring with over 25 years of service, the HART will pay 100% of the monthly premium based on the self- plan. For those who retire with at least 15 years but fewer than 25 years of service, the HART will pay 75% of the retired employees’ monthly Medicare or non-Medicare premium based on the self- plan. For those retiring with at least 10 years but fewer than 15 years of service, the HART pays 50% of the retired employees’ monthly Medicare or non-Medicare premium based on the self- plan. For those with fewer than 10 years of service, the HART makes no contributions.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2016 and 2015
36
NOTE G - EMPLOYEE BENEFIT PLANS (continued) 2. Post-Retirement Health Care and Life Insurance Benefits (continued)
The HART also reimburses 100% of Medicare premium costs for retirees and qualified dependents (through the State), who are at least 65 years of age and have at least 10 years of service.
For active employees, the employer’s contributions are based upon negotiated collective bargaining agreements. Employer contributions for employees not covered by collective bargaining agreements and for retirees are prescribed by the HRS. The HART is required to contribute the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liabilities over 30 years.
Annual OPEB Cost
The following table displays for the years ended June 30, 2016, 2015 and 2014, the components of the annual OPEB cost, the amount actually contributed to the plan, the changes to the net OPEB obligation, and the percentage of annual OPEB cost contributed:
FY2016 FY2015 FY2014Annual required contribution 551,000$ 546,000$ 306,000$ Interest on net OPEB obligation 151,000 55,000 34,000 Adjustment to annual required contribution (121,000) (43,000) (27,000)
Annual OPEB cost 581,000 558,000 313,000 Contribution made (262,000) (144,000) -
Increase in net OPEB obligation 319,000 414,000 313,000 Net OPEB obligation - beginning of year 2,112,000 1,698,000 1,385,000
Net OPEB obligation - end of year 2,431,000$ 2,112,000$ 1,698,000$
Percentage of annual OPEB cost contributed 45% 18.0% 0%
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2016 and 2015
37
NOTE G - EMPLOYEE BENEFIT PLANS (continued) 2. Post-Retirement Health Care and Life Insurance Benefits (continued)
Funded Status and Funding Progress
The following is the schedule of the funded status and funding progress of the plan as of the most recent actuarial valuation date, that are, July 1, 2015, July 1, 2013 and July 1, 2011:
July 1, 2015 July 1, 2013 July 1, 2011
Actuarial accrued liability 4,627,000$ 3,413,000$ 1,964,000$ Actuarial value of plan assets 95,000 9,000 -
Unfunded actuarial accrued liability (UAAL) 4,532,000$ 3,404,000$ 1,964,000$
Funded ratio 2.1% 0.3% 0.0%
Covered payroll (active plan members) 7,659,000$ 6,760,000$ 5,385,000$
UAAL as a percentage of covered payroll 59.2% 50.4% 36.5%
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. On July 3, 2013, the Governor signed into law Act 268, SLH of 2013. Act 268 requires the EUTF to establish and administer separate trust accounts for each public employer for the purpose of receiving irrevocable employer contributions to prefund post-employment health and other benefit costs for retirees and their beneficiaries. It establishes the Hawaii EUTF Trust Fund Task Force to examine further steps to address the unfunded liability and requires all public employers to make annual required contributions effective fiscal year 2014. Commencing fiscal year 2019, the annual public employer contribution shall be equal to the annual required contribution, as determined by an actuary retained by the EUTF board.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2016 and 2015
38
NOTE G - EMPLOYEE BENEFIT PLANS (continued) 2. Post-Retirement Health Care and Life Insurance Benefits (continued)
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the most recent actuarial valuation, dated as of July 1, 2015, the entry age normal actuarial cost method was used. The actuarial assumptions included a discount rate of 7.0%, which was based on EUTF’s anticipated asset investment return and the HART’s anticipated funding level. Actuarial assumptions also included an annual health cost trend rate for PPO plans of 9.0% for 2016, declining to a rate of 5% after 8 years, and HMO plans of 7.0% for 2016, declining to a rate of 5% after 8 years; expected payroll increases of 3.5% to amortize unfunded liabilities, projected salary increases based on the ERS July 1, 2013 assumptions to determine the actuarial accrued liability, and an inflation rate of 3.0%. The unfunded actuarial accrued liability is being amortized over a 30 year closed period as a level percentage of projected payrolls.
The EUTF issues a stand-alone financial report that includes financial statements and required supplementary information, which may be obtained at the following address: State of Hawaii Employer-Union Health Benefits Trust Fund, 201 Merchant Street, Suite 1520, Honolulu, Hawaii 96813.
NOTE H - RELATED PARTY TRANSACTIONS
1. Intergovernmental Revenues and Federal Grants During the year ended June 30, 2016 and 2015, the HART recognized intergovernmental revenues of $233,323,231 and $223,666,342, respectively, from the General Excise Tax (GET) county surcharge and $186,998,546 and $158,034,519, respectively, in FTA grant assistance.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2016 and 2015
39
NOTE H - RELATED PARTY TRANSACTIONS (continued)
2. Central Administrative Services Expense Fee
HART has an agreement with the City to pay a Central Administrative Services Expense (CASE) fee for treasury, personnel, purchasing, legal, and other services that the City provides to HART on an on-going basis. CASE fees totaled $851,286 and $621,389 for the years ended June 30, 2016 and 2015, respectively, and is included as part of administration and general expense in the statements of revenues, expenses and changes in net position.
3. Debt Financing Fees
HART has entered into an agreement with the City for the issuance of general obligation bonds, general obligation commercial paper and other forms of general obligation indebtedness. As part of the agreement HART must immediately reimburse the City for any fees that are incurred for the issuance of such indebtedness. For the year ended June 30, 2016, debt financing fees totaled $982,624. See NOTE M – DEBT FINANCING for additional information.
NOTE I – DELAY CLAIM COSTS
As of June 30, 2016 and 2015, HART has recorded approximately $7 million and $60 million, respectively, related to delayed claims resulting from the HonoluluTraffic.com, et. al. v. Federal Transit Administration, et. al. and the Kaleikini v. Formby et al. cases which were settled in fiscal year 2014. These amounts have been included in other long-term liabilities in the accompanying statements of net position.
NOTE J – LITIGATION
On September 8, 2015, a complaint was filed against the City, seeking a declaration that certain votes by the City Council were invalid due to the nondisclosure of alleged conflicts of interest by various Councilmembers, and that therefore the laws resulting from those votes are void and unenforceable. The lawsuit also asks that the City be enjoined from enforcing or continuing to provide funding for the laws in question, until such time as the laws are ratified in accordance with orders of the court. The votes in question relate to ordinances or resolutions that the City Council approved with regard to the Honolulu Rail Transit Project, related issuance and sale of general obligation bond and bond anticipation notes, and real property transfers. An amended complaint was filed on November 6, 2015. The case was dismissed by the State Circuit Court with Final Judgment filed on April 1, 2016. However, plaintiff filed a Notice of Appeal on April 28, 2016, and the matter is scheduled to be fully briefed to the intermediate Court of Appeals.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2016 and 2015
40
NOTE K - ENVIRONMENTAL ISSUES
HART is currently aware of soil contamination at various sites that it has acquired. Based on preliminary studies, HART has determined that as of June 30, 2016 and 2015, the current total estimated costs for remediation are approximately $8.8 million and $4.8 million, respectively. These amounts are included in other long-term liabilities in the accompanying statements of net position. The increase of approximately $4.0 million has been included in land and work in progress in the accompanying statements of net position.
NOTE L – LIQUIDITY RISK
To date, construction costs for project have been higher than budgeted and HART anticipates that construction costs for the remaining phases of the project may exceed budgeted amounts as well. As a result, HART currently anticipates that the total project costs will exceed the current budget of $6.8 billion (all budget and project information discussed in the note is unaudited).
A project update conducted by the FTA in June 2016 indicated that there was a high probability that the project cost, excluding finance costs, would be approximately $7.6 billion and take until the end of 2024 to complete. However, HART currently estimates construction cost of $8.165 billion, excluding finance cost, and completion in 2025. As such, HART and the City and County are currently analyzing and updating the project scope, cost, and schedule estimates and developing a recovery plan to be submitted to the FTA by April 30, 2017. HART and the City and County have requested an extension of the submission date for the recovery plan from the FTA in order to enable them to explore their options (including possible legislative actions) more fully.
Options being considered to address the anticipated budget shortfalls include (i) seeking an extension of the general excise and use tax surcharge from the State legislature, (ii) developing additional sources of governmental funding and/or public/private partnerships (e.g., transit oriented development) to complete the current project scope, and (iii) making modifications to the scope of certain project components (e.g., reducing the number or changing the configuration of stations).
While HART currently has funding of $6.8 billion to complete a system to the downtown Honolulu area, The HART Board of Directors and key policymakers including the Mayor and City Council Chair are planning to pursue seeking additional project funding during the next Legislative Session in 2017 in order to be able to complete the originally planned system to Ala Moana Center.
Based on discussions with the FTA to date, should additional funding to complete the system to Ala Moana not materialize, the FTA will require that HART and the City & County of Honolulu complete a system to downtown Honolulu with the current level of funding on the project, currently estimated at $6.8 billion.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2016 and 2015
41
NOTE L – LIQUIDITY RISK (continued)
HART has received a total of $622 million of federal funds for the project, of which $569 million was received as of June 30, 2016 and $53 million was received subsequent to year end.
NOTE M – DEBT FINANCING In May 2015, HART entered into a Memorandum of Understanding (MOU) with the City which details the terms and conditions for the issuance of general obligation bonds, general obligation commercial paper notes or any other form of general obligation indebtedness to be used for the completion of the Honolulu Rail Transit Project (HRTP).
In November 2015, the HART Board of Directors adopted Resolution 2015-85 requesting approval and authorization from the Honolulu City Council for the issuance and sale of commercial paper in an aggregate principal amount not to exceed $350 million. The City Council also approved Bill 73 (2015) CD1 and adopted Resolution 15-314 to authorize the issuance, sale and use of proceeds of General Obligation Bonds for the payment of costs of public improvements, including equipment, relating to the HRTP, as well as the payment, refunding, or refinancing of the HRTP commercial paper. In December 2015 the City, as part of the City and County of Honolulu General Obligation Bond Program began the process of executing Tax Exempt Commercial Paper (TECP) closing documents for the sale of commercial paper and subsequent funding to HART. In September, October and December 2016 HART requested and received TECP funds totaling $90 million leaving an available TECP balance of $260 million.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2016 and 2015
42
NOTE N – SUBEQUENT EVENTS
On August 18, 2016, HART Executive Director and CEO Daniel A. Grabauskas resigned from his position with the authority. The HART Board of Directors appointed Michael D. Formby, Director of the City and County’s Department of Transportation Services and a current HART board member, as Acting Executive Director, and appointed a committee to begin searching for qualified candidates to fill the Executive Director and CEO position on a permanent basis.
On October 27, 2016, the HART Board appointed Krishniah Murthy to be the Interim Executive Director/Chief Executive Officer, effective December 5, 2016.
On November 8, 2016, voters of the City approved an amendment to the City Charter (Amendment 4). Amendment 4 established the operations and maintenance (O&M) of the city-owned multi-modal transportation system under the unified responsibility of the director of transportation. Any O&M contracts or personnel under the authority of HART will be transferred to the Department of Transportation Services (DTS) on July 1, 2017. DTS will be solely responsible for integration and coordination of public transit services. The Transportation Commission will be repealed, and a Rate Commission will be created to review and provide recommendations at least annually regarding adjustments needed in fares, rates, and tariffs. The responsibilities of the HART Board will be amended to include determining the policies for approval of certain agreements with the federal, public or private entities.
43
PART II
REQUIRED SUPPLEMENTARY INFORMATION
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
SCHEDULE OF THE HART’S PROPORTIONATE SHARE OF THE NET PENSION LIABLILITY
LAST 10 FISCAL YEARS
44
Proportion of Net Pension Liability
Proportionate Share of the Net
Pension Liability
Covered Payroll
Proportionate share of the net pension liability as a percentage of its covered
payroll
Plan fiduciary net position as a percentage of
the total pension liability
Year Ended June 30,2016 0.1786% 15,593,651$ 7,752,863$ 201.13% 62.42%2015 0.1797% 14,405,949 7,301,318 197.31% 63.92%2014 0.1644% 14,683,919 6,231,742 235.63% 57.96%2006 - 2013*
* Information for this period is not available. The table will be compiled prospectively.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
SCHEDULE OF THE HART’S CONTRIBUTIONS
LAST 10 FISCAL YEARS
45
Statutorily Required
Contribution
Contributions in Relation to the Statutorily
Required Contributions
Contribution (Excess)
DeficiencyCovered Payroll
Contributions as a
Percentage of Covered Payroll
Year Ended June 30,2016 1,348,680$ 1,384,778$ (36,098)$ 7,933,409$ 17.46%2015 1,279,222 1,305,429 (26,207) 7,752,863 16.84%2014 1,168,211 1,235,699 (67,488) 7,301,318 16.92%2013 965,920 1,049,223 (83,303) 6,231,742 16.84%2005 - 2012*
* Information for this period is not available. The table will be compiled prospectively.
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
NOTES TO THE SCHEDULE OF THE HART’S PROPORTIONATE SHARE OF THE NET
PENSION LIABILITY
LAST 10 FISCAL YEARS
46
Contribution rates are a percentage of pensionable payroll and are set by statute based on the recommendation of the ERS actuary. Act 256/2007 established contribution rates beginning July 1, 2008 through June 30, 2012. Act 163/2011 established new contribution rates beginning July 1, 2012 through July 1, 2015. Contribution rates by year are as follows:
Act 152/2012 amended the definition of compensation for new employees hired after June 30, 2012 for the purpose of pension benefit calculations. Compensation is defined as normal periodic payments and does not include overtime, supplemental payments, bonuses, lump sum salary differentials and other types of differentials. For employees hired prior to July 1, 2012 compensation includes overtime, supplemental payments, bonuses and other types of differentials for the purpose of pension benefit calculations.
Act 153/2012 requires employers to pay additional contributions for those employees who retire on or after July 1, 2012 with significant “non-base pay” increases in the three or five years used to calculate their average final compensation and maximum retirement allowances. The amount is determined by comparing the maximum retirement allowance that would have been received without the significant non-base pay increase to the actual maximum allowance. These amounts are assessed, on a fiscal year basis, for all retirees meeting the criteria during the previous fiscal year.
Effective Starting
Police and Fire
General Employees
July 1, 2015 25.0% 17.0% July 1, 2014 24.0% 16.5% July 1, 2013 23.0% 16.0% July 1, 2012 22.0% 15.5% July 1, 2011 19.7% 15.0%
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
SCHEDULE OF FUNDING PROGRESS FOR
HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND
June 30, 2016
47
Actuarial UAAL as aActuarial Actuarial accrued Unfunded percentagevaluation value liability AAL Funded Covered of covered
date of assets (AAL) (UAAL) ratio payroll payroll
July 1, 2015 95,000$ 4,627,000$ 4,532,000$ 2.1% 7,659,000$ 59.2%
July 1, 2013 9,000 3,413,000 3,404,000 0.3% 6,760,000 50.4%
July 1, 2011 - 1,964,000 1,964,000 0.0% 5,385,000 36.5%
48
PART III
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
A Hawaii Limited Liability Partnership
49 1003 Bishop Street Suite 2400 Honolulu, HI 96813 Telephone: 808-526-2255 Fax: 808-536-5817 www.kmhllp.com
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Honolulu Authority for Rapid Transportation (HART), as of and for the year ended June 30 2016, and the related notes to the financial statements, which collectively comprise HART’s basic financial statements, and have issued our report thereon dated December 16, 2016.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered HART's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of HART’s internal control. Accordingly, we do not express an opinion on the effectiveness of HART’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters
As part of obtaining reasonable assurance about whether HART's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed an instance of noncompliance or other matters that is required to be reported under Government Auditing Standards and which is described in the accompanying schedule of findings as item 2016-01.
PKF Pacific Hawaii LLP Accountants & Business Advisors
50
HART’s Response to Finding
HART’s response to the finding identified in our audit is described in the accompanying response of the affected agency. HART’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
KMH LLP Honolulu, Hawaii December 16, 2016
51
PART IV
SCHEDULE OF FINDINGS
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
Schedule of Findings
June 30, 2016
52
Finding No.: 2016-01 Timely Submission of Weekly Payroll Information Type of Finding: Non-Compliance with Grant Agreements Criteria: 29 CFR Subtitle A section 5.5 states that the contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to the appropriate federal agency if the agency is a party to the contract, but if the agency is not such a party, the contractor will submit the payrolls to the applicant, sponsor, or owner, as the case may be, for transmission to the appropriate federal agency. The payrolls submitted shall set out accurately and completely all of the information required to be maintained under 29 CFR 5.5(a)(3)(i), except that full social security numbers and home addresses shall not be included on weekly transmittals. Instead the payrolls shall only need to include an individually identifying number for each employee (e.g., the last four digits of the employee's social security number). The required weekly payroll information may be submitted in any form desired. The prime contractor is responsible for the submission of copies of payrolls by all subcontractors. Condition: During our audit, we noted that the HART had not been diligent in requiring prime contractors to submit weekly payroll information within the required timeframe. Cause: In prior year’s audit, we noted that the HART had established policies and procedures to ensure contractors submit weekly payroll information within the required timeframe; however, in practice, the HART allowed prime contractors to aggregate several weeks of payroll information and submit that information in batches at various intervals during the period. As of result of the non-compliance noted in prior year’s audit, the HART, in March 2016, took corrective action to address the aforementioned non-compliance which included revising its policies and procedures and hiring personnel to monitor and follow up with contractors. However, given the timing of the corrective action, the effects of the HART’s prior practices were reflected in the current year testing results through the date of the correction action. Context: We tested 60 payroll submissions for testing and noted the following:
Prior to March 2016 - 40 selections were made with 26 instances where certified payrolls were not submitted with 7 days (weekly) of the pay period end date.
Subsequent to March 2016 – 20 selections were made with 6 instances where certified payrolls were not submitted with 7 days (weekly) of the pay period end date.
Effect: Failure to provide weekly payroll information within the required timeframe resulted in non-compliance with the program requirements. Recommendation: We recommend the HART diligently and consistently follow its policies and procedures to ensure compliance.
PKF Pacific Hawaii LLP Accountants & Business Advisors
53
PART V
RESPONSE OF THE AFFECTED AGENCY
Honolulu Authority for Rapid Transportation (a component unit of the City and County of Honolulu)
Response of Affected Agency
June 30, 2016
54
FINDING 2016-01 – Timely Submission of Weekly Payroll Information Response of Management Since March of 2016, HART has added staff and put together policies and procedures to monitor weekly payroll submissions. All submittals are reviewed for accuracy and timeliness. If a discrepancy is found the contractor is notified, via the HART Project Manager, and informed that failure to provide weekly payroll information within 7 days of the pay period end date is unacceptable. The contractor is also informed of the possible federal, state and contractual sanctions. The contractor is clearly informed that a formal complaint has serious consequences and is not the preferred solution. The contractor is told to correct their deficiencies immediately and submit future certified payrolls within the seven day requirement. In the newer contracts the primes and subcontractors submit their payrolls electronically through the LCPtracker software program. This allows simultaneous submittals and greatly enhances the process. HART will continue to closely monitor the payroll submittals, identify the deficiencies and promptly and notify the contractors of the unacceptability of the late submission working toward our goal of complete compliance.
ATTACHMENT B
Right-of-Way Status Update January 19, 2017
Meeting our Goals Balance respect for property owner with schedule
needs and project budget
Balance responsibility of staying within the budget in a changing real estate market
Continue to communicate and educate effectively
Negotiate fairly
Meet requirements of the Uniform Act
AGS – Airport Guideway & Stations as of 12/1/2016
Notice to Proceed date : 12/1/2016
Current No. of Parcels Needed for AGS – 50 Tax Map Keys
No. of Parcels with Construction Access – 44 Tax Map Keys
44 TMKs
0
5
10
15
20
25
30
35
40
45
50
88%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dillingham Corridor CCGS – City Center Guideway & Stations
as of 12/1/2016
Current No. of Parcels Needed from Dillingham Station-Iwilei Station – 31 Tax Map Keys
No. of Parcels with Construction Access – 20 Tax Map Keys
Current No. of Parcels Needed from Downtown Station - Ala-Moana Station - 94 Tax Map Keys
No. of Parcels with Construction Access – 33 Tax Map Keys
Downtown / Ala-Moana Corridor CCGS – City Center Guideway & Stations
as of 12/1/2016
Right-of-Way Cost Estimate Update as of 12/1/2016
Notes: Administrative overhead costs aggregated with the Acquisition and Relocation numbers Estimate to completion based on offers, appraisals or assessed values
Baseline Budget Expended
Remaining Budget Balance
Estimate to Completion Forecast Variance
Acquisition $201.70 $93.00 $108.70 $95.60 $13.10 Relocation $20.50 $16.00 $4.50 $10.50 ($6.00)
Total (Million) $222.20 $109.00 $113.20 $106.10 $7.10
ATTACHMENT C
HART Board Construction and Traffic Update
January 19, 2017
West Oahu-Farrington Guideway (Kapolei to Pearl Highlands), Kiewit Infrastructure West Co.
97 % Complete. Contract Completion: March 2017
KIWC/HART Punch Lists Total: 110 remaining out of 3707 items
LCC-installation of elements and system wide duct banks continue
Shim replacement will start this month, full tendon report will be submitted to HART by end of January
West Oahu Stations Group (East Kapolei, UH West Oahu and Ho’opili), Nan, Inc.
12% Complete. Contract Completion March 2018; anticipated to be August 2018
Ho’opili formwork of the box girder continues. TCCR walls and roof panels installed.
East Kapolei 18 drill shafts drilled and poured; 7 remaining out of 25
UHWO west entrance building grade walls poured. TCCR Slab poured.
Farrington Highway Stations Group (West Loch, Waipahu Transit Center and LCC),
Hawaiian Dredging Construction Co.
4% Complete. Contract Completion: January 2018; anticipated to be October 2018
WLO: Concrete at drilled shafts are being cut and chipped to correct elevation, placed TPSS foundation and installed negative and positive power conduits, installation of falsework for box girder construction is underway
WTC – no work LCC – Survey work and installation of construction fencing scheduled for mid-January
Kamehameha Highway Guideway (Pearl Highlands to Stadium), Kiewit Infrastructure West Co.
85% Complete. Contract Completion: May 2017
Final span set on December 22, 2016
80% of trackwork has been installed
H2R2 Ramp, Royal Contracting Co.
32% Complete. Contract Completion: October 2016 Forecast Completion: June 2017
Final retaining wall foundations have all been poured. Four sections of the vertical retaining wall have been poured. Reinforced jacket over new 24” drain poured.
Kamehameha Highway Stations Group (Pearl Highlands, Pearlridge and Aloha Stadium), Nan, Inc.
5% Complete. Contract Completion: May 2019
Sheet piles 98% complete
Method shaft work complete. Work to start on drill load shaft next.
Waiawa Stream BMP maintenance, site perimeter locations, and stream diversion work 95% complete
Pearlridge Station soil investigation encountered oil sheen
Working on finalizing access at Aloha Stadium Station.
Maintenance and Storage Facility, Kiewit-Kobayashi Joint Venture
99.9% Complete. Substantial Completion issued July 2, 2016 Final Acceptance: March 1, 2017
Punch List Total: 3 remaining out of 2693
Commissioning and testing of wheel press, wheel lathe, and buffer stop ongoing and commissioning and training of in-ground lifts and portable lifts completed.
MSF reviewing as-built drawings; resubmitted for the following: mass grading, track & system, OSB building finishes, MOW building finishes, train wash facility, and wheel truing facility.
Core Systems, Ansaldo Honolulu Joint Venture
40 % Complete. Vehicles and Core Systems Contract Completion: March 2019
Projected Completion: October 2025
MSF activities 63% complete; anticipated completion of TPSS and Signaling field work by end of June 2017
Hitachi continues to work with HART in regards to the aluminum extrusion material defect in the car shell underframe assembly
All eight train 1 provisional trucks have been replaced
Train 2 is 95% complete and will be ready to ship in March 2017
Pearl Highlands Transit Center and Parking Garage
Solicitation in preparation
Airport Utilities Construction, Nan, Inc.
Contract Completion: October 7, 2016
Ongoing document closeout process
On-call contractor providing additional utility relocations
Airport Guideway and Stations (Aloha Stadium to Middle Street)
NTP given to Shimmick/Traylor/Granite Joint Venture on December 1, 2016
Contractor mobilizing team and submitting management documents
Kamehameha Highway in Aiea
Kamehameha Highway
• Various daytime lane closures for utility relocation work through February 2017
Rad
ford
Dr.
Stay Connected Weekly Traffic Advisories
Weekly e-Blast
Website and Social Media
Public Access Television Program
HART Rapid Response:
24-Hour Project Hotline number 808-566-2299
Email Inquiries:
Website Inquiries
ATTACHMENT D
HONOLULU RAIL TRANSIT PROJECT
December 2016 MONTHLY PROGRESS REPORT
www.HonoluluTransit.org
HonoluluRailTransitProjectMonthlyProgressReport December2016
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THIRD PARTY DISCLAIMER This report and all subsidiary reports are prepared for the Federal Transit Administration (FTA). This report should not be relied upon by any party, except the FTA or HART, in accordance with the purposes as described below. For projects funded through the FTA Full Funding Grant Agreements (FFGAs) program, the FTA and its Project Management Oversight Contractor (PMOC) use a risk‐based assessment process to review and validate a project sponsor’s budget and schedule. This risk‐based assessment process is a tool for analyzing project development and management. Moreover, the assessment process is iterative in nature; any results of an FTA or PMOC risk‐based assessment represent a “snapshot in time” for a particular project under the conditions known at that same point in time. The status of any assessment may be altered at any time by new information, changes in circumstances, or further developments in the project, including any specific measures a sponsor may take to mitigate the risks to project costs, budget, and schedule, or the strategy a sponsor may develop for project execution. Therefore, the information in the monthly reports will change from month to month, based on relevant factors for the month and/or previous months.
REPORT FORMAT AND FOCUS This report is submitted in compliance with the terms of FTA Contract No. DTFT60‐09‐D‐00012, Task Order No. 2. Its purpose is to provide information and data to assist the FTA as it continually monitors the grantee’s technical capability and capacity to execute a project efficiently and effectively, and hence, whether the grantee continues to be ready to receive federal funds for further project development. This report covers the project and quality management activities on the Honolulu Rail Transit Project managed by the Honolulu Authority for Rapid Transportation (HART) with HART as the grantee and partially financed by the FTA FFGA. ON THE COVER: Left: Guideway along Kamehameha Highway looking town bound. Upper right: Kamehameha Highway Guideway along Kamehameha Highway near Aloha Stadium. Lower right: Guideway construction near Aloha Stadium.
HonoluluRailTransitProjectMonthlyProgressReport December2016
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TABLE OF CONTENTS
LIST OF ACRONYMS ......................................................................................................................................................... 4
PROJECT MAP .................................................................................................................................................................. 7
1 SUMMARY ................................................................................................................................................................ 8
2 OVERALL PROJECT PROGRESS AND FINANCIALS .................................................................................................... 11 2.1 Project Progress ............................................................................................................................................... 11 2.2 Project Budget ................................................................................................................................................. 13 2.3 Project Contingency ......................................................................................................................................... 13 2.4 Project Funding ............................................................................................................................................... 14
3 SCHEDULE ............................................................................................................................................................... 15
4 CONTRACT STATUS ................................................................................................................................................. 17 4.1 System‐Wide .................................................................................................................................................... 18 4.2 Section I – West O‘ahu/Farrington Highway: East Kapolei to Pearl Highlands ................................................ 25 4.3 Section II – Kamehameha Highway: Pearl Highlands to Aloha Stadium .......................................................... 34 4.4 Section III – Airport: Aloha Stadium to Middle Street Transit Center Station ................................................. 40 4.5 Section IV – City Center: Middle Street Transit Center Station to Ala Moana Center ..................................... 44 4.6 Contract Status ................................................................................................................................................ 46
5 OVERALL PROJECT‐WIDE ACTIVITIES ...................................................................................................................... 50 5.1 Permits ............................................................................................................................................................. 50 5.2 Hawai‘i Department of Transportation (HDOT) Agreements .......................................................................... 50 5.3 Utility Agreements ........................................................................................................................................... 51 5.4 Right‐of‐Way .................................................................................................................................................... 53
6 MANAGEMENT AND ADMINISTRATIVE UPDATES .................................................................................................. 57 6.1 Safety and Security .......................................................................................................................................... 57 6.2 Quality Management ....................................................................................................................................... 62 6.3 Buy America Compliance ................................................................................................................................. 63 6.4 Disadvantaged Business Enterprise (DBE) ....................................................................................................... 63 6.5 Planning and Environment ............................................................................................................................... 63 6.6 Risk Management ............................................................................................................................................ 64 6.7 Community Outreach....................................................................................................................................... 65 6.8 Staffing ............................................................................................................................................................. 65 6.9 Operations and Maintenance (O&M) .............................................................................................................. 67
APPENDICES .................................................................................................................................................................. 68 A. Project Contingency Management ................................................................................................................. 69 B. Project Cost Reports ....................................................................................................................................... 72 C. Vehicle Car Shell Progress Tracker .................................................................................................................. 75 D. Project Organization Chart .............................................................................................................................. 76
TABLE OF FIGURES
Figure 1. Overall Project Progress (% Complete) ...................................................................................................... 11 Figure 2. Construction Progress (% Complete) .......................................................................................................... 11 Figure 3. Design Progress (% Complete).................................................................................................................... 12 Figure 4. Utilities Progress (% Complete) .................................................................................................................. 12 Figure 5. Planned vs. Received Project Funding ........................................................................................................ 14 Figure 6. New Starts Drawdown by Federal Fiscal Year ............................................................................................ 14 Figure 7. HRTP Master Project Schedule Summary (MPSS) ...................................................................................... 16 Figure 8. Right‐of‐Way Status for the Parcels ........................................................................................................... 53 Figure 9. Relocation Status for the Occupants .......................................................................................................... 54 Figure 10. Inter‐Governmental Agreement Status .................................................................................................... 54 Figure 11. Staffing Activities ...................................................................................................................................... 66
HonoluluRailTransitProjectMonthlyProgressReport December2016
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LIST OF ACRONYMS
A&E Architect/Engineer AB AnsaldoBreda
ACHP Advisory Council on Historic Preservation ACS Access Control System AFA Air Force Association AFE Authorized for Expenditure AGS Airport Guideway and Stations AHJV Ansaldo Honolulu Joint Venture AIS Archaeological Inventory Survey
APTA American Public Transportation Association ARRA American Recovery and Reinvestment Act ASG Airport Station Group ASU Airport Section Utilities ATC Automatic Train Control ATO Automated Train Operation AVA Anil Verma Associates, Inc. BA Buy America
BAC Buy America Compliance BACM Buy America Compliance Matrix BAFO Best and Final Offer BCS Balanced Cantilever System BFS Budget and Fiscal Services BLS Bureau of Labor Statistics BMP Best Management Practice BOD Board of Directors BPS Baseline Project Schedule BUE Bottom‐Up Estimate
BUEG Back‐up Emergency Generator CAM Construction Access Milestone CAR Corrective Actions CCGS City Center Guideway and Stations CCO Contract Change Order CCTV Closed Circuit Television CDC Compendium of Design Criteria CDL Commercial Driver License CDR Conceptual Design Review CE&I Construction Engineering and Inspection CEL Certifiable Elements List CIC Communication Interface Cabinet CIL Certifiable Items List CIP Cast‐in‐place CJA Condon‐ Johnson & Associates CM Construction Manager
CMP Corrugated Metal Pipe CMS Contract Management System CMU Concrete Masonry Unit
CNMMP Construction Noise Mitigation and Monitoring Plan CO Certificate Occupancy COI Conflict of Interest
COMMs Communications CONRAC Consolidated Rental Car Facility
COR Corporation Counsel CP Consulting Party
CPM Critical Path Method CPO Chief Procurement Officer CPP Contract Packaging Plan
CROE Construction Right‐of‐Entry CSC Core Systems Contract
CSCC Construction Specification Conformance Checklists CSL Cross Hole Sonic Logging
CSOC Core Systems Oversight Consultant CSSP Construction Safety & Security Plan CTS Communications Transmission System CWR Continuous Welded Rail
CWRM Commission on Water Resource Management CZM Coastal Zone Management DAGS Department of Accounting & General Services
DB Design‐Build DBB Design‐Bid‐Build DBE Disadvantaged Business Enterprise
DBEDT Department of Business, Economic Development and Tourism
DBOM Design‐Build‐Operate‐Maintain DCAB Disability and Communication Access BoardDCCC Design Criteria Conformance ChecklistsDCN Design Change Notice DDC Department of Design and ConstructionDES Department of Environmental Services DFF Direct Fixation Fastener
DFIM Design Furnish Install Maintain DFM Department of Facility Maintenance DHHL Department of Hawaiian Homelands DHR Department of Human Resources DIT Department of Information Technology
DKSG Dillingham and Kaka‘ako Station GroupDLIR Hawai‘i Department of Labor and Industrial RelationsDLNR Department of Land and Natural Resources DOE Department of Education DOH Department of Health DOL Department of Labor DPM Deputy Project Managers DPP Department of Planning and PermittingDPR Department of Parks and Recreation DPS Department of Public Safety DS DownstreamDTS Department of Transportation ServicesDTU Dillingham Temporary Utilities DVT Design Verification Test EAC Estimate at Completion ECP Environmental Compliance Plan E/E Elevator/EscalatorEK East Kapolei
EMC Electromagnetic Compatibility EMF Electromagnetic Forces EMI Electromagnetic Interference EMP Environmental Management Plan EOR Engineer of RecordEOS Electrically Operated Switch ESA Engineering Services Agreement FAA Federal Aviation Administration FAI First Article Inspection FAT Factory Acceptance Tests FCN Field Change Notice FD Final Design
FDAS Fire Detection Alarm System FDC Field Design Change FDR Final Design Review FEIS Final Environmental Impact Statement FFC Fixed Facility Contractors
FFGA Full Funding Grant Agreement FHSG Farrington Highway Station Group FHWA Federal Highway Administration FISC Fleet and Industrial Supply Center
FLSWG Fire Life Safety Working Group FOCN Fiber Optic Communication Network FPO Federal Preservation Officer FTA Federal Transit Administration FTE Full‐Time Equivalent FWS Fish and Wildlife Service GAT Great Aleutian Tsunami GBS Gap Breaker Station GDR Geotechnical Data Report GEC General Engineering Consultant GET General Excise Tax GIS Geographic Information System GPR Ground Penetrating Radar GSA General Services Administration GT General TermsHA Hazard Analysis
HABS Historic American Buildings Survey HAER Historic American Engineering Record HALS Historic American Landscape Survey HART Honolulu Authority for Rapid Transportation
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HCC Honolulu Community College HCDA Hawaii Community Development Authority HCSD Hawai‘i Capital Special District HDCC Hawaiian Dredging Construction Company HDOE Hawai‘i Department of Education HDOH Hawai‘i Department of Health HDOT Hawai‘i Department of Transportation
HDOT‐A Hawai‘i Department of Transportation Airports DivisionHDPE High‐density polyethylene HECO Hawaiian Electric Company HFD Honolulu Fire Department HHF Historic Hawai‘i Foundation
HHFDC Hawaii Housing Finance & Development CorporationHHPRB Hawai‘i Historic Places Review Board
HIE Hawaii Independent Energy HILT Hawaiian Islands Land Trust
HIOSH Hawaii Occupational Safety and Health Division HP Historic Preservation
HPC Historic Preservation CommitteeHPCA Historic Preservation Certification Application HPD Honolulu Police Department HPF Historic Preservation Fund
HRHP Hawai‘i Register of Historic Places HRI Hitachi Rail Italy
HRTP Honolulu Rail Transit Project HRU Hitachi Rail USA, Inc. HTI Hawaiian Telcom HTL Hazard Tracking Log HV High Voltage
HVAC Heating, Ventilation and Air Conditioning I&T Inspection & Testing
IAMR Interstate Access Modification Report ICCS Integrated Communications Control System ICD Interface Control Documents ICE Independent Cost Estimate ICM Interface Control Manual
ICWG Interim Certification Working Group IDS Intrusion Detection System IFB Issued for Bid IFC Issued for Construction IJ Isolation Joint
INMS Integrated Network Management System IP Implementing Procedures ITP Inspection and Test Plan ITS Intelligent Transportation Systems IVR Interactive Voice Response
JTMS Joint Traffic Management System JU&O Joint Use & Occupancy JUOA Joint Use and Occupancy Agreement
JV Joint Venture KCDD Kaka‘ako Community Development District KCH Kanehili Cultural Hui KHG Kamehameha Highway Guideway KHSG Kamehameha Highway Station Group KIWC Kiewit Infrastructure West Company KKJV Kiewit/Kobayashi Joint Venture LCC Leeward Community College
LEED Leadership in Energy and Environmental Design LPR License Plate Reader LRV Light Rail Vehicle MIM Manufacture‐Install‐Maintain MITT Multimodal Integration Technical Team MMIS Maintenance Management Information System MMP Mitigation Monitoring Program MOS Minimum Operable Segment MOT Maintenance of Traffic MOU Memorandum of Understanding MOW Maintenance of Way MPS Master Project Schedule MPSS Master Project Schedule Summary MPV Multiple Purpose Vehicle MS4 Municipal Separate Storm Sewer System MSE Mechanically Stabilized Earth MSF Maintenance and Storage Facility
MTM Modern Track Machineries NCE Non‐Conformance Evaluation NCR Non‐Conformance Report NDC Notice of Design Change NEPA National Environmental Policy Act NHL National Historic Landmark NOI Notice of Intent
NPDES National Pollutant Discharge Elimination SystemNPS National Park Service NR National Register
NRHP National Register of Historic Places NSM Negotiation Strategy Memo NTP Notice to Proceed NTS Network Time Server
O&M Operations and Maintenance OCC Operations Control Center OCIP Owner‐Controlled Insurance Program OIBC O‘ahu Island Burial Council OIL Open Items List
OMPO Oahu Metropolitan Planning OrganizationORCC Operational Readiness Conformance ChecklistsOSB Operations and Servicing Building
OSHA Occupational Safety and Health AdministrationOTS O‘ahu Transit Services OTW Oceanic Time Warner
OTWC Oceanic Time Warner Cable P3 Public‐private partnership PA Programmatic Agreement
PAIS Programmatic Agreement Implementation SchedulePARs Preventative Actions PB Parsons Brinckerhoff, Inc.
PDR Preliminary Design Review PE Preliminary Engineering
PGC Pacific Guardian Center PHA Preliminary Hazard Analysis PHPR Pearl Highlands Park and Ride PICM Project Interface Control Manual PIG Permitted Interaction Group PIM Project Interface Manager PLA Project Labor Agreement PLO Priority‐Listed Offerors PM Project Managers
PMC Project Management Consultant PMIM Project Management and Interface ManagementPMOC Project Management Oversight Contractor PMP Project Management Plan PMSC Program Management Support ConsultantPPE Personal Protective Equipment
PRTCC Pre‐revenue Testing Conform ChecklistPSG Platform Screen Gate PSGS Platform Screen Gate System PSIT Pre‐shipment Inspection Test PT Post Tensioning
PUC Public Utilities Commission PUP Property Utilization Plan PV Passenger VehicleQA Quality Assurance
QAM Quality Assurance Manager QAP Quality Assurance Plan QC Quality Control
QMP Quality Management Plan QMS Quality Management System QTF Quality Task ForceR&R Revise & Re‐submitRAC Rail Activation Committee
RAMP Real Estate Acquisition and Relocation Management PlanRCMP Risk and Contingency Management Plan RCP Reinforced Concrete Pipe RE Resident Engineer
READ Real Estate Acquisition Database RFC Request for Change
RFHB Request for High Bids RFI Request for Information
RFID Requests for Interface Data
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RFMP Rail Fleet Management Plan RFP Request for Proposals RFQ Request for Qualifications ROC Rail Operations Center ROD Record of Decision ROE Right of Entry ROW Right‐of‐Way RR Risk Register
RSD Revenue Service Date RTM Requirements Traceability Matrix RTSA Regional Transit Stabilization Agreement S&S Safety and Security S1 Segment 1
SAIS Supplemental Archaeological Inventory Survey SCADA Supervisory Control and Data Acquisition SCAP Stream Channel Alteration Permit SCC Standard Cost Category
SHPD State Historic Preservation Division SHPO State Historic Preservation Officer
SIC Sandwich Isle Communications SIT System Integration Testing
SLAN Station Local Area Network SOG Slab on Grade SOI Secretary of the Interior
SOW Scope of Work SP Special Provisions
SQP Supplemental Quality Plan SSC Safety Security Certification
SSCP Safety and Security Certification Plan SSCWG Safety and Security Certification Working Group
SSI Sensitive Security Information SSMP Safety and Security Management Plan SSRC Safety and Security Review Committee SSSP Site Safety Security Plan STCC Specification/Testing Conform Checklists
SWPPP Storm Water Pollution Prevention Plan T&M Time and Material TAP Transportation Alternatives Program TC Train Control
TCCR Train Control and Communications Room TCE Temporary Construction Easement TCO Temporary Certificate Occupancy TCP Traffic Control Plan TCS Train Control System TES Traction Electrification System
TIGER Transportation Investment Generating Economic RecoveryTIP Transportation Improvement Program TOC The Outdoor Circle TOD Transit‐Oriented Development TPO Thermoplastic Olefin TPSS Traction Power Sub‐Station TSA Transportation Security Administration TSI Transportation Safety Institute TVA Threat & Vulnerability Assessments TVM Ticket Vending Machine TWF Train Wash Facility UCA Utility Construction Agreement
UFRCRA Utility Facilities Relocation and Cost Reimbursement AgreementUH University of Hawai‘i
UHWO University of Hawai‘i West O‘ahu UL Underwriters Laboratories
UPS Uninterrupted Power Supply USACE U.S. Army Corps of Engineers USDOT U.S. Department of Transportation
USN United States Navy VAR Volt‐Ampere Reactive VE Value Engineering
VECP Value Engineering Cost Proposal VRC Vertical Raceway Column VRCS Voice Radio Communication System VRF Variable Refrigerant Flow WA Work Area WHS Waipahu High School WL West Loch
WLO West LochWOEDA West Oahu Economic Development AssociationWOFH West O‘ahu/Farrington Highway WOSG West O‘ahu Station Group WQC Water Quality Certification WSS West Side Stations
WSSG West Side Station Group WTB Wheel Truing Building WTC Waipahu Transit Center WYL West Yard LeadYCB Yard Control Bungalow YOE Year of Expenditure
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1 SUMMARY KEY ACTIVITIES THIS MONTH Project Overview The Honolulu Authority for Rapid Transportation (HART) achieved another project milestone in December, with the final span stressed in the Kamehameha Highway Guideway section of the project. More than 10 miles of the guideway has been built, with crews having constructed 452 columns and stressed 437 spans, from East Kapolei to Aloha Stadium. Recovery Plan In June 2016, the Federal Transit Administration (FTA) requested HART to submit a Recovery Plan demonstrating that HART is taking every reasonable measure to mitigate cost overruns and minimize the delay to opening the Project for revenue operations. In December, FTA granted an extension for HART to complete and submit its Recovery Plan from the end of the year to April 30, 2017. Cost:
Project Costs Summary Through November 25, 2016
Current FFGA Budget ($M) Incurred To Date ($M)
Project Budget $4,486.7 $2,419.8
Project Contingency $461.9 $0.7
Finance Charges* $173.1 $0.7
TOTAL $5,121.7 $2,421.2 * $173.1 million represents the project debt financing costs that are federally eligible. The total estimated debt financing costs of the project is $215 million, per the FFGA Financial Plan.
Schedule:
Project Progress*Through November 25, 2016
Actual Early FFGA Plan Late FFGA Plan
Overall Project Progress 54.7% 86.3% 82.1%
Overall Construction Progress 48.4% 83.0% 77.7%
Overall Design Progress 91.4% 100% 100%
Overall Utilities Progress 51.3% 100% 100% * Reported percentages complete are based on the Full Funding Grant Agreement (FFGA) budget and Revenue Service Date (RSD). HART will revise its progress curves when the project budget and RSD are re‐baselined.
BOARD MEETING Q&A Listed below is a question raised by a community member at the Dec. 15, 2016 HART Board meeting:
Question: Why does HART own excess property along the alignment? Answer: HART’s acquisition strategy is very conservative; however, excess property, which includes development rights, can still result from a conservative acquisition plan, which HART can utilize to generate value for the project.
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PROGRESS REPORT SUMMARY OF CHANGES The following is a brief summary of major changes that have occurred from the previous month’s report. For more information and detail, please refer to the respective pages in the report. Summary
The Board Meeting Q&A section has been included, as there was a public question posed at the December meeting. Please see page 8.
Project Contingency
$5.3M contingency drawdown during November 2016. Please see page 13. Project Funding
The planned amounts for funding in the Planned vs. Received Project Funding table have been updated to reflect the extension of the General Excise Tax (GET) surcharge to December 2027. Please see page 14.
Contract Status
Contracts in Procurement o On Dec. 21, 2016, HART issued a notice of award to HDR Engineering, Inc. in the amount of $63,522,953
for the Program Management Contractor Contract. Please see page 17. o The dates for the Owner Controlled Insurance Program (OCIP) Contract “II” have been updated. Please see
page 17. o The Engineering Design and Design Review Services Contractor contract has been added to the Remaining
Contracts table. Please see page 17.
Core Systems Contract (CSC) o The projected substantial completion date has changed from October 2025 to July 2025. Please see page
18. o The current contract value amount has decreased due to a change order. Please see page 18. o The NCR log numbers have been corrected. Please see page 20.
West O‘ahu/Farrington Highway (WOFH) o The current contract value amount has increased due to change orders. Please see page 25.
Maintenance and Storage Facility (MSF) o The schedule status has changed from “On time” to “Substantial Completion Obtained.” Please see page
32.
Kamehameha Highway Guideway (KHG) o The current contract value amount has increased due to change orders. Please see page 34.
Airport Section Guideway and Utilities Final Design o The Airport Guideway and Stations (AGS) Design‐Build (DB) contract was awarded to
Shimmick/Traylor/Granite, JV, and Notice to Proceed (NTP) was issued on Dec. 1, 2016. From the January 2017 Progress Report and on, a contract page for the AGS DB contract will be included in the Monthly Progress Report. As such, the Airport Section Guideway and Utilities FD contract page will be removed from the Progress Report, and any updates related to design will be covered in the AGS DB contract page. Please see page 40.
Airport Section Utilities Construction o The current contract value amount has increased due to change orders. Please see page 41.
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Airport Station Group (ASG) Final Design o The projected substantial completion has been corrected to an actual substantial completion, as work
concluded July 2016. Please see page 43. o The schedule status has changed from “On time” to “Substantial Completion Obtained.” Please see page
43. o The AGS DB contract was awarded to Shimmick/Traylor/Granite, JV, and NTP was issued on Dec. 1, 2016.
From the January 2017 Progress Report and on, a contract page for the AGS DB contract will be included in the Monthly Progress Report. As such, the Airport Station Group FD contract page will be removed from the Progress Report, and any updates related to design will be covered in the AGS DB contract page. Please see page 43.
City Center Section Guideway and Utilities Final Design o The projected substantial completion has changed from April 2018 to January 2019. Please see page 44.
Dillingham and Kaka‘ako Station Group (DKSG) Final Design o The projected substantial completion has been corrected to an actual substantial completion, as work
concluded February 2016. Please see page 45. o The schedule status has changed from “On time” to “Substantial Completion Obtained.” Please see page
45. Staffing
The organizational chart has been updated. Please see page 76. Operations and Maintenance (O&M)
A section on O&M has been included. Please see page 67.
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2 OVERALL PROJECT PROGRESS AND FINANCIALS
2.1 Project Progress (data as of November 25, 2016) Reported percentages complete are based on the Full Funding Grant Agreement (FFGA) budget and Revenue Service Date (RSD). HART will revise its progress curves when the project budget and RSD are re‐baselined. Note:
Actual = Actual cost of work performed, based on invoiced‐to‐date amount.
Early Plan = Earliest dates activities can begin and finish, based on logic and durations used in the schedule.
Late Plan = Latest dates activities can begin and finish and not have an impact on completion date, based on logic and durations used in the schedule.
Figure 1. Overall Project Progress (% Complete)
At present “overall” project progress is based on the weighted value progress of the individual construction and design contracts (Design‐Build [DB], Design‐Bid‐Build [DBB], Design‐Build‐Operate‐Maintain [DBOM], Elevator/Escalator Manufacture‐Install‐Test‐Maintain [MIM], Final Design [FD] and DB‐DBOM design levels of effort), not including City or non‐design consultant labor. Overall Project Progress reflects all project elements as budgeted.
Figure 2. Construction Progress (% Complete)
Overall construction progress is based on the weighted average progress of the individual DBB and E/E MIM construction contracts and the DB‐DBOM construction levels of effort, not including consultant construction engineering and inspection (CE&I) services.
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Figure 3. Design Progress (% Complete)
Overall design progress is based on the weighted average progress of the individual FD contracts and the design levels of effort of the DB and DBOM construction contracts, not including City or non‐design consultant labor. Note: Design responsibility will be transferred to DB, once DB packages are awarded. Deductive change orders will be issued to correct the total contract amount.
Figure 4. Utilities Progress (% Complete)
Overall utilities progress is based on the weighted average progress of the DB and DBB utilities levels of effort.
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2.2 Project Budget (data as of November 25, 2016)
FFGA Project Budget = $5,121.7M o Current Project Budget ‐ $4,486.7M o Current Project Contingency ‐ $461.9M o Project Finance Charges ‐ $173.1M
Total Incurred Cost = $2,421.2M (54% of current project budget) o November 2016 Incurred Cost = $25.2M
The FFGA budget was $5.122 billion, as presented in the section above. In 2016, the City and County of Honolulu passed an ordinance to extend the General Excise Tax (GET) to 2027, thereby increasing the current project budget up to $6.8 billion.
The Project Budget is being updated to reflect current program expectations and will be finalized in collaboration with the Federal Transit Administration (FTA). The Project Management Oversight Contractor’s (PMOC’s) predicted Estimate at Completion (EAC) value, not including finance costs, was $7.623 billion, based on FTA’s Beta Range model.
2.3 Project Contingency (data as of November 25, 2016) Note: A breakdown of Project contingency drawdowns is discussed in further detail in Appendix A.
Current Project Contingency Balance = $461.9M o Contingency drawdown to date – $181.7M (28% of baseline project contingency budget) o $5.3M contingency drawdown during November 2016. Please see Appendix A for more details.
The Draft Cost Contingency Drawdown Chart is being updated to reflect current program forecast needs, and will be included in a future Progress Report.
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2.4 Project Funding (data as of November 25, 2016) Figure 5. Planned vs. Received Project Funding
General Excise Tax (GET) Surcharge o $0 = GET surcharge received in November 2016. Quarterly payment expected in January 2017.
Full Funding Grant Agreement (FFGA) o $0 = New Starts drawdown processed and received in November 2016.
Figure 6. New Starts Drawdown by Federal Fiscal Year (data date as of November 25, 2016)
Federal Fiscal Year AllocationFTA Obligated
AmountsActual Drawdown Amounts to Date
Available Balance
FFGA Base Case Cash flow
2008 $15,190,000 $15,190,000 $02009 $19,800,000 $19,800,000 $02010 $30,000,000 $30,000,000 $02011 $55,000,000 $55,000,000 $0 $20,607,2422012 $200,000,000 $200,000,000 $0 $99,382,7582013 $236,277,358 $236,277,358 $0 $258,280,2772014 $250,000,000 $65,690,449 $184,309,551 $441,719,724
2015 (pending award of grant) $250,000,000 $0 $250,000,000 $250,000,0002016 (pending award of grant) $250,000,000 $0 $250,000,000 $250,000,000
2017 (pending appropriation and award of grant) $243,732,642 $0 $243,732,642 $230,010,000
Total $1,550,000,000 $621,957,807 $928,042,193 $1,550,000,000
New Starts Grant Information by Federal Fiscal Year (Amounts in italics are pending)
Note: Project Cost Reports can be found in Appendix B.
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3 SCHEDULE (data as of Nov. 25, 2016)
OVERVIEW and KEY ISSUES
HART’s Interim Revenue Service Date is planned for completion in December 2020.
The Revenue Service Date (RSD) continues as planned with anticipated completion in December 2025. The two eastern guideway contracts are planned as follows:
o Airport Guideway and Stations’ (AGS) construction Notice to Proceed (NTP) was issued on Dec. 1, 2016. o City Center Guideway and Stations (CCGS) construction NTP is forecasted for August 2018.
CCGS contract duration and options are being evaluated by the project team to support Recovery Plan A. o HART is assessing completion of utility design prior to construction.
The overall critical path to full Revenue Service is the CCGS guideway and stations’ construction, core systems installation, systems testing and commissioning.
The following bullets summarize schedule forecasts: o A change order was approved on Nov. 28 for West O‘ahu/Farrington Highway (WOFH) to address
Leeward Community College (LCC) delays and traffic signals. This extends the contract substantial completion by four months with no schedule variance. This change order requires the contractor to rebaseline the schedule.
o West O‘ahu Station Group’s (WOSG’s) baseline schedule approval is anticipated soon. Current progress is behind by six months. This is due to additional electrical conduit and delay in Ho‘opili’s box girder submittal.
o Farrington Highway Station Group (FHSG) projects a nine month delay beyond contract substantial completion. Discussions are in progress to address this delay and rebaseline the schedule.
o Kamehameha Highway Station Group’s (KHSG) baseline schedule is pending. This project is on the
critical path for Interim Revenue Service Date.
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Figure 7. HRTP Master Project Schedule Summary (MPSS) The Master Program Summary Schedule reflects currently approved schedule end dates for contracts that have been awarded, and planned dates for future contracts. Active contracts’ end dates will not change, unless a change order is issued.
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4 CONTRACT STATUS
Contracts in Procurement OVERVIEW
Awarded Contracts: o On Dec. 21, 2016, HART issued a notice of award to HDR Engineering, Inc. in the amount of $63,522,953
for the Program Management Contractor Contract.
Active Procurements: o Art‐in‐Transit: HART continues its negotiations with the highest‐ranked artists for each of the stations. To
date, seven contracts have been awarded. o City Center Guideway and Stations (CCGS) Design‐Build RFP: RFP Part 2 was issued on Feb. 2, 2016. The
solicitation is on hold pending additional funding. o On Call Appraisers “II” RFP: The RFP was issued on Nov. 16, 2016. Proposals were due on Dec. 30, 2016.
Anticipated award date is Jan. 27, 2017. o Engineering Design and Design Review Services Contractor RFQ: The RFQ was issued on Dec. 22, 2016.
Qualifications are due on Jan. 31, 2017. o Owner Controlled Insurance Program (OCIP) Contract “II” RFP: The RFP was issued on Dec. 23, 2016.
Proposals are due on Feb. 17, 2017.
Upcoming Procurements: o Procurements for UH West O‘ahu Temporary Park & Ride and UH West O‘ahu Road “B” Design‐Bid‐Build
Contract; Legal Counsel for Public Utilities Commission (PUC) Matters; Pearl Highlands Garage, Transit Center and Ramp H2R1; East Kapolei and UH West O‘ahu Park and Ride (Design); East Kapolei and UH West O‘ahu Park and Ride (Construction); and Core Systems Back‐up Generators/Batteries are under evaluation.
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Original Contract: $573,782,793 Incurred‐to‐Date: $243,056,439 Current Contract Value1: $600,573,187 Incurred in November: $3,885,241
1Current Contract Value = Original contract value (excluding $823.6M O&M budget) + executed Change Orders
4.1 System‐wide
A. Core Systems Contract (CSC) Contract No.: DBOM‐920 DBOM Contractor: Ansaldo Honolulu Joint Venture (AHJV) Contract Start Date: January 2012 Contract Substantial Completion: March 2019 Projected Substantial Completion: July 2025 Project Description: Providing rail passenger vehicles, automated train control system, traction electrification system (TES), communication systems, passenger platform screen gates (PSGs), and operation and maintenance of the project.
% Complete Schedule Status
Based on Expenditures* 40.5%
On time ** Weighted Value 41.9%
Early Plan* 65.7%
Late Plan* 58.4% *Data as of Nov. 25, 2016. The progress chart reflects early program expectations. When the overall schedule is rebaselined and Construction Access Milestone dates are revised, the cost curve will be revised. ** Based on draft Rebaseline Rev J.
________________________________________________________________________________________________________________________________________________________________________________________________________________________
COST INFORMATION:
________________________________________________________________________________________________________________________________________________________________________________________________________________________
SCHEDULE: Upcoming Schedule Status per December 2016
Installation of Traction Power Sub‐Station (TPSS) feeder cables at SS #8 (Waipahu) continues to progress with a completion in February 2017.
Installation of Communication equipment in MSF started and will continue in the coming months.
Installations for Train Control and Communications Room (TCCR) at the stations will start in early 2017 at Ho‘opili and West Loch.
Car shell fabrication and vehicle delivery is ongoing, along with Train #1 and #2 testing. Delivery of Train #2 to Honolulu is scheduled for March 2017.
Hitachi provided HART the technical note explaining the material defect in the aluminum extruded part of the underframe.
Train Design Verification Tests are planned to start around April 2017. HART will need to complete a technical review of the material defect with the aluminum extrusion.
TPSS delivery is scheduled for early 2017 for West Loch and Ho‘opili. With the start of earlier drilling of the shafts at the City Center segments, the Core Systems installation has
changed the projection of completion of the testing and commissioning from October 2025 to July 2025.
Disadvantaged Business Enterprise (DBE) Participation
November Change Orders
Actual DBE Participation: $129,165 Change No. Description Amount ($)
DBE % Attained: 0.021% 0030 Train Control Architecture ($500,000)
0031 Additional MSF FDAS Commissioning $47,500
Cumulative to Date $26,790,394
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WORK PROGRESS:
Activities this Month: Design: Review of design submittals is ongoing. Manufacturing: Performed oversight of passenger vehicle (PV) assembly
activities at Hitachi Rail factory in Pittsburg, CA. PV On‐board Automatic Train Control (ATC) interface testing
conducted. The remaining seven Nova Comafer Trucks for Train #1 were
assembled in Pittsburg, CA and shipped to Honolulu. Initiated investigation of car shell structural Non‐Conformance
Report (NCR). Pre‐shipment inspection and test of Traction Electrification
System (TES) Traction Power Sub‐Station (TPSS) continues. Pre‐shipment inspection and test of Supervisory Control and
Data Acquisition (SCADA) continues. Qualification test on Platform Screen Gate System (PSGS)
continues. Installation, Testing and Commissioning: Low Voltage Functional Test on Train #1 is ongoing. ATC installation in the MSF is 78% complete. SCADA installation in the MSF is 15% complete. Communications (COMMS) installation in the MSF is 11%
complete. Continued coordination with HECO to energize Waipahu TPSS. AHJV continues terminating train control cabling in the Yard
Control Bungalow (YCB) and wayside. AHJV is performing continuity and meggering test on the ATC
cables in the MSF. Continued coordination with WOSG, FHSG and KHSG station
contractors. Completed termination of train control cabling in MSF. Commenced installation of TES cabling on Dynamic Section
(Guideway from West Loch to West Yard Lead).
Look Ahead: Design: Continue Final Design of all subsystems. Manufacturing: Passenger Vehicle Manufacturing – Monitor
corrective action related to material defect with aluminum extrusion. Continue to work with Hitachi performing a technical review of the NCR and corrective action plan.
PV Truck Fabrication – Continue truck frame and bolster fabrication activities in Italy.
Continue manufacturing of automated train control, traction power, and other subsystems equipment.
Installation, Testing and Commissioning: Installation and testing of communications
system cabling and devices in MSF. Install production trucks on Train #1 in MSF. Continue Routine and Design Verification
testing on Train #1 in Honolulu. Continue Routine and initiate Design
Verification testing on Train #2 in Pittsburg, CA.
Energization of Waipahu TPSS for dynamic section testing.
Testing of ATC wayside equipment in MSF. Installation of Operations Control Center (OCC)
technical room equipment. Installation of CIC (Communication Interface
Cabinet) cabinets in MSF. Testing of Waipahu TPSS with HECO power. Commence installation of Train Control
devices on guideway (Ho‘opili to East Kapolei).
_______________________________________________________________________________________________________
KEY ISSUES:
Delays in the west side guideway and station contracts have affected the Core Systems Contract. HART issued revised Construction Access Dates in April 2016 with an anticipated shift in project completion from January 2020 to March 2023 (i.e., three years). The CSC submitted the revised Baseline Project Schedule (BPS Rev J) in October 2016 and formally claimed for delays.
The deferred NTP for City Center Guideway and Stations will further delay the Core Systems Contract. Delays to the Revenue Service Date impact the Core Systems Contract. The current projected project completion date has now shifted to as late as December 2025 (i.e., another three years).
Base DesignPercent Complete
East Kapolei –Aloha Stadium Design
Aloha Stadium –Middle Street Design
Passenger Vehicles 94%
PSGS 96%
Communications 69% 64% 0%
Fire Detection 100% 100% 0%
ATC / SCADA 100% 100% 100%
TES 100% 100% 100%
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The CSC’s Communications System design completion is delayed. The communications system delay is an internal AHJV delay and not affecting any critical path activities at this time. HART is monitoring this subsystem delay as it is a key component needed for future signaling system qualification testing and can affect system wide integrated testing if it is not adequately addressed.
Hawaiian Electric provided HART with results of the power quality study which shows that HART will need to mitigate the voltage variations caused by the operation of the trains leaving the stations. Mitigation measures being reviewed by HART include the installation of Static Volt‐Ampere Reactive (VAR) Compensation equipment or other solutions including refining the operation of the trains.
Material defect has been reported discovered in one of the extruded aluminum parts that make up the underframe of the car shell. Car shell production in Italy is on‐hold, pending resolution of car shell NCR.
_______________________________________________________________________________________________________
KEY MILESTONES:
Dynamic testing without ATC in April 2017. Passenger vehicle static system level testing necessary to begin dynamic test activities (under manual control) on the guideway Dynamic Section.
_______________________________________________________________________________________________________
QUALITY MANAGEMENT:
Core Systems Oversight Consultant (CSOC) continues to monitor quality of PV assembly in Pittsburg, CA.
Material defect has been reported discovered in one of the extruded aluminum parts that make up the underframe of the car shell. Car shell production in Italy is on‐hold, pending resolution of car shell NCR.
CSC NCR Log
TOTAL CLOSED OPEN
AHJV & Subs 35 33 2
Hitachi Rail 790 682 108
TOTAL 825 715 110
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Original Contract: $50,982,714 Incurred‐to‐Date: $6,853,879 Current Contract Value1: $52,051,922 Incurred in November: $140,825
1Current Contract Value = Original contract value with Design Allowance + executed Change Orders
B. Elevators and Escalators Manufacture‐Install‐Maintain (MIM)
Contract No.: MI‐930 Contractor: Schindler Elevator Corporation Contract Start Date: August 2013 Contract Substantial Completion: June 2018 Projected Substantial Completion: The June 2018 completion date will change to a later date predicated on the award of the DB contracts for the east portion of the guideway. Project Description: Furnish / install / test / maintain all elevator and escalator equipment located at the 21 stations.
% Complete Schedule Status
Based on Expenditures* 13.4%
Pending** Weighted Value 13.4%
Early Plan* 84.0%
Late Plan* 74.5% *Data as of Nov. 25, 2016. The progress chart reflects early program expectations. When the overall schedule is rebaselined and Construction Access Milestone dates are revised, the cost curve will be revised. **The Elevators and Escalators schedule is dependent on other contractor’s schedules. Actual release for manufacturing will be coordinated for a ‘just in time’ delivery.
____________________________________________________________________________________________________________
COST INFORMATION:
____________________________________________________________________________________________________________
SCHEDULE:
Elevators' schedule for the FHSG and WOSG has been established. On Dec. 1, HART sent a Notice to Proceed (NTP) letter for the release of the equipment for Kamehameha Highway Station Group. Elevators' schedule for the remaining 12 eastside stations will be established once these DB contracts are awarded and the DB schedules are accepted.
DBE Participation November Change Orders
Actual DBE Participation: $0 Change No. Description Amount ($)
DBE % Attained: 0% None ‐‐‐ ‐‐‐
Cumulative to Date $1,069,208
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WORK PROGRESS: Activities this Month: HART sent an NTP letter on Dec. 1 for the release of the
equipment for Kamehameha Highway Station Group. The release for manufacturing of the required Elevator
and Escalator for the Farrington Highway Station Group and West O‘ahu Station Group occurred in October.
Final Design is approximately 41% complete, as 9 of the 21 stations are ready to be released for manufacturing once the contractor’s schedules are approved.
All draft equipment drawings for the 21 stations have been submitted for review and have been accepted.
Design is complete on the three FHSG stations, three WOSG stations, and the three KHSG stations.
Permits for the installation of all elevators and escalators for the FHSG, KHSG and the WOSG have been issued. These permits are for installation only, not operation.
Look Ahead: Elevators' schedule for the remaining 12 eastside
stations will be established once these DB contracts are awarded and the DB schedules are accepted.
____________________________________________________________________________________________________________
KEY ISSUES:
The release for manufacturing the E&E equipment will be coordinated for a ‘just in time’ delivery. Final completion of the equipment requirements for the four stations included in the DB contract for Airport Guideway and Stations will be subject to the final design of the DB. The eight stations included in the City Center Guideway and Stations contract is also on hold pending contract award of the DB contract for this work. Both of the DB solicitation packages contain the size and configuration of the elevators and escalators purchased for these twelve remaining stations.
Coordination with station contractors on construction interface milestones.
The re‐bidding of the Airport and City Center sections of guideway with stations as Design‐Build contracts will impact the completion of the Elevator Escalator contract.
_______________________________________________________________________________________________________
KEY MILESTONES:
No significant milestones were completed this month. _______________________________________________________________________________________________________ QUALITY MANAGEMENT:
Elevators and Escalators NCR Log Total NCRs Issued To Date CLOSED OPEN
0 0 0
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Original Contract: $15,464,198 Incurred‐to‐Date: $1,187,680 Current Contract Value1: $15,464,198 Incurred in November: $0
1Current Contract Value = Original contract value with Design Allowance + executed Change Orders
C. Fare Collection System Contract No.: MI‐900 Contractor: INIT, Innovations in Transportation Inc. Contract Start Date: April 2016 Contract Substantial Completion: September 2021 Projected Substantial Completion: 60 days after full rail revenue service date
Project Description: The fare collection system is a joint HART and City and County of Honolulu (DTS, DIT, BFS) project that will consist of a multi‐modal, closed loop, account based smart card system. The Fare System vendor, INIT Innovations in Transportation Inc., is responsible for design, manufacture, testing, installation and operation of the entire system inclusive of hardware and software.
The rail portion of the project will consist of Ticket Vending Machines (TVMs) and fare gates at stations that accept smart cards which can also be used for payment on board TheBus and facilitate a seamless transfer between modes. Equipment and software to be used by both HART and the City and County will include transaction processing, fare equipment monitoring, and customer service systems, as well as a Data Warehouse. TheBus equipment will consist of stand‐alone smart card readers on board.
% Complete Schedule Status
Based on Expenditures* 7.7%
On time Weighted Value 12%
Early Plan* 0.4%
Late Plan* 0.4% *Data as of Nov. 25, 2016.
__________________________________________________________________________________________________
COST INFORMATION:
__________________________________________________________________________________________________
SCHEDULE:
The baseline schedule for the fare systems project has the following milestones and is currently tracking to schedule:
o Conceptual Design Review (CDR), Preliminary Design Review (PDR) and Final Design Review (FDR) completed by March 31, 2017
o Field Integration testing for Bus and Back Office completed by June 30, 2017 __________________________________________________________________________________________________
WORK PROGRESS: Activities this Month: Completed PDR workshops and review of final PDR
design documents. Completed review of draft FAREs model document and
presentation on workings of the model. Ongoing business rules document development. Ongoing review of wiring requirements within stations
for SCADA and network connections.
Look Ahead: Release Contract Milestone Payment #3. Confirm gaps in City networking infrastructure
and INIT design. Review proposed Retail Network software and hardware with retail partners.
Complete first task of smart card branding work.
DBE Participation November Change Orders
Actual DBE Participation: $0 Change No. Description Amount ($)
DBE % Attained: 0% None ‐‐‐ ‐‐‐
Cumulative to Date $0
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KEY ISSUES:
Starting and completing three design reviews on time in order to maintain schedule with final design milestone acceptance by May 2017.
_______________________________________________________________________________________________________ KEY MILESTONES:
PDR completion by Jan. 13, 2017.
FDR completion by March 31, 2017. _______________________________________________________________________________________________________ QUALITY MANAGEMENT:
Fare Collection NCR Log Total NCRs Issued To Date CLOSED OPEN
0 0 0
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Original Contract: $482,924,000 Incurred‐to‐Date: $630,631,941 Current Contract Value1: $649,508,314 Incurred in November: $4,000,000
1Current Contract Value = Original contract value + executed Change Orders
4.2 Section I – West O‘ahu/Farrington Highway: East Kapolei to Pearl Highlands
A. West O‘ahu/Farrington Highway Guideway (WOFH) Contract No.: DB‐120 DB Contractor: Kiewit Infrastructure West Company (KIWC) Contract Start Date: December 2009 Contract Substantial Completion: March 2017 Projected Substantial Completion: March 2017
Project Description: Design and construction of 6.8 miles of rail alignment, starting at the East Kapolei Station and ending at the Pearl Highlands Station.
% Complete Schedule Status
Based on Expenditures* 97.3% Anticipated and current contract completion dates
align.
Weighted Value 96.3%
Early Plan* 100%
Late Plan* 99.2% *Data as of Nov. 25, 2016.
________________________________________________________________________________________________________________________________________________________________________________________________________________________
COST INFORMATION:
_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
SCHEDULE:
As of the October 2016 progress update, the project is scheduled for substantial completion in March 2017. _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
WORK PROGRESS:
DBE Participation November Change Orders
Actual DBE Participation: $11,039,380 Change No. Description Amount ($)
DBE % Attained: 1.70% 0120 Fuel/Water Mix in Navy Fuel Line 1 $59,968
0121 HTI Line under MSE Wall 251 $238,000
0122 Util vary from RFP8” Waterline at Mokuola $490,000
0123 Hazardous Material at Shaft 205 $113,481
0124 LCC Transite Pipe (Asbestos) at Util Conflict $6,912
0125 Fuel Water Mix in Shaft 206 $6,042
0126 Additional Fiber Optic UP 238 $541,911
0128 Utility Impact 595‐M1 $49,328
0129 Haz. Mat. At Elect. Conflict 4‐690‐T $31,492
0130 Elimination of Ho‘opili Roadway Scope ($155,082)
Cumulative to Date $166,584,314
WOFH Construction Status as of 12/28/16
Utility Status Qty
to Date Final Qty
% Complete
Structure Element
***Total to Date
Planned to Date Total Qty
% Complete
Accepted Schedule*
Revised Schedule**
Water Line 9,348 9,348 100% Shafts 309 309 309 309 100%
Sewer Line 570 570 100% Columns 283 283 283 283 100%
Fuel Line 340 340 100% Segment Casting 3,209 3,209 3,209 3,209 100%
Gas line 1,591 1,591 100% Spans Stressed 274 274 274 274 100%
Drainage Line 5,050 5,166 97% Track work 277 278 278 278 99.6%
Elec/Telecom 20,500 21,374 95% Third Rail 277 278 278 278 99.6%
Street Lights 8,200 8,357 98% Mill & Overlay 27,400 N/A N/A 27,643 99.1%
Traffic Sig/ITS Duct bank
10,700 10,802 99%
* Accepted Schedule was submitted in 2013. ** The planned values are based on KIWC’s pending July schedule revision dated August 24, 2015. Revised schedule reflects a 6‐month delay in completion. *** Total quantity for the construction items has been revised to reflect the latest Issued for Construction number of shafts, columns, segments and spans.
System Sites 7,046 7,046 100%
ITS Systems Devices
3,940 4,121 95%
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Activities this Month:
Utility Relocation KIWC has completed the relocation of third party
utilities conflicts. Track Construction
Track crews continue installing the track on grade between Span 251 through MSF to LCC and to Span 252.
KIWC/Third‐Party Coordination HECO and KIWC have completed the utility conflict
coordination work. Civil Structures
KIWC is working to complete punch list activities. Station Contractor Interfaces
KIWC, FHSG, CSC and WOSG continue holding Interface closeout meetings to resolve current design and construction conflicts.
Traffic Signals KIWC has completed the construction of the traffic
signals and is waiting on final acceptance from the Department of Transportation Services (DTS). KIWC is awaiting final punch list correction.
LCC Access Structure LCC Access Structure: KIWC continues with
construction activities to complete the access structure. KIWC is awaiting direction and coordination with on‐call contractors for the installation of the duct banks associated with the TPSS.
Look Ahead:
Design Progress KIWC has obtained Department of Planning and
Permitting (DPP) sign off on the last design package – Guideway Conflicts. HART has signed off on this package. The package has been routed to HDOT for signature.
Column KIWC will continue work correcting punch list
items. Guideway Segment Erection
KIWC will continue work correcting punch list items.
Balanced Cantilever Structure KIWC will continue work to complete concrete
plinth construction as well as correcting punch list items.
Track Construction KIWC will continue work to complete the
construction of concrete plinths and track on grade.
Continue to correct punch list items. Civil Structures
KIWC will continue working to complete punch list items.
Traffic Signals KIWC has completed the construction of the
traffic signals and is waiting on final acceptance from DTS. KIWC is awaiting final punch list correction.
LCC Station Access Structure KIWC will continue with the construction of the
LCC structure.
__________________________________________________________________________________________________ KEY ISSUES:
Closeout and Coordination – KIWC is continuing coordination with station contractors and Ansaldo for shared access on and around the guideway. KIWC is submitting all project closeout documents for HART review.
Shared Access – Ansaldo has been given access from piers 156 – 251 on the top of the guideway and has started the traction power cabling installation. Hawaiian Dredging was given access to West Loch Station from piers 156 ‐ 161 on Nov. 21. Nan Inc. has begun construction of Pearl Highlands Station.
Shims – Currently, independent test results are being reviewed as they are completed. HART and KIWC are holding weekly meetings to come to a resolution on this issue.
Tendons – KIWC has completed their investigation of the condition of all tendons using impulse‐response testing, and visual inspection of the tendons. HART is awaiting the results and a final report from KIWC.
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KEY MILESTONES:
Punch List: 82% of KIWC’s list has been verified and closed by CE&I. The remaining items are scheduled to be closed by March 2017.
Traffic Signal Improvements: KIWC completed the construction of the traffic signals on Oct. 21, 2016. Final acceptance from DTS and punch list corrections are pending.
_______________________________________________________________________________________________________ SUBSTANTIAL COMPLETION: No progress to report this month. __________________________________________________________________________________________________________________________________________________________
QUALITY MANAGEMENT: KIWC continues to follow their established quality processes through quality monitoring and audits.
Closing Out NCRs – KIWC has been working to correct, validate, and close out NCR’s during this period.
Shims – Currently, independent test results are being reviewed as they are completed. HART and KIWC are holding weekly meetings to come to a resolution on this issue.
Tendons – KIWC has completed their investigation of the condition of all tendons using impulse‐response testing, and visual inspection of the tendons. HART is awaiting the results and a final report from KIWC.
WOFH NCR LOG Total NCRs Issued To Date CLOSED OPEN
568 556 12
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Original Contract: $56,088,470 Incurred‐to‐Date: $5,973,930 Current Contract Value1: $56,088,470 Incurred in November: $0
1Current Contract Value = Original contract value + executed Change Orders
B. West O‘ahu Station Group (WOSG) Contract No.: DBB‐171 Contractor: Nan, Inc. Contract Start Date: October 2015 Contract Substantial Completion: March 2018 Projected Substantial Completion: TBD
Project Description: The West O‘ahu Station Group construction contract includes services to build three (3) transit stations along Kualaka‘i Parkway and Farrington Highway. The stations are East Kapolei (EK), UH West O‘ahu (UHWO) and Ho‘opili Stations. In addition to the transit stations, operational ancillary buildings, traction power substation and adjacent areas are included in this project.
% Complete Schedule Status
Based on Expenditures* 10.7%
6 months behind **
Weighted Value 10.65%
Early Plan* 34.5%
Late Plan* 34.5% *Data as of Nov. 25, 2016.** Further explanation is provided in the Schedule section.
_____________________________________________________________________________________________________________________________________________________________________________________________________________________
COST INFORMATION:
__________________________________________________________________________________________________________________________________________________________________________________________________________________________
SCHEDULE:
Baseline schedule has been approved under the condition that the outstanding comment be resolved before any further pay requests are submitted by the contractor. HART is working with the contractor on the last comment to approve the proposed sequencing and turnover of the train control and communications room at Ho‘opili.
The schedule status reported above reflects the contractor’s progress schedule as of October 2016. HART is working with the contractor to mitigate any delays, if possible, and is evaluating the contract substantial completion date and warranted time extensions.
_______________________________________________________________________________________________________
WORK PROGRESS: Activities this Month: The baseline schedule is conditionally approved, awaiting the
contractor to address the remaining comment. Progress schedule has been updated to the current month. Poured platform box girder bottom slabs and walls. Construction of the Ho‘opili TCCR/TPSS slab and Concrete
Masonry Unit (CMU) walls. Roof installation is underway. The contractor started drilled shaft installations at East Kapolei. Poured UHWO TCCR slab. CCO‐00001 Unilateral for incorporation of Revision 1, 2, 3 & 4
Issued for Construction (IFC) documents approved by HART Board of Directors.
Look Ahead: Continue construction of the platform box
girder at Ho‘opili. Install roof on Ho‘opili TCCR. Walls and columns at West Entrance
Building at UHWO. Install 8’x16’ HECO 46kV Manholes #1 and
#2 at UHWO. Approval of baseline schedule. Completion of drilled shaft installations at
East Kapolei.
DBE Participation November Change Orders/Amendments
Actual DBE Participation: $0 Change No./Amend Description Amount ($)
DBE % Attained: 0% None ‐‐‐ ‐‐‐
Cumulative to Date $0
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KEY ISSUES:
Relocation of the 46kV line at UH West O‘ahu Station to be done upon completion of coordination with HECO.
Construction of TPSS foundation and TCCR/UPS room to meet the program schedule needs.
Providing infrastructure for power to Ho‘opili. _______________________________________________________________________________________________________
KEY MILESTONES:
Ho‘opili TCCR/UPS Rooms partial access to CSC/Ansaldo for Systems Installation March 18, 2017.
UHWO TCCR/UPS Rooms partial access to CSC/Ansaldo for Systems Installation Sept. 1, 2017.
East Kapolei TCCR/UPS Rooms partial access to CSC/Ansaldo for Systems Installation June 20, 2017. _______________________________________________________________________________________________________
QUALITY MANAGEMENT:
Responding to HART Quality Audit conducted in October.
WOSG NCR Log
Total NCRs Issued To Date CLOSED OPEN
9 6 3
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Original Contract: $78,999,000 Incurred‐to‐Date: $3,473,290 Current Contract Value1: $79,954,039 Incurred in November: $0
1Current Contract Value = Original contract value + executed Change Orders
C. Farrington Highway Station Group (FHSG) Contract No.: DBB‐271 Contractor: Hawaiian Dredging Construction Company, Inc. Contract Start Date: August 2015 Contract Substantial Completion: January 2018 Projected Substantial Completion: October 2018 Project Description: The Farrington Highway Station Group construction contract includes services to build three (3) transit stations along Farrington Highway. The stations are West Loch (WLO), Waipahu Transit Center (WTC) and Leeward Community College (LCC) Station. The station work includes operational ancillary buildings, a traction power substation at WLO, kiss and ride lots, and parking lots.
% Complete Schedule Status
Based on Expenditures* 4.4%
9 months behind **
Weighted Value 4.3%
Early Plan* 57.9%
Late Plan* 57.9% *Data as of Nov. 25, 2016.** Further explanation is provided in the Schedule section.
_______________________________________________________________________________________________________
COST INFORMATION:
_______________________________________________________________________________________________________
SCHEDULE:
HART’s current assessment of the schedule: HDCC is developing the re‐baselined Baseline Project Schedule (BPS). The revised Construction Access Milestone (CAM) dates are based on the addition of time to the contract CAM dates and the contract substantial completion date. Negotiations are ongoing and not yet finalized.
HDCC’s current assessment of the schedule: They will deliver the project 9 months late. _______________________________________________________________________________________________________
WORK PROGRESS: Activities this Month: HDCC submitted the Waipahu Augercast Value Engineering Cost
Proposal (VECP) design documents for HART review this month. WLO: Concrete shafts are being chipped down to proper height
for pile caps and footings. WLO: Concrete encased conduits for the Negative power for
TPSS. WLO: Poured TPSS vault walls. WLO: Started falsework for the station platform girder
supports. WTC: Installed settlement monitoring control points.
Look Ahead: WLO: Underground utility work continues. WLO: Vertical raceway column (VRC)
ductbank installation will continue. WLO: CMU wall construction for Ancillary
building. WTC: Begin drilled shaft and/or Augercast
piles. LCC: Begin mobilization.
DBE Participation November Change Orders/Amendments
Actual DBE Participation: $32,700 Change No./Amend Description Amount ($)
DBE % Attained: 0.04% None ‐‐‐ ‐‐‐
Cumulative to Date $955,039
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KEY ISSUES:
A Change Order is in process to settle time impacts to the project.
HDCC delay in providing critical submittals is also impacting the critical path.
Acceptance of the Rebaselined BPS and becoming current with monthly updates is critical.
VECP pricing and design to be finalized in order for work to commence in January. _______________________________________________________________________________________________________
KEY MILESTONES:
West Loch – TCCR should be ready to be provided to CSC in April 2017.
HDCC’s work on the West Loch TPSS was completed by Dec. 31, 2016.
Kiewit provided partial access at LCC station site as of Oct. 31. _______________________________________________________________________________________________________________________________________
QUALITY MANAGEMENT:
CE&I is working with HDCC to ensure required submittals are approved prior to related construction activities.
FHSG NCR LogTotal NCRs Issued To Date CLOSED OPEN
15 6 9
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Original Contract: $195,258,000 Incurred‐to‐Date: $274,816,663 Current Contract Value1: $274,858,568 Incurred in November: $0
1Current Contract Value = Original contract value + executed Change Orders
D. Maintenance and Storage Facility (MSF) Contract No.: DB‐200 Contractor: Kiewit/Kobayashi Joint Venture (KKJV) Contract Start Date: July 2011 Actual Substantial Completion: July 2016
Project Description: The MSF contract consists of the Operations and Servicing Building (OSB), Maintenance of Way (MOW), Train Wash Facility (TWF) and Wheel Truing Building (WTB). In addition to the four (4) facility buildings, MSF includes rail procurement, special trackwork, ties, third rail and other track material for the four guideway segments on the project.
% Complete Schedule Status
Based on Expenditures* 100% Substantial Completion Obtained**
Weighted Value 99.9%
Early Plan* 100%
Late Plan* 100% *Data as of Nov. 25, 2016.** Further explanation is provided in the Schedule section.
_______________________________________________________________________________________________________
COST INFORMATION:
_______________________________________________________________________
SCHEDULE:
The MSF project is currently in the close‐out stage. The new target date for final acceptance is March 1, 2017, for the following key reasons:
o Pending punchlist items to be completed. o As‐Built Drawings to be submitted. o Isolation Pad/Shims delivery and installation by March 1, 2017. o Change Order development and completion of the disputed items.
_______________________________________________________________________
WORK PROGRESS: Activities this Month: Yard/Utilities
Submitting final documents for training, O&M manuals, etc. for project close‐out continued.
Punchlist items completed.
Civil As‐built drawings are under HART review.
Track and Systems As‐built drawings resubmitted and under HART review.
OSB
Submitting final documents for training, O&M manuals, etc. for project close‐out continued.
Punchlist item work continued.
Commissioning of the In‐Ground Hydraulic Lifts continued.
Look Ahead: Yard/Utilities
Final documents for training, O&M manuals, etc. for project close‐out submitted.
Civil As‐built drawings completed.
Track and Systems As‐built drawings completed.
OSB
Final documents for training, O&M manuals, etc. for project close‐out submitted.
OSB Foundation and Structural As‐built drawings completed.
DBE Participation November Change Orders
Actual DBE Participation: $709,541 Change No. Description Amount ($)
DBE % Attained: 0.26% None ‐‐‐ ‐‐‐
Cumulative to Date $79,600,568
MSF Construction Status 99.9% Complete Overall
as of 12/15/16
Element % Complete*
OSB 99.9%
MOW Building 99.9%
WTB 99.9%
TWF 99.9%
Rail 99.9%
Paving 100% *Not including testing and commissioning.
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Activities this Month (continued):
OSB Foundation and Structural As‐built drawings are under HART review.
OSB Building Finishes As‐built drawings resubmitted and under HART review.
MOW
Submitting final documents for training, O&M manuals, etc. for project close‐out continued.
MOW Foundation and Structural As‐built drawings are under HART review.
MOW Building Finishes As‐built drawings are under HART review.
WTB
Submitting final documents for training, O&M manuals, etc. for project close‐out continued.
Punchlist item work continued.
WTB As‐built drawings resubmitted under HART review. TWF
Submitting final documents for training, O&M manuals, etc. for project close‐out continued.
TWF As‐built drawings resubmitted and under HART review. Rail Procurement and Installation
Submitting final documents for training, O&M manuals, etc. for project close‐out continued.
Punchlist item work continued. Administration
Assisting with the completion of final documents for final acceptance of the MSF project.
Look Ahead (continued):
OSB Building Finishes As‐built drawings completed.
Commissioning of the In‐Ground Hydraulic Lifts completed.
Punchlist completed. MOW
Final documents for training, O&M manuals, etc. for project close‐out submitted.
MOW Foundation and Structural As‐built drawings completed.
MOW Building Finishes As‐built drawings completed.
WTB
Final documents for training, O&M manuals, etc. for project close‐out submitted.
WTB As‐built drawings completed.
Punchlist items completed. TWF
Final documents for training, O&M manuals, etc. for project close‐out submitted.
TWF As‐built drawings completed.
________________________________________________________________________________________________________________________________________________________________________________________________________________________
KEY ISSUES:
Final Acceptance – Coordination with KKJV has continued for equipment and building commissioning, final punchlist, submittals, training, O&M manuals, spare parts, and equipment turnover for final acceptance. Most of this work has been completed pending final documentation to be submitted.
As‐Built Drawings – As‐built drawings for Mass Grading, OSB and MOW Building Finishes, Track and Systems, Train Wash Facility and Wheel Truing Building have been resubmitted and the initial as‐built drawings for OSB and MOW Foundation and Structural, Civil are currently under review by HART. The Facility Specifications as‐built is pending submission.
3/16” Direct Fixation Isolation Pads – KKJV issued and HART responded to Request for Information (RFI) 00211 – Color Clarification for Isolation Pads, and RFI 00212 – Isolation Pad Substitution Request. Management discussed and reviewed isolation pad deliveries with WOFH. WOFH will procure the isolation pads and install them with the installation of the shims. Internal meetings are being held weekly with WOFH, MSF and KHG to discuss the Design‐Builders actions to procure, deliver and reinstall the isolation pads and shims.
Dispute Mediation – Dispute mediation Change orders are currently in route for signatures. _______________________________________________________________________________________________________
KEY MILESTONES:
Commissioning, Testing and Training of the In‐Ground Floor Lifts, Wheel Lathe, Wheelset Press, Portable Lifts, and Buffer Stop: The commissioning and training of the in‐ground floor lifts, wheel lathe, wheelset press, and portable lifts were completed in December.
_______________________________________________________________________________________________________
QUALITY MANAGEMENT: Overall quality of the contract is good.
MSF NCR Log
Total NCRs Issued to Date CLOSED OPEN
34 32 2
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Original Contract: $372,150,000 Incurred‐to‐Date: $337,347,099 Current Contract Value1: $389,078,661 Incurred in November: $3,810,560
1Current Contract Value = Original contract value + executed Change Orders
4.3 Section II – Kamehameha Highway: Pearl Highlands to Aloha Stadium A. Kamehameha Highway Guideway (KHG) Contract No.: DB‐320 Contractor: Kiewit Infrastructure West Company (KIWC) Contract Start Date: June 2011 Contract Substantial Completion: May 2017 Projected Substantial Completion: May 2017
Project Description: Kamehameha Highway Guideway DB Contract (KHG) consists of 3.9 miles and starts 400 feet east of the Pearl Highlands Station and terminates 1,400 feet beyond the Aloha Stadium Station. KHG work scope is made up of utility relocations, traffic signal improvements, highway widening, drilled shaft foundations, columns and aerial structure.
% Complete Schedule Status
Based on Expenditures* 86.6%
On time** Weighted Value 86%
Early Plan* 100%
Late Plan* 100% *Data as of Nov. 25, 2016.**Further explanation is provided in the Schedule section.
________________________________________________________________________________________________________________________________________________________________________________________________________________________
COST INFORMATION:
________________________________________________________________________________________________________________________________________________________________________________________________________________________
SCHEDULE:
KIWC continues to have challenges meeting schedule due to various factors including lower productivity and resource sharing between the KHG and WOFH projects, and self‐directed work stoppage for traffic signal and civil roadway work. HART’s position is that the projected substantial completion date will be May 2017, although the contractor’s progress schedule shows guideway to be completed in June 2017 and overall project schedule to be completed in May 2018.
________________________________________________________________________________________________________________________________________________________________________________________________________________________
WORK PROGRESS:
DBE Participation November Change Orders
Actual DBE Participation: $322,296 Change No. Description Amount ($)
DBE % Attained: 0.08% 037 Comm Conduit and FOC to Sys Site 12 ($186,306)
038 Accel Const of Straddle Bents $77,500
041 Roadway & St Light Mods at Pearlridge $73,700
042 Transite Pipe at TMH‐333‐1 Asbestos $67,000
Cumulative to Date $16,928,661
KHG Construction Status as of 12/28/16
Utility Status Qty
to Date Final Qty %
Complete Structure Element
Total to Date
Planned to Date
Total Qty
% Complete
Accepted Schedule*
Revised Schedule**
Water Line 4,362 4,362 100% Shafts 186 186 186 186 100%
Gas Line 12,641 12,641 100% Columns 169 169 169 169 100%
Sewer Line 492 492 100% Segment Casting 2,029 2,029 2,029 2,029 100%
Drainage Line 1,000 1,469 68% Spans Stressed 162 166 160 163 99.4%
Elec/Telecom 18,700 19,455 96% Track work 131 166 94 166 78.9%
System Sites 73% N/A 73% Third Rail 41 166 86 166 24.7%
Signals/ITS/ Lights
15,250 18,486 82% Mill & Overlay
Roadway 0 N/A 0 20,500 0%
* Accepted Schedule was submitted in 2013. ** These quantities are based on KIWC’s pending August 2015 schedule revision dated Sept. 23, 2015. Revised schedule reflects a 12 month delay in completion.
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Activities this Month: Shaft/Column/Segments
Heading #1 Truss is in operation erecting Span 404.
Last span set on Dec. 22.
Dry finish of spans is ongoing. Utility Relocation Progress
The relocation of HECO electrical lines and Hawaiian Telcom, Oceanic Time Warner Cable and Intelligent Transportation Systems (ITS) ductbanks is occurring in various phases along the alignment.
Systems Site #10 and #24 work is ongoing.
Traction Power and communication ductbanks for System Site #12 are being installed in the roadway at Pearlridge Station area.
Median Restoration
Center median restoration in Phases 5 and 10 continues. Traffic Signals
Traffic Signal Change Order work in progress at the following intersections: Acacia Rd; Waimano Home Rd; Puu Moni St; Puu Poni St; Kaahumanu St; Hekaha St. and Lipoa Pl.
Trackwork
Installation of mainline track and fasteners, special trackwork, and contact rail is ongoing.
Look Ahead: Design Progress
KIWC is working to complete final design. To date, 46 of 49 drawing packages have been issued for construction.
KIWC is working on As‐Builts. Shaft/Column/Segments
Dry finish of guideway spans is ongoing. Utility Relocation
Acquisition of Right of Entry (ROE) for utility relocations is being pursued by HART and KIWC jointly, and meetings with property owners are ongoing.
Median Restoration
Center median restoration in Phases 4 and 6.
________________________________________________________________________________________________________________________________________________________________________________________________________________________
KEY ISSUES:
HECO/HDOT Utility Priorities – HECO Aerial “sway” Easement needed for conflict 9‐883‐E1. HART and the property owner are working to mitigate the delay.
Access Coordination between Contracts – Coordination between contractors is ongoing and requires turnover of guideway work to follow‐on station contractors.
Civil Roadway Work – KIWC has submitted a claim for extended overhead and management associated with completing the remaining civil roadway work (i.e. highway widening, retaining walls, mill and overlay, signage and striping) due to resequencing. This work could be accomplished at a later date if this option has merit in mitigating HART caused delays. HART is currently evaluating the merit of the claim and options.
________________________________________________________________________________________________________________________________________________________________________________________________________________________
KEY MILESTONES:
The last span was set on Dec. 22, 2016.
A small number of utility conflicts (i.e. HTI, OTWC, HECO) are anticipated to be completed by January 2017.
Trench work anticipated to be completed March 2017. ________________________________________________________________________________________________________________________________________________________________________________________________________________________
QUALITY MANAGEMENT:
Quality Process – KIWC continues to follow an established quality process.
Longitudinal Tendons – Due to WOFH NCR 509, longitudinal tendons have been monitored for possible indications of rust. KIWC added two witness points to their Pre‐Grout Inspection Checklist for HART to visually inspect the tendon anchorages for corrosion, and observe the removal of the deviator boots to ensure no water had accumulated at the low points of the duct.
Shims – NCR #225 was issued to KIWC on Oct. 17, for non‐compliance with ASTM testing requirements.
KHG NCR Log Total NCRs Issued to Date CLOSED OPEN
233 225 8
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Original Contract: $5,203,646 Incurred‐to‐Date: $1,662,066 Current Contract Value1: $5,246,168 Incurred in November: $199,008
1Current Contract Value = Original contract value + executed Change Orders
B. Ramp H2R2 Contract No.: DBB‐385 Contractor: Royal Contracting Co. Ltd. Contract Start Date: May 2015 Contract Substantial Completion: October 2016 Projected Substantial Completion: May 2017 Project Description: Ramp H2R2 is an off‐ramp from the H2 Interstate which will connect the north bound H2 Interstate to east bound Kamehameha Highway. The off‐ramp terminates just west of the intersection of Kamehameha Highway and Waihona Street.
% Complete Schedule Status
Based on Expenditures* 31.9%
7 months behind
Weighted Value 31.68%
Early Plan* 100%
Late Plan* 100% *Data as of Nov. 25, 2016. The progress chart reflects early program expectations. When the overall schedule is rebaselined, the cost curve will be revised.
________________________________________________________________________________________________________________________________________________________________________________________________________________________
COST INFORMATION:
________________________________________________________________________________________________________________________________________________________________________________________________________________________
SCHEDULE:
Royal Contracting was awarded this project on May 4, 2015, and issued NTP on May 18, 2015. Start of construction was delayed due to unforeseen HDOT required soil remediation and submittal of required documentation. The contractor has projected a substantial completion of May 2017. Contract Change Order CCO‐0002 extended the original completion date by 124 days to Oct. 2, 2016.
A change order is in process to approve additional delay time that is associated with the unforeseen HDOT required soil remediation that extends beyond the original 124 day extension. There are no anticipated delay claims at this time, since the remediation delays were concurrent with contractor delays.
_______________________________________________________________________________________________________
WORK PROGRESS: Activities this Month: All retaining wall foundations, except radius section, have
been poured. Poured first vertical wall section on the retaining wall. Continued work on new 24” Reinforced Concrete Pipe (RCP). Continued work on Field Change Notice (FCN) 002, protect
existing 24” RCP.
Look Ahead: Complete pouring foundations for retaining
wall. Continue to reinforce and pour vertical wall
sections. Continue work on new 24” RCP drain.
DBE Participation November Change Orders/Amendments
Actual DBE Participation: $327,815 Change No./Amend Description Amount ($)
DBE % Attained: 6.25% None ‐‐‐ ‐‐‐
Cumulative to Date $42,522
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KEY ISSUES:
No key issues to report this month. _______________________________________________________________________________________________________
KEY MILESTONES:
No significant milestones were completed this month. _______________________________________________________________________________________________________
QUALITY MANAGEMENT:
Responding to HART Quality Audit conducted in October.
Ramp H2R2 NCR Log
Total NCRs Issued To Date CLOSED OPEN
4 2 2
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Original Contract: $115,805,845 Incurred‐to‐Date: $646,955 Current Contract Value1: $115,805,845 Incurred in November: $111,184
1Current Contract Value = Original contract value with Design Allowance + executed Change Orders
C. Kamehameha Highway Stations Group (KHSG) Contract No.: DBB‐371 Contractor: Nan, Inc. Contract Start Date:
Notice to Commence Administrative Work: April 2016 Notice to Commence Investigative/Pre‐Construction Work at Pearl Highlands: July 2016 Full Notice to Proceed (NTP): October 2016
Contract Substantial Completion: May 2019 Projected Substantial Completion: May 2019
Project Description: The Kamehameha Highway Station Group construction contract includes services to build three (3) transit stations along Kamehameha Highway. The stations are Pearl Highlands Station, Pearlridge Station, and Aloha Stadium Station. In addition to the transit stations, operational ancillary buildings, bus stops/transit centers, park‐and‐ride lots, kiss‐and‐rides, pedestrian crossing improvements, Train Control and Communications Rooms (TCCRs), and landscaping of the station sites are included.
% Complete Schedule Status
Based on Expenditures* 0.6%
On time Weighted Value 3.7%
Early Plan* 3.6%
Late Plan* 3.6% *Data as of Nov. 25, 2016.
________________________________________________________________________________________________________________________________________________________________________________________________________________________
COST INFORMATION:
________________________________________________________________________________________________________________________________________________________________________________________________________________________
SCHEDULE: HART is working with the contractor to finalize the Baseline Project Schedule.
________________________________________________________________________________________________________________________________________________________________________________________________________________________
WORK PROGRESS: Activities this Month: Negotiation completed for CO 00001, a change
order to incorporate Issued for Construction drawings and specifications into the contract.
Pearl Highlands – Stream diversion work continuing along Waiawa Stream. Installation of sheet piles is ongoing along Waiawa Stream. Began work on sewer/water lines on Kamehameha Highway. Started method drill shaft work.
Pearlridge Station – The northern and southern station sites have been made available. Soft construction started the week of Nov. 21, 2016 with topographic survey and noxious weed survey.
Aloha Stadium – Continuing coordination with the KHG contractor to get site access.
Look Ahead: Finalize and award CO 00001. Continue ongoing third party utility coordination
with the KHG contractor, Hawaiian Telcom (HTI), Hawaiian Electric Company (HECO), and Oceanic Time Warner (OTW).
Pearl Highlands – Continue stream diversion work along Waiawa Stream. Install all sheet piles to form the retaining wall by Waiawa Stream. Will begin rock slope protection work. Load shaft work to start after method shaft is completed.
Pearlridge Station – Job site fencing setup to begin while investigative soil sampling and water testing results are being obtained.
Aloha Stadium – Continuing coordination with the KHG contractor to get site access.
DBE Participation November Change Orders/Amendments
Actual DBE Participation: $0 Change No./Amend Description Amount ($)
DBE % Attained: 0% None ‐‐‐ ‐‐‐
Cumulative to Date $0
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KEY ISSUES:
Existing overhead utilities continue to be relocated underground at the Pearlridge Station site on Kamehameha Highway, as part of the KHG contract. KHSG continues to coordinate with the KHG contractor and third party utilities to monitor the installation of new utilities and the completion of utility relocations.
Coordinating with HART ROW for easement acquisition required for relocation of an existing overhead HECO 46kV line near the Pearlridge Station site (along southern site).
HART is exploring options for the construction of a third lane by the mauka side of Pearlridge Station to allow for platform construction to begin. Scoping meetings are ongoing with the KHSG contractor.
Executing a change order to incorporate Issued for Construction drawings and specifications (CO 00001) into the contract.
HDOT issued a stop work order to the contractor until issues with the height and width of the water isolation barrier along Waiawa Stream is addressed. The contractor continues to work with HDOT to determine the appropriate resolution.
Transite pipes with asbestos in soil stockpiles were discovered during mass excavation activities in the Pearl Highlands Station area. HART is working with the contractor to separate asbestos materials and monitor soil mitigation.
_______________________________________________________________________________________________________ KEY MILESTONES:
Stadium Memorandum of Understanding (MOU) and Construction Right‐of‐Entry (CROE) approved.
Partial Access for Systems Equipment Installation at Pearl Highlands Station – The TCCR and the Uninterruptible Power Supply (UPS) Building/Rooms are to be turned over from the KHSG contractor to the CSC contractor in November 2017.
Station Site Turnover at Pearlridge Station – Both the northern and southern sites at the Pearlridge Station have been vacated by the KHG contractor. Soft construction began at both sites on the third week of November 2016.
Station Site Access at Aloha Stadium – Projected in April 2017 or possibly sooner. _______________________________________________________________________________________________________
QUALITY MANAGEMENT:
KHSG NCR Log
Total NCRs Issued To Date CLOSED OPEN
0 0 0
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Original Contract: $38,840,960 Incurred‐to‐Date: $41,683,791 Current Contract Value1: $43,134,472 Incurred in November: $9,962
1Current Contract Value = Original contract value with Design Allowance + executed Change Orders
4.4 Section III – Airport: Aloha Stadium to Middle Street Transit Center Station A. Airport Section Guideway and Utilities Contract No.: FD‐430 Contractor: AECOM Technical Services, Inc., Final Design Consultant (Engineer of Record) Contract Start Date: January 2012 Construction Completed:
Airport 7‐Piers (DBB‐525 – Hawaiian Dredging): o Project accepted on May 2, 2015; project closed out in April 2016
Airport Section Utilities (DBB‐505 ‐ Nan Inc.): o See Airport Section Utilities (section 4.4.B) for Substantial Completion date.
Projected Substantial Completion: April 2017, based on closeout activities of Airport Section Utilities DBB construction contract.
Project Description: The Airport Segment Guideway and Utilities contract consists of 5.2 miles of elevated transit guideway serving four (4) passenger stations, in addition to roadway widening, utility relocation, and other improvements to create space for these transit facilities. Two construction contracts have been split out and expedited from the larger Airport Section package. These two contracts are the expedited Airport Section Utilities (ASU) and expedited Airport 7‐Piers (A7). For both of these expedited contracts, the design and construction have been completed. The remaining scope of design has been terminated and will be completed under a design‐build procurement. The Airport Guideway and Stations (AGS) Design‐Build (DB) contract was awarded to Shimmick/Traylor/Granite, JV, and Notice to Proceed (NTP) was issued on Dec. 1, 2016. From the January 2017 Progress Report and on, a contract page for the AGS DB contract will be included in the Monthly Progress Report. As such, the Airport Section Guideway and Utilities FD contract page will be removed from the Progress Report, and any updates related to design will be covered in the AGS DB contract page.
% Complete Schedule Status
Based on Expenditures* 96.6%
On time Earned Value 97%
Early Plan* 100%
Late Plan* 100% *Data as of Nov. 25, 2016. The progress chart reflects early program expectations. When the overall schedule is rebaselined, the cost curve will be revised.
_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
COST INFORMATION:
_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
SCHEDULE: The only remaining work under this contract is design services during construction, which are scheduled to conclude as
noted above. Record Drawings production has been initiated. _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
WORK PROGRESS: Activities this Month: Supported ASU DBB construction. Production of ASU Record Drawings is ongoing.
Look Ahead:
Provide as‐needed support for Right‐of‐Way (ROW) acquisition in the Airport Section.
Completion of ASU Record Drawings. _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
KEY ISSUES:
N/A. _______________________________________________________________________________________________________
KEY MILESTONES:
Substantial Completion of ASU construction contract was achieved. See ASU construction report for details.
DBE Participation November Change Orders/Amendments
Actual DBE Participation: $162,813 Change No./Amend Description Amount ($)
DBE % Attained: 0.38% None ‐‐‐ ‐‐‐
Cumulative to Date $4,293,512
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Original Contract: $27,993,290 Incurred‐to‐Date: $18,879,924 Current Contract Value1: $27,374,549 Incurred in November: $349,955
1Current Contract Value = Original contract value + executed Change Orders
B. Airport Section Utilities Construction Contract No.: DBB‐505 Contractor: Nan, Inc. Contract Start Date: July 2014 Contract Substantial Completion: July 2016 Actual Substantial Completion: October 2016
Project Description: The Airport Utilities contract consisted of relocating utilities lines and facilities that have been determined to be impacted by the construction of the HART aerial guideway and associated facilities between Aloha Stadium and Middle Street Transit Center. The scope of utilities included underground communications lines, Navy electrical lines, fuel lines, gas lines, water lines, storm sewer lines, sanitary sewer lines and street light conduits and poles/fixtures. HECO work was excluded from this contract.
% Complete Schedule Status
Based on Expenditures* 68.9%
3 months behind
Weighted Value** 69%
Early Plan* 100%
Late Plan* 100% *Data as of Nov. 25, 2016. The progress chart reflects early program expectations. When the overall schedule is rebaselined, the cost curve will be revised. **Based on a preliminary October invoice.
_______________________________________________________________________________________________________________________________________
COST INFORMATION:
_______________________________________________________________________________________________________________________________________
SCHEDULE:
Nan, Inc. has completed the underground portion of the utility relocation work along Kamehameha Highway and Aolele Street. Paving, striping and landscaping have been completed as of the substantial completion date of Oct. 7, 2016, per the contractor’s schedule. Project walk‐through has occurred to develop the punch list for the project. Nan has completed work on the punch list. Additional unforeseen utility items, not originally identified in this contract, and several contract work items have been removed from Nan’s scope due to unresolved conflicts resulting in potential cost and schedule impacts. On‐Call has completed the removal of asbestos contaminated Chevron fuel lines and one irrigation line on Aolele Street. Final paving was completed on Dec. 10, 2016. On‐Call has completed the installation of new and realigned 24” and 8” Navy waterlines. On‐Call will return in January 2017 to remove the old 24” waterline, 8” Air Force Association (AFA) fuel line, and Hawaiian Telcom (HTI) duct bank. Contract completion of outstanding submittals and other documents, including as‐builts, are in progress.
_______________________________________________________________________________________________________________________________________
WORK PROGRESS: Activities this Month: On‐Call group has completed removal of the Chevron
fuel lines and the 8” irrigation line. On‐Call has installed the 24” and 8” waterlines, chlorinated both lines and has completed the tie ins.
Ongoing processing of ASU close out submittals and outstanding changes/claims.
Look Ahead:
Final submittal requirements will need to be turned in and reviewed for project close out (labor compliance documentation, test results, material submittals, warrantees and guarantees, etc., and final field demobilization).
DBE Participation November Change Orders
Actual DBE Participation: $36,094 Change No. Description Amount ($)
DBE % Attained: 0.13% 012 Relocation of sewerline $54,068
013 Relocation of waterline due to conflict $34,728
Cumulative to Date ($618,789)
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Activities this Month (continued): As‐builts have been received from Nan and are
under review by AECOM prior to finalizing the drawings.
Look Ahead (continued):
CE&I‐II team continues to work on completing outstanding change orders, including a time delay claim of 3 months.
On‐Call will return to work in January 2017 to remove the old 24” waterline, AFA 8” fuel line and the HTI duct bank.
_______________________________________________________________________________________________________ KEY ISSUES: Completion of outstanding change claims. Review and acceptance of final close out submittal documents. _______________________________________________________________________________________________________
KEY MILESTONES:
Substantial completion occurred on Oct. 7, 2016. _______________________________________________________________________________________________________
QUALITY MANAGEMENT:
Overall quality of the contract is good.
Airport Utilities NCR Log
Total NCRs Issued To Date CLOSED OPEN
19 19 0
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Original Contract: $10,177,365 Incurred‐to‐Date: $10,059,820 Current Contract Value1: $11,573,852 Incurred in November: $0
1Current Contract Value = Original contract value with Design Allowance + executed Change Orders
C. Airport Station Group (ASG) Contract No.: FD‐440 Contractor: AECOM Technical Services, Inc., Final Design Consultant (Engineer of Record) Contract Start Date: November 2012 Construction Docs Bid‐Ready: N/A Actual Substantial Completion: Work concluded July 2016
Project Description: Architectural and engineering services for the design of four (4) transit stations serving the Airport Guideway. The four (4) stations comprising the ASG contract are the Pearl Harbor Naval Base Station, the Honolulu International Airport Station, the Lagoon Drive Station, and the Middle Street Station. These four stations have been combined with the guideway into a single Airport Guideway and Stations Design‐Build (DB) package. Due to the change in delivery method from DBB to DB, the design of the Airport Stations Group will not be advanced to completion under this FD‐440 contract. The AGS DB contract was awarded to Shimmick/Traylor/Granite, JV, and NTP was issued on Dec. 1, 2016. From the January 2017 Progress Report and on, a contract page for the AGS DB contract will be included in the Monthly Progress Report. As such, the Airport Station Group FD contract page will be removed from the Progress Report, and any updates related to design will be covered in the AGS DB contract page.
% Complete Schedule Status
Based on Expenditures* 87% Substantial Completion Obtained
Earned Value 87%
Early Plan* 100%
Late Plan* 100% *Data as of Nov. 25, 2016. The progress chart reflects early program expectations. When the overall schedule is rebaselined, the cost curve will be revised.
_______________________________________________________________________________________________________________________________________
COST INFORMATION:
_______________________________________________________________________________________________________________________________________
SCHEDULE:
There is no work scheduled under this contract.
This contract is scheduled to be closed out in early 2017. _______________________________________________________________________________________________________________________________________
WORK PROGRESS: Activities this Month: Administrative closeout activities are ongoing.
Look Ahead: Future efforts will be administrative only.
_______________________________________________________________________________________________________________________________________
KEY ISSUES:
N/A. _______________________________________________________________________________________________________ KEY MILESTONES:
N/A.
DBE Participation November Change Orders
Actual DBE Participation: $234,762 Change No. Description Amount ($)
DBE % Attained: 2.03% None ‐‐‐ ‐‐‐
Cumulative to Date $1,396,487
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Original Contract: $43,948,220 Incurred‐to‐Date: $44,431,598 Current Contract Value1: $47,097,562 Incurred in November: $795,653
1Current Contract Value = Original contract value with Design Allowance + executed Change Orders
4.5 Section IV – City Center: Middle Street Transit Center Station to Ala Moana Center A. City Center Section Guideway and Utilities Contract No.: FD‐530 Contractor: AECOM Technical Services, Inc., Final Design Consultant (Engineer of Record) Contract Start Date: July 2012 Projected Substantial Completion: January 2019.
Project Description: The City Center Section Guideway and Utilities final design contract consists of 4.2 miles of elevated transit guideway serving eight (8) passenger stations, in addition to roadway widening, utility relocation, and other improvements to facilitate construction of the guideway. Design of the City Center guideway has been suspended under this contract and will be completed by the City Center Guideway and Stations (CCGS) DB contract. However, designs for utilities and roadway are proceeding under this FD‐530 Final Design contract for use in the Dillingham Temporary Utilities (DTU) DBB construction contract, and the CCGS DB contract.
% Complete Schedule Status
Based on Expenditures* 94.3%
On time** Earned Value 93%
Early Plan* 100%
Late Plan* 100% *Data as of Nov. 25, 2016. The progress chart reflects early program expectations. When the overall schedule is rebaselined, the cost curve will be revised. ** Further explanation is provided in the Schedule section.
____________________________________________________________________________________________________________________________________________________________________________________
COST INFORMATION:
____________________________________________________________________________________________________________________________________________________________________________________
SCHEDULE:
DTU utilities design is scheduled to conclude in mid‐2017.
CCGS utilities and roadway design commenced on Dec. 27, 2016, and is scheduled to conclude on or before January 2019.
____________________________________________________________________________________________________________________________________________________________________________________
WORK PROGRESS: Activities this Month: DTU pole locations submitted to utility owners
for review. Received HECO comments on preliminary
138kV design.
Look Ahead:
Split DTU into multiple packages to fast‐track early construction.
Engage reviewing authorities in CCGS utilities and roadway design kickoff meetings.
Commence design of permanent utilities and roadway. ____________________________________________________________________________________________________________________________________________________________________________________
KEY ISSUES:
DTU design is being modified to accommodate phasing around properties that are yet to be acquired.
Completion of DTU design is critical to overall program schedule. ____________________________________________________________________________________________________________________________________________________________________________________
KEY MILESTONES:
DTU pole plans submitted to utility owners.
Unilateral contract amendment issued for design of CCGS permanent utilities and roadway.
DBE Participation November Change Orders/Amendments
Actual DBE Participation: $191,227 Change No./Amend Description Amount ($)
DBE % Attained: 0.41% None ‐‐‐ ‐‐‐
Cumulative to Date $3,149,342
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Original Contract: $18,321,918 Incurred‐to‐Date: $12,342,879 Current Contract Value1: $19,631,717 Incurred in November: $0
1Current Contract Value = Original contract value with Design Allowance + executed Change Orders
B. Dillingham and Kaka‘ako Station Group (DKSG) Contract No.: FD‐550 Contractor: Perkins+Will (P+W), Final Design Consultant (Engineer of Record) Contract Start Date: August 2013 Construction Docs Bid‐Ready: N/A Actual Substantial Completion: Work concluded February 2016
Project Description: Design of eight (8) stations for the fourth and final phase of the current project that will connect Dillingham Boulevard to Ala Moana Center. The DKSG stations have been combined with the City Center Guideway into a single City Center Guideway and Stations Design‐Build package. Due to the change from a DBB to a DB delivery method, the design for these stations has been suspended and will not be completed under this FD‐550 contract.
% Complete Schedule Status
Based on Expenditures* 62.9% Substantial Completion Obtained
Earned Value 63%
Early Plan* 100%
Late Plan* 100% *Data as of Nov. 25, 2016. The progress chart reflects early program expectations. When the overall schedule is rebaselined, the cost curve will be revised.
_______________________________________________________________________________________________________________________________________
COST INFORMATION:
_______________________________________________________________________________________________________________________________________
SCHEDULE:
There is no work scheduled under this contract.
This contract is scheduled to be closed out in early 2017.
_______________________________________________________________________________________________________________________________________
WORK PROGRESS: Activities this Month: Administrative closeout activities are ongoing.
Look Ahead:
Future efforts will be administrative only. _______________________________________________________________________________________________________________________________________
KEY ISSUES:
N/A. _______________________________________________________________________________________________________ KEY MILESTONES:
N/A.
DBE Participation November Change Orders
Actual DBE Participation: $0 Change No. Description Amount ($)
DBE % Attained: 0% None ‐‐‐ ‐‐‐
Cumulative to Date $1,309,799
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4.6 Contract Status Cost reports are run from the HART Contract Management System (CMS)
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5 OVERALL PROJECT‐WIDE ACTIVITIES
5.1 Permits
Permits Submitted and In‐Progress o Nan Inc. received the extension for the National Pollutant Discharge Elimination System (NPDES) permit for
hydrotesting activities. o HART and Nan, Inc. submitted a request to modify the section 401 Water Quality Certification (WQC) No. 0789
stream diversion barriers. o Nan Inc. and HART conducted community outreach in the Pearlridge Station area and conducted a community
meeting on Nov. 30, 2016 at Pearl Ridge Elementary for the Pearlridge Station Community Noise Variance application.
o Nan Inc. is also constructing Phase 2 activities along Waiawa Stream and daily monitoring is being conducted by the Construction Engineering & Inspection water quality monitors.
Look Ahead o Upcoming significant permit activity:
Station contractors are applying to extend the Community Noise Permits for the West O‘ahu and Farrington Highway Station Groups.
HART is applying for an extension of the Community Noise Permit for the West O‘ahu/Farrington Highway Guideway project.
5.2 Hawai‘i Department of Transportation (HDOT) Agreements
Activities this Month o Grant application is being processed for the FY16 $3M associated with the Federal Highway Administration
(FHWA) fund transfer to FTA for the HDOT requested highway improvements. o HDOT has completed review of a draft amendment to the WOFH Master Agreement and Joint Use and
Occupancy Agreement (JUOA), which addresses maintenance responsibilities and reimbursements. HART is currently working with Corporation Counsel regarding the signatures/execution of the amendment. Corporation Counsel advised to route signatures through the City due to Charter Amendment changes.
o A draft amendment to the KHG, AGS, CCGS Master Agreement has been sent to HDOT for review and comment. Currently, there is an approximate ½ mile gap in the Joint Use and Occupancy area along Kamehameha Highway in the vicinity of Aloha Stadium. The amendment would provide a continuous JUOA segment, allowing HART to take on responsibility for street usage permits and maintenance during the construction of the Aloha Stadium Station and Airport guideway construction.
Look Ahead o Execution of the City Center Joint Use and Occupancy Agreement. o Execution of the West O‘ahu Farrington Highway Master Agreement and Joint Use and Occupancy Agreement
Amendment 1. o Execution of Amendment 1 to the Master Agreement for the sections to and from: Kamehameha Highway
Guideway, Airport Guideway and City Center Guideway.
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5.3 Utility Agreements
Utility Agreements Status Matrix
Utility Owner Status WOFH KHG Airport City Center
ESA UCA ESA UCA UCA COMBINED ESA UCA
AT&T (Corporation)
Executed 05/11/11 12/20/11 5/18/12
Including with ESA
Not Required
12/26/13 Draft sent to
AT&T NTP 05/12/11 12/21/11
Amd 01 07/01/11 HRS Ch 104 11/22/16
AT&T (Government Solutions)
Executed 12/26/13
Not Required
12/26/13 Combined with AT&T
Corp NTP
Chevron
Executed 12/04/09
11/04/11
NTP 12/22/09 11/15/11
Amd 01 07/01/11
Hawaiian Telcom
Executed 05/20/10 11/17/1405/10/12 12/31/14 05/28/15 09/27/13
Draft sent to HTI for review
NTP 06/14/10 11/18/14
Amd 01 07/01/11 04/13/15 Pending utility
signature
Amd 02 05/10/12
Executed Temp OH Pending Signature NTP
HECO
Design Services
Construction Services
Design Services
Construction Services
Design Services
Construction Services
Design Services
Construction Services
Executed 11/20/13 11/29/13 11/20/13 11/29/13 11/20/13 Draft agreement
under review.
11/25/13 HECO revision to
include Temp Poles
NTP 11/20/13 11/29/13 11/20/13 11/29/13 11/20/13 11/25/13
Amd 01
Mem
orandums of
Understanding
08/07/14 – Construction Drawings
05/01/15 ‐ Access
05/15/15 ‐ Derrick Truck
06/23/15 ‐Master Agreement
06/09/15 ‐MSF Advanced Construction
09/16/15 ‐ Right of Entry
10/12/15 – Clearance (West) 11/10/15 ‐ Dillingham Blvd Materials
07/13/16 – KHG Vertical Clearance
Power Quality ‐ Pending
Oceanic Time Warner Cable
Executed 12/08/09 12/21/11 01/09/12 06/02/14 12/19/14
04/03/13 Draft sent to OTWC for review NTP 12/22/09 04/04/13
Amd 01 07/01/11 02/27/14 HRS Ch 104 HRS Ch 104
Amd 02 10/07/13 HRS Ch 104
Executed 9/22/16
NTP 9/30/16
Pacific Lightnet/ Wavecom
Executed 04/28/10 03/12/12 02/15/12
NTP 04/29/10 03/13/12 02/16/12
Amd 01 07/01/11 HRS Ch 104
Sandwich Isle Communications
Executed 05/20/10 04/20/12
NTP 06/08/10
Amd 01 07/01/11
Hawai‘i GAS
Executed 12/18/09 06/30/1106/01/12 04/14/14
08/19/1409/27/13
05/08/15
NTP 12/22/09 07/12/11 08/20/14 05/11/15
Amd 01 07/01/11 10/17/14 08/28/14 HRS Ch 104 HRS Ch 104
Amd 02 05/09/16 10/23/15
Amd 03 HRS Ch 104
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Utility Agreements Status Matrix
Utility Owner Status WOFH KHG Airport City Center
ESA UCA ESA UCA UCA COMBINED ESA UCA
Level 3/TW Telecom
Executed 12/02/09
02/14/12 Oceanic to relocate for TW Telecom
10/11/12 Draft sent to TW Telecom
NTP 12/22/09 02/16/12
Amd 01 07/01/11
Amd 02
Tesoro
Executed
02/15/1209/12/13
08/27/13
NTP 02/16/12 09/03/13
Amd 01 09/12/14
Amd 02 05/13/15
Amd 03 HRS Ch 104
Legend: = Action this month COR = Corporation Counsel UCA = Utility Construction Agreement
= Not applicable ESA = Engineering Services Agreement UFRCRA = Combined Engineering and Construction Utility Agreement
ISSUES
No major issues to report this month. General
Coordinating with Board of Water Supply to provide stray current information and maintenance plans. HECO
Davis‐Bacon requirements – HECO has a collective bargaining agreement that has different wage scales and allows payment to its labor forces bi‐weekly, which does not satisfy Davis‐Bacon. Based on the State of Hawaii Department of Labor and Industrial Relations correspondence, HECO has begun the process to pay their employees weekly. HECO has submitted a rate conformance request that has so far been denied by the United States Department of Labor (DOL), although HECO has appealed. HECO and HART are still awaiting a final decision from the DOL for the applicable rates.
HECO 46kV Substation near MSF area – HECO indicated a need in the 2019 timeframe for a new dedicated 46kV substation to feed the MSF area due to requirements in the HECO Rule 13 for line extensions and substations. HART is reviewing the various options with HECO.
Additional Clearances – HECO requires the need for additional horizontal working clearances from overhead line conductors to the guideway for their 138kV and 46kV overhead lines along portions of all guideway segments.
Horizontal Working Clearances Analysis – For Airport and City Center, HART and HECO have agreed to underground the overhead 138kV lines. HART’s designers are progressing to a preliminary engineering design with feedback from HECO. However, for AGS, a HECO‐HART combined solution of increased Navy easements and redesigned (shortened) pole conductors may alleviate undergrounding the 9‐pole 138kV system fronting Pearl Harbor. Combined with specialized equipment from the west side, to maintain and replace the 46kV system, undergrounding of HECO transmission lines may not be necessary. For WOFH and KHG, HECO has successfully tested two new bucket trucks (not currently in their fleet) that can perform the 46kV work with less than their required working clearance. This will mitigate the need to relocate almost 90% of the 46kV poles/lines that do not meet their current required working clearances. For the 138kV lines at WOFH and KHG, HECO and HART traveled to Colorado to review the operational capabilities of the Phoenix and Skybird bucket trucks. HECO is evaluating their findings to better determine the extent of their powerlines that can be addressed through the use of this new equipment. A final report from HECO is expected shortly.
Alternative Equipment – For WOFH and KHG, HECO has proposed that HART purchase (9) new Altec bucket trucks to mitigate the 46kV clearance. HART is reviewing this. HECO and HART will continue to look for alternative equipment that could possibly mitigate the 138kV working clearance areas.
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5.4 Right‐of‐Way (data as of Dec. 1, 2016) KEY ISSUES
o In order to support the Airport Guideway and Stations Design‐Build contract and to maintain the project schedule, eminent domain proceedings were authorized by the HART Board and the Honolulu City Council for several parcels. However, negotiations are still continuing with all private property owners in the Airport section in an attempt to reach mutual agreement.
o HART will have approximately 100 new private easements that will be acquired for HECO undergrounding. Another 146 small parcels will be located in public streets and HDOT property. These parcels will eventually be turned over to HECO. The Project Management Oversight Contractor (PMOC) suggested this turnover could be viewed by FTA as a disposition, so the PMOC have asked that FTA be provided the opportunity to review the settlement document and approve the process.
o The FTA has conditionally approved HART’s request regarding incidental use of 16 parcels in City Center. o Support is continuing for the negotiations with UH Honolulu Community College to secure construction right of entry. o The US Navy Base Command change occurred without the license agreement being finalized. HART and the United
States Navy (USN) are working on the agreement regarding how to pay for relocations. The main outstanding issue is how the national register nomination is handled for Big Makalapa and Little Makalapa. HART’s consultant is working directly with the USN Federal Preservation Officer (FPO) on the nomination.
o There are currently no ROW actions impeding construction work and the objective is to secure site access via Rights of Entry (ROE) or other arrangements.
BUDGET
Note * Administrative overhead costs aggregated with the Acquisition and Relocation numbers * Estimate to complete based on offers, appraisals or assessed values
ACQUISITIONS Figure 8. Right‐of‐Way Status for the Parcels [data provided by Real Estate Acquisition database (READ)]
Baseline Budget
Expended
Remaining Budget Balance
Estimate to Completion
Forecast Variance
Acquisition $ 201.70 $ 93.00 $ 108.70 $ 95.60 $ 13.10Relocation $ 20.50 $ 16.00 $ 4.50 $ 10.50 $ (6.00)
Total (Million) $ 222.20 $ 109.00 $ 113.20 $ 106.10 $ 7.10
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RELOCATIONS Figure 9. Relocation Status for the Occupants (data provided by READ)
STATUS OF INTER‐GOVERNMENTAL AGREEMENTS Figure 10. Inter‐Governmental Agreement Status – These are agreements between HART and other government entities, with the exception of D.R. Horton. Agreements to be executed are in white. Completed agreements are in grey at the end of the table.
Inter‐Governmental Agreements Agreement Status Target Section Notes/Remarks
State Agreements
UH ‐ University of Hawai‘i Master Agreement On Hold WOFH, KHG, City Center
Construction is not impacted as the ROE for right to access and construct will be executed for each campus.
UH – Urban Gardens Conveyance to HDOT(H) Pending May 2017 KHG In process. Consent to construct in place.
UH ‐ Honolulu Community College (HCC) Construction Right of Entry for Guideway & Station
Pending May 2017 City Center In review.
DLNR ‐ Dept. of Land & Natural Resources Kapolei Easement Agreement
Pending May 2017
WOFH Easement agreement in process. Consent to construct in place.
DLNR – Keehi Lagoon Easement Agreement Pending May 2017 Airport Easement Agreement in process. Consent to construct in place.
DLNR – City Center Right of Entry Pending May 2017 City Center In process.
DLNR – City Center Easement Agreement Pending May 2017 City Center In process.
DLNR/C&C Wastewater Div Easement Agreement
Pending May 2017 City Center In process.
DLNR/C&C Wastewater Div Right of Entry Pending May 2017 City Center In process.
Aloha Stadium / Department of Accounting & General Services (DAGS) Easement for guideway
Pending Jan 2017
KHG Easement Agreement in process. Consent to construct in place.
Aloha Stadium / Department of Accounting & General Services (DAGS) Easement for station park and ride
Pending Jan 2017
KHG Process Easement Agreement. Consent to construct in place.
HDOT(H) – Dept. of Transportation Highways Master Agreement Amendment
Pending March 2017
WOFH In process.
HDOT(H) – Joint Use & Occupancy (JU&O) Sub‐agreement
Pending Aug 2018 City Center In process and will be executed when Notice to Proceed (NTP) is issued.
HDOT(A) ‐ Easement Agreement for Airport Division parcel
Pending May 2017
Airport Process Easement Agreement. Consent to construct in place.
OCCC ‐ Dept. of Public Safety, Oahu Community Correctional Center, Easement Agreement
Pending May 2017
City Center In process.
OCCC ‐ Dept. of Public Safety, Oahu Community Correctional Center, Right of Entry
Pending May 2017 City Center Draft Right of entry under review.
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Inter‐Governmental Agreements Agreement Status Target Section Notes/Remarks
HCDA ‐HI Community Development Authority Construction ROE & License Agreement, & Final Disposition
Pending May 2017 City Center Coordination is ongoing.
DAGS – Dept. of Accounting & General Services / Hi Housing Finance & Development Corp (HHFDC) Right of Entry
Pending May 2017 City Center In process.
DAGS / HHFDC Easement Agreement Pending May 2017 City Center Process Easement Agreement.
DAGS – City Center Right of Entry Pending May 2017 City Center To be processed.
DAGS – City Center Easement Agreement Pending May 2017 City Center To be processed.
Federal Agreements
U.S. Post Office (USPS) Honolulu Processing Center acquisition
Pending Jan 2017 Airport Documentation allowing consent to construct is in process.
U.S. Gov't/General Services Administration (GSA)/Federal Courthouse Master Agreement to include Security & Landscape Plan
Pending May 2017 City Center Master agreement under review. Construction is not impacted.
U.S. Gov't/GSA/Federal Courthouse License (Right of Entry) & Temporary Construction Easement (TCE) Agreements
Pending May 2017 City Center Under review. Construction is not impacted.
U.S. Gov't/GSA/Federal Courthouse Quitclaim Easement Document
Pending May 2017 City Center Easement document under review. Construction is not impacted.
Other Agreements
D.R. Horton Final Easement Agreement Pending Jan 2018
WOFH Easement Agreement in process and subject to owner’s development plans. Consent to construct in place.
Executed Agreements
DFM – Dept. of Facility & Maintenance (Kamehameha Hwy/Makalapa Manor)
Executed Airport Jurisdictional transfer from DFM to HART in place.
DPR ‐ Dept. of Parks & Recreation (MSF drainage)
Executed WOFH Consent to construct in place.
UH – University of Hawaii Pre‐Construction Right of Entry and Amendment
Executed WOFH, KHG, City Center
Consent to construct in place.
UH ‐ West O‘ahu (UHWO) Construction Right of Entry for Station
Executed WOFH Consent to construct in place.
UH ‐ Leeward Community College (LCC) Construction Right of Entry for Guideway
Executed WOFH Consent to construct in place.
UH ‐ Leeward Community College (LCC) Construction Right of Entry for Station
Executed WOFH Consent to construct in place.
UH ‐ Urban Gardens Construction Right of Entry
Executed KHG Consent to construct in place.
DLNR – Dept. of Land and Natural Resources Kapolei Right of Entry
Executed WOFH Consent to construct in place to be followed by execution of the easement agreement.
DLNR – Keehi Lagoon Right of Entry Executed Airport Consent to construct in place to be followed by execution of the easement agreement.
DOE – Dept. of Education Master/Construction Agreement for Waipahu H.S.
Executed WOFH Set‐aside from DLNR to HART in process.
DOE/DLNR Right of Entry for Waipahu High School
Executed WOFH DLNR Consent to construct in place with DOE concurrence.
Aloha Stadium / Department of Accounting & General Services (DAGS) MOU for guideway & station
Executed KHG MOU in place.
Aloha Stadium / Department of Accounting & General Services (DAGS) Right of Entry for guideway
Executed
KHG Consent to construct in place to be followed by execution of the easement agreement.
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Inter‐Governmental Agreements Agreement Status Target Section Notes/Remarks
Aloha Stadium / Department of Accounting & General Services (DAGS) Right of Entry for station park and ride
Executed KHG Consent to construct in place to be followed by execution of the easement agreement.
HDOT(H) – Dept. of Transportation Highways Master Agreement
Executed WOFH Master Agreement in place.
HDOT(H) (A) ‐ Master Agreement for KHG, Airport and City Center and Amendment
Executed KHG, Airport,City Center
Master Agreement in place.
HDOT(H) – Joint Use & Occupancy (JU&O) Sub‐agreement
Executed WOFH Consent to construct in place.
HDOT(H) – Joint Use & Occupancy (JU&O) Sub‐agreement
Executed KHG Consent to construct in place.
HDOT(H) – Joint Use & Occupancy (JU&O) Sub‐agreement
Executed Airport Consent to construct in place.
HDOT(A) – Dept. of Transportation Airports Joint Use & Occupancy (JU&O) Sub‐agreement for Airport Division parcels
Executed Airport Consent to construct in place.
DHHL ‐ Dept. of Hawaiian Home Lands Master Agreement
Executed WOFH, MSF Master Agreement in place.
DHHL – Dept. of Hawaiian Home Lands License
Executed WOFH, MSF Consent to construct in place.
HCDA ‐HI Community Development Authority Pre‐construction Right of Entry
Approved City Center Verbal approval granted by the HCDA Board in 6/2016.
U.S. Navy Licenses Executed WOFH, KHG, Airport
Consent to construct in place.
U.S. Navy Easement Agreements Executed WOFH, KHG, Airport
Grant of Easement executed.
U.S. Navy Pearl Harbor Station Acquisition of Fee Transfer
Executed Airport Quitclaim deed executed.
D.R. Horton Agreement for Construction Executed WOFH Consent to construct in place to be followed by execution of the easement agreement.
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6 MANAGEMENT AND ADMINISTRATIVE UPDATES
6.1 Safety and Security (S&S)
Issues of concern that affect HART Safety and Security Core Systems lost their full‐time Ansaldo/H‐JV Safety and Security Certification point of contact in Honolulu that
poses a concern of certification expertise and experience at the Core Systems contactor level, and is posing a hardship to the HART Safety and Security Department efforts until a full‐time, qualified/certified replacement is on AHJV staff. Update‐Discussions with CSC are underway on the status of the replacement manager.
Ansaldo/H‐JV’s deliverable schedule for the MOW Vehicles DCCC “Means of verification” has significantly slipped as communicated at the weekly CSC certification coordination meetings. HART S&S has received and performed verification on 4 of the 8 MOW DCCC checklists. All 8 MOW vehicles arrived on island between February and March 2016 (4 in February and 4 in March) and began STCC verification efforts.
Shims – Currently, independent test results are being reviewed as they are completed. HART and KIWC are holding weekly meetings to come to a resolution on this issue
Tendons – KIWC has completed their investigation of the condition of all tendons using impulse‐response testing, and visual inspection of the tendons. HART is awaiting the results and a final report from KIWC.
The specification and testing conformance checklist verification effort (% verified) lags behind construction completion percentage due to the fact that a significant percentage of the needed submittals are submitted at the end of the project; such as test reports, O&M manuals, training, and as‐built drawings.
Safety and Security is presently lacking one (1) OSHA Safety Specialist position. Material defect has been reported discovered in one of the extruded aluminum parts that make up the underframe
of the car shell. Car shell production in Italy is on‐hold, pending resolution of car shell NCR.
Two Month Look Ahead
Fusion Center meeting (Security).
YCB DCCC and CSCC Civil Certification.
FD‐430 & DBB‐505 Airport Utilities Relocation Civil Certification.
DB‐200 MSF Civil Contract Final Certification.
Safety and Security Management Plan (SSMP) Rev 6A ‐ SSRC approval.
Safety and Security Certification Plan (SSCP) Rev 5A ‐ SSRC approval.
6.1.1 S&S Twelve (12) Month Certification Projected Milestones and Work Priority:
12 ‐ Month Certification Projected Milestones Contract and Interim Certificates (IC) Next 30‐90 days Next 90‐180 days Next 180‐270 days Next 270‐365 days
X – Projected Month P – Pending ‐ High Priority Jan2017
Feb2017
Mar2017
Apr2017
May2017
Jun2017
July2017
Aug 2017
Sept 2017
Oct 2017
Nov2017
Dec2017
1. YCB DCCC and CSCC Civil Certification (CSC) P
2. FD‐430 & DBB‐505, Airport Utilities Civil Certification P
3. DB‐200 MSF Civil Contract Final Certification P
4. Safety and Security Management Plan (SSMP) Rev 6A X
5. Safety and Security Certification Plan (SSCP) Rev 5A X
6. PT‐002 Delivery – IC X
7. Dynamic Section Test Track IC – Civil – TES ‐ SIT X
8. PT‐001, IC to enter Dynamic Testing X
9. DB‐120, WOFH Guideway Civil Certification X
10. Eight (8) MOW Vehicles Final Certification X
11. PT‐002, IC to enter Dynamic Testing X
12. DB‐320, KHG Guideway Civil Certification X
13. FD‐340 & DBB‐385 Ramp H2R2 Civil Certification X
14. MSF TES Certification X
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6.1.2 S&S Certification Documents
Key HART S&S Certification Documents ‐ Status S&S Project Plans, PHAs, Core Systems SSHA and O&SHA, and TVA
Documents REV # Date Approved
Comments
Documents ApprovedHART SAFETY AND SECURITY
1. Safety & Security Management Plan (SSMP) Rev 5 10/16/2015 SSMP Rev 6A update under review
2. Safety & Security Certification Plan (SSCP) Rev 4. B 12/14/2015 SSCP Rev 5A update under review
3. WOFH SSCP Rev 0 10/22/2014 SSRC approved ‐ No future updates: HART SSCP is in affect
4. Construction Safety and Security Plan (CSSP) Rev 3 10/06/2015 SSRC approved and signed
5. Security Sensitive Information (SSI) Plan Rev 0 12/15/2015 SSRC approved and signed
6. Project Preliminary Hazard Analysis (PHAs) Rev 2. A 9/3/2015 Rev 2A ‐ DRAFT annual update completed 9/3/2015
a. MSF – Yard and Shop Rev 2. A 2/24/2016 SSRC approved
b. Alignment Rev 2. A 3/23/2016 SSRC approved
c. Tracks Rev 2. A 2/24/2016 SSRC approved
d. Stations Rev 2. A 3/23/2016 SSRC approved
7. TES Back‐Up Generator System HA Rev A 5/25/2016 SSRC Approved
8. Threat & Vulnerability Assessments (TVAs) Rev 1 1/16/2015 Update on hold ‐ pending East Alignments re‐design
HART CORE SYSTEMS
9. Core Systems Contract (CSC) PHAs (DBOM) Rev G 9/1/2016 SSRC Approved (CMS # 575)
10. Central ATC O&SHA Rev C 9/23/2015 SSRC approved (CMS # 874)
11. Wayside/ATC System HA Rev C 6/22/2016 SSRC approved (CMS# 835)
12. Wayside ATC SSHA Rev B 6/22/2016 SSRC approved (CMS# 836)
13. Wayside ATC O&SHA Rev D 9/23/2015 SSRC approved (CMS # 850)
14. Passenger Train ATC SSHA Rev E 2/24/2016 SSRC approved (CMS # 853)
15. Passenger Train ATC O&SHA Rev F 2/24/2016 SSRC approved (CMS # 873)
16. UPS O&SHA Rev C 2/24/2016 SSRC approved (CMS # 1092)
17. TES SSHA Rev B 11/30/2016 SSRC approved (CMS # 884)
18. FDAS SSHA Rev C 4/27/2016 SSRC approved (CMS # 1216)
19. FDAS O&SHA Rev B 2/24/2016 SSRC approved (CMS # 1217)
20. SCADA SSHA Rev C 6/22/2016 SSRC approved (CMS# 854)
21. SCADA O&SHA Rev E 5/25/2016 SSRC Approved (CMS # 887)
Documents Pending ApprovalHART SAFETY AND SECURITY
22. Project Preliminary Hazard Analysis (PHAs) Rev 2. A Rev 2A ‐ DRAFT annual update completed 9/3/2015
e. Traction Power Rev 2. A Update on‐hold ‐ pending approval of TES SSHA and O&SHA
f. Train Control Rev 2. A Update on‐hold ‐ pending approval of ATC SSHA & O&SHA
g. Vehicles Rev 2. A Update on‐hold ‐ pending approval of PT SSHA & O&SHA
h. Communications Rev 2. A Update on‐hold ‐ pending approval of Comms SSHA and O&SHA
23. Elevator/Escalators System HA Rev A Under Development
24. Project OHAs Rev A Under development
HART CORE SYSTEMS
25. Technologies PHAs Rev E 11/2/2016 – UTR (CMS # 545)
26. Passenger Train Fire Hazard Analysis (FHA) Rev D 11/22/2016 – AAN Re‐submit (CMS# 749)
27. Passenger Train SSHA Rev B 10/25/2016 ‐ CSC R&R (CMS # 1273)
28. Passenger Train O&SHA Rev B 12/9/2016 ‐ CSC UTR (CMS # 1320)
29. Passenger Train ATC System HA Rev C 3/18/2016 Hart Accepted (CMS # 751) pending SSRC approval
30. TES O&SHA Rev C 12/9/2016 ‐ UTR (CMS # 1099)
31. PSGS SSHA Rev C 10/05/2015 ‐ CSC R&R (CMS # 938)
32. PSGS O&SHA Rev C 10/10/2016 ‐ AAN Re‐submit, (CMS # 880)
33. Communications SSHA Rev C 9/30/2016 ‐ CSC R&R, (CMS # 1205)
34. Communications O&SHA Rec C 12/14/2016 – HART Accepted (CMS # 1206) pending SSRC approval
35. MOW Support Vehicles O&SHA Rev A Under development
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6.1.3 S&S Open Items List Status
“Open Items List” “Open Items” ‐ Design/Construction and Verification Issues
Month2016
Total #
Total # Open
Total # Closed
% ClosedOverall
# Closed In Month
% Closed In Month
Sept 251 39 212 85% 1 1%
Oct 258 46 212 82% 0 N/A
Nov 259 44 215 83% 3 1%
Dec 259 44 215 83% 0 N/A
6.1.4 S&S Construction Specification Conformance Checklists (CSCC) ‐ Civil Contracts
Construction Specification Conformance Checklists (CSCC)
Civil ‐ Contracts ‐ CSCC Verification Status Construction ‐ Installation – Start‐up & Testing Phases
Contracts % Verified
+ / ‐ % Change
Comments
WOFH / KHG Interim Revenue Service Date (2020)
Civil Contracts Under Construction DB‐200, MSF and Rail Yard 97% Verification underway – IC Certificate issued – Final Cert ‐ Pending
DB‐120, WOFH Guideway 81% Verification underway
DB‐320, KHG Guideway 49% Verification underway
DBB‐385, H2R2 Ramps 46% +9% Verification underway
DBB‐271, Farrington Hwy Station Group (FHSG) 18% Verification underway
DBB‐171, West O‘ahu Station Group (WOSG) Pre‐verification activities
DBB‐371, Kamehameha Hwy Stations Grp (KHSG) Pre‐verification activities
MI‐930, Elevators & Escalators, WOSG Pre‐verification activities
MI‐930, Elevators & Escalators, FHSG Pre‐verification activities
MI‐930, Elevators & Escalators, KHSG Pre‐verification activities
Civil Contracts Under Design or in Pre‐bidding or Pre‐Award Phases DB‐275, Pearl Highlands PS/ Bus Transit Center TBD – waiting for 100% conformed specifications
DBB‐600, West O‘ahu Park & Ride TBD – waiting for 100% conformed specifications
MI‐900 Fare Collection System Base CSCC SSRC approved 4/27/2016
AP00 Art‐in‐Transit, 12 Artists/contracts SSRC – Approved Base CSCC, 10/28/2016
Airport / City Center Final Revenue Service Date (2025)
Civil Contracts Under Construction DBB‐525, Airport Section, 7 ‐ Drilled Shafts 100% N/A 8/26/2015 SSRC approved –Certification Completed
DBB‐505, Airport Utilities ‐ Construction 64% Verification underway – project close‐out underway
Civil Contracts Under Design or in Pre‐bidding ‐ Pre‐Award Phases DBB‐511, Dillingham Utilities & Road Widening TBD – waiting for 100% conformed specifications
DB‐450, Airport Guideway TBD – waiting for 100% conformed specifications
DB‐450, Airport Stations TBD – waiting for 100% conformed specifications
DB‐550, City Center Guideway TBD – waiting for 100% conformed specifications
DB‐550, City Center Stations TBD – waiting for 100% conformed specifications
MI‐930, Elevators & Escalators, Airport Stations Base CSCC ‐ SSRC approved, 8/26/2015
MI‐930, Elevators & Escalators, City Center Stations Base CSCC ‐ SSRC approved, 8/26/2015
AP00 Art‐in‐Transit, 11 Artists/contracts Base CSCC SSRC approved, 10/28/2016 MI‐900 Fare Collection System Base CSCC SSRC approved, 4/27/2016
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6.1.5 S&S Specification / Testing Conformance Checklists (STCC) ‐ Core Systems
Specification / Testing Conformance Checklists (STCC)
Core Systems – Contracts ‐ STCC Verification Status Procurement ‐ Production ‐Manufacture ‐ Installation ‐ Start‐up & Testing Phases
Contracts % Verified
+ / ‐ % Change
Comments
WOFH / KHG Interim Revenue Service Date (2020)
DBOM‐920 Core System Contracts under Design / Procurement ‐ Production ‐Manufacture ‐ Installation ‐ STCCYard Control Bungalow (YCB) CSC Civil ‐ Contract 59% Verification underway
MOW Vehicles (8‐support vehicles) overall 75%
1) Rail car mover 43% Verification underway
2) Multipurpose Vehicle 71% Verification underway
3) Enclosed trailer containing re‐railing equip 71% Verification underway
4) Rail 15‐ton flatbed trailer 71% Verification underway
5) Rail grinder 86% Verification underway
6) Tamper 86% Verification underway
7) Sperry (Geometry) car 86% Verification underway
8) Hi‐reach lift truck 86% Verification underway
Passenger Trains (PT)/Cars
1) General Requirements ‐ Applies to all PTs 12% Verification underway
2) PT‐001‐ Certification (E‐1, E‐2, M‐1, M‐2 Cars) Base STCC under CS PM review 3) PT‐001‐ Interim Cert ‐ for Dynamic Testing Pre‐verification activities
4) PT‐002 – Certification (E‐1, E‐2, M‐1, M‐2 Cars) Pre‐verification activities
5) PT‐002‐ Interim Cert – for Dynamic Testing Pre‐verification activities
6) PT Certification for Pre‐Revenue Service (STCC) Base STCC under CS PM review
Traction Electrification System (TES)
1) General Requirements TES ‐ Project Wide 57% +2% Base STCC SSRC Approved 9/28/2016, verification underway
2) MSF ‐ Rail Yard ‐ TES 50% +9% Base STCC SSRC Approved 9/28/2016, verification underway
3) Dynamic Section Test Track ‐ WOFH Guideway Base STCC SSRC Approved 9/28/2016, verification underway
4) Functional Section SIT Test Track
5) WOFH and KHG Guideways 9% Base STCC SSRC Approved 9/28/2016, verification underway
Uninterrupted Power Supply (UPS)
1) General Requirements UPS ‐Project Wide 67% +5% Base STCC SSRC Approved 9/28/2016, verification underway
2) MSF‐UPS 50% Base STCC SSRC Approved 9/28/2016, verification underway
3) Segment 1 ‐ UPS, WOFH & KHG 23% Base STCC SSRC Approved 9/28/2016, verification underway
Communication Systems
1) General Requirements Comm‐ Project Wide 52% SSRC approved 6/22/2016, verification underway
2) MSF and Rail Yard Communications SSRC approved 6/22/2016
3) KHG and WOFH Communications SSRC approved 6/22/2016
Fire Detection Alarm System (FDAS)
1) General Requirements FDAS ‐ Project Wide 61% SSRC Approved 9/28/2016, verification underway
2) MSF ‐ FDAS 67% SSRC Approved 9/28/2016, verification underway
3) Segment 1 – FDAS, WOFH & KHG 21% SSRC Approved 9/28/2016, verification underway
Platform Screen Gate System (PSGS)
1) General Requirements PSGS ‐Project Wide 33% SSRC Approved 9/28/2016, verification underway
2) Segment 1 – PSGS, WOFH & KHG SSRC Approved 9/28/2016
Traction Power Generators Back‐up System SSRC approved 3/23/2016
ATC / SCADA
1) ATC / SCADA General Requirements ‐ Project Wide 68% +2% SSRC approved Base STCC 11/30/2016
2) MSF / ROC ‐ ATC / SCADA 26% SSRC approved Base STCC 11/30/2016
3) Segment 1 WOFH & KHG Guideways & Stations 7% +1% SSRC approved Base STCC 11/30/2016
4) PT – ACT ‐ Initial Revenue Service Date (7‐PTs) 15% SSRC approved Base STCC 11/30/2016
System Integration Testing (SIT) & Demonstration
1) SIT General Requirements ‐ Project Wide SIT/DEM 25% Base SIT STCCs pending SSRC approval
2) MSF SIT/DEM 28% Base SIT STCCs pending SSRC approval 3) Functional Section ‐ SIT ‐ Test Track Base SIT STCCs pending SSRC approval 4) Segment‐1 WOFH & KHG ‐ SIT / DEM Base SIT STCCs pending SSRC approval Operational Requirements Ops Readiness Conform Checklists (ORCC) 31% ORCC REV‐0 ‐ SSRC approved 12/09/2015, verification underway
Pre‐revenue Testing Conform Checklist (PRTCC) TBD
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Specification / Testing Conformance Checklists (STCC)
Core Systems – Contracts ‐ STCC Verification Status Procurement ‐ Production ‐Manufacture ‐ Installation ‐ Start‐up & Testing Phases
Contracts % Verified
+ / ‐ % Change
Comments
Airport & City Center Final Revenue Service Date (2025) Passenger Trains (PT)/Cars
1) PT‐008‐20 Certification (E‐1, E‐2, M‐1, M‐2 Cars) Base STCC under CS PM review
2) PT‐008‐20‐ Interim Cert ‐ for Dynamic Testing SSRC approved 12/09/2015
3) PT‐011‐20 Cert for Pre‐Revenue Service Base STCC under CS PM review
Traction Electrification System (TES)
1) Airport and City Center Guideways SSRC Approved 9/28/2016
Uninterrupted Power Supply (UPS)
1) Segment 2 – UPS, Airport 47% SSRC Approved 9/28/2016, verification underway
2) Segment 3 – UPS, City Center 48% SSRC Approved 9/28/2016, verification underway
Communication Systems
1) Airport Communications SSRC approved 6/22/2016
2) City Center Communications SSRC approved 6/22/2016
Fire Detection Alarm System (FDAS)
1) Segment 2 – FDAS, Airport SSRC Approved 9/28/2016
2) Segment 3 – FDAS, City Center SSRC Approved 9/28/2016
Platform Screen Gate System (PSGS)
1) Segment 2 – PSGS, Airport SSRC Approved 9/28/2016
2) Segment 3 – PSGS, City Center SSRC Approved 9/28/2016
ATC / SCADA
1) Segment 2 Airport Guideways & Stations Base ATC/SCADA STCCs pending SSRC approval 2) Segment 3 City Center & Stations Base ATC/SCADA STCCs pending SSRC approval 3) PT – ACT Final Revenue Service Date (13‐PTs) Base ATC/SCADA STCCs pending SSRC approval System Integration Testing (SIT) & Demonstration
1) Segment – 2 Airport & C&C ‐ SIT / Dem Base SIT STCCs under review pending final SIT Plan
Operational Requirements Ops Readiness Conform Checklists (ORCC) SSRC approved 12/09/2015
Pre‐revenue Testing Conform Checklist (PRTCC) Base PRTCC under development
6.1.6 S&S Certification Certificates Issued to Date
S&S Certification Certificates Issued to Date Contracts / Interim Certification (IC) Certificates Issued Date Signed Comments1. FD‐430 / DBB‐525 Airport 7‐Piers Civil Cert Certificate 9/21/2015 SSRC approved
2. Three (3) – MOW Vehicles Delivery & M‐7, M‐2, M‐1 MSF Tracks – IC Certificate 2/4/2016 SSRC approved
3. MSF Yard M‐4 and M‐6 Tracks – IC Certificate 3/10/2016 SSRC approved
4. PT‐001 Delivery, OSB, M‐5/M‐4 Tracks, ORCC, MOW MPV ‐ IC Certificate 3/29/2016 SSRC approved
5. Five (5) – MOW Vehicles Delivery – IC Certificate (Vehicles Only) 5/20/2016 SSRC approved
6. MOW Facility Early Occupancy – IC Certificate (Administrative Areas Only) 5/23/2016 SSRC approved
7. MSF Civil IC Certificate ‐ Tracks and Facilities 7/6/2016 SSRC approved
8. PT‐001 Truck (Bogies) Delivery #1 IC, 1 set of bogies ‐ wheel Sets 21 & 29 11/10/2016 SSRC Approved
9. PT‐001 Truck (Bogies) Delivery #2 IC, 7‐sets of bogies ‐ wheel sets 6, 7, 8, 12, 18, 22, 24, 25, 26, 27, 30, 31, 33, 58
12/01/2016 Pending Approval
6.1.7 Construction Safety and Security Safety and Security Incidents Incidents for Dec. 1, 2016‐Dec. 20, 2016:
WOFH: A vagrant was found in a stair tower and was asked to leave by MOT staff.
KHG: A 1” gas line was punctured during excavations. The punctured line was repaired by the Gas Co.
KHG: A moped rear ended a Pine Ridge dump truck. The driver left the incident under their own power.
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January 145,806 1 0 172,799 0 0
February 126,526 1 0 172,950 1 0
March 139,422 3 1 183,147 0 0
April 71,856 1 0 230,808 2 0
May 167,204 0 0 181,979 1 0
June 123,391 2 1 165,737 0 0
July 130,954 0 0 167,039 0 0
August 52,834 1 0 154,381 1 1 129,067 1 1
September 108,337 1 1 102,224 1 0 113,137 0 0
October 126,351 0 0 172,845 0 0 130,238 0 0
November 116,929 3 3 45,913 0 0December 102,942 1 0 154,215 0 0Total 507,393 6 4 1,534,735 10 3 1,646,901 5 1
OSHA Annual Incident Rate
2014 2015 2016
Work Hours for WOFH, KHG, MSF, Airport, CORE System as reported to OCIP and certified. 1.3
6.2 Quality Management Key Issues
HART NCR Log
Total NCRs Issued To Date CLOSED OPEN
60(Audits) 39 21
1 (Construction) 1 0
o Resolution of two (2) major WOFH NCRs that need to be addressed and corrected to prevent recurrence and to
mitigate impact on the overall progress of the project. The major NCRs are described below: ‐ Tendons: KIWC has completed their investigation of the condition of all tendons using impulse‐response
testing, and visual inspection of the tendons. HART is awaiting the results and a final report from KIWC. ‐ Shims: Currently, independent test results are being reviewed as they are completed. HART and KIWC are
holding weekly meetings to come to a resolution on this issue. o Resolution of one (1) major KHG NCR that needs to be addressed and corrected to prevent recurrence and to
mitigate impact to the overall progress of the project. The major NCR is described below: ‐ Shims: NCR #225 was issued to KIWC on Oct. 17, for non‐compliance with ASTM testing requirements.
o Resolution of one (1) major CSC NCR that needs to be addressed and corrected to prevent recurrence and to mitigate impact on the overall progress of the project. The major NCR is described below: ‐ Material defect has been reported discovered in one of the extruded aluminum parts that make up the
underframe of the car shell. Car shell production in Italy is on‐hold, pending resolution of car shell NCR.
Audit Look Ahead o Performed Combined Internal Quality Assurance (QA) and Safety Audit of HART on Dec. 6‐13, 2016. Preparing
Audit Report. o Preparing Project Combined Management System Audit Schedule for 2017. o Preparing 2016 Annual Assessment of the adequacy of the Quality Management Plan (QMP) and its
implementation for the ED‐CEO.
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Oversight and Monitoring o Bi‐weekly Quality Task Force Meetings. o Pre‐activity Meetings. o Inspection and Testing. o Walk downs – Punch Lists.
6.3 Buy America Compliance (49 CFR 661 and 49 CFR 663) Overview and Key Issues
o No updates to report this month.
6.4 Disadvantaged Business Enterprise (DBE) Activities this Month
o $46,539,046 = total dollar participation for all DBEs on all HART contracts from 9/24/07 to 12/31/16
7.44% = DBE utilization on total disbursed FTA funds received to date ($46,539,046 divided by $625,957,807)
2.64% = DBE utilization to date on total Project FTA funds ($46,539,046 divided by $1,763,903,901)
6.5 Planning and Environment Activities this Month
o Programmatic Agreement Activities: ▪ HART submitted Big Makalapa and Little Makalapa National Register nominations to the Navy’s Federal
Preservation Officer (FPO) on Sept. 23, 2016. Comments were received from the FPO on Nov. 3 and included minor non‐substantive revisions. The nominations were revised and transmitted back to the FPO on Nov. 8, 2016. FPO transmitted the nominations to the State Historic Preservation Division (SHPD) for review and State Historic Preservation Officer (SHPO) signatures, and the top sheets were signed and sent back to the FPO on Dec. 9, 2016.
▪ HART is reviewing proposals for Programmatic Agreement Stipulation VII, Educational and Interpretive Programs, Materials, and Signage.
▪ The required second design workshop for Pearl Harbor Station is pending submittal of Makalapa nominations to the National Park Service.
o Planning, Environmental, and Cultural Activities: ▪ HART submitted the City Center Realignment Post‐ROD to FTA for formal review and approval. ▪ HART submitted the Emergency Backup Generators Post‐ROD to FTA for formal review and approval. ▪ HART staff completed updating the Project travel demand forecasting model. ▪ HART staff submitted a grant application to the Environmental Protection Agency for cleanup and site
assessment of Brownfield sites in the City Center section.
Looking Ahead o Prepare and submit final Post‐ROD Documentation to FTA for approval:
Airport Casting Yard, pending SHPD concurrence letter of no additional effect City Center Casting Yard, pending SHPD concurrence letter of no additional effect Additional Right‐of‐Way, on hold awaiting potential project refinements Hōlau Market/Ai‐Goto, 2nd quarter 2017 West O‘ahu Park & Ride Lots, on hold pending identification of potential Park & Ride sites Phased System Openings, 1st quarter 2017 Final System Opening, 1st quarter 2020
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6.6 Risk Management
The primary goal of risk management is to maintain a reserved contingency balance throughout the life of the Project that is acceptable to HART and the FTA. Effective management of project risks is necessary to significantly increase the likelihood of delivering a successful project. Risk management is the systematic process of identifying, analyzing, and responding to risk in a timely manner. Risk management is integral to all phases leading up to revenue service opening including: planning, design, construction, systems testing, system operation start up, safety and security certification, and ultimately to project construction closeout. The HART program has implemented a new Risk Management System that focuses on mitigation strategies to assist the project teams in project delivery. The bottoms up risk assessment for every project in the program is updated monthly by the project teams. A network model is then updated to evaluate the cost and schedule contingencies of the program, including relationships between each of the individual projects and contracts. Risk assessment discussions with the project teams are held periodically to identify, assess, prioritize, manage and mitigate risk exposure, and develop prudent contingency plans. The Project Risk Register (RR) is the depository for all risks identified for the Project. Every month, risks contained in the RR are reviewed to confirm risks are appropriately identified, identify new risks, and close out risks that no longer pose an issue. The individual project register updates are now on path to be updated on a monthly basis and outputs will be compared to forecasting reports, eventually becoming an input to the forecast report. The new risk management system quantifies the risk as schedule impact or direct cost impact independently. The schedule impact is than monetized based in the model and based upon the contracts impacted. The top risks to the program are then evaluated on both schedule and cost. As HART implements the risk management system focused on mitigation, monitoring, and control, the PMOC has requested to work with HART to possibly develop a new tracking mechanism or data reporting set to better assist in the oversight of the program. Currently, HART is in the process of updating the Risk and Contingency Management Plan (RCMP) with input from the PMOC. Current activities include the build‐up of the contingency curves and hold‐points. NOTES OF SIGNIFICANCE
HART is currently going through an exercise in developing a recovery plan to manage the funding gap.
Intensive focus continues to be placed on issues involving HECO coordination and clearance issue resolution; this includes alternative equipment studies.
On‐call contractor is verifying the existing as‐built data of the utilities in the City Center Section.
Developing agreements with landowners and utilities for access during construction is mitigating potential construction schedule delays.
Issuance of NTP for the AGS contract.
Review and quantifying the impacts of the funding delay to the program, including financing cost.
Resolving funding delay impacts and the MPS.
AREAS OF FOCUS A) Market Conditions – The construction market in Hawai‘i continues to outpace other major metropolitan US cities. The years 2015 and 2016 are expected to set new records for construction in the state. This translates to increased escalation of about 1% per month from late 2014 through the end of 2016, according to the Rider Levett Bucknall, Quarterly Construction Cost Report. These conditions may impact the supply of experienced craft labor which will in turn affect contractor productivity rates and traffic mobility issues.
Mitigation Progress:
HART’s continuous improvement in estimating methodology has led to more confidence in the likely construction pricing, but continued pricing pressures in the market could still lead to higher than expected price proposals and bids.
The combined guideway and station package on the City Center Guideway and Stations contract is still in active procurement.
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B) Utilities – Utilities continue to be an issue for the project, as they are for most Transit and Rail projects.
Mitigation Progress:
Resources to relocate HECO facilities are now keeping up with scheduled requests to resolve utility conflicts through improved coordination efforts between agencies at all levels from project management to executive levels.
Identifying existing utilities along the City Center corridor.
C) Right‐of‐Way – There are parcels on the east and west segments that are still in an active acquisition process. The goal is to provide site access to the contractors on the east to avoid associated inefficiencies related to re‐sequencing the work plan which would have a negative impact to the revenue service date.
Mitigation Progress:
Nearly all west side property transactions have been accomplished.
East side – there are a number of third‐party agreements needed on the Airport Section and private parcels on the City Center Section. Cost‐to‐cure partial property improvement impacts have now been mostly resolved.
6.7 Community Outreach Overview
Since the inception of HART, the outreach team has participated in: o 1,040 Presentations and Events
4 Events and Presentations in December 2016, including a presentation to members of the City and County of Honolulu’s Neighborhood Board Commission on their tour of the Rail Operations Center.
o 585 Neighborhood Board Meetings 2 Neighborhood Board Meetings in December 2016
Community Input HART’s public outreach team responded to more than 100 public inquiries and comments this month.
Inquiries were related to project construction, operations and financial plans.
6.8 Staffing Overview
Project Staffing: o Target: 139 Full‐Time Equivalent (FTE) City staff o Actual Total: 128 FTE (HART City and PMC staffs ‐ reflects all arrivals as well as departures)
City Staff: 111 PMC Staff: 17
The Interim Executive Director/CEO, K. N. Murthy, started at HART on Dec. 5, 2016.
The Director of Planning, Permitting and Right of Way started at HART on Dec. 19, 2016.
One of the three Accountant positions recently created in the Budget and Finance Division was filled in December.
The Information Technology Support Technician position was filled in December.
The Quality Assurance Civil Engineer positon was filled in December.
The Director of Design and Construction resigned and will be departing in January 2017.
The Deputy Director of Planning resigned and departed on Dec. 15, 2016.
The Chief Financial Officer resigned and departed on Dec. 16, 2016.
The Chief Safety and Security Officer is leaving the Project and the Safety Certification Manager will be Acting in his place.
A Procurement and Specifications Specialist resigned and will be departing in January 2017.
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Figure 11. Staffing Activities
Staffing Activities
Title Group New/Existing HART position (City or PMC)
Position Status Start Month
Design and Construction
Director of Design & Construction Design & Construction Existing (City) Recruiting
Project Manager (WOSG) Construction Existing (City) Recruiting
Engineer (Electrical or Mechanical) Core Systems Existing (City) Recruiting
Budget and Finance
Chief Financial Officer Budget and Finance Existing (City) Recruiting
Financial Analyst Budget and Finance Existing (City) Recruiting
Accountant IV Budget and Finance New (City) Filled December
Accountant IV Budget and Finance New (City) Recruiting
Accountant III Budget and Finance New (City) Recruiting
Quality Assurance
Quality Assurance Engineer (Civil) Quality Assurance Existing (City) Filled December
Administrative Services
Information Technology Support Technician Administrative Services Existing (City) Filled December
Personnel Clerk Administrative Services Existing (City) Recruiting via Civil Service
Public Information
Information Specialist Public Information Existing (City) Recruiting via Civil Service
Project Controls
Scheduler Project Controls Existing (City) Recruiting/Interviewing
Procurement & Contracts
Procurement & Specifications Specialist (3) Procurement Existing (City) Recruiting
Agreements Arbiter and Manager/Insurance Risk Manager
Procurement New (City) Recruiting
Safety
Chief Safety and Security Officer System Safety & Security Existing (PMC) Filled December
Safety Certification Manager System Safety & Security Existing (PMC) Recruiting
Safety Specialist Safety Existing (City) Recruiting/Interviewing
Operations & Maintenance
Administrative Specialist Operations & Maintenance New (City) Recruiting/Interviewing
Planning, Permitting & ROW
Director of Planning, Permitting & ROW Planning, Permitting & ROW Existing (City) Filled December
Deputy Director of Planning Planning Existing (City) Recruiting
Planner VI (Land Use/Sustainability) Planning Existing (City) Recruiting/Interviewing
Right‐of‐Way Agent IV Right‐of‐Way New (City) Recruiting
For the latest project organization chart, see Appendix D.
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6.9 Operations and Maintenance (O&M) Overview
o The HART O&M team is developing operations and maintenance policies and procedures, overseeing the DBOM contractor’s O&M development, interfacing with design and construction teams, coordinating with local agencies, and building relationships with the local community.
Baselined O&M Documentation: o Operations and Maintenance Plan o Rail Fleet Management Plan o Transfer of Capital Assets Procedure: Rail Operations Center o Transfer of Capital Assets Procedure: Guideways (Segment 1)
Ongoing Activities o Developing Operations and Maintenance Policies, Plans, and Procedures. o Developing Pre‐Revenue Operations and Start‐up Plan. o Developing Asset Management Plan. o Developing Operations and Maintenance Staffing Plan. o Establishing Transfer of Capital Assets process (stations). o Established Operations and Maintenance working groups. o Established relationship with the LCC Workforce Development Program.
Look Ahead o Rule book and operating procedures for commissioning and testing. o Rail Activation Plan and Rail Activation Schedule. o Reviewing Rail Safety education and training material for staff and the public.
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APPENDICES
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Appendix A. Project Contingency Management
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Appendix B. Project Cost Reports (data as of Nov. 25, 2016) Cost reports are run from the HART Contract Management System (CMS) Project Costs by SCC – Level 2
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Appendix C. Vehicle Car Shell Progress Tracker
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Appendix D. Project Organization Chart
ATTACHMENT E
PMOC MONTHLY REPORT
Honolulu Rail Transit Project City and County of Honolulu
Honolulu Authority for Rapid Transportation (HART) Honolulu, HI
November 2016 (FINAL)
PMOC Contract Number: DTFT60-14-D-00012 Task Order No. 3: Honolulu Rail Transit Project Project No: DC-27-5288 Work Order No. 2 OPs Referenced: OP 1 and 25 Jacobs Engineering Group, Inc. 319 E. Warm Springs Road, Suite 200, Las Vegas, Nevada 89119 William Tsiforas, (702) 938-5400, [email protected] Length of Time Assigned: Five Years (February 18, 2015 through February 17, 2020)
Honolulu Rail Transit Project i Monthly Report November 2016 (FINAL)
TABLE OF CONTENTS
1.0 EXECUTIVE SUMMARY .............................................................................................. 2 1.1 Project Description...................................................................................................2 1.2 Project Status ...........................................................................................................2 1.3 Core Accountability Items .......................................................................................3 1.4 PMOC Issues or Concerns .......................................................................................4
2.0 BODY OF REPORT ......................................................................................................... 7 2.1.1 Project Status ...............................................................................................7 2.1.2 Status of Procurement ..................................................................................7 2.1.3 Status of Primary Construction Contracts....................................................7 2.1.4 Status of Core Systems Contract................................................................10 2.1.5 Real Estate Acquisition ..............................................................................11 2.1.6 Third Party Agreements and Coordination ................................................11 2.1.7 Utilities .......................................................................................................12 2.1.8 Environmental mitigation measures ..........................................................12
2.2 Project Management Plan (PMP) and Sub-Plans...................................................13 2.3 Management Capacity and Capability (MCC) ......................................................13 2.4 Project Cost ............................................................................................................13
2.4.1 Contingency ...............................................................................................16 2.4.2 Funding Sources.........................................................................................16
2.5 Project Schedule.....................................................................................................17 2.6 Quality Assurance/Quality Control (QA/QC) .......................................................17 2.7 Safety and Security ................................................................................................17 2.8 Operations & Maintenance (O&M) .......................................................................18 2.9 Project Risk ............................................................................................................19 2.10 Action Item Table ..................................................................................................20
3.0 APPENDICES ................................................................................................................. 21
LIST OF APPENDICES Appendix A: Acronym List Appendix B: Contract Status Appendix C: PMOC Team Appendix D: Project Overview and Map (Transmitted as a separate file) Appendix E: Safety and Security Checklist (Transmitted as a separate file)
Honolulu Rail Transit Project 2 Monthly Report November 2016 (FINAL)
1.0 EXECUTIVE SUMMARY
1.1 Project Description
• General Description: The Project is a 20-mile-long elevated fixed guideway rail system along Oahu’s south shore between East Kapolei and Ala Moana Center. The Project will include 21 stations. The alignment is elevated, except for a 0.6-mile at-grade portion at the Leeward Community College station. The Project is planned to be delivered in four guideway segments. o Segment I (West Oahu/Farrington Highway) – East Kapolei to Pearl Highlands (7
miles/6 stations) o Segment II (Kamehameha Highway) – Pearl Highlands to Aloha Stadium (4 miles/3
stations) o Segment III (Airport) – Aloha Stadium to Middle Street (5 miles/4 stations) o Segment IV (City Center) – Middle Street to Ala Moana Center (4 miles/8 stations)
• Length: 20 miles • No. of Stations: 21 • Additional Facilities: Maintenance and Storage Facility and parking facilities • Vehicles: 80 vehicles • Ridership Forecast: Weekday boardings – 104,300 (2020); 119,600 (2030)
1.2 Project Status
• FTA has required that the City and County of Honolulu and HART submit a Recovery Plan that “demonstrates HART is taking every reasonable measure to mitigate the cost overruns and minimize delay in the opening of the Project to revenue operations.” HART submitted an Interim (Recovery) Plan to the FTA on October 3, 2016. FTA has indicated that the full Recovery Plan should be submitted by the end of 2016. However, HART has requested an extension to June 2017 to allow time for seeking an extension of the GET.
• The HART Board has hired Krishniah Murthy as Interim Executive Director. It is anticipated that the Interim Executive Director would remain in place for up to a year while the HART Board searches for a permanent replacement. Mr. Murthy’s start date is December 5, 2016.
• Overall project is approximately 53.7% complete as of September 2016. The planned completion at this time is approximately 77.7% (based on HART’s S-curve late plan).
• Overall design of the project is approximately 90.3% complete as of September 2016. The planned completion at this time is approximately 100%. The percent complete may change as a result of utilizing Design-Build (DB) procurement strategy for the City Center guideway and stations sections.
• Overall construction of the project is approximately 47.8% complete as of September 2016. The planned completion at this time is approximately 72.2% (based on HART’s S-curve late plan).
• It should be noted that the reported percentages complete are based on the current Full Funding Grant Agreement (FFGA) budget and Revenue Service Date (RSD) reported in
Honolulu Rail Transit Project 3 Monthly Report November 2016 (FINAL)
HART’s Monthly Report. HART will be required to revise its progress curves when the project budget and RSD are re-baselined.
• Section 2.1.3 and Appendix B of this report provide the status of the current design and construction contracts. The following table provides the summary level status of the primary construction contracts taken from HART’s Monthly Report:
Description % Complete* Schedule Status Actual** Planned
West Oahu /Farrington Highway (WOFH) DB Contract 95.7% 98.1% 6 month extension to be granted
Kamehameha Highway Guideway (KHG) DB Contract 82.6% 99.8% 13 month delay Maintenance and Storage (MSF) DB Contract 99.9% 100% Complete Core Systems Design-Build-Operate-Maintain (DBOM) Contract (CSC)
38.2% 55.8% TBD***
Airport Advanced Utilities Construction Contract 64.9% 100% 3 month delay Farrington Highway Station Group Construction Contract (FHSG) 1.3% 42.1% TBD*** West Oahu Station Group Construction Contract (WOSG) 6.1% 21.2% On time Kamehameha Stations Group Construction Contract (KHSG) 0.6% 1.4% On time Elevators and Escalators 12.9% 70.5% TBD*** Fare Collection System 7.7% 0.1% On time Ramp H2R2 27.3% 100% 4 month extension
granted *As of September 2016 ** HART’s assessment of Earned Value is based on a weighted expenditure calculation of the contract and is not a true Earned Value calculation. ***Contract schedule is to be re-baselined to incorporate new milestone dates. 1.3 Core Accountability Items
The Estimate at Completion (EAC) and percentage complete shown below are based on data provided by HART. This data is under review and has not been fully validated by the PMOC.
Project Status: FFGA Original at FFGA HART Current Estimate2
Cost Cost Estimate $5,122,000,000 $8,630,000,000
Contingency Unallocated Contingency $101,900,000 $211,671,000 Total Contingency (Allocated plus Unallocated) $643,600,000 $1,388,000,000
Schedule Revenue Service Date (RSD) 1/31/2020 12/2025
HART Total Project Percent Complete
Based on Expenditures 53.7% 27% Based on Earned Value1 51.4% Not calculated
1HART’s assessment of Earned Value is based on the weighted expenditure calculation of the individual construction and design contracts and is not a true Earned Value calculation. Earned Value has not been calculated is for the current EAC. 2HART’s current EAC and RSD as presented to FTA in October 2016 Interim Recovery Plan. HART’s EAC in September 2016 was $8.0 billion.
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Major Issues Status Comments/Planned Action Cost Increase & Schedule Delays
HART has experienced delays and has incurred costs as a result of the state and federal lawsuits as well as protested procurements.
See PMOC Monthly Report Section 1.4 for status.
Post-Record of Decision (ROD) Changes
HART is considering several proposed design changes that may require additional environmental review.
FTA and HART hold bi-weekly meetings to discuss the status of any potential changes. HART has submitted or will submit information on each proposed change for FTA to determine the level of documentation required to assess impacts and subsequent mitigation measures.
Hawaii Electric Company (HECO)
50-foot clearance requirement for facility maintenance including pole replacement
See PMOC Monthly Report Section 1.4 for status.
Next Quarterly Meeting:
To be determined
1.4 PMOC Issues or Concerns
• The Estimate at Completion (EAC) indicates that the Project cost will exceed the FFGA budget primarily due to the Archaeological Inventory Survey (AIS), federal lawsuit delays, subsequent impact of current market conditions, and several other items that are anticipated to be an additional cost to the project.
• FTA is requiring the City and County of Honolulu and HART to submit a Recovery Plan. HART submitted an Interim (Recovery) Plan to the FTA in October 3, 2016 that identified two options:
o The Interim Plan outlined their path forward for developing two options: Plan A – Seek additional funding for full build-out through an extension of
the GET, which requires legislative action. Plan B – If no additional local funds are made available, HART must
develop a strategy to complete a project of independent utility and local termini within their current funding envelop of $6.8 billion.
o The Interim Plan identified the following EAC and Revenue Service Date (RSD) for full build-out: HART’s EAC for full build-out of the project is $8.6 billion and includes
$1.4 billion in contingency and $0.4 billion in finance costs. HART’s targeted RSD is December 2025. The PMOC is concerned that
the December 2025 RSD is unrealistic and must be reviewed and assessed, because the Interim Plan does not indicate schedule contingency or float.
o FTA has indicated that the full Recovery Plan should be submitted by the end of 2016. However, HART has requested an extension to June 2017 to allow time for seeking an extension of the GET.
o HART will submit the Financial Plan and cash-flow analysis in early December 2017. It is possible that the financing costs may increase beyond what had been initially presented depending on the decision on a GET extension.
o HART has developed a DRAFT time-based matrix to augment the deliverables and activities identified in the Interim Plan.
o HART is to develop a Table of Contents of what the full Recovery Plan will contain for Plan A and Plan B.
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• HART has developed a risk management program with support from its Program
Management Consultant. They are using a bottoms up risk modeling approach. HART must still update the Risk and Contingency Management Plan (RCMP), which would include development of cost and schedule drawdown curves.
• APTA Peer Review – HART has engaged APTA to perform a Peer Review. It is
anticipated that the review will occur in January 2017 with the draft report to be submitted in February 2017 or March 2017. Some of the key areas to be addressed include:
o Management Capacity and Capability o Change/Claims Management o Contract Administration
• Hawaiian Electric Company (HECO) Horizontal Working Clearances Analysis – o Airport Guideway and Stations Segment (AGS) and City Center Guideway and
Stations Segment (CCGS) – HART and HECO have agreed to underground the overhead 138kV lines. HART consultants are progressing design with feedback from HECO.
o WOFH and KHG – HECO and HART are close to an agreement on the use of alternate bucket truck equipment in lieu of relocation of the overhead 46kV line. HECO has also indicated that they have identified alternate crane and truck equipment that could mitigate some of the 138 kV conflicts. This would result to a significant reduction in the costs that have been included in the EAC.
• Buy America –
o HART submitted to FTA a Waiver Request for the Train Control and Communications (TCCR) Equipment Variable Refrigerant Flow (VRF) air conditioning equipment on February 8, 2016. Additional information was subsequently provided at the request of FTA. FTA provided email on September 9, 2016 indicating TCCR equipment VRF units are components of the train control and communications equipment. Train control equipment is subject to the “rolling stock” requirement of 60% domestic content. The TCCR will be considered as part of the communications systems for calculation of the US content. The current US content of the communications system is approximately 90%. HART will recalculate the US content once the contract change order is negotiated for the Variable Refrigerant Flow (VRF) units. However, it is anticipated that there will not be a significant reduction in the US content based on the estimated value of the of the VRF units.
o Ansaldo Honolulu Joint Venture (AHJV) has changed the truck supplier for the Light Rail Vehicles (LRV). AHJV submitted revised calculation that indicates 61.2% US content. AHJV previously reported 64% US content. HART intends to perform a post-delivery audit in 2017.
o Ship America – HART has had discussions with MARAD regarding Ship America requirements. MARAD expressed concern because AHJV has not engaged US flag carriers. HART issued a letter to AHJV requiring action. AHJV
Honolulu Rail Transit Project 6 Monthly Report November 2016 (FINAL)
responded via email, but HART was not satisfied with the response. HART intends to send a follow up letter to AHJV.
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2.0 BODY OF REPORT
2.1.1 Project Status
• Overall project is approximately 53.7% complete as of September 2016. The planned completion at this time is approximately 77.7% (based on HART’s S-curve late plan).
• Overall design of the project is approximately 90.3% complete as of September 2016. The planned completion at this time is approximately 100%. The percent complete may change as a result of utilizing DB procurement strategy for the Airport and City Center guideway and stations sections.
• Overall construction of the project is approximately 47.4% complete as of September 2016. The planned completion at this time is approximately 78.9% (based on HART’s S-curve late plan).
• It should be noted that the reported percentages complete are based on the current Full Funding Grant Agreement (FFGA) budget and Revenue Service Date (RSD) reported in HART’s Monthly Report. HART will be required to revise its progress curves when the project budget and RSD are re-baselined.
• Section 2.1.3 and Appendix B of this report provide the status of the current design and construction contracts.
2.1.2 Status of Procurement
• Airport Guideway and Stations DB Contract (AGS) – Shimmick/Traylor/Granite was the selected contractor with a contract value of $874.75 million. Full execution of the contract occurred in September 2016. NTP will be issued on December 1, 2016.
• City Center Guideway and Stations DB Contract (CCGS) – Procurement is on hold. HART will not restart procurement until additional funding is secured.
• Pearl Highlands Parking Structure DB Contract (PHPS) – Request for Proposal (RFP) dates are yet to be determined.
• Program Management Support Consultant (PMSC) – HDR was re-selected. Awarded to HDR in October 2016.
• University of Hawaii (UH) West Oahu Temporary Park and Ride and UH West Oahu Campus Road “B” – To be determined (TBD)
• Core Systems Back-up Generators – TBD • Photovoltaic for Rail Operations Center (ROC) –TBD • Executive Search Agency – HART will utilize a sub-consultant under the PMSC contract
to assist with the search for a permanent Executive Director.
2.1.3 Status of Primary Construction Contracts
• West Oahu/Farrington Highway (WOFH) Design-Build (DB) Contract – o Contract is approximately 95.7% complete based on earned value (design and
construction activities). The planned earned value at this time is approximately 98.1%.
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o The contract was approximately six months behind schedule. However, HART and the contractor have agreed to a revised substantial completion date of March 2017 to complete all civil work.
o Guideway construction was essentially completed in July 2016. o HART and the contractor have agreed to a revised substantial completion date of
March 2017 to complete all civil work. They have also negotiated a $4 million dollar settlement for any damages due to delays that were the responsibility of HART.
o In general, quality of the contract is good, but there are two very significant issues as discussed in Section 2.6 of this report.
• Kamehameha Highway Guideway (KHG) DB Contract – o The contract is approximately 82.6% complete based on earned value (design and
construction activities). The planned earned value at this time is approximately 99.8%.
o Contract is over 13 months behind schedule. The contractor’s current progress schedule shows the guideway will be completed in June 2017 and the overall project will be completed in June 2018. HART has indicated that the projected substantial completion should be May 2017, although the current progress schedule shows guideway to be completed in June 2017 and overall project schedule to be completed in June 2018. KIWC has submitted delay notification that including significant damages. HART is reviewing the notification.
o No contractor schedule updates have been approved since 2014, which is of significant concern.
• Maintenance and Storage (MSF) DB Contract – o Contract is 100% complete with exception of closeout. HART issued substantial
completion to KKJV on July 2, 2016. Closeout activities are expected to be completed by the end of 2016.
o Temporary Certificate of Occupancy has been received for all buildings at the MSF including Operations and Storage Building, Wheel Truing Facility, Train Wash Facility, and Maintenance of Way Facility in June 2016.
o HART and KKJV held non-binding mediation in October 2016 to resolve approximately 20 items. They have agreed to the mediator’s proposal on all items and the final cumulative value is $7.1 million.
• Airport Advanced Utilities Construction Contract – o Contract is approximately 64.9% complete based on Earned Value. The planned
earned value at this time is 100%. • West Oahu Station Group Construction Contract –
o The contract is approximately 6.1% complete based on HART’s earned value calculation. HART’s planned earned value at this time is 21.2%.
o The baseline schedule has been conditionally approved. The schedule updates indicate the contract is behind 6 months.
• Farrington Highway Station Group Construction Contract – o The contract is approximately 1.3% complete based on HART’s earned value
calculation. HART’s planned earned value at this time is 42.1%. o The baseline schedule was accepted as noted. The contract is behind 6 months.
The contractor is working on a re-baseline of the schedule.
Honolulu Rail Transit Project 9 Monthly Report November 2016 (FINAL)
o Construction began in May 2016. • Kamehameha Stations Group Construction Contract –
o The contract is approximately 0.6% complete based on HART’s earned value calculation. HART’s planned earned value at this time is approximately 1.4%.
o An Administrative Notice to Proceed (NTP) was issued in April 2016. Full NTP was issued in October 2016.
o The baseline schedule has not yet been approved. o Construction began in October 2016.
• Elevators and Escalators Manufacture-Install-Maintain Contract - o The contract is approximately 12.9% complete based on HART’s earned value
calculation. HART’s planned earned value at this time is approximately 70.5%. o A revised baseline schedule will need to be prepared at a later date once the DB
contracts for the east portion of the guideway are awarded. • Fare Collection System Contract -
o The contract is approximately 7.7% complete based on HART’s earned value calculation. HART’s planned earned value at this time is approximately 0.1%.
o The baseline schedule has been approved. • Ramp H2R2 Contract -
o The contract is approximately 27.3% complete based on HART’s earned value calculation. HART’s planned earned value at this time is approximately 100%.
o A four-month time extension was issued for unforeseen condition. o A change order is in process to approve additional delay time that is associated
with the unforeseen soil remediation. The contractor encountered soil contamination that required extensive remediation and disposal. This would be in addition to the original extension. However, there are no anticipated costs associated with the extension since the remediation delays were concurrent with contractor delays.
Honolulu Rail Transit Project 10 Monthly Report November 2016 (FINAL)
2.1.4 Status of Core Systems Contract
Core System Description Status General Overall Contract is approximately 38.2% complete based on expenditures (design, manufacturing, and construction
activities). The planned completion at this time is approximately 55.8% (based on late plan S-curve). Design Following are the approximate levels of final design completion
• LRVs – 93% • Communications – 60% • Train Control – 100% • Traction Power – 100% • Fire Detection – 80% • Platform Screen Gates – 90.9%
Testing Brake Testing – Guideway will be energized in 1Q17 for brake testing. MSF will not be energized until 3Q17 to allow for installation of train control and communications equipment LRVs will be towed to guideway for brake testing under manual control.
Construction CSC yard construction work at the MSF is anticipated to be completed in late 2016. AHJV will begin energizing the yard tracks in early 2017. CSC guideway construction will begin in 3rd Quarter of 2016.
Schedule AHJV has submitted a revised baseline schedule to address the initial change in start of revenue service from 2019 to 2022. They have included an impact analysis with associated delay costs. It should be noted that this impact analysis does not take into consideration the delay of revenue service from 2022 to 2025.
Staffing AHJV Safety and Security Manager – HART has indicated that that the manager will not be onsite full time until integration testing begins. The PMOC has expressed concern with this approach and has strongly recommended that AHJV have someone onsite as soon as possible.
Vehicle Subsystem Vehicle Schedule LRV 1 – Static testing began in October 2016
LRV 2 – Delivery planned for early 2017 Buy America AHJV changed the truck supplier for the Light Rail Vehicles (LRV). AHJV submitted revised calculation that
indicates 61.2% US content. AHJV previously reported 64% US content. HART intends to perform post-delivery audit in 2017.
Ship America HART has had discussions with MARAD regarding Ship America requirements. MARAD expressed concern because AHJV has not engaged US flag carriers. HART has issued a letter to AHJV requiring action. AHJV responded via email, but HART was not satisfied with the response. HART intends to send a follow up letter to AHJV.
Hawaiian Electric Company (HECO) Activation Dates HART and HECO are coordinating project schedule and HECO activation start dates for power. Service Requests AHJV has submitted HECO service requests for all system sites.
Honolulu Rail Transit Project 11 Monthly Report November 2016 (FINAL)
2.1.5 Real Estate Acquisition
• HART right-of-way (ROW) group continues to work to secure construction rights of entry to support the program procurement schedule per the following HART Board direction:
o City Council action to terminate all ROW actions in City Center has been deferred. HART Board has removed the restriction placed on HART staff regarding initiating new acquisition or relocation activities in City Center.
o FTA has conditionally approved HART’s request regarding incidental use of 16 parcels in City Center. However, HART must provide specific information for each incidental use for FTA review and approval.
• In order to support the upcoming procurement for the AGS DB Contract and to maintain the project schedule, eminent domain proceedings were authorized by the HART Board and the Honolulu City Council for several parcels. Negotiations are still continuing with all private property owners in the Airport section in an attempt to reach mutual agreement.
• The project is no longer relying as heavily on “right of entry” agreements. It has moved forward with some condemnation and obtained legally enforceable possession of the property. However, these possession authorities will eventually require resolution of the valuation of the subject parcels.
• HECO – Negotiations are underway with HECO regarding clearances next to the HART system. Depending on the outcome of these negotiations, there may be a need to acquire easements for up to 100 privately owned parcels and 146 publicly owned parcels. This issue remains unresolved.
• Following are recent updates or changes in staffing and operations: o A contract was issued to a law firm to handle Hawaii Land Court matters. o A contract was issued to a law firm to conduct negotiations and/or litigation in
complex acquisitions. o A new right of way consultant was contracted (Colliers and its sub-consultant WD
Schock) o A new staff position to handle negotiations with property owners was identified o HART has contracted directly with a firm to perform property appraisal services
rather than obtaining these through other contracts. o Responsibility for all survey work has been moved to the Engineering and
Construction group of HART and out of the real estate section. o An update to the RAMP may be required as a result of these recent changes.
2.1.6 Third Party Agreements and Coordination
The following agreements are critical and will impact the project if not completed in the near term:
• Aloha Stadium Construction Right of Entry (CROE) – CROE was executed on November 28, 2016.
• GSA – Details of Memorandum of Understanding (MOU) for all work adjacent to the Federal courthouse have been substantially agreed to but final agreement is still pending. The MOU is not on the critical path.
Honolulu Rail Transit Project 12 Monthly Report November 2016 (FINAL)
• United States Postal Service (USPS) – Valuation dispute was resolved with binding arbitration using a mutually agreed third appraiser. Arbitration decision rendered in July 2016. It is anticipated that the agreement will be finalized in November 2016 or December 2016.
• US Navy (USN) – Main outstanding issue is regarding how national register nomination is handled for Big Makalama and Little Makalama. HART is working directly with USN Federal Preservation Officer (FPO) on the nomination.
2.1.7 Utilities
Following are updates related to Hawaiian Electric Company (HECO): • HECO has a collective bargaining agreement that has different wage scales and allows
payment to its labor forces biweekly, which does not satisfy Davis-Bacon. HECO has requested a waiver that has so far been denied by the United States Department of Labor (DOL), although HECO has appealed. HECO and HART are still awaiting a final decision from the DOL.
• HECO 46kV Substation near MSF area – HECO indicated a need in the 2018/2019 timeframe for a new 46kV substation to feed the MSF area due to requirements in HECO Rule 13 for line extensions and substations.
• Horizontal Working Clearances Analysis: o Airport Guideway and Stations Segment (AGS) – HART and HECO have agreed
to underground the overhead 138kV lines. The scope was included in the AGS DB Contract documents.
o Airport Guideway and Stations Segment (AGS) City Center Guideway and Stations Segment (CCGS) – HART and HECO have agreed to underground the overhead 138kV lines. However, HART has still not finalized their approach to the design of the utilities for the contract. In particular, the undergrounding of the HECO lines is of concern. HART can either advance the design for inclusion in a DB package or complete the design and incorporate signed drawings into the package. However, the designed has indicated that the design would not be completed until 2019. HART is reviewing the sequencing of design activities to determine whether the proposed design schedule can be accelerated.
o WOFH and KHG – HECO and HART are close to an agreement on the use of alternate bucket truck equipment in lieu of relocation of the overhead 46kV line. HECO has also indicated that they have identified alternate crane and truck equipment that could mitigate some of the 138 kV conflicts. This would result to a significant reduction in the costs that have been included in the EAC.
2.1.8 Environmental mitigation measures
• Proposed Design Changes/Refinement – HART is considering several proposed design refinements that may require additional environmental review. FTA and HART hold bi-weekly meetings to discuss the status of any potential changes. HART has submitted or will submit information on each proposed change for FTA to determine the level of documentation required to assess impacts and subsequent mitigation measures:
o Backup Generators – Submittal to FTA pending (4Q16 or 1Q17)
Honolulu Rail Transit Project 13 Monthly Report November 2016 (FINAL)
o AGS & CCGS Precast Yard – Submittal to FTA pending SHPD letter of concurrence o CC Alignment Shift (Ala Moana Station) – Submittal to FTA pending (4Q16 or
1Q17) o West Oahu Park-n-ride – Under internal review by HART o Chinatown Station – On hold o Phased opening – On hold
2.2 Project Management Plan (PMP) and Sub-Plans
HART is in the process of updating several of its procedures and management plans. These updates are necessary due to HART organizational changes and the contract packaging changes that are being implemented. It is critical for HART to update these plans and procedures soon. Following is the status of the key management plan updates:
Plan Update Status
Project Management Plan (PMP) Update pending Contract Packaging Plan (CPP) Update pending; target November 2016 Construction Management Plan Completed Construction Safety Plan Completed Change Procedure Completed Quality Management Plan Completed Risk and Contingency Management Plan (RCMP) Update pending; target December2016 Financial Plan Update pending; target December 2016 Real Estate Acquisition and Management Plan (RAMP) Updated, Rev. 6 baselined March 2016 Operations and Maintenance Plan (OMP) Completed Rail Fleet Management Plan (RFMP) Completed Safety and Security Management Plan (SSMP) Baseline update to be completed by end of year
– Update annually after re-baseline Safety and Security Certification Plan (SSCP) Baseline update to be completed by end of year
– Update annually after re-baseline 2.3 Management Capacity and Capability (MCC)
HART Executive Director/Chief Executive Officer tendered his resignation on August 18, 2016. The HART Board has hired Krishniah Murthy as Interim Executive Director. It is anticipated that the Interim Executive Director would remain in place for up to a year while the HART Board searches for a permanent replacement. Mr. Murthy’s start date is December 5, 2016. The Director of Planning, Permitting & Right-of-Way (Jesse Souki) will be leaving HART. A search for a replacement is to begin. 2.4 Project Cost
The grantee’s Base Cost Estimate (BCE) dated March 19, 2012 is $5.122 billion in Year-of-Expenditure (YOE) dollars, including $644 million in allocated and unallocated contingency per the original FFGA budget (or 15.0% of the BCE) and $173 million in financing costs. Of the $644 million in total contingency, $101 million is unallocated. The original FFGA Project Budget is as follows:
Honolulu Rail Transit Project 14 Monthly Report November 2016 (FINAL)
Source Amount Base Cost Estimate $4,305 billion Total Contingency per the original FFGA budget
$0.644 billion
Finance Charges per the original FFGA budget
$0.173 billion
Total FFGA Project Cost $5.122 billion
Total Expenditures to Date – $2.348 billion (through September 2016) The Estimate at Completion (EAC) indicates that the Project cost will exceed the FFGA budget primarily due to the AIS, federal lawsuit delays, subsequent impact of current market conditions, and several other items that are anticipated to be additional costs to the project. HART’s EAC, as identified in the Interim Plan, is $8.6 billion and includes $1.4 billion in contingency and $0.4 billion million in finance costs. The following table presents the FFGA budget and expenditures to date. The EAC for each Standard Cost Categories (SCC) will be provided once HART re-baselines its budget.
Honolulu Rail Transit Project 15 Monthly Report November 2016 (FINAL)
SCC SCC Description FFGA Budget Base Cost Allocated Cont. Incurred
10 GUIDEWAY & TRACK ELEMENTS 1,275,328,962 1,114,305,144 161,023,818 481,046,931 10.02 Guideway: At-grade semi-exclusive 0 0 0 17,378 10.04 Guideway: Aerial structure 1,175,328,184 1,022,380,670 152,947,514 409,095,913 10.08 Guideway: Retained cut or fill 8,077,393 7,492,943 584,450 4,588,992 10.09 Track: Direct fixation 86,332,027 79,437,204 6,894,823 67,313,772 10.11 Track: Ballasted 3,550,634 3,293,724 256,910 0 10.12 Track: Special (switches, turnouts) 2,040,724 1,700,603 340,121 30,876
20 STATIONS, STOPS, TERMINALS, INTERMODA 506,165,689 421,804,742 84,360,947 8,634,375 20.01 At-grade station, stop, shelter, mall, terminal, platform 7,333,599 6,111,333 1,222,266 0 20.02 Aerial station, stop, shelter, mall, terminal, platform 353,476,148 294,563,457 58,912,691 2,062,145 20.06 Automobile parking multi-story structure 79,690,518 66,408,765 13,281,753 0 20.07 Elevators, escalators 65,665,424 54,721,187 10,944,237 6,572,230
30 SUPPORT FACILITIES: YARDS, SHOPS, ADMIN. BLDGS 99,425,456 92,535,013 6,890,443 119,074,465 30.01 Administration Building: Office, Sales 0 0 0 231,250 30.02 Light Maintenance Facility 8,161,279 7,591,887 569,392 7,502,704 30.03 Heavy Maintenance Facility 40,906,889 38,099,138 2,807,751 45,522,379 30.04 Storage or Maintenance of Way Building 8,382,270 7,797,460 584,810 8,826,848 30.05 Yard and Yard Track 41,975,018 39,046,528 2,928,490 56,991,284
40 SITEWORK & SPECIAL CONDITIONS 1,103,867,264 980,569,426 123,297,838 623,620,729 40.01 Demolition, Clearing, Earthwork 34,695,802 29,980,157 4,715,645 5,358,244 40.02 Site Utilities, Utility Relocation 350,694,801 299,449,755 51,245,046 142,263,609 40.03 Haz. Mat’l, contam’d soil removal/mitigation, ground water treatments 7,228,935 6,590,542 638,393 4,691,737 40.04 Environmental mitigation, e.g. wetlands, historic/archeologic, parks 30,841,906 26,979,122 3,862,784 11,391,864 40.05 Site structures including retaining walls, sound walls 8,637,582 7,998,960 638,622 9,236,197 40.06 Pedestrian / bike access and accommodation, landscaping 48,262,816 41,073,897 7,188,919 3,568,704 40.07 Automobile, bus, van accessways including roads, parking lots 212,536,181 181,979,369 30,556,812 25,262,824 40.08 Temporary Facilities and other indirect costs during construction 410,969,241 386,517,624 24,451,617 421,847,550
50 SYSTEMS 247,460,781 221,284,483 26,176,298 70,312,604 50.01 Train control and signals 91,492,532 81,982,556 9,509,976 17,704,714 50.02 Traffic signals and crossing protection 12,524,011 10,458,227 2,065,784 0 50.03 Traction power supply: substations 32,873,934 29,500,927 3,373,007 6,114,252 50.04 Traction power distribution: catenary and third rail 36,426,286 32,878,150 3,548,136 24,764,174 50.05 Communications 59,889,234 53,691,339 6,197,895 21,589,142 50.06 Fare collection system and equipment 10,221,753 9,159,277 1,062,476 140,322 50.07 Central Control 4,033,031 3,614,007 419,024 0
Construction Subtotal (10 – 50) 3,232,248,152 2,830,498,808 401,749,344 1,302,689,104
60 ROW, LAND, EXISTING IMPROVEMENTS 222,188,386 197,397,947 24,790,439 124,448,133 60.01 Purchase or lease of real estate 201,658,907 179,360,664 22,298,243 109,289,631 60.02 Relocation of existing households and businesses 20,529,479 18,037,283 2,492,196 15,158,502
70 VEHICLES 208,501,186 186,829,020 21,672,166 51,075,860 70.02 Heavy Rail 186,061,066 166,721,385 19,339,681 40,117,914 70.06 Non-revenue vehicles 16,011,166 14,346,923 1,664,243 10,957,946 70.07 Spare parts 6,428,954 5,760,712 668,242 0
80 PROFESSIONAL SERVICES 1,183,826,026 1,090,438,814 93,387,212 869,280,396 80.01 Preliminary Engineering 95,120,484 94,055,262 1,065,222 104,455,137 80.02 Final Design 257,934,908 228,321,632 29,613,276 176,596,223 80.03 Project Management for Design and Construction 385,825,694 366,458,463 19,367,231 348,665,752 80.04 Construction Administration & Management 218,155,752 199,656,728 18,499,024 102,180,657 80.05 Professional Liability and other Non-Construction Insurance 52,138,030 46,549,724 5,588,306 35,581,326 80.06 Legal; Permits; Review Fees by other agencies, cities, etc. 76,135,125 67,641,006 8,494,119 24,705,263 80.07 Surveys, Testing, Investigation, Inspection 24,955,327 21,759,335 3,195,992 38,373,791 80.08 Start up 73,560,706 65,996,664 7,564,042 38,722,247
90 Subtotal (10 – 80) 4,846,763,750 4,305,164,589 541,599,161 2,347,493,493 UNALLOCATED CONTINGENCY 101,871,170 0 101,871,170 0
100 Subtotal (10 – 90) 4,948,634,920 4,305,164,589 643,470,331 2,347,493,493 FINANCE CHARGES 173,058,242 0 Total Project Cost (10 – 100) 5,121,693,162 4,305,164,589 643,470,331 2,347,493,493 Provisional Request for Payment Total Project Cost (10 – 100) 5,121,693,162 4,305,164,589 643,470,331 2,347,493,493
Honolulu Rail Transit Project 16 Monthly Report November 2016 (FINAL)
2.4.1 Contingency
HART’s previous EAC was reviewed and the contingency was evaluated as part of the 2016 Risk Refresh Workshop. The PMOC has noted that there were significant adjustments incorporated into the EAC for the Risk Refresh Workshop. HART’s forecast, as identified in the Interim Plan and reported to the PMOC in October 2016, indicates an increase to project costs and extension of the overall completion date for the project:
• EAC is $8.6 billion and includes $1.4 billion in contingency and $0.4 billion in finance costs.
• Target RSD is December 2025 and includes negligible schedule contingency. Once the budget and schedule are re-baselined, the PMOC must review and assess the EAC and RSD. HART must then update the contingency drawdown curve for inclusion in the Risk and Contingency Management Plan (RCMP) and Monthly Reports. 2.4.2 Funding Sources
The following are the project capital revenue (funding) sources at the time of FFGA:
Source Amount General Excise Tax (GET) $3.358 billion Section 5309 $1.550 billion Section 5307 $0.210 billion American Recovery and Reinvestment Act (ARRA) $0.004 billion Total $5.122 billion
Following is the status of HART’s GET receipts:
• HART has received approximately $1.775 billion in GET funds since 2007. The anticipated GET funds per the Financial Plan are $1.8 billion.
• HART has received approximately $1.377 billion in GET funds since Preliminary Engineering, which began in October 2009. The anticipated GET funds per the Financial Plan are approximately $1.4 billion.
The Hawaii State Legislature passed House Bill 134, which would extend the City and County of Honolulu’s current 0.5% surcharge on the state’s GET for the rail transit project for an additional five years through 2027. The Governor signed the bill on July 14, 2015. On January 27, 2016, the City Council approved Bill 23 to extend collection of the GET to December 2027. Initial estimates indicated that the GET extension could generate approximately $1.8 billion in revenue at a 5 percent growth rate. However, more current (and conservative) forecasts indicate that the additional revenue will be closer to $1.5 billion. This increase in revenue is in addition to what was included in the FFGA. However, this additional funding will not be sufficient to complete the Project given the current EAC is $8.6 Billion.
Honolulu Rail Transit Project 17 Monthly Report November 2016 (FINAL)
2.5 Project Schedule
HART’s current project schedule indicates the following: • The target for the Interim Opening is December 2020. The NTP for KHSG was issued
October 3, 2016. • The target for full revenue service is December 2025.
The following is a look ahead for important activities associated with the Project:
Period: December 2016 – February 2017 Activity Responsibility Date
Monthly Progress Meeting FTA, HART and PMOC December 14, 2016 Monthly Progress Meeting FTA, HART and PMOC January 11, 2017 Monthly Progress Meeting FTA, HART and PMOC February 8, 2017 Quarterly Meeting FTA, HART and PMOC TBD
2.6 Quality Assurance/Quality Control (QA/QC)
• HART and AHJV held a Quality Audit of the LRV production facility in Pittsburg, CA in June 2016. There were numerous findings, but none were significant. HART staff traveled to Pittsburg in September 2016 to review AHJV’s response to findings. HART staff was not satisfied with AHJV’s responses and will be meeting with them again in November 2016 to address the concerns
• Drilled Shafts – To date, there is one (1) Open Non-compliance Reports (NCR) related to the cross-hole sonic logging (CSL) reports. There were few CSL issues encountered recently, indicating that the construction process has improved.
• WOFH Tendons – Rusting and/or failing tendons in WOFH span segments have been identified. The condition is being investigated to avoid impacting the loading capacity of the spans. HART is concerned that the full of extent of any compromised tendons has not been established. A non-destructive testing method has been identified that will be used on all tendon ducts. The testing will be performed by HART consultant. However, KIWC will be responsible for the testing costs as well as the cost of any tendon replacement.
• Shims – Several isolation pads and shims have cracked along WOFH. The isolation pads were provided by KKJV under the MSF contract. The shims were provided by KIWV under the WOFH contract. HART’s lab results indicate the pads have less carbon content than required by ASTM and do not meet all specifications in the contract. Replacement pads and shims that meet the specifications have been identified. KIWC will begin replacing all shims along the guideway in early 2017. They will also replace all isolation pads. Cost for replacement is to be resolved, but HART has indicated that they should bear no cost for these replacements since the pads and shims did not meet specifications.
2.7 Safety and Security
• HART Design Conformance is progressing with the exception of a few CSC Design Criteria Conformance Checklists (DCCC). Construction Conformance Checklists are
Honolulu Rail Transit Project 18 Monthly Report November 2016 (FINAL)
pending finalization of the construction checklists and the submission of construction submittals/test reports.
• AHJV CSC Safety Certification Manager and CSC Security Manager are being staffed by personnel located on the mainland. HART stated the CSC contract does not have a requirement to have an on-site Safety Certification Manager and Security Manager. HART Safety and Security has an issue with how CSC Safety and Security is meeting their submittal requirements and the part time Safety Manager. HART requires a Safety Manager for testing and plans. This Manager needs to be on site for this work. HART Project Director is to resolve the issue internally with staff. The PMOC strongly recommends that the AHJV Safety Certification Manager be on site for testing that will begin at the MSF in the 4th Quarter of 2016.
• AHJV deliverable schedule for the Maintenance of Way (MOW) vehicles Design Conformance Criteria “Means of Verification” has significantly slipped. HART Safety and Security has received and performed verification of four out of eight DCCC checklists. All eight MOW vehicles are on island and have been undergoing static testing verification efforts per the Specification Testing Conformance Checklist (STCC) since March 2016. MOW vehicles will be needed when dynamic testing begins on the passenger vehicles.
• AHJV is to begin vehicle testing on a one-mile section of the WOFH Guideway in March 2017. However, there are still some Safety and Security Certification items that need to be submitted by AHJV and approved by HART in order allow testing to begin.
• There are no clear indications on the contents of the passenger vehicle history books for the first two vehicles.
• The specification and testing conformance checklist verification effort lags behind construction completion percentage due to the fact that a significant percentage of the needed submittals are submitted at the end of construction per the contract requirements; such as test reports, O&M manuals, training, and as-built drawings.
• HDOT SOA issued letters to HART regarding open NCR’s related to shims and tendons on the Guideway and requested a corrective action plan and path forward to resolve issues. HART provided responses to both the letters. HART indicated they would replace the non-compliant shims with shims that meet the technical specification and re-inspect the tendons based on the corrective action proposed by Kiewit and approved by HART on the WOFH Guideway to ensure compliance. HDOT Memorandum of Agreement (MOA) with HART to assist in the development of a State Safety Oversight Program was executed on December 23, 2011. It will be amended by HART to only fund the HDOT SSOA Program until April 15, 2019. HDOT will need to fund the SSOA program after the MOA date expires.
2.8 Operations & Maintenance (O&M)
• Staffing – HART Deputy Director of Operations and Maintenance accepted the position on November 1, 2016.
• HART O&M Director is evaluating staffing needs and will add additional staff to support AHJV MSF skeleton crew.
• AHJV anticipates having 12 O&M personnel staff working at the MSF to perform light maintenance as soon as final completion issued by HART by the end of this year.
Honolulu Rail Transit Project 19 Monthly Report November 2016 (FINAL)
• HART is reviewing AHJV submittals in four areas that include building occupancy, energization, vehicles and functional track.
• HART will initiate public outreach with several schools near the project alignment to foster safety awareness.
2.9 Project Risk
A Risk Refresh Workshop was held on March 30, 2016. The PMOC reviewed any Project changes that may affect and impact the management capacity and capability of the grantee. The review also focused on the Project’s FFGA scope, schedule, cost estimate, and risk and contingency management. The FINAL Risk Refresh Report was transmitted to HART in June 2016. HART has developed a robust risk management program with support from its Program Management Consultant. They are using a bottoms up risk modeling approach. The focus is primarily on construction contracts. PMOC has emphasized that HART must still focus on soft costs and ancillary contracts since they can impact overall cost and schedule. HART must still update the Risk and Contingency Management Plan (RCMP), which would include development of cost and schedule drawdown curves. The PMOC recommends that HART develop a detailed list of ongoing or future cost reduction and cost containment measures that can be tracked and monitored monthly.
Honolulu Rail Transit Project 20 Monthly Report November 2016 (FINAL)
2.10 Action Item Table
Item No. Item Responsible
Party Date
Identified Date Due
Date Completed Status
1 Resolve HECO issue with Davis-Bacon requirements
HART/FTA Mar-14 On-going Open – HECO waiver is pending
2 Updates required for Recovery Plan: Contract Packaging Plan HART Aug-14 TBD Pending update of budget and schedule Financial Plan HART Apr-14 TBD Pending update of budget and schedule Budget HART Apr-14 TBD In progress MPS HART Apr-14 TBD In progress RCMP (including supporting documentation) HART Sept-13 TBD Pending update of budget and schedule
3 Provide Recovery Plan HART Aug-16 Dec-16 Interim Plan submitted October 2016 4 Provide technical report on guideway shim issue HART Sep-16 Oct-16 5 Provide Peer Review agenda and list of participants HART Sep-16 Jan-17 6 Schedule CCGS utility corridor breakout session PMOC Oct-16 Nov-16 Closed 7 Schedule conference call to discuss RCMP hold
points PMOC Oct-16 Oct-16 Nov-16 Closed
8 Develop a detailed list of ongoing or future cost containment and cost reduction items
HART Oct-16 Nov-16 DRAFT list discussed at November 2016 meeting
9 Provide RFMP/OMP final signed documents HART Oct-16 Nov-16 Nov-16 Closed 10 Provide cash flow analysis HART Oct-16 Nov-16 11 Provide time-based matrix to augment Interim Plan
deliverables HART Oct-16 Nov-16
12 Provide HDOT shim letter to HART HART Nov-16 Nov-16 Nov-16 Closed 13 Provide response letter on Recovery Plan FTA Nov-16 TBD 14 Include Operations and Maintenance Section in
Monthly Report HART Nov-16 Nov-16
15 Provide AHJV response letter for Ship America issue
HART Nov-16 Dec-16
Honolulu Rail Transit Project 21 Monthly Report November 2016 (FINAL)
3.0 APPENDICES
Appendix A: Acronym List AGS ▪ Airport Guideway and Stations AHJV ▪ Ansaldo Honolulu Joint Venture AIS ▪ Archeological Inventory Survey ARRA ▪ American Recovery and Reinvestment Act BAFO ▪ Best and Final Offer BCE ▪ Base Cost Estimate BFMP ▪ Bus Fleet Management Plan CCGS ▪ City Center Guideway and Stations CE&I ▪ Construction Engineering and Inspection CMP ▪ Construction Management Plan CPP ▪ Contract Packaging Plan CROE ▪ Construction Right of Entry CSC ▪ Core Systems Contract CSL ▪ Cross-hole Sonic Logging DAGS ▪ Department of Accounting & General Services DB ▪ Design-Build DBB ▪ Design-Bid-Build DBOM ▪ Design-Build-Operate-Maintain DCCA ▪ Department of Commerce and Consumer Affairs DHHL ▪ Department of Hawaiian Home Lands DLNR ▪ Department of Land and Natural Resources DOL ▪ Department of Labor EAC ▪ Estimate at Completion EIS ▪ Environmental Impact Statement FD ▪ Final Design FEIS ▪ Final Environmental Impact Statement FFGA ▪ Full Funding Grant Agreement FHSG ▪ Farrington Highway Station Group FPO ▪ Federal Preservation Officer FTA ▪ Federal Transit Administration FY ▪ Fiscal Year GEC ▪ General Engineering Consultant GET ▪ General Excise Tax GSA ▪ General Services Administration HART ▪ Honolulu Authority for Rapid Transportation HDOT ▪ Hawaii Department of Transportation HECO ▪ Hawaiian Electric Company IFB ▪ Invitation to Bid KHG ▪ Kamehameha Highway Guideway KHSG ▪ Kamehameha Highway Stations Group KIWC ▪ Kiewit Infrastructure West Company KKJV ▪ Kiewit Kobayashi Joint Venture LCC ▪ Leeward Community College LRV ▪ Light Rail Vehicle MCC ▪ Management Capacity and Capability MMP ▪ Mitigation Monitoring Program MOU ▪ Memorandum of Understanding MOW ▪ Maintenance of Way MPS ▪ Master Project Schedule MSF ▪ Maintenance and Storage Facility NCR ▪ Non-Compliance Report
Honolulu Rail Transit Project 22 Monthly Report November 2016 (FINAL)
NEPA ▪ National Environmental Policy Act NTP ▪ Notice to Proceed O&M ▪ Operations & Maintenance OCIP ▪ Owner Controlled Insurance Program OP ▪ Oversight Procedure P3 ▪ Public Private Partnership PHPS ▪ Pearl Highlands Parking Structure PMOC ▪ Project Management Oversight Contractor PMP ▪ Project Management Plan PMSC ▪ Project Management Support Consultant PSG ▪ Platform Screen Gate QA/QC ▪ Quality Assurance/Quality Control QAM ▪ Quality Assurance Manager QMP ▪ Quality Management Plan RAMP ▪ Real Estate Acquisition and Management Plan RCMP ▪ Risk and Contingency Management Plan RFB ▪ Request for Bids RFMP ▪ Rail Fleet Management Plan RFP ▪ Request for Proposals RFQ ▪ Request for Qualifications ROC ▪ Rail Operations Center ROD ▪ Record of Decision ROE ▪ Right of Entry ROW ▪ Right of Way RSD ▪ Revenue Service Date SCC ▪ Standard Cost Category SOA ▪ State Oversight Agency SSCP ▪ Safety and Security Certification Plan SSMP ▪ Safety and Security Management Plan SSPP ▪ System Safety Program Plan SSSPS ▪ System Safety and Security Program Standards STCC ▪ Specification Testing Conformance Checklist TBD ▪ To be Determined UH ▪ University of Hawaii USN ▪ United States Navy USPS ▪ United States Postal Service WOFH ▪ West Oahu/Farrington Highway WOSG ▪ West Oahu Stations Group YOE ▪ Year of Expenditure
Honolulu Rail Transit Project 23 Monthly Report November 2016 (FINAL)
Appendix B: Contract Status Contract Description Contractor
Base Contract
Value
Change Orders
Change Order
%
Current Contract
Value Expended %
Exp. Award Date
Contract Compl.
Date
Target Compl. Notes
MM-901 Program Management Support Consultant (PMSC·2)
HDR/InfraConsult LLC
$33,376,897 $18,444,023 55% $51,820,920 $45,687,996 88.7% Mar-12 Mar-17 - HDR selected; award is pending.
MM-913 General Engineering Consultant (GEC III)
CH2M Hill $46,143,277 $398,451 1% $46,541,728 $32,228,240 69.3% Dec-13 Apr-19 -
MM-290 Construction Engineering and Inspection (West)
PGH Wong Engineering, Inc.
$54,232,480 $0 0% $54,232,480 $31,342,847 57.8% Jan-14 Jan-20 -
MM-596 Construction Engineering and Inspection II (East)
Stantec Consulting Services Inc.
$55,036,130 $0 0% $55,036,130 $8,391,455 15.2% Sep-15 Dec-19 -
MM-962 Core System Contract Oversight Consultant
Lea + Elliott, Inc. $43,988,989 $0 0% $43,988,989 $18,553,620 42.2% Feb-14 Sep-19 -
FD-140 West Oahu Station Group Construction FD
URS, Inc. $7,789,000 $2,270,103 29% $10,059,103 $9,489,489 95% Jun-12 Dec-16 -
FD-240 Farrington Highway Station Group FD
HDR, Inc. / URS $9,300,696 $4,981,349 54% $14,282,045 $12,706,448 89% Jan-11 Dec-16 -
FD-340 Kamehameha Highway Station Group Construction FD
Anil Verma, Inc. $8,702,592 $1,257,636 14% $9,960,228 $9,317,068 94% Nov-12 Dec-16 -
FD-430 Airport Section Guideway and Utilities FD
AECOM $38,840,960 $4,293,512 11% $43,134,472 $41,668,159 97% Dec-11 Jun-17 -
FD-440 Airport Station Group Construction FD
AECOM $10,177,365 $1,396,487 14% $11,573,852 $10,059,820 87% Nov-12 Jul-17 - Combined with Airport Stations into DB Contract.
FD-530 City Center Section Guideway and Utilities FD
AECOM $43,948,220 $3,149,342 7% $47,097,562 $43,627,298 93% Jul-12 May-18 - Combined with Dillingham and Kaka’ako Stations into DB Contract.
FD-550 Dillingham and Kaka’ako Station Group Construction FD
Perkins & Will $18,321,918 $1,309,799 5% $19,631,717 $12,293,535 62.6% Jun-13 Jul-18 -
Honolulu Rail Transit Project 24 Monthly Report November 2016 (FINAL)
Contract Description Contractor Base
Contract Value
Change Orders
Change Order
%
Current Contract
Value Expended %
Exp. Award Date
Contract Compl.
Date
Target Compl. Notes
DB-120 West Oahu/Farrington Highway DB
KIWC $482,924,000 $167,384,042 34.6% $650,308,042 $622,445,119 96.2% Nov-09 Jul-16 May-17 Approximately six months behind schedule. HART and KIWC working to mitigate impacts. Contractor schedule has been continuously rejected, but HART has not taken action.
DB-200 Maintenance and Storage Facility DB
Kiewit/Kobayashi JV
$195,258,000 $79,600,568 41% $274,858,568 $274,518,245 100% Jun-11 May-16 Jul-16
DB-320 Kamehameha Highway Guideway DB
KIWC $372,150,000 $18,142,386 4.8% $390,292,368 $321,531,245 82.6% Jun-11 Sep-16 Sep-17 Approximately 13 months behind schedule. HART and KIWC working to mitigate impacts. Contractor schedule has been continuously rejected, but HART has not taken action.
DBOM-920
Core Systems Contract
Ansaldo/Honolulu JV
$573,782,793 $27,037,894 4.7% $600,820,687 $229,705,257 38.2% Nov-11 Jan-21 Jan-22 Schedule must be revised to reflect Construction Access Milestone dates. HART is deferring revision of milestone dates until they have better information on the other contracts. AHJV submit time impact analysis.
MI-930 Elevators and Escalators Install & Maintain
Schindler Elevator Corporation
$50,982,714 $1,016,321 2% $51,999,035 $6,572,230 12.7% Aug-13 Jun-18 Jun-18 Schedule may be delayed due to revised Construction Access Milestone dates.
DBB-505
Airport Section Utilities Construction
Nan, Inc. $27,993,290 ($608,480) 0% $27,384,809 $17,768,126 65.2% Jul-14 Jul-16 Sep-16
DBB-525
Airport Section Guideway Seven Pier Construction
HDCC/CJA JV $3,973,000 $54,843 1% $4,027,843 $4,027,843 100% Sep-14 Feb-15 - Closeout is ongoing.
DBB-171
West Oahu Station Group Construction
Nan, Inc. $56,088,470 $0 0% $56,088,470 $3,416,523 6% Oct-15 Mar-18 Mar-18
DBB-271
Farrington Highway Station Group Construction
Hawaiian Dredging
$78,999,000 $0 0% $78,999,000 $1,060,212 1.33% Aug-15 Sep-17 Sep-17
DBB-371
Kamehameha Highway Stations Group Construction
Nan, Inc. $115,805,845 $0 0% $115,805,845 $646,955 0.6% Apr-16 Nov-18
Nov-18
MI-900 Fare Collection System
INIT $15,464,198 $0 0% $15,464,198 $1,187,680 8% Mar-16 Sep-21 Sep-21
Honolulu Rail Transit Project 25 Monthly Report November 2016 (FINAL)
Contract Description Contractor Base
Contract Value
Change Orders
Change Order
%
Current Contract
Value Expended %
Exp. Award Date
Contract Compl.
Date
Target Compl. Notes
DBB-385
Ramp H2R2 Royal Contracting $5,203,646 $0 0% $5,203,646 $1,421,386 27.1% May-15 May-16 Mar-17 Four month time extension issued due to additional soil remediation.
Honolulu Rail Transit Project 26 Monthly Report November 2016 (FINAL)
Appendix C: PMOC Team
Name Position Background Tim Mantych, PE
Program Manager
Overall responsibility for the Jacobs PMO program. He has spent 16 years in key management roles on the PMO program, including Program Manager and Task Order Manager, effectively managing oversight services for major capital projects in Regions V and IX.
Bill Tsiforas Task Order Manager
Responsible for oversight of this task order. He has over 25 years of experience and has served as Task Order Manager and as a systems integration manager in the PMO Program since 2008. His project management experience covers a wide range of transit projects including BRT, monorail, streetcar, light rail, and heavy rail systems. In rail projects and other transportation modes, he has experience in management of project planning, engineering, and architecture service contract, engineering design, and construction management.
Keith Konradi, PE
Civil Engineer Has extensive over 40 years of experience as a civil engineer and trackwork expert who can provide informed reviews of all issues regarding the design and construction of civil, railroad, and transit. He has specialized in railroad and transit projects, designing new alignments, realignments, profiles, yard, and maintenance facility layouts, connections, and interlockings.
Charles Neathery
Construction Management Manager
Responsible for oversight of construction management activities and project scheduling. He has served on the PMO Program since 1995 in various key positions: Deputy Program Manager, Task Order Manager, Construction Manager, Risk Manager, and Technical Specialist. His heavy civil construction background as a construction contractor Project Manager and as Program and Controls Director combines experience on both sides of the industry as a builder and a manager.
Tim Morris Cost Estimating Manager
Responsible for oversight of cost estimating and cost control. He brings 34 years of experience in cost estimating. His background includes: construction and project management of heavy civil projects; cost estimating; field engineering; scheduling; project controls; change order negotiations; and procurement.
Brian Carpenter
Project Scheduling Manager
Responsible for oversight of project scheduling. Has over 25 years of experience project controls including schedule development and management. Well versed with following: Primavera Project Planner (P3), Primavera 7.0, Suretrak, M.S. Project, Schedule Analyzer, Claim Digger, Private Investigator, and PertMaster (Monte Carlo Risk Analyzer), as well as document management tools: Prolog, ProjectWise, and Contract Manager (Expedition).
Dorothy Schulz, PhD
Systems Safety Manager
Responsible for oversight of safety and security activities. She has been Director of Transit Security Practice at Interactive Elements for more than 20 years. She performs safety and security studies and oversights for various agencies. She also performs FTA State Oversight Agency (SOA) audits as well as Safety and Security Readiness Reviews (SSRRs). Dr. Schulz has written and/or reviewed numerous TVAs, PHAs, SSPPs, and SSPs; all require comprehensive understanding of the 882C Standard.
Arun Virginkar
Rail Equipment Engineer
Responsible for oversight of rail vehicle engineering and Buy America compliance. He has been involved with the PMOC Program since 1994. He has experience in contract management, vehicle and systems equipment engineering, operations and maintenance planning, system integration and testing, safety certification plans, and quality and system assurance. He also has specialized experience in Buy America Pre-Award and Post-Delivery audits of car builders.
Bob Merryman
Real Estate Manager
Responsible for oversight of real estate activities on the project. He has 35 years of practical experience in the implementation of the Uniform Act in federally funded projects. In addition, he has written three text books used by FHWA, as well as the one additional course text used by the FTA discussing the implementation of the Uniform Act. He also served as lead investigator on the business retrospective study for the Federal Highway Administration. The information gleaned from this investigation was to develop the most recent revisions to 49 CFR Part 24.
Honolulu Rail Transit Project 27 Monthly Report November 2016 (FINAL)
Name Position Background David Sillars, PhD
Risk Assessment Manager
Responsible for oversight of the risk management activities for the project. He has over 35 years of experience in risk and management consulting and transportation research. He assisted FTA with editing and developing the updated MAP-21 Risk and Contingency Management Oversight Procedure (OP 40) and updated FTA risk workbook. He has co-developed and delivered the New Starts risk management training program for the National Transit Institute on behalf of the FTA.
David Nelson Transit Operations Manager
Responsible for oversight of the transit operations planning for the project Has more than 30 years of experience with in-depth, working knowledge of North American public transportation agencies. Was previously assistant director and project manager of planning and manager of transit applications for the Massachusetts Bay Transportation Authority and the manager of planning and administration for the Boston & Maine Railroad.
Honolulu Rail Transit Project 28 Monthly Report November 2016 (FINAL)
Appendix D: Project Overview and Map Date: November 2016 Project Name: Honolulu Rail Transit Project Grantee: City and County of Honolulu FTA Regional contact: Catherine Luu FTA HQ contact: Kim Nguyen SCOPE Description The proposed Project is an approximately 20-mile rail alignment extending from East
Kapolei to Ala Moana Center. Guideway The majority of the Project is to be built on aerial structure, but the Project also
includes a short at-grade section (0.6 miles). Stations 21 stations (20 aerial and 1 at-grade) Support Facility Maintenance and Storage Facility (located near Leeward Community College) Vehicles 80 light metro rail
Ridership 104,300 weekday boardings in 2019; 119,600 weekday boardings in 2030 SCHEDULE 10/09 Approval Entry to PE 03/19 Estimated RSD at Entry to PE
12/11 Approval Entry to FD 03/19 Estimated RSD at Entry to FD 06/12 Request for FFGA 03/19 Estimated RSD at Request for FFGA 12/12 FFGA 01/20 RSD at FFGA
COST $5.348 B Total Project Cost ($YOE) at Approval Entry to PE
$5.126 B Total Project Cost ($YOE) at Approval Entry to FD $5.122 B Total Project Cost ($YOE) at request for an FFGA $5.122 B Total Project Cost ($YOE) at FFGA
$2.348.3B Amount of Expenditures at date of this report 52.4% complete (Total Project Expenditures/FFGA Total Project Cost) Notes
• HART’s current EAC and RSD: o HART’s EAC for full build-out of the project is $8.6 billion and includes $1.4 billion in
contingency and $0.4 billion in finance costs. o HART’s targeted RSD is December 2025. o The PMOC is concerned that the December 2025 RSD is unrealistic and must be reviewed and
assessed, because the Interim Plan does not indicate schedule contingency or float. • HART’s reported percent complete does not reflect HART’s current EAC. Actual percent complete using
expended against current HART EAC is 27%.
Honolulu Rail Transit Project 29 Monthly Report November 2016 (FINAL)
Honolulu Rail Transit Project Map
Honolulu Rail Transit Project 30 Monthly Report November 2016 (FINAL)
Appendix E: Safety and Security Checklist
Project Overview Project Name Honolulu Rail Transit Project Project mode (Rail, Bus, BRT, Multimode) Rail Project phase (Preliminary Engineering, Final Design, Construction, or Start-up)
Construction
Project Delivery Method (Design/Build, Design/Build/Operate Maintain, CMGC, etc.)
DB, DBB and DBOM
Project Plans Version Review by FTA
Status
Safety and Security Management Plan 5 Y Complete Safety and Security Certification Plan 4 Y Complete System Safety Program Plan Submittal date Mar-13 System Security Plan or Security and Emergency Preparedness Plan (SSEPP)
N TBD
Construction Safety and Security Plan 3 Jun-11 Completed Oct 2015 Safety and Security Authority Y/N Status Is the grantee subject to 49 CFR Part 659 state safety oversight requirements?
Y
Has the state designated an oversight agency as per Part 659.9
Y Executive Order 10-04 effective April 6, 2010
Has the oversight agency reviewed and approved the grantee’s SSPP as per Part 659.17?
N Submission/Approval in 2013
Has the oversight agency reviewed and approved the grantee’s Security Plan or SEPP as per Part 659.21?
N Submission/Approval in 2013
Did the oversight agency participate in the last Quarterly Program Review Meeting?
Y April 16, 2014
Has the grantee submitted its safety certification plan to the oversight agency?
Y SOA information
Has the grantee implemented security directives issues by the Department Homeland Security, Transportation Security Administration?
N None issued to date
SSMP Monitoring Is the SSMP project-specific, clearly demonstrating the scope of safety and security activities for this project?
Y
Grantee reviews the SSMP and related project plans to determine if updates are necessary?
Y
Does the grantee implement a process through which the Designated Function (DF) for Safety and DF for Security are integrated into the overall project management team? Please specify.
Y
Does the grantee maintain a regularly scheduled report on the status of safety and security activities?
Y Reported Monthly
Has the grantee established staffing requirements, procedures and authority for safety and security activities throughout all project phases?
Y
Does the grantee update the safety and security responsibility matrix/organization chart as necessary?
Y
Has the grantee allocated sufficient resources to oversee or carry out safety and security activities?
Y
Has the grantee developed hazard and vulnerability analysis techniques, including specific types of analysis to be performed during different project phases?
Y
Honolulu Rail Transit Project 31 Monthly Report November 2016 (FINAL)
Does the grantee implement regularly scheduled meetings to track to resolution any identified hazards and/or vulnerabilities?
Y
Does the grantee monitor the progress of safety and security activities throughout all project phases? Please describe briefly.
Y
Does the grantee ensure the conduct of preliminary hazard and vulnerability analyses? Please specify analyses conducted.
Y
Has the grantee ensured the development of safety design criteria?
Y
Has the grantee ensured the development of security design criteria?
Y
Has the grantee verified conformance with the safety and security requirements in the design?
N Will be done during FD/Construction
Has the grantee identified conformance with safety and security requirements in equipment and materials procurement?
N Will be done during FD/Construction
Has the grantee verified construction specification conformance?
N Will be done during construction
Has the grantee identified safety and security critical tests to be performed prior to passenger operations?
N Will be done during Rail Activation phase
Has the grantee verified conformance with safety and security requirements during testing, inspection and start up phases?
N Will be done during Rail Activation phase
Does the grantee evaluated change orders, design waivers, or test variances for potential hazards and/or vulnerabilities?
N Will be done during FD/Construction
Has the grantee ensured the performance of safety and security analyses for proposed work-arounds?
N Will be done during Rail Activation phase
Has the grantee demonstrated through meetings or other methods, the integration of safety and security in the following:
• Activation Plan and Procedures • Integrated Test Plan and Procedures • Operations and Maintenance Plan • Emergency Operations Plan
N Will be done during Rail Activation phase
Has the grantee issued final safety and security certification?
N Will be done after completion of Rail Activation phase
Has the grantee issued the final safety and security verification report?
N Will be done during Rail Activation phase
Construction Safety Does the grantee have a documented/implementation Contractor Safety Program with which it expects contractors to comply?
Y CSP development is included in construction contracts
Does the grantee’s contractor(s) have a documented company-wide safety and security program plan?
TBD Is a requirement of CSSP
Does the grantee’s contractor(s) have a site-specific safety and security program plan?
TBD Is a requirement of CSSP
Provide the grantee’s OSHA statistics compared to the national average for the same type of work?
TBD None developed yet
If the comparison is not favorable, what actions are being taken by the grantee to improve its safety record?
TBD None developed yet
Does the grantee conduct site audits of the contractor’s performance versus required safety/security procedures?
Y Audit required in CSSP
Honolulu Rail Transit Project 32 Monthly Report November 2016 (FINAL)
Federal Railroad Administration If the shared track: has the grantee submitted its waiver request application to FRA? (Please identify any specific regulations for which waivers are being requested)
NA
If the shared corridor: has grantee specified specific measures to address shared corridor safety concerns?
NA
Is the Collision Hazard Analysis underway? NA Other FRA required Hazard Analysis – fencing, etc? NA Does the project have Quiet Zones? NA Does FRA attend Quarterly Review Meetings? NA
ATTACHMENT F
January 19, 2017
Executive Director’s report to the Board
Item IX
We have provided all the board members copy of the December Monthly progress report. If
you have any questions the staff is here to answer.
Item X
We have circulated copy of the PMOC report to all the Board members. If you have any
questions the staff is here to answer.
Item XI
One of FTA’s recommendations, in addition to submitting a recovery plan, was to request
American Public transit Association to conduct a peer review on the status of the project.
HART, in consultation with APTA, selected a panel of three rail transit experts headed by
APTA’s Vice President of member services Mr. Randy Clarke. APTA’s peer review committee
members were:
Jack Collins- Retired chief capital officer of Metrolinx/GO Transit
Carolyn Gonot- Director, Engineering & Transportation Infrastructure
Development of Santa Clara valley Transportation Authority
Mysore Nagaraja-principal of Mysore Nagraja Consulting-retired president of New
York MTA Capital Projects development
The team’s peer review dates were January 9th thru’ 12th and the focus areas were:
Management capacity and capability
Contract Administration
Change order process and claims management
Additional areas of concern or observation
HART had mailed some advanced information on the project concerning the above four
areas.
The team met with HART senior management team and with HART’s Board Chair and Vice
Chair prior to their activities. They were given free access to staff and documents. The peer
reviews final report is due Mid-February. However; the peer review team did meet with
Board’s Chair, Vice-chair, and HART’s senior management and offered some preliminary
findings:
Some of the findings were
1 Reevaluate project organization in support of project delivery
2 Loss of institutional knowledge due to staff turnovers and expiration of various
consultant contracts before 2025 project completion.
3 Better management of master schedule and proactive construction
management
4 Impressed with the quality of the construction observed on the guideway and
MSF facilities.
5 A good mix of local and industry experts for managing the project from local
perspective as well as to get the Facilities built to standards for operation and
maintenance
6 Establishment of claims management team to efficiently handle claims
avoidance as well as resolution
When the detailed report is received we will share with the Board
WEEKEND OUTREACH EFFORTS
Our public outreach team was out at the Sony Open for most of the week last week,
providing information and answering questions about the rail project in a space in the
Spectator Village sponsored by Move Oahu Forward. Sunday was the busiest day. Nearly
everyone who stopped by the HART booth encouraged us to finish the project all the way to
Ala Moana Center.
And this past Saturday members of the outreach team were also at the Taste of Kalihi
celebration, again answering questions for people about the project. And again, there was
lots of support for finishing the project. Mayor Caldwell and Councilmember Joey Manahan
stopped by the booth and encouraged the Kalihi residents to continue their strong support
for the project.
ROC TOUR January 17th, 2017
HART staff working with Chamber of Commerce and Move OAHU Forward had organized a
tour of the rail operation center and the yard. The tour included several elected officials,
prominent business leaders, elected officials staff, and HART and its consultant staff. City of
Honolulu provided busses for the trip and the feedback from the tour participants were very
positive.
Lastly we were at the opening session of the legislature to meet and congratulate the elected
officials.