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us. De artment - - 1200 New Jersey Avenue, SE
ofTranspportation Administrator Washington, DC 20590
Federal Transit 

Administration 2 1 

Mr. Andrew S. Robbins

Executive Director and Chief Executive Of?cer
Honolulu Authority for Rapid Transportation
1009 Alakea Street, Suite 1700

Honolulu, HI 96813

Dear Mr. Robbins:

On June 29, 2018, the Federal Transit Administration (F TA) transmitted to you the Final Risk
Refresh Report on the Honolulu Authority for Rapid Transportation?s (HART) Honolulu Rail
Transit Project. The report provided recommendations to HART for adjustments to scepe, cost,
schedule and project management activities to respond to project risks. The report
recommended a cost estimate of $8.299 billion (excluding ?nance costs), which is $134 million
greater than cost estimate of $8.165 billion (excluding ?nance costs). The report also
recommended a Revenue Service Date of September 2026 compared to forecast of
December 2025. .

The FTA directed HART to revise its Recovery Plan, including the ?nancial plan, to re?ect the
report?s recommendations as well as the ?nal selection of a procurement strategy for the City
Center Guideway and Stations (CCGS) segment. The HART has not provided the revised
Recovery Plan, nor has HART committed to adate by which it will deliver the revised plan.

The FTA has exercised considerable patience since requesting in August 2015 that HART
provide additional information about the project budget and schedule in light of then?apparent
problems. The FTA repeatedly has highlighted the need for action while working with HART to
identify potential solutions. Hewever, repeated dif?culties with identifying cost 
savings or suf?cient ?mding have led to signi?cant, recurring project schedule delays and cost
increases. An illustrative example is that a year after previous ?nancial plan dated
September 15, 2017 identi?ed $44 million in City of Honolulu funding for ?scal years 2018 and
2019, the steps to fully commit those funds remain incomplete.

Decisive and expeditious action is needed to prevent further cost escalation. First, FTA asks that
a decision on the procurement method for the CCGS segment be made within 30 days of the date
of this letter. Second, FTA asks that the revised Recovery Plan?~with a ?nancial plan suf?cient
to cover the total estimated project costmbe provided to FTA no later than 60 days from the date
of this letter. Third, FTA asks that the $44 million identi?ed in previous ?nancial plan
of September 15, 2017 be fully committed towards the project within 60 days.

Absent receipt of a suitable and timely response, FTA may proceed with the remedies set forth in
the Full Funding Grant Agreement for this project.

Mr. Andrew S. Robbins
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Please contact acting Regional Administrator Ed Carranza (415?734?9490) in Region IX
Of?ce if you have any questions. As a courtesy, I am also copying Mayor Caldwell on this
letter.

[1.99.an

K. Jane Williams
Acting Administrator