HART Finance Committee Meeting Minutes November 29,2012

IV. FY2014 Operating and Capital Budgets

Mr. Bunda asked Deputy Corporation Counsel Gary Takeuchi to clarify the provisos that would be transmitted to the City Council with HART's budgets, a copy of which is attached hereto as Attachment A. Mr. Takeuchi explained that the Finance Committee intended to transmit its Operating and Capital Budgets with two provisos: 1) that the project receives the Full Funding Grant Agreement (FFGA); and 2) that Ansaldo Honolulu JV demonstrates adequate financial capacity. He said that the manner of transmitting the provisos is up to the committee, and suggested stating the provisos in the budget documents, in the transmittal itself, or in both.

Board member Ivan Lui-Kwan asked whether the budget would be approved if the provisos were not satisfied. Board member Carrie Okinaga explained that unlike the City and County of Honolulu, HART could amend its budgets freely. She said that the provisos would be included in a cover letter attached to the budgets when transmitted to the City Council. Mr. Takeuchi said that the Finance Committee's process is to develop the budgets and transit them to the Mayor and the City Council by December 1 st each year. However, the full Board approves the budgets in June of the following year. At the end of its budget approval process, the HART Board will consider whether the provisos are still needed. For example, the FFGA proviso may not be needed, since it will be known then if the FFGA has been executed.

Mr. Bunda asked whether the provisos are required, and Mr. Takeuchi replied that they were not.

Mr. Bunda called for a motion to approve the proposed 2014 Operating and Capital Budgets to be transmitted to the City Council and the Mayor pursuant to the HART Board's financial policies, to include the FFGA and Ansaldo provisos. Board member Wayne Yoshioka so moved, and Ms. Okinaga seconded. All being in favor, the motion carried unanimously.

V. Six-year Capital Program

Mr. Bunda introduced the Six-year Capital Program for recommendation to the Board for approval. A copy of the six-year Capital Program is attached hereto as Attachment B. Executive Director and CEO Dan Grabauskas added that staff asked for the committee's recommendation as well. He said that staff would be making monthly presentations on each of the main budget category items. By the time the Capital Budget is before the Board for adoption, all the presentations will have been made on what the Board is getting for its money.

Ms. Okinaga asked whether the 2014 data in the Six-year Capital Program takes the construction delay into account. Mr. Grabauskas said it did.

Page 2

HART Finance Committee Meeting Minutes November 29,2012

Mr. Bunda called for a motion to recommend adoption of the Six-year Capital Program to the Board pursuant to the Board's financial policies. Ms. Okinaga so moved, and Mr. Yoshioka seconded the motion. All being in favor, the motion carried unanimously.

VI. Executive Session

There was no reason for executive session.

VII. Adjournment

There being no further business before the committee, Mr. Bunda adjourned the meeting at 9:17 a.m.

Respectfully Submitted,

mdyM ushlta Board A ministrator

Approved:

Chair, Finance Committee

JAN 1 0 2013 Date

Page 3

~1!::ltt; '''C<:J;

HONOLULU AUTHORITY for RAPID TRANSPORTATION

November 30, 2012

The Honorable Peter B. Carlisle, Mayor Office of the Mayor City and County of Honolulu 530 South King Street, Room 300 Honolulu, Hawaii 96813

and

The Honorable Ernest Y. Martin, Chair and Members

Honolulu City Council 530 South King Street, Room 202 Honolulu, Hawaii 96813

Dear Mayor Carlisle, Chair Martin, and Councilmembers:

DRAFT

IN REPLY REFER TO:

APOOHART-00016

Daniel A. Grabauskas EXECUTIVE DIRECTOR AND CEO

BOARD OF DIRECTORS

Carrie K.S. Okinaga, Esq. CHAIR

Ivan M. Lui·Kwan, Esq. VICE CHAIR

Robert Bunda William "Buzz· Hong

Donald G. Horner Keslie W. K. Hui

Damien T. K. Kim Glenn M. Okimoto, Ph .D.

David K. Tanoue Wayne Y. Yoshioka

On behalf of the Finance Committee of the Honolulu Authority for Rapid Transportation (HART), I transmit for your consideration and input HART's proposed Fiscal Year (FY) 2014 Operating and Capital Budgets in the amounts delineated below and Exhibits A and B with explanations for these amounts (as attached).

Total FY 2014 Operating Budget ............................. $ 20,917,259 Total FY 2014 Capital Budget .................................. $1,340,438,300

HART's proposed FY 2014 budgets do not include any request of City general fund monies. However, the proposed Operating Budget includes $1,982,031 as direct reimbursement to general fund and central administrative services expense, and the Capital Budget includes monies for HART's Capital Improvement Bond Fund subsidiary account.

Please note that HART anticipates requesting General Obligation Bond authorization from the City Council in FY 2014 which will be transmitted separately. The HART organization looks forward to working with the City Council in this regard.

Sincerely,

Daniel A. Grabauskas Executive Director and CEO

Attachments

cc: HART Board

CITY AND COUNTY OF HONOLULU, Alii Place, SUite 1700, 1099 Alakea Street. Honolulu, Hawaii 96813 Phone: (808)768-6159 Fax: (808)768-5110 www.honolulutransit.org

.'

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HONOLULU AUTHORITY FOR RAPID TRANSPORTATION PROPOSED OPERATING EXPENSE BUDGET

FOR FISCAL YEAR 2014

Expense Category Personnel Regular Pay Overtime, Night Shift, Temp Assign Pay, Stand-by Pay Accumulated Lump Sum Vacation Pay Fringe Benefits (ERS, FICA, EUTF, Unemp, & Workers Comp) Service Or Merit Awards

Current Expenses Office & Computer Supplies Meals and Food Safety & Miscellaneous Supplies Parts/Equip (Comm, Furn, Comp, AN) Legal Services

Personnel Expense Subtotal

Professional Services - Direct Reimbursement & CASE Professional Services - Other (Audit, Accounting Svcs, Safety, Peer) Postage & Shipping Telephone Communication Services (Web Hosting & Webex Video Teleconf) Relocation - New hires Travel Expense - Out-Of-State (Staff & Board) Advertising, Publication Of Notices, & Photo Services Insurance on Equipment & General Liability Liability Insurance (Directors & Officers) Printing and Binding Other Repairs to Buildings and Structures Repairs/Maintenance - Office Furniture & Equipment Rentals (Office Equip, Office Space, Land, Other) Fees (Memberships, Registration & Parking) Computer Software Maint. Agreements Other Fixed Charges (Stipend) Debt Service & Issuance

$ $ $ $ $

FY2013 Budget

9,001,089 53,000

3,916,793 800

$ 12,971,682

$ 128,000 $ 2,700 $ 5,900 $ 230,700 $ 1,202,354 $ 2,079,869 $ 364,400 $ 6,000 $ 21,600 $ 164,580 $ 30,000 $ 82,475 $ 10,100 $ 8,000 $ 53,000 $ 1,500 $ 300,000 $ 2,800 $ 2,299,704 $ 48,180 $ 39,649 $ 1,000,000

Current Expenses Subtotal $ 8,081,511

Equipment & Software $ 16,000

TOTAL $ 21,069,193

Total Full-time Equivalent Positions 139

FY2014 Budget

$ 9,052,649 $ 70,480 $ 14,000 $ 3,892,237 $ 1,000 $ 13,030,366

$

147,000 2,300 9,300

210,000 1,702,354 1,982,031

280,000 9,000

32,000 170,000 30,000 82,475 14,474 12,000 62,000

1,500 300,000

5,000 2,230,959

50,000 48,500

500,000

7,880,893

6,000

$ 20,917,259

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Honolulu Authority for Rapid Transportation

FY 2014 CIP REQUEST AND SIX-YEAR CAPITAL PROGRAM (FYs 2014 - 2019)

Appropriated Appropriated Total Phase 2012 2013 2014 2015 2016 2017 2018 2019 6 Years

lANO $ 63,546,105 j . 34,651,200 $ 85,947,400 $ 34,758,?.0.0. $ ... - . - $ - $ - $ - $ 155,357,300 I

PLAN $ ~,90_6,~ $ 8,054,800 $ 2,695,000 $ 621,900 $ 522,600 $ 50,000 $ 50,000 $ 50,000 $ 11,994,300 . "$ - 113,395,890 DGN $ 117,093,904 $ 68,41~,500_ $ 17,980,400 $ 4,220,000 $ 20,000 $ 20,000 $ - $ 204,052,790

·135,~7;953 ------

CONSl $ $ 225,981,770 $ 373,880,800 $ 768,609,900 $ 298,003,900 $ 21,431,700 $ 841,700 $ 108,300 $ 1,688,749,770 ,NSP $ 19,101,090 $ 50,647,920 $ 56,743,400 $ 26,101,800 $ 1,099,400 $ - $ - $ - $ 134,592,520 (QUIP $ ]E!.~58,00Q. $ 55,556,510- $ 425,907,000 $ - $ - $ - $ - $ - $ 481,463,510 :

~-.

IlFlOC $ 2,352,518 ,t 3,296,870 $ 1,3!7!400 $ 3,458,700 $ 226,400 $ 151,000 $ - $ - S 8,510,370 ~. -_ .. _-- -.. ----

RrCERT $ - $ $ 100,000,000 $ - $ - $ - $ - $ - $ 100,000,000 - . CONTI/I;G $ - $ - $ 225,470,800 $ 100,000,000 $ 103,000,000 $ 79,000,000 $ 72,000,000 $ 28,000,000 $ 607,470,800

TOTAL $ 354,736,280 $ 491,584,960 $ 1,340,438,300 $ 951,531,400 $ 407,072,300 $ 100,652,700 $ 72,911,700 $ 28,158,300 $ 3,392,191,360