Questions Raised About Rail’s Subcontracts

Reported by: Andrew Pereira
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Updated: 9/06/2010 8:23 pm
Honolulu City Councilwoman Ann Kobayashi is questioning several sub-contracts related to the city's controversial $5.5 billion rail transit project.

Part of a $1.7 million contract awarded to Honolulu based Lychee Productions calls for producing a so-called “idiot” version of the project’s environmental impact statement.

I don't think we deserve that,” said Kobayashi.   “I think we can understand what (the EIS) means.”

The councilwoman held a press conference on Labor Day to discuss thirteen subcontracts totaling $4.7 million that have been designated toward promoting the proposed heavy rail system, which if built will run along a 20-mile elevated track from East Kapolei to Ala Moana.

“My concern is too many vendors often leads to redundancy and inefficiencies in work,” said Kobayashi.  “We need to hold our prime contractors and their vendors accountable for spending taxpayer money effective and efficiently.”

To date PB Americas, Parsons Brinckerhoff and InfraConsult, the three main contractors on the rail project, have hired 113 subcontractors to fulfill their agreements with the city.

Kobayashi said her concerns go beyond the subcontract awarded to Lychee Productions for the “idiot” version EIS. 

She also highlighted a $357,000 contract awarded to New York based 212 Harakawa to produce architecture signage and a $144,000 contract to Honolulu based AccuCopy Consulting Group to issue monthly reports.

“They made one monthly report and they just sent copies of that one monthly report every month for the past two years," said Kobayashi. 

“What do these people really do,” the councilwoman questioned.  “I know a lot of people who would do that kind of work for less.”

The city’s Transportation Services Deputy Director Toru Hamayasu responded to Kobayashi’s concerns in an email to the media.

“There are no duplication or inefficiencies in having multiple architects, engineers, planners, and public outreach and government relations specialists,” said Hamayasu.  “They are necessary resources in proceeding with the project on-time and on-budget.”

Hamayasu also pointed to the City Auditor’s performance audit late last year that showed oversight of the rail project and its related contracts “have been sound.”


However the city’s response may not be enough to deter Kobayashi from digging deeper.  The councilwoman is calling for a public hearing to learn the exact details of all the subcontracts awarded thus far.

Kobayashi pointed to yet another subcontract worth $355,000 to create a speakers bureau charged with promoting rail transit.  The contract was awarded to Dahl Consulting LLC based in Minnesota.

And yet when we have speakers they're all paid separately not from this $355,000,” said Kobayashi. 

Gary Okino, the Council’s chairman of the Transportation Committee told Khon2 he would have to learn more about Kobayashi’s concerns before ordering a public hearing on the matter.

Kobayashi said a public hearing could be held outside of the Council’s official business, perhaps at a school cafeteria.

“Let's bring on that transparency (and) let's show how the city is monitoring those dollars that are being spent,” she said.

Kobayashi was unsure whether the $4.7 million in subcontracts awarded to promote rail transit included the $5.4 million the city spent toward the end of 2009 to accomplish the same goal.  She says that’s one of the facts she hopes to uncover during a public hearing.

For the record Kobayashi said she supports a mass transit system but prefers light rail, which is the modern equivalent of streetcars.

Have a news tip?  Contact Andrew Pereira at 368-7273.  Follow Andrew on Twitter at Khon_Reporter 

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kailuaohana - 9/7/2010 8:41 AM
Aaaaa Mufi spreading the wealth at the tax payers expense. THIS IDIOT NEEDS TO BE REMOVED FROM ANY KIND OF OFFICE!!!

HawaiiCitizen - 9/7/2010 12:56 AM
Of course these contractors think we are idiots. We let them laugh at us taxpayers all the way to the bank. By now, we know there is no quality control to those Environmental Impact Statements. Every fact is up for manipulation and mitigation. Now you know why Mufi Hannemann has so much campaign funds. There are a group of contractors and consultants who will do anything to make sure their sugar keeps the gravy train rolling. YES! The public need a hearing like yesterday.

Al Tanaka - 9/6/2010 8:57 PM
I'm neither against or for the rail but one thing is for sure the expenses to date should be made public and justified by the vendors to the tax payers. I'm sure some expenses are well documented and deserving for their efforts but I'm sure others are just feeding the hands for the Governor's race. Its time to hold all government people responsible for their actions as well as compliment those who are looking out for the interest of the people. Why isn't this public?

JDubz - 9/6/2010 8:24 PM
So many issues with rail. We should wait. Spend money we have on a system that is current. We need a better plan to make this happen. Let us "idiots" be heard. All this inconsistency is just another reason to keep Hannemann out of the Governors seat.

mitt grund - 9/6/2010 7:55 PM
Thank you, Councilmember Kobayashi. It would be interesting to calculate the % of the transit budget that is being used to provide us "idiots" sanitized information that we can "understand" about the greatness and wisdom of the heavy rail mass transit system. I have been to Seattle, which has a population center similar to Honolulu, and it is an underutilized system that is great if you don't like crowded, packed cars. At peak times there were maybe 10 people per car section. But ours will be elevated, so it will also cost more. $1.555 billion paid by the feds, and $4.5 billion paid by us. Great bargain. Incidentally, please disregard. Where can I get one of those contracts?

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