“Diligent follow-up and follow-through will set you apart from the crowd and communicate excellence” ~ John C. Maxwell “It is the 'follow through' that makes the great difference between ultimate success and failure, because it is so easy to stop” ~ Charles Kettering “Character is the ability to follow through on a resolution long after the emotion with which it was made has passed” ~ Brian Tracy

1. THE HONOLULU AUTHORITY FOR RAPID TRANSIT (HART)
THE RAIL – THE PEOPLE MOVER
GOVERNOR DAVID Y. IGE
CREATING AN ENVIRONMENT OF
FISCAL ACCOUNTABILITY & RESPONSIBILITY
Transformational leaders are people who, irrespective of
audience, possess the ability to create big shifts in their
audiences’ thinking, which leads to big shifts in their behavior,
which enables them to achieve extraordinary results.
Source: Developing The 3 Habits Of Transformational Leaders.
By Alexia Vernon. The Young Entrepreneur Council. YEC Women.
FORBES. August 27, 2015, accessed October 9, 2017
https://www.forbes.com/sites/yec/2015/08/27/developing-the-3-habits-of-transformational-leaders/#ade41b56c99a
THE STATE OF HAWAII
FINANCIAL CAPABILITY
TO FUND THE RAIL PROJECT FROM THE STATE TREASURY
1. At June 30, 2016, the amount reported as amounts held in State Treasury reflects the
AIRPORTS DIVISION’S relative position in the State’s investment pool and amounted to
$1,278,500,756.00 [$1.2+ Billion] [Emphasis and Clarification Supplied]
Reference: http://hidot.hawaii.gov/airports/files/2013/01/airport-audit-rpt-fy2016.pdf
____________
2. At June 30, 2016, the amount reported as amounts held in State Treasury by the HARBORS
DIVISION totaled $406,008,171.00. [$400+ Million] [Emphasis and Clarification Supplied]
Reference: https://hidot.hawaii.gov/harbors/files/2013/01/Harbors-Division-Financial-
Statements-FINAL-004-122916-at-1800-hours.pdf
____________
3. At June 30, 2016, the amount reported as amounts held in the State Treasury by the
HIGHWAYS DIVISION totaled $352,773,466.00 [$352+ Million] [Emphasis and Clarification
Supplied]
Reference: http://hidot.hawaii.gov/highways/files/2017/01/investor-Highways-Division-2016-
Financial-Statements-FINAL.pdf

2. GOVERNOR DAVID Y. IGE
CREATING AN ENVIRONMENT OF
FISCAL ACCOUNTABILITY & RESPONSIBILITY
THE FOLLOW THROUGH
A study last year (2016) by City Auditor Edwin Young found that the rail
authority's financial plans were unreliable and that its cost projections
weren't well documented.
"We found that the internal controls were so weak that if fraud, waste and
abuse were to occur, HART and many others would not have detected it,
could not prevent it and could not have taken corrective action," said
Young.
But that audit only looked at HART's operating expenses. The new audit
will take a much broader look at the rail system's construction contracts
and cost overruns incurred by contractors.
The review will not be a forensic audit. Young said the city charter
bars his agency from conducting such an audit, which looks for
fraud and other criminal acts. He said that type of investigation is
usually handled by the city Prosecutor's office and other law
enforcement agencies. [Clarification and Emphasis Supplied]
Source: City Council pushes new rail audit: 'Where the heck is the money
going?' By Rick Daysog. Hawaii News Now. August 16, 2017, accessed
October 9, 2017 http://www.hawaiinewsnow.com/story/36153935/city-
council-pushes-new-rail-audit-where-the-heck-is-the-money-going
______________________
There is a very large disparity between the costs for construction and
equipment for the Honolulu Authority for Rapid Transportation's rail,
and the total costs represented by HART to Hawaii’s Legislature.
Only an elaborate forensic audit can possibly explain how an all-
inclusive $4 billion cost for completing 16 miles and 14 stations has
ballooned to over $10 billion for 20 miles and 21 stations.
The escalation is clearly out of proportion and well outside acceptable
ranges for the construction and oversight of U.S. guideway systems.
[Emphasis Supplied]
Source: The Hard Reality Of Honolulu Rail Costs By Panos Prevedouros.
The Honolulu Civil Beat. August 25, 2017, accessed October 9, 2017
http://www.civilbeat.org/2017/08/the-hard-reality-of-hart-costs/
_____________________

3. A contentious special session of the Hawaii Legislature has averted the
latest crisis for Honolulu’s controversial light-rail project, enacting a
$2.4-billion financial bridge that backers hope will carry construction of
the planned 20-mile, $8-billion system to completion in 2025.
Already six years behind schedule, the state’s largest public-works effort
still faces an uncertain future.
The funding, approved on Sept. 1, is intended to help salvage a $1.55-
billion Federal Transit Administration grant approved in 2012, when
work began on the elevated guideway, steel-wheel-on-steel-rail system,
originally budgeted at $5.26 billion.
[Emphasis Supplied]
Source: Funding Boost Shores Up Troubled Honolulu Rail Project By
Jim Parsons. Engineering News-Record. September 13, 2017, accessed
October 9, 2017 http://www.enr.com/articles/42730-funding-boost-
shores-up-troubled-honolulu-rail-project
______________________
“We do note that there were concerns raised from the neighbor island
communities — Hawaii, Kauai, and Maui counties — but we do believe
that it’s a separate issue that we are looking to work toward in the off-
season, where we can truly examine roles and responsibilities of the state
and county governments and look for a fair apportionment of the transit
accommodation tax,” Ige said. “I believe that this measure allows this
most important project for the state and County of Honolulu to move
forward in a way that will allow it to be completed.”
“I think the Legislature really did a good job of establishing a record that
explained what was their rationale for why they were asking for what
they wanted and what they included in the bill, and that includes the
portion about having four appointees sit as non-voting members on the
board. I think it introduces an amount of accountability,” said state
Attorney General Doug Chin.
“… in order to ensure the appropriate use of state authorized funds
to finance a locally preferred alternative for a mass transit project,
the president of the senate and speaker of the house of
representatives shall each appoint two non-voting, ex-officio
members to the board of directors of the county’s rapid
transportation authority…”
Source: Governor signs rail bailout bill into law By KHON Web Staff.
September 5, 2017, accessed October 9, 2017
http://khon2.com/2017/09/05/governor-to-sign-rail-bailout-bill-into-law/

4. THE FOLLOW THROUGH
I.
In the interest of transparency and restoration of public trust, nominees to be
considered by the Senate President and Speaker of the House of Representatives
for appointment as Non-Voting, Ex-Officio members of the Board of Directors
for the Honolulu Authority for Rapid Transit as with Department and Judicial
Nominees, advanced Public Notice shall be filed disclosing the names and
qualifications of the nominees being considered and all persons who have an
interest shall be provided by public hearing the opportunity to comment and/or
provided written testimony.
II.
Commence an Independent Forensic Audit of HART and The City & County of Honolulu
Thank you very much
Aloha
Respectfully,
Clifton M. Hasegawa
President and CEO
Clifton M. Hasegawa & Associates LLC