Dear Mr. Murthy:   JUL 24, 2017

As we discussed during our meeting on June 12, 2017, the Recovery Plan submitted by the Honolulu Authority for Rapid Transportation (HART) on April 28, 2017 for the Honolulu Rail Transit Project (Project) is inadequate. The Recovery Plan does not include a financial plan with funding sufficient to cover HART's current estimated total Project cost. After our meeting, on June 16, 2017, I received a joint letter from the President of the State Senate and the Speaker of the House of Representatives of the Hawaii State Legislature committing to a special session and communicating their resolve to craft a solution that will provide the City and County of Honolulu with a dedicated revenue stream sufficient to complete the Project described in the Full Funding Grant Agreement (FFGA).

The Federal Transit Administration (FTA) has worked with HART and communicated the critical need for a viable financial plan since our August 2015 request for additional information about the project budget and schedule. The FTA has highlighted the need for action while working with you to identify potential solutions that would fulfill HART's obligations under the FFGA.

We have noted the Hawaii Legislature leadership's intent to hold a special session during late August and will expect to hear from HART shortly thereafter, providing a financial plan sufficient to deliver the total Project by September 15, 2017. Absent receipt of a viable financial plan, FTA will be required to consider its remedies as set forth in the FFGA.

Please contact FTA's Region IX Administrator Leslie Rogers or me if you have any questions.

Sincerely,

Matthew J. Welbes

Cc: Mayor Kirk Caldwell

PDF: Original Letter