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  NESTOR GARCIA                                                June 22, 2011
  (808) 547-7009 {Voice}
   (808) 523-4220 {Fax}


           Aloha Chairman Poirier and Board members,

           Below are key issues and concerns that our office is following on behalf of the district:

           1) Three new cabinet appointments
               On August 23, 2011, Mayor Peter Carlisle today announced three appointments to
                 Cabinet-level positions in the departments of Enterprise Services and Facility
               George “Keoki” Miyamoto has been nominated to head Enterprise Services, which
                 oversees the Honolulu Zoo, Neal S. Blaisdell Center, Waikiki Shell and six municipal golf
                 courses. Miyamoto is currently the deputy director of Facility Maintenance, where he’s
                 been since 2005, and has also served as acting director of that department from October
                 2010 to February 2011. Prior to that, Keoki was deputy director of Transportation Services
                 from 2001 to 2004, and director in 2004 and 2005. His appointment is subject to City
                 Council confirmation.
               Randy Leong has been appointed as deputy director of Enterprise Services. Leong has
                 worked in the department as a procurement and specification specialist, and has extensive
                 private sector experience as a director of retail operations, regional manager and market
                 development manager.
               Kenneth Shimizu has been appointed as deputy director of Facility Maintenance. Shimizu
                 is president and CEO of Retail Solutions, Inc., and previously served as deputy director of
                 Environmental Services from 2005 to 2008.

           2) New Phone Apps for City Services
               On Tuesday, August 23, 2011, the City announced that eleven web and mobile
                 applications developed by City employees and private citizens are available for immediate
                 download from the City’s public transparency website.
               The “apps” may be located on the site at and include the
                 following titles:
                 - Crime Mapping
                 - Disaster Alert
                 - Festivals of Hawaii
                 - Honolulu Map and Walking Tours
                 - Honolulu Tsunami Evacuation Zones
                 - Kokua Traffic
       - MapMyRide
       - Oahu Landmarks
       - TheBusHEA
       - TripIt
       - Waikiki Island Guide
      The website has also been updated to include current departmental budget data and other

3) Fiscal Year 2012 Budget Deliberations Completed
    On June 27, 2011, the Council gave its final approval for the Fiscal Year 2012 City Budget
       that covers the period of July 1, 2011 through June 30, 2012. Thank you to those who took
       the time to submit testimony.
    Below are brief highlights for our district:
       - $19.3 million for Bus and Handi-van vehicle acquisition
       - $ 8.0 million to rehabilitate existing Waste to Energy facility
       - $ 6.2 million to construct the new Waianae Police Station replacement
       - $ 3.7 million to design and construction Kapolei Parkway improvements
       - $ 2.1 million to construct and equip the Kapolei Consolidated Corporation yard
       - $ 2.0 million to construct two comfort stations at Waipio Peninsula Soccer Complex
       - $ 1.2 million to design and construct the new East Kapolei Fire Station
       - $ 1.1 million to construct island wide bikeway projects
       - $ 1.0 million for Rec District 3 (Waianae to Waipahu to North Shore) improvements
       - $ 1.0 million to plan and design a multipurpose facility at Patsy T. Mink Central Oahu
           Regional Park
       - $700K to plan and design the new Waipahu Waste Water Pump Station Force Main
       - $650K for the Waipahu Incinerator site closure activities
       - $300K to plan and design the new Kunia Waste Water Pump Station Force Main
       - $200K for Rec District 5 (Waipio Peninsula, CORP, and Hans L'Orange)
    One of the main shifts in philosophy at the Council was the passage of legislation that
       permitted the Department of Parks and Recreation and the Royal Hawaiian Band to
       consider establishing user fees in order to move more toward "fee for service" basis.
    In addition, a real property tax advisory commission was formed to look into the
       appropriateness and effectiveness of the many property tax exemptions already on the
       books to determine what changes, if any, need to be made to make our property tax
       system more fair and equitable. The commission's recommendations will be considered in
       next year's budget deliberations.

4) Investors Rate Honolulu as One of the Best Municipalities in the Country
    On July 8, 2011, Moody's Investor Services and Fitch Ratings affirmed the City and County
       of Honolulu's existing general obligation bond ratings at "Aa1" and "AA+" respectively,
       which are the second highest possible ratings for municipal bonds. In addition, both rating
       agencies affirmed the City's "Stable" outlook.
    Moody's said, "The Aa1 rating primarily reflects the city's sizable economic base, above
       average resident wealth, and sound financial operations with recently improved reserve
       levels, as well as manageable debt profile."
    Fitch also stated, "The city's financial position remains sound, with healthy fund balance
       levels and stable revenues. Property tax receipts have remained relatively stable despite
       the housing downturn."
    "These favorable ratings allow the City to continue borrowing at a lower interest rate,
       directly benefitting the public we serve by keeping our cost of borrowing as low as
       possible," said Michael Hansen, Director of the Department of Budget and Fiscal Services.

      The City is moving forward with the sale of approximately $312 million of General
       Obligation Bonds, Series 2011A&B. The Series 2011A bonds are being issued to finance
       various capital improvement projects in the City. The Series 2011B refunding bonds are
       being issued to refinance certain outstanding general obligation bonds for debt service
       savings. The Series 2011A&B Bonds will be exempt from both federal and State of Hawaii
       income taxes.

5) Transit Authority Convenes
    Members of the newly created Honolulu Authority for Rapid Transportation (HART) were
      sworn in and conducted their first meeting on July 1, 2011, passing several key measures
      regarding the Honolulu Rail Transit Project.
    The HART board includes six members appointed by the mayor and the Honolulu City
      Council, and three ex-officio members, with a tenth member to be appointed by the voting
      members of the board.
    Appointed board members are: William "Buzz" Hong; Don Horner; Keslie Hui; Damien
      Kim; Ivan Lui-Kwan; and Carrie Okinaga. Ex-Officio members are: State Department of
      Transportation Director Glenn Okimoto; City Department of Transportation Services
      Director Wayne Yoshioka; and City Department of Planning and Permitting Director David
      Tanoue. The City planning director serves as a non-voting member.
    The board selected Okinaga as board chairwoman and Lui-Kwan as vice chairman. The
      board also established the following standing committees and committee leadership slate:
       Audit Committee (Lui-Kwan, chairman; Horner, vice chairman), Finance Committee
      (Horner, chairman; Hui, vice chairman), Human Resources Committee (Hui, chairman;
      Hong, vice chairman), Project Oversight Committee (Kim, chairman; Hong, vice
      chairman), and Transit Oriented Development (TOD) Committee (Hong, chairman;
      Lui-Kwan, vice chairman).
    The board adopted the transit authority's $20.5-million operating budget and its
      $354.7-million capital budget. The budget amounts were identical to the budgets
      previously approved by the Honolulu City Council and ensure that the rail project will
      continue without unnecessary delays, said HART Finance Committee Chairman Don
      Horner, who committed that a thorough review would be conducted of the budget.
    The board also named Toru Hamayasu, the current general manager for the project, as
      HART interim executive director. The board plans to enlist a national and a local search
      firm with expertise in transit executive searches to assist members in the selection of a
      permanent executive director. The board's stated objective is to appoint HART's
      permanent executive director by the end of the year.
    HART's board of directors will meet on the first and third Thursday of each month, and 25
      percent of the authority's meetings will be held at Kapolei Hale or at another West O'ahu
      location to ensure full public participation. In addition, all five committees will conduct
      monthly public meetings. The board also adopted a transparency policy, a financial policy,
      a procurement policy, and a code of ethics for all members to follow.
    For more information on HART and the rail project, visit

6) Transit Authority to meet at Kapolei Hale
    The Honolulu Area Rapid Transit (HART) authority will be meeting at Kapolei Hale
      tomorrow at 10 a.m.
    In addition to reports from the Finance, Joint Audit/Legal Matters, and Project Oversight
      committees, as well as the Interim Executive Director, U.S. Senator Daniel K. Inouye is
      scheduled to address the authority board and public present at the meeting.
    The authority is also scheduled to adopt their Revised Financial Policies, their proposed
      FY 2012 Business Plan, and give an update on Public Involvement with the project
    For more information on HART and the proposed mass transit project, please check out

7) Sludge trucking to begin in mid-August
      Each day, ENV collects between 105-110 million gallons daily (mgd) of wastewater from
       the toilets, sinks and drains from homes and workplaces on Oahu. CCH has two plants
       that use primary treatment – Sand Island and Honouliuli WWTPs. These two plants treat
       more than 90% of the CCH's wastewater.
      The Honouliuli Wastewater Treatment Plant (WWTP) services the area from Halawa to
       Makakilo, Barbers Point and Mililani. The Sand Island Wastewater Treatment Plant
       (SIWWTP) serves metropolitan Honolulu to (but not including) Hawaii Kai.
      Sludge is the residual semi-solid material left over from the wastewater treatment process.
        Due to the physical-chemical processes involved in the treatment, the sludge tends to
       concentrate heavy metals and poorly biodegradable trace organic compounds as well as
       potentially pathogenic organisms. Nonetheless, sludge is rich in nutrients – nitrogen and
       phosphorous – while containing valuable organic matter that is useful when soils are
       depleted or subject to erosion, which makes the spreading of this kind of waste on land, as
       a fertilizer or an organic soil improver, suitable.
      Sludge is kept in enclosed heated tanks and pressure-cooked in order to break the bond
       with water. Bacteria then break it down, reducing volume, odors and microorganisms that
       can cause disease. The remains are sent to a landfill or recycled as fertilizer. Recycling
       of the solids helps to conserve dwindling landfill space.
      The sludge generated at SIWWTP is processed on site by Synagro, an In-Vessel
       Bioconversion Facility that transforms the solids into a beneficial soil amendment pellet.
       CCH contracted Synagro to design, build and operate a municipal biosolids facility near
       the Sand Island WWTP. The public/private partnership facility became operational in
       2006 and processes up to 10,000 dry tons of biosolids annually.
      The product, called Granulite, is used by golf courses, agriculture, turf, and landscaping
       industries. So waste that was once landfilled is now being turned into a commercial grade
       Class A organic fertilizer product. In addition to Honolulu, Boston, Tampa, Houston, New
       York City and Sacramento have pelletization programs.
      The sewage sludge processed at the Sand Island plant currently exceeds the capacity of
       the single Sand Island digester. The efficiency of the plant was improved in 2008, and this
       led to increased amounts of sludge being removed from the wastewater. By early 2010,
       the digester was reaching its designed capacity.
      On July 20, 2011, the City announced that it intends to test the feasibility of hauling sewage
       sludge from the Sand Island Wastewater Treatment Plant to the Honouliuli Wastewater
       Treatment Plant starting in mid-August.
      Tests will include hauling no more than one 5,000 gallon truck load per day from Sand
       Island to Honouliuli, on intermittent days, for no more than 30 days. Future testing may also
       include hauling similar loads to the Waianae and/or Kailua treatment plants.
      Prior to testing, a public informational meeting will be held on August 1, at 7 pm, in the
       Mission Memorial Auditorium (Civic Center grounds, beside Honolulu Hale). The
       Department of Environmental Services will also set up a hotline for callers to report any
       problems encountered during the feasibility testing.
      Mayor Carlisle also ordered an environmental assessment of the potential of hauling
       additional loads of sludge for a sustained period.

8) Central Oahu Ambulance Facility
The Honolulu Area Rapid Transit (HART) authority will be meeting at Kapolei Hale tomorrow at 10

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