Clifton M. Hasegawa

President and CEO

Clifton M. Hasegawa & Associates, LLC

1044 Kilani Avenue 12

Wahiawa, Hawaii 96786-2243

Telephone: (808) 463-1057

Email: clifhasegawa@gmail.com

Internet: http://www.linkedin.com/in/cliftonhasegawa

May 3, 2015

Senate President Donna Mercado Kim

Members of the Hawaii State Senate

House Speaker Joseph Souki

Members of the Hawaii State House of Representatives

Mayor Kirk Caldwell

Members of the City & County of Honolulu City Council

Dear Senate President Kim, House Speaker Souki, Senators and

Representatives of the Hawaii Legislature, Mayor Caldwell, Members of the

Honolulu City Council,

The State of Hawaii and the City & County of Honolulu have been

patient and understanding to and for the beleaguered and financially troubled

Honolulu Rail Transit Project. On each occasion, many times over, precious

time and resources have been expended to "find money" to accede to the

Honolulu Authority for Rapid Transit (HART) demands.

Giving money to this troubled project, even with assurances "this is

the last time", is fool hardy and resource wasteful. The root cause of the

problem is not addressed and the situation lingers until the money runs out,

most assuredly soon enough. This has happened many times over during the

course of this project and will recur unless and until proactive aggressive

action is taken to get to the core issue and impose best management,

knowledge-based solutions to correct and remediate a problem that surfaces

and resurfaces time and time again, each time more massive and more

abhorrent than the time before.

The HART Monthly Progress Reports for January 2015, February

2015 and March 2015 highlight and underscore quality assurance and safety

considerations that have not been addressed satisfactorily and resolved to

prevent reoccurrence for many years. The cumulative effect is the cost

overruns and delays in meeting the delivery schedule. Most recently,

HART to replace rail segment after large crack in concrete

By Kristine Uyeno, KHON2, April 16, 2015

http://khon2.com/2015/04/16/hart-to-replace-rail-segment-after-large-crack-in-concrete/

“Oahu’s rail system is far from complete, but there’s already damage to

partsof the guideway.

A viewer contacted KHON2 via Report It, alerting us to a large crack at the

top of the column.

The rail line winds through Kapolei, but if you take a closer look, you’ll

notice something that shouldn’t be there.

On Kualakai Parkway in Kapolei, you can see the columns and guideway

going up and it looks consistent until you get to one particular spot. Then

there’s a horizontal crack in what is called a segment.

“Large-sized cracks are not normal, only hairline cracks are acceptable in

concrete,” said University of Hawaii engineering professor Panos

Prevedouros.

Prevedouros said there’s reason for concern because right now, the segment

is not structurally sound.

“How does a crack appear in heavy-duty concrete?” KHON2 asked.

“It’s actually a part of the natural curing of the concrete from being very wet

in the beginning and then getting dry,” he said.

In a statement, HART said, “The segment and column highlighted in the

photos were already identified by HART and are in the process of being

either replaced or repaired by Kiewit at their cost.”

Kiewit is the company that’s building rail. HART officials do not know how

long it will take for the replacement, but workers will have to make a new

segment, because even though they look alike, each is unique.

It takes five days to make one segment.

KHON2 also found out this isn’t the first time this has happened.

Another part of the guideway was damaged near Farrington Highway

last June. HART officials said it was damaged when it was installed.

Nearly a year later, workers are still trying to replace it.

“This is actually very complex because although it looks like a simple thing,

it’s a bridge. And every time you have a component that is questionable on a

bridge, it’s not very easy necessarily it’s easy to fix it,” Prevedouros said.”

[Emphasis Supplied]

Questions to be Addressed, Going Forward:

a. Is the root cause defective specifications and/or a failure to execute

and perform in conformance with the specifications by the contractor?

b. If the root cause is defective specifications, does this compromise

all Spans built and to be built, place in jeopardy the overall safety of the

Honolulu Rapid Transit (HART) system, and throw into harms way

passengers choosing to ride The Rail?

c. If the root cause is contractor performance, does this compromise

all Spans built, place in jeopardy the overall safety of the Honolulu Rapid

Transit (HART) system, and throw into harms way passengers choosing to

ride The Rail? Whether the contractor pays for the correction is part of the

remedy but the overall safety of the project is called into question as the

problems may surface later during the course of construction or during

operations when the guides and spans are stressed by the moving cars fully

loaded with passengers.

d. What remedies are available to the Legislators, to the City &

County of Honolulu and to HART?

Recommended is a thorough inquiry and investigation BEFORE committing

more money $$$$$ or more resources $$$$$. Money DOES NOT and

WILL NOT make quality assurance and safety related issues, ingrained and

systemic, go away or disappear; it just buys time and delays the inevitable.

Ensure that the inevitable is not the loss of life, the proximate cause

being defective work anywhere along the Honolulu Rail Transit Project.

Your duties and responsibilities extend beyond being the protectors of

the Treasury and the public funds, your duties and responsibilities are to

protect and safeguard the lives of the people. There is no room for

compromise when a life is placed in jeopardy of harm or injury, particularly

and especially when and where avoidable and preventable.

Thank you very much

Aloha

Respectfully,

Clifton M. Hasegawa

Enclosures: a. HART Progress Report January 2015

b. HART Progress Report February 2015

c. HART Progress Report March 2015

Honolulu Rail Transit Project Monthly Progress Report January 2015 4.2 Section I – West O‘ahu/Farrington Highway: East Kapolei to Pearl Highlands A. West O‘ahu/Farrington Highway Guideway (WOFH)

Contract No.: DB‐120 DB Contractor: Kiewit Infrastructure West Company (KIWC) Contract Start Date: December 2009 Contract Substantial Completion: July 2016 Projected Substantial Completion: October 2016 Project Description: Design and construction of 6.8 miles of rail alignment, starting at the East Kapolei station and ending at the Pearl Highlands station.

KEY QUALITY ISSUES:

Span 67 Damage and Repair Procedures – During the erection process of

Span 67, the underside of Segments 67‐11 and 67‐12 were damaged due to unbalanced support from the temporary bearings. NCR 00144 was opened on June 17, 2014, to address this issue. In January 2015, KIWC began the process of constructing the temporary falsework needed to slide Span 67 from its current position. This will allow the span to be de‐stressed and the segments replaced. Both segments were casted by month’s end.

Drill Shaft Quality – Nine additional drill shafts were Crosshole Sonic Logging (CSL)

tested in January 2015. Seven of the drilled shafts were found to have velocity reductions outside of the acceptable design criteria limits potentially because concrete was segregated during concrete placement, and two of the shafts had no issues. Of the 211 drilled shafts that have been tested to date, 38 shafts (18%) were found to have issues. KIWC continues to have weekly Drill Shaft Quality Meetings with HART to discuss testing results, quality issues, the concrete mix, and methods for repair.

Drill Shaft Repairs – Of the 38 drill shafts that were found to have velocity

reduction issues, seven new NCRs have been opened and submitted to HART this month. HART will not close an NCR until KIWC completes another CSL test and demonstrates soundness of the concrete shaft. KIWC completed repairs at Shaft 245 and began working on repairing Shaft 145. KIWC will move to Shaft 144 in the beginning of February 2015.

Consistent Span Stressing Trends – In mid‐January, KIWC had stressed six

spans. KIWC has maintained this positive trend and momentum from previous months, stressing 9‐11 per month. Progress is being made both westward towards East Kapolei Station and eastward towards Farrington Highway. At this rate, KIWC will reach Farrington Highway by the end of February 2015 and East Kapolei Station by the end of April 2015.

Pre‐Cast Segment Progress/Quality – The Casting Yard has been very

consistent in producing approximately 62 segments per week and is currently 64.1% complete with segment production for the overall project. 2,028 segments have been casted to date. Although 85 of the total 283 NCRs (30%) have been related to segmental issues like damaged shear keys, concrete voids, and spalls, proper correction procedures have already been developed and are being implemented.

Closing Out NCRs – NCRs were being promptly corrected, validated, and closed

out during this period. Both KIWC and HART have been working together to complete all the needed processes for timely validation. A total of 22 NCRs have been closed in January 2015. Of the 22, 15 were related to pre‐cast segment issues and 5 were related to drill shaft issues.

D. Maintenance and Storage Facility (MSF)

Contract No.: DB‐200 Contractor: Kiewit/Kobayashi Joint Venture (KKJV) Contract Start Date: July 2011 Contract Substantial Completion: April 2016 Projected Substantial Completion: April 2016 Project Description: The MSF contract consists of the operations and servicing building, maintenance of way, train wash facility and wheel truing building. In addition to the four (4) facility buildings, MSF includes rail procurement, special trackwork, ties, third rail and other track material for the four guideway segments on the project.

KEY QUALITY ISSUES:

Two NCRs remain open solely until the dispositions are constructed including removal and replacement of column base plate grout and MOW steel edge form, both underway.

OSB Grout Under Columns – The grout mix installed under the columns at the OSB

was installed without accurately measuring the water added to the mix and without accurately timing the grout mixing time. The contractor is currently removing the non‐conformance grout and replacing it with proper grout.

MOW Steel Edge Form – In order to erect the tilt‐up panels, the metal edging that

was welded to the beam flanges along line 4 was cut off of the beams. In the cutting process, the flange of the beam was gouged at every location the fillet weld was air arc’d out. The gouging is approx. 1/16 to 1/4 inches in depth along the flange at every location on every beam.

Establishing satisfactory sub grade in track work areas which involves geotechnical

exploration resulting in limited removal and replacement of unsuitable expansive material. Although the limit has not been determined, it is envisioned that sufficient satisfactory material can be obtained from on‐site borrow areas.

4.3 Section II – Kamehameha Highway: Pearl Highlands to Aloha Stadium A. Kamehameha Highway Guideway (KHG)

Contract No.: DB‐320 Contractor: Kiewit Infrastructure West Company (KIWC) Contract Start Date: June 2011 Contract Substantial Completion: September 2016 Projected Substantial Completion: April 4, 2017 KEY QUALITY ISSUES:

Design – Design packages seem to lack QC prior to submittal for review to third

parties, resulting in longer than expected review times and additional review requirements.

Field Design Change (FDC) vs. Notice of Design Change (NDC) – Changes

made to the FDC/NDC process in the latest Quality Assurance Plan (QAP Rev 7) removed HART from the approval process. NCR 00029 was issued on Aug. 21, with a corrective action response from KIWC proposed the same day. The proposed revision continues to be reviewed by a HART FDC/NDC task force.

Sidewalk / Curb & Gutter installation – Workmanship on portions of the

sidewalk and curb & gutter does not meet specifications. Non‐compliance reports have been issued, and a quality stand down was ordered by KIWC. A field meeting with the responsible sub‐contractor has been scheduled to address deficiencies. http://www.honolulutransit.org/media/315607/201501-monthly-progress-report.pdf

Honolulu Rail Transit Project Monthly Progress Report February 2015

4.2 Section I – West O‘ahu/Farrington Highway: East Kapolei to Pearl Highlands A. West O‘ahu/Farrington Highway Guideway (WOFH)

Contract No.: DB‐120 DB Contractor: Kiewit Infrastructure West Company (KIWC) Contract Start Date: December 2009 Contract Substantial Completion: July 2016 Projected Substantial Completion: October 2016 Project Description: Design and construction of 6.8 miles of rail alignment, starting at the East Kapolei station and ending at the Pearl Highlands station. KEY QUALITY ISSUES:

Span 67 Damage and Repair – During the erection process of Span 67, the

underside of Segments 67‐11 and 67‐12 were damaged due to unbalanced support from the temporary bearings. NCR 00144 was opened on June 17, 2014, to address this issue. In February 2015, KIWC completed the temporary falsework needed to support and slide Span 67 from its current position. The span is expected to be de‐stressed and the segments replaced. Span 67 will be re‐stressed and brought back into its original location in March 2015. The replacement is being done to ensure the segments meet HART’s high quality standards.

Drill Shaft Quality – HART received four additional drill shaft Crosshole Sonic

Logging (CSL) Reports in February 2015. Two of the drilled shafts were found to have velocity reductions outside of the acceptable design criteria limits potentially because concrete was segregated during concrete placement, and two of the shafts had no issues. Of the 215 drilled shafts that have been tested to date, HART has requested that Kiewit provide additional testing and/or modifications to 40 shafts to ensure that the shafts meet the specifications. KIWC continues to have weekly Drill Shaft Quality Meetings with HART to discuss testing results, quality, the concrete mix, and methods for repair.

Drill Shaft Repairs – Of the 40 drill shafts that are being reviewed in detail, two

new NCRs have been opened and submitted to HART this month. HART will not close an NCR until KIWC completes another CSL test and demonstrates soundness of the concrete shaft as well as when all HART comments are responded to. KIWC completed repairs at Shaft 145 and began repair work at Shaft 144. The repair at Shaft 144 will continue until the end of March 2015 and KIWC can continue with column construction as the span continues its approach eastbound on Farrington Highway toward West Loch Station.

Consistent Span Stressing Trends – In mid‐February, KIWC had stressed 10

spans. KIWC has maintained this positive trend and momentum from previous months, stressing 9‐11 per month. KIWC has now left the Ho‘opili area and has reached Farrington Highway in February as the span erection proceeds eastward towards West Loch Station. KIWC should reach East Kapolei Station by April 2015.

Pre‐Cast Segment Progress/Quality – The Casting Yard has been very

consistent in producing approximately 60 segments per week and is currently 71.8% complete with segment production for the overall project. 2,270 segments have been cast to date. WOFH segment casting should be completed by June 2015. Although 93 of the total 296 NCRs (31.4%) have been related to segmental issues like damaged shear keys, concrete voids, and spalls, proper correction procedures have already been developed and are being implemented.

Closing Out NCRs – NCRs were being promptly corrected, validated, and closed

out during this period. Both KIWC and HART have been working together to complete all the needed processes for timely validation. A total of six NCRs have been closed in February 2015. Of the six, one was related to pre‐cast segment issues, one was design related, one was for the superstructure, and three were related to drill shaft issues.

Concrete Plinth Quality – KIWC completed work on the concrete plinths under

the double crossover east of Ho‘opili Station on Spans 78 and 79. This is the first of four double crossovers for this project. HART has inspected the quality of the work performed and no issues were found. The trackwork will continue to be surveyed and placed on its final alignment.

Flash Butt Track Welding Operations – Work began on welding trackwork

north of the Maintenance and Storage Facility where approximately 439 welds are to be completed. KIWC is currently achieving 20‐25 welds per day and this is in‐line with the current baseline schedule. KIWC will continue to report completed quantities to HART on a weekly basis.

Quality Assurance and Buy America Audit – In mid‐February, KIWC was

audited by HART in areas of management responsibility, design control, purchasing, document/process control, product identification and traceability, inspection, handling and storage of equipment, nonconformance, corrective actions, quality record, and training. KIWC’s performance was found to be commendable and no major issues were found. A. Kamehameha Highway Guideway (KHG)

Contract No.: DB‐320 Contractor: Kiewit Infrastructure West Company (KIWC) Contract Start Date: June 2011 Contract Substantial Completion: September 2016 Projected Substantial Completion: April 2017 Project Description: Kamehameha Highway Guideway DB Contract (KHG) consists of 3.9 miles and starts 400 feet east of the Pearl Highlands Station and terminates 1,400 feet beyond the Aloha Stadium Station. KHG is made up of utility relocations, highway widening, drilled shaft foundations, columns and aerial structure. KEY QUALITY ISSUES:

- Shafts – As shaft construction resumes, the quality of the shafts will be closely monitored to ensure any quality issues are identified and resolved in a timely manner. - Sub‐contractor Quality – The Design‐Builder has been asked to improve their QC/QA efforts as they relate to the work being performed by their sub‐contractors. http://honolulutransit.org/media/322188/201502-monthly-progress-report.pdf

Honolulu Rail Transit Project Monthly Progress Report March 2015 4.2 Section I – West O‘ahu/Farrington Highway: East Kapolei to Pearl Highlands A. West O‘ahu/Farrington Highway Guideway (WOFH)

Contract No.: DB‐120 DB Contractor: Kiewit Infrastructure West Company (KIWC) Contract Start Date: December 2009 Contract Substantial Completion: July 2016 Projected Substantial Completion: October 2016 Project Description: Design and construction of 6.8 miles of rail alignment, starting at the East Kapolei station and ending at the Pearl Highlands station.

KEY QUALITY ISSUES:

Span 67 Damage and Repair Procedures – During the erection process of

Span 67, the underside of Segments 67‐11 and 67‐12 were damaged due to unbalanced support from the temporary bearings. NCR 00144 was opened on June 17, 2014, to address this issue. In March 2015, KIWC distressed the span and erected the two replacement segments onto the falsework. KIWC is still determining how to best to form the closure segment. Afterwards, the span will be re-stressed and brought back to its original location. This replacement is being done to ensure the segments meet HART’S quality standards.

Span 17 Damages and Repair Analysis – During the erection process of Span

17, segments 17-1, 17-2m 17-11 and 17-12 were damaged due to unbalanced support from the temporary bearings. NCR 00314 was opened on March 17, 2015, to address this issue. KWIC is in the process of evaluating the extent of damage. Afterwards a root cause analysis and repair procedure will be submitted to HART for review. [Highlighting and Emphasis Supplied}

Questions:

a. Is the root cause defective specifications and/or a failure to execute

and perform in conformance with the specifications by the contractor?

b. If the root cause is defective specifications, does this compromise all

Spans built and to be built, place in jeopardy the overall safety of the Honolulu

Rapid Transit (HART) system, and throw into harms way passengers choosing to

ride The Rail?

c. If the root cause is contractor performance, does this compromise all

Spans built, place in jeopardy the overall safety of the Honolulu Rapid Transit

(HART) system, and throw into harms way passengers choosing to ride The

Rail?

d. What remedies are available to HART?

Damage Drill Shaft Quality – HART received nine additional Crosshole Sonic

Logging (CSL) Reports in March 2015. Eight of the drilled shafts were found to have velocity reductions outside of the acceptable design criteria limits potentially because concrete was segregated during concrete placement; one of the shaft had no issues. Of the 224 drilled shafts that have been tested to date, HART has requested that KWIC provide additional testing and/or modifications to 50 shafts to ensure that the shafts meet the specifications. KWIC continues to have weekly Drill Shaft Quality meetings with HART to discuss testing results, quality, the concrete mix, and methods for repair.

Drill Shaft Repairs – Of the 50 drill shafts that are being reviewed in detail, eight

new NCRs have been opened and submitted to HART this month. HART will not close an NCR until KIWC completes another CSL test and demonstrates soundness of the concrete shaft as well as when all HART comments are responded to. KIWC continues repair work at Shaft 144 and completion is expected in mid-April. The repair is taking longer than expected because low strength concrete only be removed and re-grouted in 6 FT zones. KWIC has continued with column construction approaching eastbound on Farrington Highway toward West Loch Station in preparation for the segment erection.

Span Stressing Trends – In March, KIWC stressed 7 spans to date. A lower

number of spans were stressed due to issues encountered at Span 17 and in the spiral between Spans 113 and 114. As KWIC continues to evaluate and eventually repair Span 17, span erection has not been able to continue moving westward towards the East Kapolei Station. Due to mechanical issues and difficulty in keeping the truss system leveled between Spans 113 and 114, KWIC remained in this area for almost 3 weeks. The designer-builder has since overcome this obstacle and is now proceeding eastwards to the West Loch Station.

Pre‐Cast Segment Progress/Quality – The Casting Yard has been very

consistent in producing approximately 60 segments per week and is currently 78.4% complete with segment production for the overall project. 2,513 segments have been casted to date. Although 101 of the total 323 NCRs (31.3%) have been related to segmental issues like damaged shear keys, concrete voids, and spalls, proper correction procedures have already been developed and are being implemented.

Closing Out NCRs – NCRs were being promptly corrected, validated, and closed

out during this period. Both KIWC and HART have been working together to complete all the needed processes for timely validation. A total of 31, 17 were related to pre‐cast segment issues, one was for superstructure, 10 were related to drill shaft issues, one welding issue, two concrete strength issues.

Flash Butt Track Welding Operations – Work began on welding trackwork

north of the Maintenance and Storage Facility where approximately 439 welds were made on the rails. These welds cover track between STA 650+00 to STA 754+34. KWIC has begun to move their welding operations to the Ho`opili Station area where another 347 welds are expected to be made. KWIC is expected to complete 20-25 welds per day and quantities will be reported to HART on a weekly basis.

http://www.honolulutransit.org/media/329397/201503-monthly-progress-report.pdf