HomeMy WebLinkAboutFY 2026 (Transportation Agency)
TRANSPORTATION AGENCY
FY 2026 BUDGET AND OPERATIONS SYNOPSIS
Celia Mahikoa
Executive
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1. FY 2025 to FY 2026 BUDGET COMPARISON
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2. MAJOR CHANGES AND/OR VARIANCES IN OPERATIONS BUDGET
Highway Fund
Benefits expenses are being increased by $93,655 or 7.8%. To ensure we are adequately
positioned to meet future obligations, we have made a strategic decision to increase the
allocation of our Other Post-Employment Benefits account across the board. This will provide for
flexibility in addressing any potential increases.
The Highway Fund supports approximately 50% of Full-Time Bus Driver payroll expenses.
There are no other changes in Transportation’s other Highway Fund accounts.
General Excise Tax Fund
Salary and Wages reflect an increase of just $563, which is the net result of reflecting the $226,823
incremental increase in salaries and wages, along with decreases of $226,260 prompted by the 6-
month short-funding of (1) Transit Dispatcher and (3) Bus Driver positions that had been vacant
throughout fiscal year 2024.
Benefits expenses are being increased by $303,301 or 10.2% (as described above).
Vehicle/Equipment, Lease funds have been decreased by $187,753 due to the final lease payment
for five buses being completed in December 2024. No further lease payments are required.
Operations funds increased by $89,749 prompted by $69,750 in funding required in the IT
Arrangement (SBITA) account to maintain the new electronic fare collection system implemented
and activated in January 2025 and a $19,999 increase in the Computer Peripherals/Supp funding
to support the ongoing replacement of computers, laptops, and related accessories required.
3. OPERATIONAL CHALLENGES
Kaua‘i’s Short-Range Transit Plan was completed in 2018 and provides the County with a list of
useful recommendations for improving Kaua‘i Bus service that as implemented continues to
increase the effectiveness, efficiency, and user-friendly nature of this essential public transit service
for the people of Kaua‘i. The ongoing support provided by our Mayor, Councilmembers, and many
other partners in public service has provided the Transportation Agency the resources and
capability to continue to successfully implement some of the significant changes recommended.
A few of the operational challenges experienced more recently follow.
Personnel Shortages
Staffing shortages have continued to present significant operational challenges, to the point
where it has been necessary to continue the removal of Sunday bus service which was initiated in
August 2023. The removal of service will need to remain until enough bus drivers and dispatchers
can be retained in active service to support the reinstatement of Sunday bus service. A net
increase in hiring eight full-time bus drivers and four transit dispatchers into existing vacancies
should provide a level of staffing sufficient to do so.
An effective strategy employed for driver recruitment has been the hiring of on-call Van drivers
who are provided an extensive training program that supports drivers in obtaining the CDL-P
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license required for a full-time Bus Driver position. There have been some ongoing challenges
with meeting the licensing requirements causing significant delays, however ongoing consultation
with the applicable agencies, and enhancements to the Agency’s driver training program should
provide more success with getting drivers qualified to fill the full-time Bus Driver vacancies.
Baseyard Space
Another ongoing challenge faced by the Kaua‘i Bus continues to be the limited space on which the
bus baseyard, repair shop, and administrative facility are located. The current facility was
constructed over 20 years ago, at which time transit service was extremely limited and ridership
was less than 25% of what normal ridership would be today. Since then, the fleet size, repair shop
requirements, and operations staffing have more than doubled, and ridership of the Kaua‘i Bus by
the public more than quadrupled. The existing facilities have reached their maximum capacity, and
although a mezzanine was completed within the repair shop and a portable office building has
been installed to address the shortage of office space, the need for additional space remains.
Electric Fleet Transition
The State of Hawai‘i’s renewable energy and transportation electrification goals prompted a
County Proclamation made December 12, 2017 that describes the County’s commitment to
converting 100% of the County’s fleet to renewable-powered fuels by the year 2035. The County
Transportation Agency remains committed to working towards transitioning Kaua‘i Bus vehicles
to a zero emission fleet, however due to the significant ongoing delays with the first order of
vehicles and the challenges with initiating the charging infrastructure installation, this goal is
unlikely to be accomplished by 2035.
4. OPERATIONAL HIGHLIGHTS FROM FY 2025
One of the Transportation Agency’s operational highlights for fiscal year 2025 is directly related
to one of the operational challenges shared above. The collaborative effort with statewide
partners in the “Hawai‘i Zero Emission Bus Pilot Project” provided the support needed to award
the contract for the purchase of Kaua‘i’s first four electric powered transit buses that are
scheduled to be manufactured in April 2025, and are currently estimated to be placed into Kaua‘i
Bus service by September 2025. Funding for the second order of four electric powered transit
buses was allocated to Kaua‘i by FTA in 2023, and is anticipated to be available by June 2025, at
which time procurement for the second group of electric buses can commence.
The Federal Transit Administration (FTA) provided a $3.5 million grant requiring no local matching
funds to proceed with the design, engineering, and construction of additional repair shop space.
The design was promptly completed, after which the extensive environmental review and approval
by the FTA was completed this fiscal year, and construction is therefore anticipated to begin in
April 2025.
Another FTA grant is also currently being processed to fund a second phase of base yard expansion
that will provide additional fleet parking that includes significant structural improvements to the
currently unusable water basin area adjacent to the bus base yard. The project will also assist with
ensuring there will be sufficient space for the additional electric infrastructure required to continue
the fleet transition.
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Another significant operational highlight is the successful implementation of the electronic fare
payment system that was activated in January 2025. The extensive social media marketing
campaign along with postings being placed on buses and at bus stops has within the first two
months of activation prompted more than 484 riders to download the app and set up their
account for a total of 3,452 rides that reduced cash payment processing by $7,744.50.
The Kaua‘i Bus mobile app that continues to provide Kaua‘i Bus riders (and potential riders) a live
map of bus routes and the real time status of Kaua‘i Buses, continues to provide riders and
potential riders the Kaua‘i Bus real time tracking of estimated bus arrival times, and the ability to
receive text updates of service changes. It provides a service portal for paratransit customers,
with so far, over 216 clients registered for paratransit system information access. The app is
available for download through the Apple Store and Google Play Store. Additionally, Wi-fi
continues to be available on the Kaua‘i Buses, providing passengers the benefit of connectivity
while also providing the County with portable Wi-Fi connection points in periods of disaster and
emergency response. The Kaua‘i Bus is committed to utilizing the various technologies available
to improve the passenger experience and increase efficiency of transit operations.
One of the most rewarding highlights to note each year is the Agency’s ongoing communication
with its customers and team members who continue to provide the Kaua‘i Bus leader team with
comments and suggestions that are taken into consideration when employing efforts to enhance
transit service and information access for customers. Regular attendance at public school career
days, public information gatherings, and the Kaua‘i Developmental Disability Council’s monthly
meeting provides attendees with updates that impact Kaua‘i Bus riders and addresses questions
or concerns that riders and potential riders might have. These events provide the community
various forums to share their questions, comments, and experiences with the leadership team.
The Kaua‘i Bus team is extremely grateful for the ongoing support from our customers, County
Administration, County Council, and so many others that graciously assist with what’s needed to
continue successfully providing essential public transit service for our community.