City may contract with a nonprofit to manage transit

The council makes the following findings: (1) The City and County of Honolulu is a body politic and corporate; (2) As a body politic and corporate, the city may exercise functions expressed in or necessarily implied from authority granted by the State of Hawaii; (3) HRS Chapter 51 gives each county the “power to provide mass transportation service, whether directly, jointly or under contract with private parties, without the county or private parties being subject to the jurisdiction and control of the public utilities commission in any manner”; (4) The department is: (A) An agency of the city, a body politic, and corporate in itself; and (B) Charged by the city with the proprietary function of providing mass transportation service for the people of the city; (5) The “mass transportation service” that may be provided by the department pursuant to the Charter and ordinance consists of city bus and special transit service; (6) The department’s procurement of services from a private, nonprofit corporation to manage the city bus and special transit service is necessary to: (A) Provide the mass transportation service in the most efficient and effective manner and in accordance with sound management practices; and (B) Preserve and provide continuity in the rights, interests, and labor relations status of bus and special transit service personnel; (7) The City and County of Honolulu, through a city agency, has the power to effectuate the formation of and contract with a private, nonprofit corporation to serve as the transit management services contractor for the following reasons: (A) HRS Chapter 51 confers broad authority upon the city to provide mass transportation service; (B) HRS Chapter 51 authorizes the city to provide mass transportation service under contract with a private party; (C) The power to effectuate the formation of and contract with a private, nonprofit corporation to provide mass transportation service, as a proprietary function, is necessarily implied under HRS Chapter 51; and (D) State law does not expressly prohibit the city from effectuating the formation of and contracting with a private, nonprofit corporation; and (8) The public interest is further advanced by expressly conferring upon the department the power to effectuate the formation of and contract with a private, nonprofit corporation to manage, operate, and maintain the city bus system and special transit service.