Use of surcharge money

(a) As required by HRS § 248-2.6(d), moneys received from the State derived from the imposition of the surcharge established under this article will be a general fund realization. Moneys received from the surcharge may be expended for capital costs of a locally preferred alternative for a mass transit project. (b) No moneys received from the surcharge may be used for the following purposes: (1) To build or repair public roads or highways or bicycle paths, or to support public transportation systems already in existence before July 12, 2005; (2) Operating costs or maintenance costs of the mass transit project or any purpose not consistent with subsection (a); or (3) Administrative or operating costs, marketing, or maintenance costs, including personnel costs, of the Honolulu Authority for Rapid Transportation or the department of transportation services. (c) The annual report of the board of directors of the Honolulu Authority for Rapid Transportation required by the Charter must include: (1) Any and all costs associated with: (A) Contingency and other reserves as recommended by the Federal Transit Administration and as detailed in the Updated Final Financial Plan for the Full Funding Grant Agreement; (B) ADA accessibility improvements to the minimum operable segment of the locally preferred alternative for the mass transit project; (C) Planning and design costs for route expansion within the limits of the locally preferred alternative adopted by Ordinance 07-001; and (D) Infrastructure improvements to rail station areas to support affordable housing, as permitted by State and federal law; (2) An updated cash balance summary that contains all revenues and expenditures. The summary will include cash balances for each revenue source and each category of project cost showing the cash balance at the start of the accounting period and the cash balance at the end of the period; (3) A capital improvement program status report in substantially the same form as that submitted by the director of budget and fiscal services for the city’s executive capital improvement program; and (4) All amounts invoiced by and paid to general contractors for the fiscal year just ended. The amounts must be organized by general contractor, separately reflect amounts billed by the general contractor for work done by its subcontractors, and include the following information: (A) The names of general contractors and their respective subcontractors; (B) The type of services provided by each general contractor and subcontractor; (C) A detailed description and justification for the work done by each general contractor and subcontractor; and (D) The amount invoiced by and paid to each general contractor, and the amount invoiced by each subcontractor to the general contractor for the described work. (d) For purposes of this article, “capital costs” means nonrecurring costs required to construct a transit facility or system, including debt service, costs of land acquisition and development, acquiring of rights-of-way, planning, design, and construction, including equipping and furnishing the facility or system. “Capital costs” also include nonrecurring personal services and other overhead costs that are not intended to continue after completion of construction of the minimum operable segment of the locally preferred alternative for a mass transit project.