 This is Think Tech Hawaii, and this is the program, The State of the State of Hawaii. And today we have a really special guest who's on her way into the role of CEO at heart. And it's Lori Keena. And we have the joy of the season in being able to chat with her here today about what she's doing as she approaches it and how she's thinking about what she's going to do. So welcome, Lori. Thank you. Thank you. Thank you, CEO. Thank you, Lori. Yeah, well, good. I wanted to ask you to feel free to insert, you know, any, any comments you want to take or express priorities because I am going to ask the usual kinds of questions, which are first of all, of course, if the situation is in disarray. So, as we are all pretty well knowledgeable about or at least know about, and the audience knows about this. And so why don't you talk a little bit about it to us as how you see it and what the circumstances are you're going into, and maybe how you're going to manage that. And I'll help you get through that second part, the management. Okay, thank you. So it is a new challenge for me. I've been very clear, I don't have transportation experience, but I do have infrastructure experience coming from the Department of Environmental Services. Our wastewater consent decree program is well over $5 billion. So it's not a single project like rail is, but it's a multiple hundreds of projects that comprise the $5 billion, whether it's utility relocation or upgrading our sewer lines or the treatment plants. So I have construction and engineering experience, but transportation, I will need assistance, but I'm assuming part has within embedded within itself, transportation experts that I can rely heavily on, whether it's staff, city staff or consultants that are on board already. I hope to once I get in, roll up my sleeves, understand what are all of the issues. I know we are already way behind schedule and over budget. So I can't go back in time and fix that, but I hope to try and make things better going forward. ENV was successful in meeting all of our consent decree deadlines and staying on budget. So I'm hoping I can bring some of that perspective to heart. Well, given that you are going to be working with the board, have you related to them or are you in touch with them? Can you tell us how you feel about the board? Sure. So I met them just last month as I was interviewing for the position. So I don't know any of them prior. But maybe once or twice I've met with them just in our previous experience. Like for example, Joe Uno was actually a consultant of ours on a subconsultant of ours on one of our projects. I met him once. Of course, Kathy Sokugawa and John Nauchi, they are city directors. So of course I worked closely with them. But prior to that, I didn't really know any of the previous board members until I started interviewing with them. How does it feel? Does it look like you've got some relationship or your developing relationship? But do you have any click there? All of them have been extremely supportive. When I was interviewing with them, I made it so clear, I know what some of my shortcomings are, especially like I mentioned, the lack of transportation. I don't have a relationship with the FTA or state legislatures. So I'm going to rely heavily on them or others to help bridge that gap where I have shortcomings, but they have all been wonderful. And when you look at their backgrounds, they have a wealth of knowledge. So I expect to be tapping into their experiences and how they can help me when they did the vote. So they do need eight out of the nine votes for me to be selected. And the only one that did not vote for me was Kiko Bukowski. But when I met with him prior, he was completely honest with me about that. And he says, nothing personal, Laurie. I don't think now is the right time to change the CEO. And I said, you know, as long as you're blunt and honest with me, I'm the same way that's all I can ask. And he was true to his words. So I texted him, I said, you know, I understand your feelings, Kiko, and I completely respect it. So he was honest with me. So all I could ask. Well, thanks for sharing that ounce of honesty and being straightforward. And you're obviously stimulating some of that. That's really good. You know, I was thinking to go from easy that complicated, but when I started realizing in questioning you that there are no easy. And actually it came to my mind when that what about the federal side of things is there. And then I thought, well, that's, that's pretty black and white, right? We'll know because we have a changing administration. So are you funded now by the Trump administration and going to shift over? I mean, do you know. So a little bit I know about the federal side and our funding. There is a full funding grant agreement. And I kind of liken that to ENV. We had a federal consent decree that we are required to do X number of projects by a certain dates, and they all had deadlines. I liken it to that. And we are to adhere to that, which is the whole from Kapolei all the way to all of our shopping centers. So other reporters asked me, what is your intentions? Are you going to pause? I said, we have to get all the way to all of our shopping center, whether it's phased this because of the funding issues. Right now, my understanding is FDA has withheld monies because they wanted to see certain things from heart, certain progress and yeah, they just wanted us to meet certain milestones and we haven't hit it. So I understand why they are withholding the funds to protect their funds. But there was $250 million that was to laugh at the end of this year. And I understand that. Thank you to our congressional delegation of their especially shots. They were able to get that extended one more year to December of next year. Thankfully, those funds are still there. We haven't received it, but at least it's not lapsing. That's quite a bit of money. $250 million. Well, I, I lodged you for staying on top of that because it all slips into the US Treasury very good. But the also it's, it's encouraging to hear you say Alamoana, since that's been a huge concern and confusion. And most many people think it's only going to Middle Street, and then the Kakakos are up in their issues. And so Alamoana, you know, at the level of what would we all like to have. That's certainly the first step. But on that way, I mean, in addition to the money, then Lori, what about all of the land issues and the condemnations. And so how are you approaching those issues if you are yet. I don't know. So I'm not approaching it yet. I need to get in and fully understand where we add the utility relocation is what's, what's the critical point right now, right there in Dillingham and actually envy has a project right there so I'm fully aware of how tight that there is trying to squeeze everything in one space and also adhere to the city standards. So by having to adhere to the standards there might be additional rights of way takes which causes additional monies and time, but I won't fully understand the extent of that until I get in there and start acclimate myself and looking at all of the information and data available. So the RCEO. I'm having a block on his name. He pointed out that getting that corridor carved out is truly monumental, especially given the turns that have to be made because the technical issues which you have background and all of this but as you know, it's like you have way huge amounts of land to be able to move a train and a curve or make to make it make a turn that radius that correct radius exactly. Are you. How do you feel about that what how how was how does that look to you as with the engineering background and maybe I'm not understanding the question so you're talking about the the guideway. I understand the route is pretty set. Although the design has not been done for the guideway right now we're just working on the utility relocation so that at least the guideway post can come the columns can come through, but I don't have intentions of changing the alignment. And maybe tweak it here and there so that we can kind of accommodate the utilities underground. I hope I answered your question. Yeah, I'm thinking, well that's laid out and what it sounds like you're saying is that that route is is laid out. I've already been considered there are no more areas where you have to fight with the I rise builders I mean now. I guess Howard Hughes in the way you know that I guess that goes back to your other question about right away takes I think all along the corridor there's, there's, you know, property owners that we're going to have to deal with whether it's Howard Hughes the university, other private owners, but I don't know what they are right now, honestly. Well, I was going to go down to the city issues now and and ask about see here again. There's no easy question and no answer because all of that's just changing. And our new mayor is yet to be even sworn in. You know, the other the our current mayor called well, and those issues have you talked to him what has he been able to help you with with Mayor Caldwell or a mayor like Blange Artie. Well I was going to ask about both because like Biden he kind of has to get information. I was thinking you two are like straddling straddling correct correct so I'm very familiar with Mayor Caldwell and where he stands and what the issues were especially with the city departments. So my goal is to rebuild trust between heart and the city departments, I mean, I'm actually on one side of it, right with myself with water supply. DPP and DTS. And I do have good relationships with the city departments right now. So I want to ensure them that whatever trust they have with me now I wanted to continue with if I when I go to heart, and also establish the trust with the other utilities they can go or the communication utilities but Mayor Caldwell. He did share with me some of his concerns. First, how long it's taking to do the plans. Of course to get the permits and the funding and the delays and schedule so I do understand his concerns. When I did meet with Mary like Blange Artie and Mike form B. He was very supportive of me and the project. And they said however we can help on their, they're right there with me. So I truly appreciate that. Well that's you've covered, you know, the important players and he might form B is a supportive of rail as I understand it. And he would, he was on your side. And so he's going to be close connection for you. Absolutely. And he was actually in these shoes before so and as a board member. So I'm going to be tapping him quite a bit to understand the history and some of the issues that he encountered when he was in my shoes. And does Blange Artie Rick does Rick Blange Artie also feel that way because he's coming in now without that kind of a background. Correct. So, yes. Yeah. So he is fully supportive of the rail and going all the way to Alamo on a shopping center so I'm going to need the city support not just on a technical side whether it's the permitting, but it's also on the funding. You know, we have to work as partners. So I'm looking forward to working with them and truly, truly humbled by their support. Well that is very good news. I'm thinking now like I'm, my heart goes out to you but also to Blange Artie because these roles require you to be and certainly him. I mean, but he's got my for me right so do you see that that probably is key to success. Yes, absolutely. Absolutely. Well, hopefully things are and what about with the relationships with the state. So I like the legislatures. I don't have relationships with the state legislature so I'm going to need help with that and the board members are willing to help me with that. The State Department of Transportation, I do have good relationships with them so I'm hoping that will also help to move the project along. I interviewed Rick Blange Artie for already for mayor and one of the questions I had for him was how, how was he going to relate to the state because of what we're looking at. Again, the landscape is changing rapidly but there was the indication that there wasn't going to be much money for states right that was very very frightening. Right with the GT and the TAT. Of course the assumptions when the project first started or when the GT and TAT was affected. There was assumptions of how much the project would be receiving quarterly and annually and it has dropped significantly because of COVID and it does. You know, worry me quite a bit. That's one thing I made clear to the board members I've never had to deal with at EMG. We are self sufficient. All of our funding comes from the sewer rates fees that people pay. And we've always had enough monies to do our projects. We use our funds prudently. So this is this is a new bulging for me, honestly. That is very honest and you have a lot on your plate, but you have many, many resources as you said in this. Yes, utilize these, these, these colleagues who are so experienced and are willing to be in the in the world. That is incredible. Well, I just think that issues a bit under the fright continues because I'm sure that our money, our budget situation is not going to get better even with the feds coming around a little bit more. I think, you know, we're going to have more pain. Yes. So what are the kinds of things that you can do to moderate that what what kinds of skills do you bring to to working budgets down. And I scrutinized the budgets very carefully, even during construction. So whenever there's a change order all change orders needed to come through me at the director's level they need to justify. And we rarely went over normally when we budget up project we have a set dollar amount that the contract goes out for and we budget in 10% for contingencies. And we had 92 consent decree projects and only 14 of them went over that 10% contingency. The overall when you total all 92 projects. The total was $1.2 billion and even with those 14 going over the 10% the total of those 92 projects still came in under the 1.2 billion so I'm very familiar with with budgets and staying within budgets and I'm hoping to take that over to heart. Like I said I can't go back in time and get us back on on budget, but I'm hoping the estimates that are coming out at 10 or $11 billion. I hope that's, that's not the case but I won't know until I go in and actually look at the information myself. Well this seems to be one of the hotspots is not there and all the mods change orders and contractor issues what about the lawsuits have you do you see that as a challenge that I'm not familiar with the lawsuit so that's another issue I'm going to have to tackle when I get in there. Well, do you think people are willing to work. Are you bringing a fresh attractiveness to the, to the whole endeavor because have a sense there been a bit of dismay about working with heart because of the difficulties so how are you feeling about that. Yes, yes. I'm not sure how the existing heart staff feel I'm sure there's anxieties. Every time a new leader comes in and I do understand that there's been numerous. There's been just the last several years seven I believe I think I'm going to be number eight in a short amount of time and that does not bode well for any, any company when you have the top leadership changing there's no consistency. And so I'm sure there's anxiety and and I hope to call that when I get there, but I'm hoping I can bring everyone together and work as a team not just within heart but externally, there is, there is a lack of trust as I mentioned earlier between heart and the public. The city council, the city agencies, state agencies and other utilities and and I hope to try and work on that, that trust that, you know, so we can work together because heart can't do this by themselves. They need the help of everyone including the community. So that's the only way we can get it done. One topic, your predecessors never had to address is the issue of COVID-19. Correct. Yeah. So, what are you thinking about what's going to happen with COVID. Is that for some changes in the cars or is there anything you're right right that that's really a question and I actually haven't dealt. Put much thought into that for ENV. It did not really affect us too much we are essential workers and we can't stop, you know, treating the wastewater and we can't stop picking up the trash so we did have to adjust. When people work in crews together everyone has to wear masks try to social distance as much as possible when the traveling and trucks if we don't have spare trucks where we could have multiple trucks go to the same site. So that's what we're going to do. We're going to have to put the rails down and let the fresh air come through. So there are some adjustments that need to be made, but as far as within rail, I believe heart has made adjustments. I thought I saw a list of how they have addressed it, whether it's in the office and in their designs, but I don't know. I don't know until I get in there. Well, you know, and it also depends on how the vaccine is going to work. I mean, you've got. To modify anything structure of the actual rail cars. Oh, absolutely. Absolutely. And for for heart. COVID has a direct impact on the income. As I mentioned earlier the GT and the TAT. It's shut down businesses shut down tourism so that's the one of the major income sources for heart so that has a devastating impact on us. So I didn't mean to raise your anxiety. Thank you, Stephanie. I signed the contract. It's certainly wonderful to hear you speak of these things and to be so committed to the kinds of relationships that are needed and certainly the trust and to bring the project back into the mainstream and the people's concern of that it will be a resource for our community. I mean, in other cities. I mean, has had no benefit of this yet. I see tremendously frustrating point because we all know how wonderful it is to get on those places that we will be doing that too. But it takes someone like with your talents to bring in all of this background experience and all of your skills and it's a very impressive portfolio that you have to offer. I hope so. I hope so. I have to say I was not a real supporter. When I served under Peter Carlisle in one cabinet meeting he said, you know, we are the stewards of the city. We have to be champions for heart. I mean for real and and really support it and I remember raising my hand said, Why should I support real I live on the winter side. I will never, never ride on that train. And his response made me feel this small. He says, Laurie, you're on the winter side. You have the Polly Highway, you have leaky leaky. You have Cal Highway and you have H3 for fairly funded highways that you get to take advantage of whenever you need to. I said, Oh, quite well taken and then under Kirk Caldwell, my office is in Kapolei. And so of course pre COVID, that traffic that I see the people, the leeward side, what they have to deal with daily is heartbreaking. When I'm coming into work 630 in the morning that traffic is way into Makakilo, and it's a parking lot. And the same thing when I'm leaving to come home. Now they're fighting that traffic to come back home that quality of life. It's just, it's, it's, it's saddening. I know there's parents in there with young kids 430 in the morning they're sleeping in the cars because they have to try and beat the traffic. It's not a way to live. So, witnessing that firsthand, I am a big real supporter of we need it. Yes, yes. And for a long time and I remember decades ago that Honolulu was described as a perfect city for rail, like, because it's because it's kind of rectangular and flat. I mean, this is years ago and I often thought when I've been in other cities that are that have put in these metros that they weren't even as cut, you know, they weren't even as good a fit as here. Right. I think it's just worldwide known as very annoying. Well, I really appreciate your time and sharing Laurie and certainly wish you very well as you make this transit. And then sleep and, and then and then there's just so many things we're all going to be working to get used to new new circumstances so you get one more as CEO. I love the rail project. Thank you very much. Thank you. Thank you very much. Again, later to see how things are. Thank you. I appreciate that. Wonderful. Good luck, Laurie. Thank you. Thank you. Take care. Okay, bye bye. I'm Mahalo. Mahalo. Happy New Year. Happy New Year. So this has been the think tech Hawaii programs. And this is the show, the state of the state of Hawaii and it comes on Mondays every two weeks and I look forward to seeing you there thank you for your attention and thank you so much for your aloha.