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Honolulu Mayor Peter Carlisle vetoed legislation for the first time this week, and his decision to nix the City Council’s budget for a new transit agency ratcheted up an already-tense situation. Council members could override his veto on Monday.

The countdown is on before the transfer of city oversight of the $5.3 billion rail project moves into the hands of a semi-independent transit agency.

Today’s a furlough day — maybe the last one. But there’s always something interesting going on at Honolulu Hale. Civil Beat is reporting from the inside.

Rail Protest Rejected

4:16 p.m.
The city’s budget department has taken a closer look at two protests of the core systems contract and decided there were “no procedural or legal violations” during the procurement process.

The billion-dollar Design-Build-Operate-Maintain contract was awarded to Ansaldo Honolulu in April, and competitors Sumitomo and Bombardier lodged complaints about the process. The city that those appeals were rejected.

The protestors have a week to take their case to the Office of Administrative Hearings at the State Department of Commerce and Consumer Affairs, according to the city. The DCCA hearings officer must issue a decision within 45 days of an appeal.

After that, the matter could end up in court.

Traffic In 2035

3:52 p.m.
Spending $23 billion on transportation infrastructure in the next 25 years sounds like a lot, but it’s still not enough to solve Honolulu’s traffic woes.

That’s the gist of the long-range Oahu Regional Transportation Plan, developed by the Oahu Metropolitan Planning Organization and approved in recent months.

The list of projects includes the $5 billion rail system as well as major improvements to the H-1 freeway that will cost hundreds of millions of dollars.

Pacific Business News has an today (subscription required), and you can read [pdf] at OMPO’s website.

Berg: Should We Evict Waianae “Squatters”?

3:17 p.m.
Honolulu City Council member Tom Berg wants to know: Should the homeless stay, or should they go?

In sent to citizens today, Berg asked for input on what to do about one of the major issues facing the Waianae Coast.

Should we initiate the process to evict and remove the squatters or look the other way and do nothing? What should we do and what do you recommend to mitigate this illegal activity?

Watch the video from the beach that Berg included in his note:

HART Wasting No Time

2:21 p.m.
The Honolulu Authority for Rapid Transportation becomes a reality July 1, and the inaugural batch of board members can’t wait to get started.

The first board meeting is set for 8 a.m. on Day 1 — that’s next Friday. [pdf] includes the election of board officers, the appointment of an executive director, the adoption of various policies and the selection of a ninth member.

Adoption of the 2012 operating and capital budgets are also on the to-do list, but that matter could be complicated by a potential City Council override vote that would come down on Monday.

Federal Money Coming Through for Rail

12:33 p.m.
The money’s coming.

Sen. Daniel Inouye and the rest of Hawaii’s congressional delegation announced this afternoon that the Honolulu rail project will receive $55 million from the Federal Transit Administration this coming fiscal year, as was requested by President Barack Obama in his proposed budget.

In all, the city is counting on $1.55 billion in federal funding for the project over the next decade.

Read the full story.

Queen Theater Restoration Coming?

12:16 p.m.
The Queen Theater in Kaimuki, just down the street from Civil Beat HQ, has long been shuttered, but that could someday change.

Friends of the theater are celebrating its 75th anniversary Saturday, and are using the milestone to ask the community to weigh in on what the space should be used for.

In blasted out early this morning, Friends of the Queen Theater talked about the facilities and started the conversation for what comes next.

14 Bills Become Law

11:34 a.m.
Lost in the shuffle of Mayor Peter Carlisle‘s high-profile vetoes of the HART budget and a recycling subsidy earlier this week were 14 measures approved by the City Council that are now law, with the mayor’s blessing.

Thursday the city published the newly enacted ordinances to . There are now 21 new ordinances on the books this year.

Hoopili Lands on Land Use Agenda

10:40 a.m.
It’s been rumored for weeks, but now it’s official. The controversial 12,000-home Hoopili project is going back to the state’s Land Use Commission on June 30.

[pdf], posted online at some point late last night or early this morning, includes developer D.R. Horton-Schuler Homes’ request that its new submission be considered a “cure” for the problems the commission found in Hoopili’s first petition about two years ago.

The Friend of Makakilo are asking that the case be closed — and that the property be made ineligible for a district change until 2061.

The Makakilo-Kapolei Neighborhood Board on Wednesday threw its support behind the project.

General Plan Survey: City Wants You!

If you’re chomping at the bit to weigh in on Honolulu’s long-term plans and can’t wait for the July 7 roll-out of the city’s General Plan update effort, you’re in luck!

The city is taking feedback in advance of the meeting. But rather than submitting public testimony, citizens can participate in an online survey.

Survey questions range from assessing directed growth to the importance of considering sea level rise to promoting local agriculture.

Take the survey yourself .

Read Previous Editions of Inside Honolulu

June 23, 2011: Last day for fireworks permit; Doug Chin hopeful lawsuit could be avoided; Last Furlough Friday?

June 22, 2011: Mayor deliberately keeps quiet on Asia trip; Veto override votes set for Monday; Ernie Martin breaks silence on council shake-up.

June 21, 2011: Honolulu Mayor Peter Carlisle vetoes bills; City Council member Tulsi Gabbard writes from Indonesia; Hoopili fight heating up (again).

June 20, 2011: Ethics training could be required for all city workers; Stanley Chang, mayor, back from China; Ag property-tax tweak advances; Council Budget Committee advances bond float.

June 17, 2011: City Council member Tom Berg wants commercial activity at some parks; Baby warthogs at the zoo.

June 16, 2011: Perennial mayoral candidate Panos Prevedouros‘ poetry; Opinion on Garcia ethics investigation still two months out.

June 15, 2011:: Council Chairman Nestor Garcia steps down; City offers amnesty on turned-in fireworks.

June 14, 2011: Photos released from Peter Carlisle‘s Asia trip; Carpenters Union steps up rail advocacy; Water outage on windward side.

June 13, 2011: Read the complete HUD report; Tom Berg to hold town hall on rail; Still no rail report from fact-finding trip.

June 8, 2011: Acting Mayor Doug Chin signs historic homes bill; FAA issues Record of Decision on rail; Hillary Clinton to attend APEC; Stanley Chang posts messages to Twitter from Taiwan; Precedent in the dispute between Honolulu Mayor Peter Carlisle and City Council members.

June 7, 2011: Two-time candidate Panos Prevedouros fundraising for 2012 mayor’s race; Tom Berg weighs in on chief of staff’s role in hacking of lawmaker’s email; Rod Tam sentencing pushed back; Ship that buried Osama bin Laden stops in Honolulu.

June 6, 2011:Creator of city rail poll says it was unbiased; More details on Honolulu Mayor Peter Carlisle‘s China trip; Former City Council memeber Rod Tam charged with eight counts of campaign spending violations.

June 3, 2011: City Council approves rail bond float, slew of fee increases, property-tax rate hike, operating and capital budgets; Council members reverse decision on eliminating subsidy to scrap yards.

June 2, 2011: Complete script of questions from city rail poll; Rail supporters plan virtual sit-in.

June 1, 2011: City announced poll showing majority support for rail; Honolulu Mayor Peter Carlisle mum on veto plans; Hurricane season starts.