Costs haunt FasTracks

RTD re-examining scope of plan; key studies fall behind

Kevin Flynn, Rocky Mountain News

Published January 13, 2007 at midnight

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RTD is falling behind on key studies required for FasTracks and also is trying to figure out whether the rapid transit system can be built the way it was advertised and for the cost that was promised.

RTD already has made millions of dollars in cuts to the West Corridor from downtown Denver to Golden to stay within budget, and more cuts are on the table. Those moves foreshadow similar problems with the other dozen projects that make up the massive $4.7 billion rail and bus expansion.

The greatest concern centers on environmental studies, which identify ways to avoid or mitigate the impact of construction. All the studies are lagging, some by as many as three years, prompting the regional planning agency that monitors FasTracks to strongly urge RTD to complete them quickly.

Still, RTD says each line will open by the deadlines promised to voters. In fact, the start of service on the West Corridor has been moved up a year.

"Can we open our corridors when promised? Yes," said Jennifer Heisler, FasTracks' corridor planning manager. "This program will be constantly evolving."

Two years into the 12-year program, the agency has hired a team of consultants to look at where everything stands compared with the original package approved by voters in 2004 - budget, schedule, prices, revenue estimates, financing and the scope of various projects.

Officials say a top-to-bottom review is not unusual for a project like FasTracks and they plan to do it periodically through the end of the program in 2017.

"When you have a mega- project like this, it's always good to take a step back and evaluate how you're doing," said Liz Rao, FasTracks' program manager.

The review will be handled by the firms of Parsons Brinckerhoff and Carter & Burgess, which are working for RTD to help manage FasTracks. However, the reviewers are coming from out-of-state offices that are not involved in the project.

At the same time, RTD is doing its own re-examination of the original 2003 plan to determine how realistic it is in 2007. By April, it will reset budget figures for all the projects, taking into account inflation, costs, interest rates and other factors.

FasTracks was planned as a 12-year build out of the rapid transit network and improved bus connections in metro Denver. It features six new rail corridors, three expanded ones, a redeveloped Denver Union Station and more.

In November 2004, metro voters approved a 0.4-cent boost in the RTD sales tax, to a full penny per dollar, to pay for it all.

Since then, not all has gone as planned.

• The West Corridor, the first project out of the chute, has been under the scalpel for months.

First, train service west of Lakewood's major station at the Denver Federal Center to the Jefferson County government complex in Golden was reduced from every five minutes to every 15 minutes. That means RTD can operate the line with fewer train cars. It also allows RTD to build a single track west of Union Boulevard instead of two.

RTD also has moved the track to the south side of West Sixth Avenue freeway west of Union Boulevard, which also saves money. The agency is discussing with Lakewood and Denver the elimination of neighborhood stations at Knox and Lamar streets.

The cuts are needed, RTD says, because the cost of steel, concrete, copper, oil and other essential building commodities has risen sharply since the original 2003 plan.

If that trend holds, RTD might have to build less than it originally planned in many of the transit corridors.

Dave Baskett, Lakewood's transportation planner, said that after years of planning the West Corridor, 11th-hour changes could bring public protests.

"These are pretty major changes and none of this was discussed before," Baskett said. "For 11 years, we've been talking about (putting the tracks) under Sheridan and over Wadsworth. Now you're talking about going over Sheridan and under Wadsworth. What is the process for letting people know about this and getting their involvement in it?"

• Two years of sales tax collections have fallen below the level assumed in the financing plan. RTD has received up to $5 million less each year than it figured, a 2.8 percent shortfall.

As a result, the agency has reduced the estimated total "pay as you go" cash it intends to invest in FasTracks, relying more on money borrowed through bonds.

Last year, RTD issued the first $600 million in FasTracks bonds to address the lower sales-tax revenue and deal with construction inflation. The original plan called for only $200 million in the first bond issue.

That means paying interest sooner than planned. But with more upfront money, RTD can lock in some costs by pre-purchasing materials and hedge against inflation.

And the bonds were issued at a substantially lower average interest rate than envisioned. That saves RTD $7.5 million annually in interest, more than offsetting the lower sales-tax collections.

• The environmental impact studies are behind schedule in every corridor.

The study for the Interstate 225 corridor was supposed to start late in 2005 but still has not begun. The reason is RTD and Aurora have yet to reach an agreement with the Colorado Department of Transportation about using the highway for transit. CDOT has long wanted to put toll lanes where the light rail would be.

Even the West Corridor, which already has a federally approved environmental study, is engaged in another study because of the cost-cutting design changes. Last week, RTD pushed back that study another several months because additional cuts still on the table could require new environmental mitigation measures.

Steve Rudy, transportation planning manager for the Denver Regional Council of Governments, reviewed RTD's annual FasTracks report. DRCOG must reconsider its OK of each FasTracks corridor if RTD makes substantial changes. Rudy said the study delays are of concern, but not enough yet to panic.

"RTD built some float into the schedule at the beginning, but it needs to be diligent in getting these studies completed as quickly as it legally can to keep these things on track," Rudy said.

• A horrific commuter train derailment in January 2005 killed 11 people in Glendale, Calif. In reaction, the Denver area's principal freight railroads, Burlington Northern-Santa Fe and Union Pacific, won't allow new light rail to share right-of-way with their freight trains. They insist on heavier passenger rail cars, which stand up better in a crash.

Also, the railroads won't sell any of their tracks to RTD unless the companies are immune from crash-related lawsuits. That requires legislative action and is holding up negotiations with the railroads for their land, affecting planning on four corridors.

Despite the challenges and delays, RTD says the overall FasTracks program is still on time. In fact, in addition to moving up the opening date for the West Corridor by a year, to 2012, it also moved up a major segment of Union Station renovations and a new light rail maintenance facility - both needed for the west line to function.

RTD bets that by accelerating this work, it will blunt the impact of inflation.

In fact, some early construction could start this year on the West Corridor. The work includes relocating utility lines and building several large bridges over the South Platte River, under Federal Boulevard, over the main freight tracks and elsewhere. Twenty of 24 needed agreements with utility companies already are signed.

From an outside perspective, RTD is acting prudently, said Peggy Catlin, acting executive director of the Colorado Department of Transportation.

"In terms of some of the early action items, they're looking at this the right way," Catlin said. "Just two years into it, it's premature to make dire predictions. Just like with us, our cost estimates are going up and bids are coming in higher than estimates because of escalation in materials."

A look at original plan, current status

A rundown on each major project within FasTracks, comparing the original plan with the current status and what that means to the project:

• 1 - CENTRAL CORRIDOR

Original plan: Extend light rail from Five Points to 40th Avenue. Expand existing stations to allow four-car trains. Add tracks for more frequent trains. Cost: $118.4 million.

Current status: Streetcars might be used instead of light rail through Five Points and the extension. Four-car stations to be built this year. Extra track near Colfax Avenue built and in use. Cost: $118.2 million.

Impact: Streetcars would would be less expensive and less disruptive to the neighborhood and would run to Civic Center as well. But they would be slower than light rail and have fewer riders.

2 - DENVER UNION STATION

Original plan: Environmental study done in early 2005. Design and construction for light-rail access done by mid-2013. Cost: $268.5 million.

Current status: Environmental study is two years behind schedule. Cost for the project is $268.4 million.

Impact: Light-rail work to be speeded up for opening by end of 2012.

Recent selection of a private developer for Union Station could bring design changes and potential for more even delays.

3 - EAST CORRIDOR

Original plan: Study of proposed diesel commuter rail from downtown to DIA done by late 2005.

Service to begin by end of 2014. Cost: $702.1 million.

Current status: The study is two years behind schedule. Instead of diesel, electric rail cars will be used, and three more stations would be added for total of seven. Cost: $702.5 million.

Impact: Electric trains are quicker than diesel service. RTD says that despite the study delay, design and construction will start just three months later than planned. Service will still will begin at the end of 2014.

4 - GOLD LINE

Original plan: Light rail from downtown to Wheat Ridge and Arvada. Environmental study done mid-2007, with opening at the end of 2015. Cost: $463.5 million.

Current status: The study is 15 months behind schedule. Planners are considering electric commuter rail on original path, or light rail and streetcars on alternate alignment. Cost: $463.2 million.

Impact: Electric commuter rail is the only option on the original route because railroads won't allow light rail on this, and other, freight corridors. Still projected for opening at end of 2015.

5 - I-225 CORRIDOR

Original plan: Light rail from Parker Road to Fitzsimons, partly in I-225 median. Environmental study to start in late 2005. Cost: $442.3 million.

Current status: Light rail still planned as extension of T-REX. Environmental study has not yet begun due to impasse with CDOT over the use of I-225. Cost: $441.9 million.

Impact: Study to begin in spring.

RTD expects to use faster method of design and construction, used on T-REX, to keep mid-2015 opening date.

6 - NORTH METRO CORRIDOR

Original plan: Diesel commuter rail to Commerce City and Thornton. Study to start late in 2005, and construction late in 2011. Cost: $435.3 million.

Current status: Study started nine months behind schedule. Light rail, electric commuter rail and alternate alignments are possibilities. Cost: $437.7 million.

Impact: RTD now expects to start construction six months later than original schedule. Still plans on 2015 opening.

7 - NORTHWEST RAIL

Original plan: Commuter rail to Boulder and Longmont. Study to be done in mid-2005. Cost: $566 million.

Current status: Study is three years behind schedule. Final design will start a full year later than expected. Cost: $566 million.

Impact: The design phase will be shortened from 33 months to 24 months and the construction time cut by three months to keep the end of 2014 opening schedule.

8 - SOUTHEAST CORRIDOR

Original plan: Extend T-REX line 2.3 miles south into Lone Tree. Expand stations to handle four-car trains. Add parking to Lincoln garage. Cost: $183 million.

Current status: Four-car station platforms and Lincoln parking addition already done as part of T-REX. On schedule for 2016 opening. Cost: $182.6 million.

Impact: Originally planned to use traditional low-bid contracting method, this project may use faster T-REX method to combine design and construction into a single contract.

9 - SOUTHWEST CORRIDOR

Original plan: Extend Littleton line 2.5 miles to Highlands Ranch. New station at Bates Avenue. Expand all stations to handle four-car trains. Cost: $164.1 million.

Current status: No changes. Study to begin in late 2008, opening at end of 2016. Cost: $163.5 million.

Impact: On schedule, still talking with Englewood and private developer over possibility of building Bates station.

10 - U.S. 36 BUS RAPID TRANSIT

Original plan: Build express-bus and car-pool lanes in center of U.S. 36. Needs state funding for highway work. Cost: $225.5 million.

Current status: Final design now projected to start 15 months later than original plan. Bus ramps already built at some park-n-Rides. Cost: $225.5 million.

Impact: Delay in final design translates to two-year delay in start of construction; still planned for 2016 completion.

11 - WEST CORRIDOR

Original plan: Light rail to Lakewood and Golden. Final design to start beginning of 2006, with opening at the end of 2013. Cost: $508.2 million.

Current status: Construction inflation has caused numerous design changes and cuts, including running trains every 15 minutes instead of every five between the Denver Federal Center and Golden, and possibly using a single track instead of two in that stretch. Cost: $511.8 million.

Impact: Construction to start mid-2008, nine months earlier than original plan, in order to open at the end of 2012 - a year ahead of schedule.

RTD's light rail was pushed as key part of transit plan

FasTracks was sold to voters with the image of RTD's light rail as the cornerstone. But area freight railroads won't allow light rail to share tracks with it unless they use heavier passenger rail cars, which would hold up better in a crash. Now, RTD is considering several different transit vehicles:

• DIESEL COMMUTER RAIL

Considered for: North Metro, Northwest Rail

Cost: $3.6 million

Seats: 90

Length: 85 feet

Weight: 76 tons

Top speed: 79 mph

• ELECTRIC COMMUTER RAIL

Considered for: East, Gold Line, North Metro, Northwest Rail

Cost: $2.8 million

Seats: 90

Length: 85 feet