FasTracks up to $7.9 billion
RTD's annual cost evaluation adds nearly 30 percent
By Kevin Flynn, Rocky Mountain News (Contact)
Published August 21, 2008 at 11:36 a.m.
Updated August 21, 2008 at 11:36 a.m.
FasTracks' price tag has increased again, to $7.9 billion, and RTD officials will ask the public for its ideas on dealing with the budget crisis.
The agency plans to seek comment on the three strategies it outlined last month — lengthening the construction schedule, scaling back, or seeking more tax money.
The latest cost is nearly 30 percent higher than just a year ago and 68 percent higher than the original $4.7 billion price tag when voters approved a tax increase for it in 2004.
The agency blames the problem on a sharp escalation in construction costs and declining sales tax collections, a key part of FasTracks' funding.
The entire project was supposed to be completed by 2017.
Under a longer construction schedule, RTD says it can meet its original timetable only on the commuter lines to Denver International Airport and Arvada-Wheat Ridge, along with the light rail under construction to Lakewood and Golden.
That means delays on commuter lines to Boulder-Longmont and Commerce City-Thornton, and light rail extensions along Interstate 225 in Aurora plus the T-REX line to Lone Tree and the Littleton line to Highlands Ranch.
The staff analysis says that if RTD cuts back lines and stays on schedule with the others, it would cost $5.9 billion by 2017. If it tries to build all the original lines but over an longer period with the current tax rate, it would cost $8.7 billion if completed by 2022, $9.2 billion if done by 2027, and $9.7 billion if done by 2034.
The third option, asking for another tax increase or finding substantial new outside money, would allow completion of the full scope on the original schedule for $7.9 billion.
But last month, metro mayors said they are reluctant to back any further tax increase for the program. Even so, they declined to back a delayed schedule or cutting any of their lines.
RTD staff, led by general manager Cal Marsella, said it wants to present the elected board with a recommendation Nov. 4. It will solicit advice from the Metro Mayors Caucus, county commissioners, the Denver Regional Council of Governments, Colorado Department of Transportation and the Denver Metro Chamber of Commerce.
RTD also plans to hold public meetings for input.
Last month, Marsella conceded the cost increases and lower revenue meant RTD couldn't deliver the program as originally promised to voters.
He has has pointed out, however, that RTD had plenty of outside scrutiny when the original numbers were crunched. That included several independent evaluations of its cost assumptions and projections, which went south a year after the vote construction costs started to soar.
"We're not going to stand back and be segregated and be told 'It's all your problem, it's all your fault, you should have known better,' because it got voted on by everybody in the region and everybody accepted the plan," Marsella said at a RTD board committee meeting last week.
"I'm not going to stand by for Monday morning quarterbacking or cheap shots from the sidelines, because everybody was involved in this. This was a regional effort and a collaborative effort, and so the solution will be a collective regional effort."
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August 21, 2008
11:55 a.m.
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Scott writes:
Reminds me of the cost overruns of Democrats In Action, DIA.
Scott
August 21, 2008
11:59 a.m.
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dwo writes:
Someone's got to give.
August 21, 2008
12:01 p.m.
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EnlightenedOne writes:
Scott:
Now that it's all said and done, are you glad we have DIA?
August 21, 2008
12:08 p.m.
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fntsymtn writes:
Herein lies the problem with all programs that rely on sales taxes. When people stop spending money either because there is an economic recession or because the taxed product is no longer reasonable to buy (think cigarettes), programs that rely on those sales taxes and the projected revenues from future sales taxes will always fail. FastTracks is just another example of an extremely poorly thought out government plan that will eventually result in a bail out by Colorado citizens.
I do not understand how decreased revenues can increase costs. Can someone explain this to me?
August 21, 2008
12:18 p.m.
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EnlightenedOne writes:
fntsymtn writes:
"I do not understand how decreased revenues can increase costs. Can someone explain this to me?"
They don't, but they add to the problem. Over the last year, there have been a number of articles in RMN and the Post regarding the cost increases. In a nutshell, it boils down to increased demand for materials like steel (largely due to increased construction and automobile sells in China); the weakening value of the US dollar; and the increased cost of oil (which is consumed in mining, processing, and transporting the materials).
So, RTD's costs are going up; and their sales tax revenues are down. That's the problem their board is faced with.
August 21, 2008
12:25 p.m.
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Gonzopozo writes:
Colorado voters deserve this, voting for a "pig in a poke" and giving them all that money for a pie in the sky project like Fastracks in the first place.
Revoke the tax increase NOW and let RTD come back with a realistic proposal in November.
August 21, 2008
12:28 p.m.
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fntsymtn writes:
so : "The agency blames the problem on a sharp escalation in construction costs and declining sales tax collections, a key part of FasTracks' funding."
Is just a poorly placed comment in the story? The "problem" stated does not apply to the paragraphs directly preceding the statement, but rather to the whole article and should most likely have been placed much farther down in the article.
I'm curious now: is Kevin Flynn mis-representing what the agency stated (through his article) or did the agency actually state in context that the problem (68% increase in total project cost) is partly a result of declining sales tax collections. I sure hope it's the former.
August 21, 2008
12:37 p.m.
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fntsymtn writes:
My proposal:
1. Build only those portions of the lines that RTD has the funding to build now (let voters decide on which lines to build).
2. Increase the rate on all RTD transit service to cover 100% of the operational costs to provide the service. So that sales tax revenues are not used to subsidize operations and only for capital.
3. If ridership on existing transit service is adequate to cover operational costs, thereby showing that Colorado residents actually want the service, extend the sales tax to cover the developments that were promised under the original FastTracks proposal and build out the rest of the plan. If ridership is not adequate to cover operational costs, scrap the remaining FastTracks lines and end the sales tax.
August 21, 2008
12:45 p.m.
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Who_Me writes:
How about when you quote a cost, you start digging then and there? How about Union Pacific sticking a few cars on the currently unused line up north and do what RTD has and will fail to do in a timely manner? How about getting some pork barrel oriented senators to get some federal monies for this? If a bridge to nowhere can be built in West Virginia, then why not a few miles of rail line in Colorado? Are our senators even alive?
August 21, 2008
12:51 p.m.
Suggest removal
cobanobs writes:
Froward69 writes:
Is it yet time for RTD board members to receive a pay cut???
Froward:
Pay cut? Not likely! Last year, the State Legislature quadrupled the salary of RTD Board members from $3,000 to $12,000 a year. In addition to that compensation they receive free health insurance. Not enough? Most Board meetings are catered with a tax-payer funded buffet. The Board members take many tax-payer funded trips throughout the year. Check RTD's website yourself to see their travel schedule. Perhaps it's time for them to fire Mr. Marsella and then resign their own positions.
August 21, 2008
12:54 p.m.
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Willy writes:
It's a bargain compared to the $30 billion "Big Dig" in Boston which created the world's largest publicly funded car wash as the major route to one of the crappiest airports in the country.
August 21, 2008
12:55 p.m.
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Scott writes:
EnlightendOne asked me: "Now that it's all said and done, are you glad we have DIA?"
Not really, I still prefer the old Stapleton over DIA. I had always flown United and they rebuilt the old B concourse into a nice modern facility. Also, Stapleton was a whole lot closer.
Scott
August 21, 2008
1:18 p.m.
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YourNeilness writes:
The cost increases are not a surprise considering the current economic landscape that the republicans have created for us.
Whatever the cost, it's worth it to have a viable light rail system to give people the option of leaving their gas-burning vehicles at home and get around town in a reasonable manner. Continue and/or raise the tax to cover the costs.
August 21, 2008
1:21 p.m.
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mark79trans writes:
Faulty number projections and cost overruns were a major part of the opposition when this was passed. Not everybody voted for this mess. Unfortunately, a majority of people failed to listen to reason. If we bail RTD out now, it will come back to us again. These rail lines should be tied to regional highway projects such as T-REX (finished two years early and under budget!) while adding 19 miles of double-track light rail throughout the metropolitan area at a total cost under the 1.67 Billion budget. People can say what they will about the Owens Administration, but they new how to write a contract and make it stick! To circumvent the Joint Budget Committee (JBC), and Department of Transportation's (DOT) regional transportation planning is foolish and so is FasTracks. I doubt FasTracks will get one regional line up and running in the same time it took to complete T-REX. It has been 4 years and nothing is done....what a huge waste. RTD should NOT have this project and we the voters should not bail them out.
August 21, 2008
1:23 p.m.
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BMat writes:
RTD General Manager Cal Marsella said, "We're not going to stand back and be segregated and be told 'It's all your problem, it's all your fault, you should have known better,' because it got voted on by everybody in the region and everybody accepted the plan," Marsella said at a RTD board committee meeting last week.
_____________
Ummm, OK. But not everybody even "accepted the plan" that was outlined on the ballot unless you're saying nobody voted against it.
Now Mr. Marsella you've changed the original plan to compensate for your own poor projections. That's only your fault.
This is a hood-wink, a bait and switch. Can you hear your political aspirations going down the drain Cal - or do we need to vote on that too?
August 21, 2008
1:24 p.m.
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superbad writes:
Here's my idea: scrap the whole thing and give us our money back. You can build the (desperately needed) line out to the airport, and maybe finish the west corridor line that's already under construction.
Come back to us in a couple years with an affordable proposal to rebuild the old streetcar system that used to link the inner ring suburbs with downtown and maybe we can talk.
August 21, 2008
1:35 p.m.
Suggest removal
mark79trans writes:
superbad writes:
Here's my idea: scrap the whole thing and give us our money back. You can build the (desperately needed) line out to the airport, and maybe finish the west corridor line that's already under construction.
Come back to us in a couple years with an affordable proposal to rebuild the old streetcar system that used to link the inner ring suburbs with downtown and maybe we can talk.
----------------------
Better yet, scrap FasTracks and let Russell George who is the outstanding director over at the Department of Transportation come to us with a proposal...that is if Ritter, FitzGerald and Romanoff left anything for transportation. George was a key player in T-REX when he was speaker of the House. Get RTD out of this!
August 21, 2008
2:09 p.m.
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Vertigo700 writes:
There is one thing I don't understand about all this stuff with "declining revenues from sales taxes." I understand that times are tough and people are not spending as much money, but Denver is still relatively stable compared to many other cities.
In addition, the Denver metropolitan area keeps growing. The Metro area has grown by at least 13% since we voted on this thing and grew by more than 55,000 in just the last year (And these numbers do not include Boulder County which has also seen a population increase). Even if people are spending less money, the increase in the number of people spending money has to at least partially make up for that funding gap.
So I just don't understand RTD's revenue streams. I've read before that more people are using public transit, meaning more fares are being collected by RTD. And since more people are moving to the region, there shouldn't be that much a shortfall in sales tax collection. The Rocky also recently reported that tourism has increased in Denver substantially. Tourists buy things don't they?
I am just not understanding these figures. Does Cal want to explain them to us?
August 21, 2008
2:13 p.m.
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tjpatriot writes:
What do they care? Public money is Monopoly money to them.
This is characteristic of any government function using public funds. They lose touch with where the money comes from and the sacrifices given, and to them it's like play money. You can see it anywhere you look.
August 21, 2008
2:20 p.m.
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jonas writes:
I didn't believe their numbers when I voted against it. They lied then.
I don't believe their numbers they use as projections now. They are lying.
August 21, 2008
3:02 p.m.
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cdmdenver writes:
RTD COST OVER BUDGET...
WHATS NEW??
Jon Caldara has been right EVERY time
when it comes to RTD and their intent
to shove Mass Transit down our throats
at ANY COST!
We need public transportation, but not
that crap RTD spews for Public Consumption.
RTD at any price-IDON'T THINK SO!
August 21, 2008
3:20 p.m.
Suggest removal
lawguy writes:
If Denver is going to compete as a truly modern city in a modern economy, Fastracks is a necessity. Without viable public transportation, this city will not be able to grow and thrive. Yes, the cost stinks, but most valuable things in life cost money - remember, you need to spend money to make money.
None of this would even be an issue if the far sighted voters in the '70s had approved a rail plan. Let's not do to our kids what our parents did to us - let's build this thing already!
August 21, 2008
3:32 p.m.
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Scott writes:
Yes, we do need a modern transportation system. However, the jist of this article (and comments) is the lying that came out of RTD to get the funding passed by the voters. Am I mad that the voters approved FasTracks? No, even though I voted against it. Am I realllyyyy pissed off about the lying from RTD? You better believe it. Also, just saying "well, we really need it, so let's move on and fund it," only rewards the lying !@#$ at RTD. Heads need to roll at RTD and then the replacements should have to go back to the voters for more funding. It's a thing called "integrity and trust."
Scott
August 21, 2008
3:45 p.m.
Suggest removal
mombo writes:
The "hate every tax" libertarians can be ignored...
To everyone else, it is completely understandable that this (cost over-runs) has happened, and it isn't because RTD "lied to us". We are all paying more today for our own living expenses than we paid a year ago. RTD's expenses for operations have gone up every bit as much as our own living expenses. Construction costs & raw materials continue to go through the roof. FasTracks has been studied & re-studied for years. It is painfully clear that this region needs improved public transportation. This is important to the passengers on RTD, the drivers on our highways, and anyone who employs either a transit rider or a motorist. The responsibility lies with all citizens of the region to "pony up" and pay for our infrastructure. Let's get this thing built on time.
August 21, 2008
4:05 p.m.
Suggest removal
binford writes:
Read the article. There were MULTIPLE INDEPENDENT COST EVALUATIONS that confirmed the original price tag. It's not a case of RTD trying to screw everyone.
Denver needs this. A decent public transportation system is a rare thing in America, and we've been getting constant press attention admiring our ambitious plans to build one here in Denver. You want a good economy in Denver's future? We need a city that attracts young, educated people, because we certainly aren't generating enough at home, given our abysmal spending on higher education. It's a shame that we have so many people that consider anything besides a massively subsidized highway and avaition system to be pork.
Keep in mind, folks, that exploding costs and deteriorating services characterize all the alternatives, except if we're talking highways instead of rail, the funding gap is in the tens of billions.
August 21, 2008
6:57 p.m.
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prk166 writes:
It should be no surprise that they're this far off in planning. When they were planning, they didn't take into account construction and commodity inflation, only the CPI. That is, something that meant nothing with what they were planning on doing.
August 21, 2008
7:58 p.m.
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jjez writes:
I've got to mark my calendar. This is a momentous day! I actually agree with Froward about the board taking a cut in pay! I think I may have to crawl into bed and pull the covers over my head and hide for a while to get over the shock. ;-) It would be nice to have a good rail system. I enjoyed riding it when I worked downtown, but they really didn't take into account how many would drive to the stations because they sure didn't build enough parking for it to begin with. And if I ever (GOD FORBID) have to work downtown again, I will probably take advantage of it again. It sure beat sitting in traffic and paying for parking! The problem we as a society have is that we are way too dependent on our cars. Maybe by the time they finally get this done, we'll have weaned ourselves a little.
August 22, 2008
7:39 a.m.
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delnorteknight writes:
Construction costs are up. Ridership is up. It is doubtful that there was any intent to deceive the taxpayers on the costs. It seems that all public works projects on a scale as this cost more, and 2x the original estimates isn't unusual. The metro area needs this vital component to our transportation system and the sooner it gets built, the better.
Twenty years from now, nobody will ever remember that the costs weren't what the engineers estimated.
August 22, 2008
9:01 a.m.
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Scott writes:
delnorteknight,
Didn't T-Rex come in early and under budget?
Scott
August 22, 2008
9:50 a.m.
Suggest removal
mombo writes:
Wow. Duncan dissected every line of my post with incorrect, self-centered or inappropriate responses! The simple fact, despite his/her dispute, is that inflation has happened. Steel costs more. Fuel & asphalt cost a LOT more. If RTD needs to buy more land or right of way, that is a lot cheaper, but that is about it. Anyone who has driven a car or bought food in the last year understands that our personal budgets are being blown apart. This has happened to RTD as well.
Effective public transportation is a vital aspect of this area's prospects for economic success. Waiting 5 or 10 years to build FasTracks will hurt our economy and our lifestyles. Whether Duncan likes it or not, this project will happen. He/she should go crawl back into a cave & not take part in our regions success, or join the party & play nice.
August 22, 2008
11:05 a.m.
Suggest removal
NeilT writes:
mombo - "We are all paying more today for our own living expenses than we paid a year ago."
Duncan - "I'm not"
LOL!!!
I'm curious, Duncan. What effect does living in a vacuum have on your body? Does your body grow a few inches in every direction? In your educated opinion, do you think your vacuum habitat could have a lasting positive impact on those of us that suffer from debilitating arthritis?
August 22, 2008
11:14 a.m.
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jvb writes:
Isn't that about a month's wages, $7.9 billion, spent in Iraq that McCain seeks to continue, and continue, and continue? McCain is so dumb: He says to destroy or conquer evil when you see it. His biblical god in Isa. 45:7 created evil. How can he destroy something his god creates? The guy owns 7 houses (condos) and wants to move into public housing where even the food is furnished. He says life begins at conception. Is stem cell life? Is it a human that has human rights? Even if it is life, it is a parasite: life living off the living. McCain does not need public housing. If we get out of Iraq we can build light rail that will put Americans to work and the money stays in America, hopefully.
August 22, 2008
2:36 p.m.
Suggest removal
jvb writes:
• Another strategy in the senile man's notebook is: "We need to change Russia's behavior," and this was before Russia invaded Georgia, but it gets worse. Lame McCain says he will capture Osama bin Laden if he has to follow him to the gates of hell. According to the pope and Jehovah’s Witnesses, hell is a man-made construct. Non-believers will simply cease to exist and not touch basis with the biblical god, but it gets worse: How many soldiers will have to die to capture Osama? Even Bush has given up on the capture of bin Laden. Get out of Iraq and secure Afghanistan so ol’ bin can’t get back in.