FasTracks price tag swells

RTD braces for another increase due next month

By Kevin Flynn, Rocky Mountain News (Contact)

Published June 18, 2008 at 12:05 a.m.

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Photo by Darin McGregor / The Rocky

Fred Britzius, quality control manager for the Denver Transit Construction Group, watches as concrete is poured Tuesday for the west abutment of a bridge being built to carry light-rail trains over Kipling Street near West 13th Avenue in Lakewood.

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RTD is bracing for another increase in the FasTracks program cost to be released next month, based on the new budget for just one of the projects approved Tuesday night.

With the West Corridor light rail's new budget approved for an increase of 11.5 percent by the RTD board, cost figures for the other nine FasTracks corridors and related projects in the $6.1 billion program are being recalculated to account for surging materials prices.

Don't expect it to hold at $6.1 billion.

The increases come at a time when RTD is trying to hold together the financial plan that pays for it all - a plan that's being undercut by sales tax collections coming in short of projections.

The RTD board also approved the start of work under two construction contracts for the West Corridor capped at $338.7 million and $62.6 million.

Even at that higher cost, the deal is buying less - $28 million less, to be precise. Rider and public amenities that had been part of the original project have been slashed, including fewer security cameras and phones, less landscaping, fewer railings and benches, simplified noise walls and a narrower bike path.

Since FasTracks went up from its original price tag of $4.7 billion to $6.1 billion in May 2007, there has been another year of hefty inflation in the construction industry - fueled by hikes in steel, concrete and oil. The Colorado Construction Cost Index, a measure of costs for transportation projects maintained by the Colorado Department of Transportation, increased 6.1 percent last year.

RTD's annual recalculation of all FasTracks project budgets is expected to be released by mid- to late July and transit officials aren't talking specific numbers yet.

Contracts capped

"It's very early in terms of knowing where we're going to be," RTD spokesman Scott Reed said.

The West Corridor construction contracts help protect RTD from further increases in material costs on that job because they are structured as guaranteed maximum prices.

Denver Transit Construction Group, a joint venture between Herzog Contracting, of St. Joseph, Mo., and Stacey & Witbeck, of Alameda, Calif., will build the major portion of the system including the tracks, bridges, stations, crossings, drainage and grading. Its contract is $338.7 million. It includes an inflation hedge of $5 million more in case of cost increases but the contractor is responsible for any increase beyond that.

Balfour Beatty, an international rail contractor based in the United Kingdom, has a contract capped at $62.6 million to install the electrical system for the West Corridor, including overhead lines and power substations.

Some of the items trimmed from the scope, starting with the additional security cameras and phones, could be restored if the $40 million contingency fund remains in place toward the end.

But the major factors that fed the jump in the West Corridor line through Denver, Lakewood and Golden also affect the other projects - principally the continuing cost increase of materials, labor and rights of way.

If the same percentage increase were applied to the entire program, FasTracks' costs could reach nearly $6.8 billion.

Unresolved right of way

With other FasTracks corridors still in preliminary design and environmental study, RTD is discovering unanticipated costs.

For example, planners on the FasTracks North Metro Corridor from Denver Union Station through Commerce City and Thornton completed a noise analysis this year indicating they will have to include more than 10 miles of noise-blocking walls along the Union Pacific freight tracks that they plan to use for diesel-powered commuter trains.

Originally, the North Metro Corridor was budgeted for only about eight miles of noise walls.

That cost increase, from $12.7 million to $16.5 million, has yet to be reflected in the North Metro Corridor's $637.2 million share of the overall FasTracks budget. Two years ago, North Metro's estimated cost was $420 million.

And RTD's failure to reach agreement with the Union Pacific railroad to use some of the existing track right of way close to Union Station has the agency looking into alternate alignments for four corridors - including the East Corridor to Denver International Airport.

While those new routes should cost less than what UP was asking for its land, they still could cost more than RTD had originally budgeted for right of way.

Going up!

The Regional Transportation District board approved a higher budget for the West Corridor light rail line through Denver, Lakewood and Golden, locked in contract prices and authorized start of work under two construction deals.

11.5 percent budget increase would take the project from $634.7 million to $707.6 million.

$338.7 million is the contract figure with Denver Transit Construction Group. A $62.6 million contract is with Balfour Beatty. They are so-called Guaranteed Maximum Price deals, under which the contractors bear the responsibility for future cost increases.

* The only exception is that RTD has agreed to provide up to $5 million to cover some increases in construction material costs that Denver Transit Construction Group might encounter.

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Comments

June 18, 2008

7:45 a.m.

Suggest removal

jacka writes:

Back to the ballot for another $3 billion. They abuse TABOR, create fleet issues, propose to pollute the environment (noise and air) and take the peoples' land, homes and business .... yet they are still behind.

Lets break the union and sell this pig off to Berkshire or George Soros.
June 18, 2008

9:16 a.m.

Suggest removal

Konyok writes:

And so the other shoe drops ...

On May 15 Kevin told us about RTD's plans to cut services because of an 11% increase in fuel prices:

http://www.rockymountainnews.com/news...

Now we learn, that despite what amounts to a depression in the construction business with housing starts in the basement, Fastracks construction costs will increase 11.5%.

Still largely unmentioned is the $126 million bond service, $63M in interest alone.

Light rail was a horrible mistake, it will take decades to pay it off and it never will replace a competently run bus system.
June 18, 2008

9:42 a.m.

Suggest removal

SteveFesch writes:

Perhaps now the people of Colorado will call for an audit of CashTracks?

Mr. Flynn any chance you could report on the salaries of the people "managing" this project?

Imagine how many buses could be running through the west corridor for $700,000,000.

Imagine the flexibility to change their routes based on demand? Imagine being able to in Imagine being able to buy new buses in 10 years when there is cleaner technology. What about 20 years from now? Imagine being able to operate within a budget?

Instead we are relying on 100 year old technology and diesel trains in some corridors. I've been warning you all over and over. This thing is going to top $8 billion maybe $10 Billion. When is enough enough? The budget is so blown already that RTD is now relying on private developers to carry the bulk of the load. Well who is going to bail them out when they go belly up in this economy? Better yet how many private developers are willing to put their own money up for a project that is already failing?

I suppose my earlier idea of moving people through the west corridor more efficiently doesn't make sense when RTDevelopments real goal is Transit Oriented Development. You see the fixed tracks "allows" RTD to steal people's land via Eminent Domain property along the corridor for themselves and chosen developers.

Sooner or later the masses are going to see through all the lies and BS that RTD keeps feeding us all.

I've been following RTDs every move since last Sept when they gave me my notice that they were going to attempt to steal my land from me at the Decatur station that isn't even needed for the light rail right of way. I have some real interesting things I'm keeping to myself for now. Stay tuned Rocky Mountain News readers. It's going to get real interesting soon......
June 18, 2008

9:45 a.m.

Suggest removal

Who_Me writes:

If diesel motor units are such a better deal than electric ones (the current light rail system), then why the hell weren't they put in before? I live up north and definitely do not want to hear diesel trains nor smell their exhaust. Something like 87% of people surveyed in the north metro expansion voted for EMUs, but the board decided DMUs were better. BS.
June 18, 2008

10:43 a.m.

Suggest removal

SteveFesch writes:

WhoMe I'll give you one reason. It's because rarely do citizens show up at the RTD Board of Directors meetings. I attended most of them from Sept to about April and it's rare that people even show up to voice their concerns. The way the RTD board sees things if nobody is watching, speaking out, or showing up they do what they want to do.

A series of really bad CHOICES have gotten the tax payers in this mess. Sure RTD can easily say "It's not our fault materials and fuel prices went up" but that is pure BS. It was painfully obvious decades ago that raw material prices were on the rise with the growth in Asia and beyond. For RTD to say we had no idea that fuel prices would go up is also a joke.

It's typical of a quasi government like RTD to not take responsibility for their actions. Nobody wants to assume the responsibility for destroying businesses and lives via the eminent domain process either. You see the RTD board of directors washed their hands of that process by giving FULL authority to RTD staff. There were a couple of RTD board members who voted against that but the majority of them don't want the ramifications of that. Most of them don't even feel responsible for the budget disaster we are in.

http://www.rtd-denver.com/TheBoard/sc... Here is the schedule for the RTD board meeetings. Show up and let them know how you feel.

Also these are YOUR elected officials. http://www.rtd-denver.com/TheBoard/in... Find out who is supposed to be representing you in your district and give them a call.

Oh and could somebody ask them when they plan on confiscating the private property of TWO HUNDRED more individuals on the West Corridor? Those properties were identified YEARS ago yet RTD is sitting on this information while home owners, business owners are going about their daily lives with little to no idea they are actually on RTDs hit list. You see one day you get a letter in the mail that says "We're taking your property". It's been almost 9 months since I got mine and during that time RTD has lied to me why they are taking my land, they'e lied to me about how much land they need, they'e lied to me telling me they will try to avoid me land, they stole my original attorney who was charged with an Ethics violation by the colorado supreme court, and most recently wrote me an ILLEGAL offer that I can't get into all the details as of yet.

Simply put RTD is not being honest with the public, land owners on the west corridor, and even the Colorado State legislators.

We have a train wreck in the making people. We can all piss and moan or get involved. You can start by holding YOUR ELECTED RTD BOARD member accountable!
June 18, 2008

11:45 a.m.

Suggest removal

Konyok writes:

SteveFesch,

I am ashamed that I never have attended an RTD board meeting. I will remedy that ...

You and I come from different directions here. I am an RTD customer. I do not have a car and I depend on RTD and the cab companies (regulatory monopolies) for every trip beyond walking distance. Light rail is causing a steady deterioration of bus service, I see it everyday. The board has focused on high visibility prestige projects, that gain favor in the suburbs, and has neglected its core mission of providing a transportation safety net for the region. (Yuppies ride the train to Broncos games, but it's getting more difficult and less convenient to get around the metro area.)
Light rail pulls all of the capital and experienced labor out of the system. The investment threshold is so high that we are now locked into a rigid model with very little wiggle room for innovation. (Consider: The capital invested in light rail could have built a world class facility to convert Denver's waste stream into methane and ethanol to fuel a larger fleet of buses.)

What is the difference between a board meeting and a study session?

I reckon that I'll probably see you either on the 24th or 15th ...
June 18, 2008

11:46 a.m.

Suggest removal

openmind writes:

A CashTracks audit is a great idea. Even DRCOG is suspect of RTDs budget numbers. Whoever is in charge of cost projections should be fired because they have yet to come up with accurate projections.

I suggest an audit of each and every RTD board member. Seems like several have a coin in the T.O.D. purse.

Here's a new one for the RTD ad campaign... RTDespicable.
June 18, 2008

11:49 a.m.

Suggest removal

SteveFesch writes:

If you have any doubt about what I'm saying and the confusion at RTD read this article from last year.

This article quotes LIZ RAO a top level RTD administrator IN CHARGE of Fast Tracks and she flat out DENIES that the project is over budget by saying "This can't be true".

http://www.denverpost.com/ci_5390405

Then there is this little gem the following day.

http://www.rockymountainnews.com/news...

RTD flat out says that "Material costs have gone up but not that much"

So where is the money going? Well some is going to the "Top Brass" for pay raises. Read this!

http://www.rockymountainnews.com/news...
Now is there any tax payer out there who thinks that the management of RTD should be giving themselves pay raises while they are BILLIONS over budget?

How about this article where RTD spent $15,000,000 on land they won't even use for the project. http://www.denverpost.com/news/ci_917... Meanwhile RTD is raising rates to the tax payers!!

Hmm maybe they should focus on TRANSIT services instead of Transit Oriented Development. Since when did our bus company become land developers anyway?

64 pages of RTDs plan for development along their light rail line. Where does it talk about offering efficient transit? Answer=It doesn't.

http://www.rtd-fastracks.com/media/up...

Oh last but not least this article talks about RTD hiring my attorney away from me. You see they offered him $1,000,000 to work on RTDs behalf instead of working on behalf of land owners like myself facing condemnation. Too bad the system just slapped him on the wrist but at least the Colorado Supreme court acknowledged the wrong doing. RTDs response to the whole situation is "That wasn't our fault". Typical.

http://www.rockymountainnews.com/news...

I'll post more later. There are big scandals in the makings. Stay tuned. Someone has to keep people informed because RTD won't do it. I will.
June 18, 2008

12:41 p.m.

Suggest removal

Konyok writes:

Steve,

How does Kevin Flynn fit into all of this? Sometimes he just seems to transcribe RTD press releases. (Disappointing considering the excellent work that he did with the white supremacists a few years back.)
June 18, 2008

1:09 p.m.

Suggest removal

SteveFesch writes:

Well Konyok as far as I understand it Mr. Flynn covers all things relating to RTD for the RMN. If there is an RTD meeting he's usually there reporting exactly what he hears. If it was not for the Rocky Mountain news most everyone in Colorado would be in the dark to disaster in the making for a our state.

Openmind: Here is the article you were referring to.

http://www.rockymountainnews.com/news...

Basically the Denver Regional Council of governments already told us that the $6.1 Billion dollar estimate is not correct and it's going to go higher.

"The committee approved RTD's current plan and passed it on to another DRCOG group for review, even though the plan faces more revision in the weeks ahead and DRCOG's staff and consultants reported RTD's current costs and revenues may be overly optimistic."

Here is another gem from the article. Here Ms. Rao who was CLUELESS about the the first few billion dollars budget problem the first go round is quoted as saying the new figures for the entire corridor will be out in June or July. We'll see what she says.

"Rao said the new budgets for each transit corridor and other element of the FasTracks program are being worked out and would be ready by late June or early July."

These people are throwing billions around as if money grows on trees. Meanwhile the people of Colorado are suffering through record foreclosure, CDOT says they need $1.5 billion per year just to keep up with our roads, and RTD is trying to raise rates even when more riders are supposedly riding the light rail system now.

You'd think that increased riders would help the bottom line to RTD's revenue but they are complaining it's hurting their bottom line. Just goes to show you how "efficient" RTD is.

The truth is coming out and more people are paying attention now which is a good thing.
June 18, 2008

1:17 p.m.

Suggest removal

Konyok writes:

Steve,

I guess that I'm disappointed that he isn't doing more muckracking ...

One aspect of the increased ridership = higher costs dilemma is the enormous number of eco passes out there. For a long time this was a warm and fuzzy PR exercise for RTD. For $100 a pop employers can give their workers a yearlong RTD regional pass. Since hardly anybody actually used them, it was a win-win. RTD got a bit more revenue and could congratulate themselves on how *green* they are. Employers could also pat themselves on the back. Now that more of these employees are actually using their eco passes the district finds itself in a bind. Meanwhile, those of us who actually buy a monthly bus pass have seen an increase of 100% in the last 6 years.
June 18, 2008

1:20 p.m.

Suggest removal

SteveFesch writes:

If you haven't heard about the "quiet crisis" going on with our transportation system then read this.

http://www.thedenverdailynews.com/art...
June 18, 2008

1:37 p.m.

Suggest removal

SteveFesch writes:

Konyok all I can tell you is just keep reading the news. I'd say overall the RMN has done a good job of keeping people informed but there is certainly more going on that the general public does not know about. I personally have several key pieces of information that RTD doesn't want the public to know but I'm heading into court if "Good faith negotiations" break down between myself and RTD in regards to the land they have already tried to steal from me once.

You see Konyok I own the only privately held piece of land at the Decatur station and they want it. The key word is "want" and not "need".

Rather than use government owned land that will be open space for their needs they are CHOOSING to ruin my business and squander more tax payer dollars. Like I said just keep watching the news. This mess is just getting started.
June 18, 2008

7:48 p.m.

Suggest removal

toast2042 writes:

Why rail and not busses?

Because 95% of the middle-class won't ride busses. They're bumpy, noisy and stinky. An altogether unpleasant ride. RTD has a much better chance of convincing suburbanites to ride rail than busses. Rail can also accommodate a much larger number of passengers than busses ever could and it easily scales up. It's called planning for the future. Shoot, every car taken off the road by rail is more room for your precious busses (which most of you will never ride) to trundle around in, stopping at lights, belching pollution and generally looking ratty.

Why does it cost so much?

Japan's rail agency actually makes money. You know how? Land development. They're one of Japan's largest developers, making rent on the large retail, commercial and residential complexes that they build around their stations. That's why RTD is "stealing" your land - because you won't approve the necessary taxes to fund the lines that will keep traffic moving. So they're going capitalist and making money the way transit agencies around the world do. And now you're complaining about that, too.

The long-term benefits of rail far outweigh the immediate and sometimes painful costs. However, the potential for economic growth resulting from pleasant and efficient transportation (also the denser, more valuable real estate around the stations) between the suburbs and the city is enormous.
June 18, 2008

10:18 p.m.

Suggest removal

AC writes:

SteveFesch: Where is your land exactly? If it's not needed for the tracks or the station parking, why do they say they need it? As I understand it, there has to be a transit purpose to any RTD eminent domain.

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Home › News › Traffic

FasTracks price tag swells

RTD braces for another increase due next month

By Kevin Flynn, Rocky Mountain News (Contact)

Published June 18, 2008 at 12:05 a.m.

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