RTD

Facing facts on FasTracks

The RTD FasTracks project was originally billed as a $4.7 billion savior to our region’s transportation needs. In 2004, voters who approved the measure were told that with FasTracks voters would know exactly what they are going to get, which was supposed to be a distinctive gem for the 8-county Denver metropolitan area. Today, the project is now at a critical crossroads. Critics are rightfully wondering aloud whether the project is going to end up being nothing more than a lump of coal paid for with billions in taxpayer dollars.

Recently, RTD’s Board of Directors wisely decided against placing a doubling of the FasTracks tax on the ballot this fall. Among the primary reasons for this decision was the likelihood that a tax increase proposed during turbulent economic conditions would likely fail at the ballot box in an off-year election.

At the forefront of RTD’s agenda these days is how best to sell this tax expansion to the voters. The expected ballot measure would likely include the addition of a .4% sales tax on top of the current 1% sales tax RTD receives on all goods purchased in the 8-county Denver metropolitan area. Before this region’s taxpayers are asked to deliver even more of our community’s limited resources to this special district’s massive and seemingly out of control project budget, RTD should consider the suggestions offered below as a means to gain back the public’s trust.

First, RTD must openly and honestly admit its mistakes. Please tell us where FasTracks went so very wrong. If it was poor fiscal forecasting, then tell us where you failed. Or, if it was RTD’s failure to secure assurances for right-of-ways from the railroads, then assure us that this won’t be an issue in the future. Please don’t just blame it on the cost of commodities and sales tax revenues. The public knows there is more to it than what we are being told.

RTD must also avoid letting our local elected officials down again. By and large, our local mayors and city councilpersons are a savvy and experienced group of leaders. Over the last few years, many have supported some of RTD’s unpopular positions regarding FasTracks because they recognized the important role that FasTracks could serve in their communities. However, RTD’s continued discussion of shortening lines does nothing but harm some of FasTracks earliest municipal supporters, including Boulder, Longmont and Thornton.

Currently, the Generally Assembly is evaluating the scope of the approved audit of RTD’s finances (i.e., an audit is required every five years). One would expect that FasTracks will be included in this audit. Irrespective of this audit, RTD must still take proactive steps to detail why the overall project costs have risen so dramatically.

Any admissions of mistakes by RTD must include a detailed assessment of how the cost estimates were so dramatically incorrect and an explanation of how these past mistakes will not be repeated. Specifically, the public deserves to know why updated project estimates are feasible and realistic.

If an essential project cost is contingent on certain events, please provide sufficient detail and worst case scenarios. After nearly five years of experience on the project, RTD must have a reasonable handle on these project contingencies. If not, then put someone is charge who does. The taxpayers do not deserve any more surprises or broken promises.

At this point in the project, RTD is well aware of the land required for successful completion of the project. Much has been discussed and written about RTD’s attempted use of eminent domain to acquire requisite land and, accordingly, RTD should disclose targeted land and how much it will cost the community. In the case of the Owens Corning shingle factory or other similar impacts, the disclosure must include not only the cost of acquiring the land but the likely loss of jobs and a profitable Colorado business.

Next, shed some light on FasTracks’ expected maintenance and operation costs over the next 25 years. What costs and expenses are we signing up for long-term? Once the new lines are in place, RTD should describe how these costs will be covered; albeit fees, taxes, or other avenues.

In addition, please give the public a reasonable and defendable completion date. Please spare us the pie in the sky dates if you want to restore some of RTD’s credibility.

In order to accomplish all of these objectives, FasTracks requires effective management, especially with the pending departure of RTD General Manager Cal Marsella. Regardless of individual fault, there are far too many broken promises by the current management and leadership team as a whole to trust the job to anyone within the existing power and decision-making structure. Potential management solutions could include the appointment of one person to manage FasTracks and another to manage the existing infrastructure.

Finally, RTD should consider establishing a FasTracks advisory committee composed of leaders from both sides of the political aisle. The advisory review committee should include FasTracks supporters who are the “who’s who” of the Denver business and political community. As a means of rebuilding the image of FasTracks, this committee’s primary charge would be to challenge project assumptions and strategies to ensure that proposals are thoroughly scrutinized and credible.

RTD’s lack of credibility in its management of the FasTracks’ budget combined with uncertain economic conditions effectively doomed any chance of a tax increase passing this fall. If RTD seeks to place a tax increase on the 2010 or future ballots, the immediate focus must be on taking proactive steps necessary to regain the public’s trust, including publically detailing where RTD went wrong and how it has learned from its mistakes.

FasTracks still has the potential to be a real gem for this community, but currently the project just looks like a lump of coal.

Face it, FasTracks is a failure

RTD presents five FasTracks options to the public. All are permutations of the original plan, ranging from shortened lines and curtailed service, to the full system. Mentioned with muted voices are possibilities of a 2034 completion date, and the 67% tax increase approved in 2004 becoming a 116.67% increase. More federal grants will be requested. This would also fall short, even in a mild recession.

The original 0.6% tax thirty years ago (!) was authorized with the stipulation of providing rail. None was built. Recognize that sales tax increases hurt business. Taking billions out of the economy is recessionary.

The project is currently $3.2 billion over budget, with $2.8 billion tax revenue shortfall anticipated. There’s the matter of each community being assessed 2% of the cost. Most communities have no idea where this is coming from. Some say, “in-kind services.” Mysteriously, this recently became 2-1/2%. Look for a local tax increase. The Federal share could build all the highways we need.

The economic downturn and rising materials costs are blamed. Many other major projects are progressing. There was intentional low-balling and ignoring of associated items, to make the project more attractive. Add a generous serving of incompetence.

Continuation of these rail options is a distraction from proven transportation solutions. Original RTD and Denver Regional Council of Governments (DRCOG) studies ranked rail as less efficient than bus rapid transit (BRT), in terms of speed, frequency, flexibility, capital cost, and operating expenses. All recent US General Accounting Office (GAO) Reports to Congress reinforce this. Rail projects across the country are financial disasters with declining ridership. Only one city, New York, has a rail system that carries as much as one freeway lane.

FasTracks was conceived as a response to traffic congestion. DRCOG forecast a negligible 0.43% reduction by the target year, with consultants predicting zero effect. Note that transit oriented development (TOD), catchwords for liberal urban planners, invariably causes sub-regional traffic congestion. Recommendations are made for nearly 30 times the typical suburban density, requiring high rise buildings. Suggestions are made for forcing people to use rail and live in TODs.

Much of the impetus for the project comes from land speculators who profit by obtaining local council high density approvals. Eminent domain abuses are inflaming the public.

Proponents admit that the project is a fiasco, progressing because of voter approval. Voters were given the choice between a rail project, or no project. The ballot offered no choices or comparisons of proven alternate modes. Voters were asked to choose the most costly project in Colorado’s history on the basis of feel-good slogans. Public comment is limited to minutiae… bicycles on trains, toilets in stations…with basics avoided.

Why continue the fiasco? RTD recently let a $184 million no-bid contract, after learning that the contractor has been involved in massive bribery scandals. Audit reveals their $2.3 billion slush-fund for “questionable transactions.” $543,000 in political contributions were made by contract recipients. RTD's manager has an annual half-million package, and his city councilor wife is involved in TOD approvals. It’s called wiring contracts by “pay-to-play” manipulators. Firms making six-digit contributions expect, and receive, contracts.

Existing Denver rail runs at 10% of capacity, as compared to nearly 40% nationally, and with many riding because of curtailed bus service. FasTracks will increase air pollution and create 138 grade crossings and 2,000 dead ends, seriously hampering emergency vehicle response.

This project is a dog and should be repealed.

RTD: Vote tax-wary & union-tough

Here are my picks for director races in RTD. It's one of Colorado's biggest governments, and as such should have the benefit of competitive party-labeled campaigns. But I couldn't get fellow Republicans to back my Senate bill to that effect years ago, so we're stuck with guesswork and the grapevine as far as knowing who the good guys are. My definition of good guy is a transit board member who will (1) resist the crazy move for higher taxes to rescue the busted FasTracks plan in lieu of a realistic makeover and (2) hang tough against the unions who have been gaining ground on the agency since Dems took over the statehouse.

Shorthand for those qualities is a Republican voter registration. Unfortunately there's not one in all the races this year, in fact 3 of the 8 races don't even feature a contest. That's another result of the nonpartisan obscurity in which RTD merrily spends our money.

So my recommendations are:

District A - Bill James, unaffiliated but tax-wary and union-tough

District G - Republican Jack O'Boyle

District H - Republican Joe Stengel

District M - Republican Ramey Johnson

On District F our research came back inconclusive, but incumbent Yamrick is bad on taxes and unions, so call it a coin flip between Tobiassen and Staples.

District D, District E, and District I are the ones where incumbents will get a free ride (unlike the $20 ride you get on light rail when all costs are factored in) to reelection, as they have no challengers.