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"Our over-reliance on cars and $4-per-gallon gasoline has led us to dig a really deep hole for ourselves. The Purple Line is the ladder that helps us climb up out of this hole toward the light of rational land use, friendly commutes and a stable climate." Mike Tidwell, director of CCAN |  |
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Dulles Corridor Rail Association February 28, 2008 Current Status: The most recent steps that have been taken regarding the Dulles Corridor Metrorail project are captured in correspondence between Federal Transit Administrator James S. Simpson and Governor Timothy M. Kaine and from James E. Bennett, President and Chief Executive Officer (CEO) of the Metropolitan Washington Airports Authority (MWAA), and Administrator Simpson in letters dated January 24, 2008, and February 1, 2008. In his January 24, 2008 letter, Federal Transit Administrator (FTA) Simpson outlined a number of concerns that FTA had with the Dulles Corridor Metrorail project. These include: "(1) the management arrangements under which the Project would be implemented; (2) MWAA's limited experience with transit projects and with exceptionally large design-build contracts; and (3) the uncertainties of the Washington Metropolitan Area Transit Authority's (WMATA) ability to finance its ongoing capital needs systemwide in order to maintain service levels and a state of good repair." In his February 1, 2008, letter, Governor Kaine said that he hoped his response to the issues raised by FTA would be the basis of a dialogue with federal transportation officials. Kaine wrote that the project contractor has agreed to mitigate price and schedule impacts for at least 30 days to allow the opportunity for dialogue. Issues Raised by the Federal Transit Administration: (Simpson letter to Governor Kaine, January 24, 2008) Responses from Governor Kaine and Airports Authority President Jim Bennett in letters dated February 1, 2008 Cost Effectiveness: Both Kaine and Bennett note the FTA accepted $242 million of proposed reductions, which reduced the overall project cost to $2.55 billion ($2.96 billion including financing). Capital Financial Plan: The January 24, 2008, FTA letter raises concerns about the capital financial plan. In response, Bennett notes that the size of the anticipated TIFIA loan has been decreased and the size of the Dulles Toll Road revenue bonds has been increased by approximately $70 million, increasing the percentage of committed local funding to over 75 percent,and thus meet the threshold for a “Medium High” rating for Commitment of Capital Funds. Bennett also notes that the forecast Dulles Toll Road transactions have been updated to reflect the actual toll revenues and the base case has been modified to reflect an annual growth in toll transactions of 0.4%, a conservative forecast that shows revenues from the toll road are adequate to finance the local share of the project. Bennett notes the team has restructured debt repayment assumptions and the operating plan has been updated. Based on WMATA’s strong commitment of operating funds and its financial commitment and reasonable planning assumptions, Bennett states the Operating Financial Plan should be eligible for a “Medium” rating. Capacity of the Airports Authority and Project Management Team to Manage the Project The Airports Authority’s responded to concerns about its capacity by providing the professional qualifications of the consolidated project management team and materials showing the integration of the team with WMATA, Fairfax County and other project partners. It also provided a description of its $7.2 billion capital construction program, which includes a $1.3 billion automated fixed guideway system. Project Design-Build Contract Bennett’s February 1 letter states that Dulles Transit Partners (DTP) has assumed the risk of completing the majority of the project for the firm fixed-price of $1.1 billion of the $1.6 million contract, thus addressing FTA concerns about unrestrained cost escalations and costly schedule delays. Approximately $500 million of allowances are not included in the fixed-price contract to provide for a competitive, transparent procurement environment once the design for such items is sufficiently developed to enable subcontractors to bid on the work. Ability of WMTA to Finance its System-wide Capital and Operating Needs and to Maintain the Project in a State of Good Repair. Bennett notes that the WMATA Board of Directors has determined that the Authority will be financially capable of operating and maintaining the project. It voted to approve the financial plan for the project on June 24, 2007. The project will represent less than 4 percent of the Capital Improvement Program for 2008-2013. WMATA member jurisdictions have made a commitment to long-term rehabilitation and replacement needs through the Constrained Long-Range Plan from 2007 through 2030. Both the Commonwealth and the Airports Authority recognize that a regional strategy is needed to address WMATA's long-term capital needs. Substantial progress has been made In 2007, the Virginia General Assembly approved a transportation funding bill which includes funding sources for transportation projects in Northern Virginia of which $50 million would be dedicated to WMATA off the top. On April 27, 2006, Mayor Anthony Williams signed a bill to dedicate one half of 1 percent of the DC retail sales tax to provide additional funding for maintaining and improving Metro. In 2007, the Maryland General Assembly provided dedicated funding for WMATA through the State’s transportation trust fund. As Bennett notes in his letter, these funding sources, along with the passage of Federal legislation to provide matching funds, would provide a steady stream of funding for WMATA’s long-term capital needs. In concluding his letter, Bennett says that he believes the project qualifies for an overall "Medium" rating. Both he and the Governor call for working through any remaining issues with the hope that a continuing dialogue among all parties will enable this important regional transit project to move forward. A number of other letters have been sent in support of the project by public officials and can be found at www.dullescorridorrail.com. FTA is in dialogue with representatives of the Commonwealth of Virginia, Airports Authority and the Project Team. As of February 28, there have been no official responses by FTA to the additional materials that have been provided by the project team. Public Support and Outreach Activities: In late October 2007, The Dulles Corridor Rail Association (DCRA) commissioned a survey that indicated 93 percent of Northern Virginians and 87 percent of residents regionwide support the Dulles Metrorail project. DCRA placed two full-page ads in the Washington Post on January 10 and January 29, 2008, and one in the Washington Examiner on January 16. The January 29th ad was in the form of a letter to President George W. Bush asking for his support. The Greater Washington Board of Trade and the Washington Airports Task Force signed onto both ads, which also included a list of businesses and groups supporting Dulles Metrorail Now! The Greater Washington Board of Trade held a Press Conference on January 25, at which the Secretaries of Transportation of the District of Columbia, Maryland and Virginia expressed their support of Dulles rail. Patty Nicoson, DCRA, and Jim Dinegar, BOT, also provided remarks in support. The Letter to President Bush ads was also placed in the Washington Times on February 1 the date of a press conference organized by the Dulles Regional Chamber. Other business groups that participated in the press conference included the Loudoun County, Fairfax County, and Greater Reston Chambers of Commerce, the Greater Washington Board of Trade, the Dulles Area Transportation Association, the Dulles Corridor Rail Association, the Committee for Dulles, and the Washington Airports Task Force. The press conference, highlighted the different positive impacts that rail will have on large and small businesses, hospitals, and nonprofits, employees, and individuals and the problems businesses have now because of a lack of reliable rail transit in the Dulles corridor. The businesses groups are cooperating on an extensive communications campaign the purpose of which is to demonstrate to the Secretary Peters, Administrator Simpson, President George W. Bush and members of the Bush Administration the tremendous support for the Dulles Metrorail project. The campaign has involved writing letters, sending faxes, and making phone calls to key officials. The Commonwealth of Virginia, Airports Authority, and Project Team are working with FTA to provide information to resolve issues so that the project can receive FTA approval to move forward. Sign on in support of Dulles Metrorail Now! Supporters of rail have a created the Dulles Metrorail Now! advocacy group. Visit www.DullesMetrorailnow.com to sign up in support of the Dulles Metrorail project and to receive project updates. |
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68,000 riders each weekday is huge! Counting down to completion of Purple Line DEIS; Latest news: Latest News; How you can help 
See: We need you to help keep the Purple Line a state and county priority. Write a letter, make a call or send an e-mail in support of the Purple Line today. See: Contact List |
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