Light rail costs evaluated

Published : Wednesday, 20 May 2009, 3:25 PM EDT
By: Lori Crouch
NORFOLK, Va. – The sound of progress heralds a new wave of transportation – The Tide light rail system. Norfolk’s 7.4 mile line from Newtown Road stretches through downtown Norfolk to the EVMS medical complex.

At $288 million dollars, Hampton Roads Transit president Michael Townes says its a bargain.

“The $288 million dollars is about $38 million dollars a mile and this is the lowest cost per mile for this type of very high quality facility in the United States.”

Still $288 million is a lot of money. So, 10 On Your Side took a closer look at the projects expense reports. Using the Freedom of Information Act, we asked for records spanning a two year period from 2006 project bids to November 2008. On several occasions we found consultants charged 8 hours of work but the paper trail showed otherwise. In one example, a rental car was returned at 11:46 for a 1pm flight to Baltimore.

“The 8 hours isn’t just the 8 hours she spent on site. When she’s on the plane she may be working on our issues, she may have gotten up at 4 o’clock in the morning,” says Townes.

Townes goes on to explain the company was actively seeking small business contracts at the time. Then there’s the $920.50 dinner at a Phoenix Arizona restaurant in April 2007. The consultant at the head of the table, Alan Wulkan from Arizona based InfraConsult. On the guest list, Alan’s wife Jane, Norfolk councilmen Randy Wright and Paul Riddick. Wright’s wife Arlene and other city representatives from Norfolk as well as Phoenix.

All paid for out of light rail’s budget.

Townes says the trip gave the Norfolk contingency a chance to see a light rail system under construction. “We all got together at this dinner in a social environmental and we shared out experiences and we talked about what we saw and we talked about what we were going to do in Hampton Roads.”

Townes believes the expense was justified but Councilman Randy Wright disagrees.

“I was surprised to learn that it was turned in. I have always had a reciprocal with them. For every time they’ve treated me to dinner, I’ve treated them to dinner out of my own pocket,” says Wright.

10 On Your Side learned Infraconsult contract is worth $431,204. Yet on more than one occasion Wulkan paid for high priced meals then turned the receipt into HRT. Just a week prior to the Arizona trip, Wulkan, Councilman Wright and his wife dined at Kincaid’s. The bill totaled $240.87.

“All I can tell you i know there’s a small amount of money within the budget they have a right to use if they choose to,” says Wright.

10 On Your Side did find HRT keeps a close eye on its contractors. We found several letters turning down unauthorized expenses. Hundreds of dollars here and there maybe in a drop in the bucket for a multi-million dollar project but if HRT wants to ride the Tide into the future your money counts.

“It’s important that the Tide be extended throughout Hampton Roads and if we don’t build confidence in HRT as an agency that can manage a large and complex project in all aspects especially the financial aspects than that complicates the possibility that we’ll extend the Tide,” says Townes.

10 On Your Side learned this week the project budget will drop a half a million dollars. Townes plans to present the savings at the next board meeting.

We also learned what other cities are paying for their rail. Charlotte’s 9.6 mile system cost $462.7 million, the 5.8 mile system in Portland Oregon cost $320 million and the 8.6 mile rail in Los Angeles $868 million dollars.

We’re told construction is behind schedule. Instead of January, the Tide should be ready to ride in the fall 2010.

Norfolk has turned Wednesdays into Stay and Play parties. The Hard Hat Happenings as they are called were born from the Arizona trip.

Contractor contributions cover the $15,000 budget.

The money pays for hors devours and gives the public a chance to ask questions about light rail.