Streetcar engineers given a green light
Portland City Council lends $6.3 million in local funds for final design of east-side loop
POSTED: 04:00 AM PDT Thursday, August 21, 2008
BY LIBBY TUCKER, DJC
With federal financing still uncertain, Portland City Council agreed on Wednesday to spend local tax dollars to begin final engineering on the Eastside Streetcar Loop.
Commissioners approved $6.3 million for project management and design and civil engineering services on the $147 million project to build a new 3.3-mile streetcar route across the Broadway Bridge and south to the Oregon Museum of Science and Industry.
Final design has already been delayed two months while the city waits for approval of its $75 million request for Federal Transportation Administration small starts funds. In the meantime, each month of delay costs the city $500,000 due to construction contingency requirements that rise continually with inflation, according to the Portland Office of Transportation.
“I have confidence our congressional delegation and Commissioner Adams have worked hard (to secure funding) … this is a risk well worth taking,” said City Commissioner Dan Saltzman.
In June, an FTA analysis of the project’s cost effectiveness found it didn’t meet the agency’s funding requirements. Oregon congressional delegates are attempting to bypass the FTA process, however, and have achieved some success. The project was earmarked for $50 million in the President’s proposed 2009 budget as well as the Senate Appropriations Committee budget.
The city is now waiting for approval from the U.S. House of Representatives Appropriations Committee, which isn’t expected to release its 2009 budget until after the November election. Congress might also delay presenting the 2009 federal budget bill until next February or March, according to the city.
“The feds just really haven’t been supporting work around the country so there’s a pretty significant slowdown,” said Mark Dorn, a senior project manager with URS Corp., the engineering firm overseeing the project. “We’re hoping a new administration will pump money into transit.”
To prevent additional expenses due to the delay, City Council will pony up the money for final engineering in the hope that it will be recouped when Congress eventually approves federal funds for the project.
Under FTA regulations, any local funds spent on the project will count toward the federal matching funds requirement, said Vicky Diede, a project manager with the Portland Office of Transportation.
In all, the city will spend a total of $10 million in local funding to finance the conceptual and final engineering stages of the project. About $8.9 million of the total budget will come from the Portland Development Commission’s urban renewal area funds. Metro’s metropolitan transportation improvement project funds will cover the remaining $1.1 million.
Once final engineering is mostly complete early next year, the city will hire a construction manager/general contractor. Work on the new route is scheduled to begin next June, pending the approval of federal funding.
“Congressional delegates have stepped up and I have strong conviction this will be funded,” said Michael Powell, a board member of Portland Streetcar Inc. The city, he said, “will break the dam the FTA has put up to block streetcar projects.”