Adapting to higher costs
Some options to save the Wave include shortening its route, seeking new bids or finding more money. The alternative is to abandon the project altogether. There are problems with each:
Scaling back. Critics already complain that the planned system — with a route on or near Andrews Avenue that extends from Northeast Sixth Street to Southwest 17th Street — won’t get you very far. Any reduction would further limit its appeal and raise questions about the feasibility of expansions to the airport, the county convention center, an educational campus in Davie and TriRail near Interstate 95.
Getting more bids. Unless officials can identify a specific cause contributing to the high cost, or decide to reduce the scope of the project, it’s unclear how rejecting the current proposals and seeking new ones would bring significantly lower prices.
Putting in more money. City and county officials reluctantly agreed to kick in $11 million more last year to cover a previous shortfall when the projected price increased to $195.3 million. They would now have to pick up half of any additional increase, with the state coming up with the other half.
Killing the project. If the project dies, local project partners could be on the hook for repaying federal dollars already spent developing the project. It would also damage the county’s and city’s reputations when it comes to future attempts to win federal transportation grants, something that was on the minds of Broward commissioners in June when they voted 6-3 for an agreement that kept the streetcar plans moving forward.
“I don’t like the Wave. I don’t like the technology,” said Broward Commissioner Steve Geller, who supported the project in June only because it was so far along already and a rejection could have jeopardized future federal transportation grants. “I don’t know why you need fixed rail if you’re using the same lanes of traffic. I never understood that.”
The Wave partners are the state, federal government, county, Fort Lauderdale, the city’s Downtown Development Authority and the Broward Metropolitan Planning Organization, a government group that coordinates local transportation projects. The project has spent more than $23 million through July 18, the latest figures provided by transportation officials.
spokesman Dick Kane said. He said transportation officials are precluded from commenting on the bids until after the selection committee meets.
Gerry O’Reilly, the department’s district secretary, is one of four members of the selection committee, which also includes Broward Transportation Director Chris Walton and two other state transportation employees. O’Reilly told county commissioners last year that his office was “really confident” in the $195.3 million figure in place at that time.
Geller said he’s been told the increased cost is because of the high risk contractors face once they start digging into the ground.
“Fort Lauderdale is an old city. They don’t really know where all of their pipes are,” Geller said. “[Contractors are] worried when they go to lay the track, they’re not sure what they’re going to find under the roadway.”
Geller said the county would be better served by some “cool-looking” bus or trolley — with a high-end appearance to overcome negative perceptions some people have for buses — that doesn’t need an expensive fixed rail installed in the ground. Geller’s said he’s not willing to put more county dollars into the construction project. As it is, the county would be responsible for operating the Wave at a cost of about $6 million a year if it is built.
An agreement between the county and the state approved in June allows either to back out of the project if the construction bids and streetcar purchase price exceed $183.2 million. The current bids do that, with the lowest design and construction bid received coming in at $188.7 million. That bid doesn’t include a separate $31.4 million the county has authorized to purchase five streetcars and spare parts.
While Fort Lauderdale and its downtown authority will be involved in the discussions, the agreement they signed with the county says they will split a quarter of any additional costs. They appear to have no escape clause if the projects starts getting too pricey for the city’s tastes, and city officials did not respond to a request for clarification.