Board votes 8-4 to go ahead with $1.72b project
Frank Luba
Province
A trimmed-down RAV line was approved yesterday, despite stiff opposition at a rancorous TransLink meeting. A crowd of about 200 people, mostly opposed to the already over-budget line, filled the Croatian Cultural Centre in Vancouver as directors voted 8-4 to go ahead. The 19.5-kilometre rail link from downtown Vancouver to the airport and Richmond, with a $1.72-billion price tag, is one of the most expensive projects in B.C.’s history. The board was also split over the project’s overall cost. While pro-RAV board members contend the recent decision to lengthen the amortization period from 20 to 30 years won’t affect the project’s overall price tag, anti-RAV forces argue the move will add a further $190 million in financing costs. TransLink chairman Doug McCallum said it’ll cost more to pay it off over a longer period but during that time TransLink will collect additional revenues, resulting in little significant difference. “It costs you more in the end but you also don’t have to come up with the capital,” McCallum said. “It’s too complicated to explain.” But anti-RAVer Burnaby Mayor Derek Corrigan said the $190 million increases the $1.72-billion price tag. He said the initial 20-year amortization period should have been kept. “I think it’s one of those quick fixes that came in because they were too far over budget on RAV and they had to find a way to balance the expenses against the capital they were spending,” Corrigan said. In favour were Surrey Mayor McCallum, Surrey Coun. Marvin Hunt, Langley City Mayor Marlene Grinnell, Richmond Mayor Malcolm Brodie, Coquitlam Mayor Jon Kingsbury, North Vancouver City Mayor Barbara Sharp, Vancouver Mayor Larry Campbell and Vancouver Coun. Raymond Louie. Opposed were Vancouver Coun. David Cadman, Burnaby’s Corrigan, New Westminster Mayor Wayne Wright and Pitt Meadows Mayor Don MacLean. When the bid by SNC-Lavalin/Serco came in $343 million higher than budgeted, extra costs were transferred to TransLink, a station was dropped in Richmond and the B.C. government kicked in another $65 million. McCallum denied taxpayers are getting less and paying more. “I don’t agree with that,” he said. “I have said from Day 1 that the cost of it will come in between $1.5 [billion] and $1.7 billion. It has come in to that.” McCallum said the region will get “first-class mass transportation that’s environment-friendly.” “I think this region, being on the edge of the Asia economy boom, certainly needs that type of transportation or transit system that will allow people to get out of their cars and will allow our country to get along better,” he added Even as the debate wound down, both sides continued to fire salvos and spin their messages. Corrigan, an opponent of the secrecy-cloaked private-public partnership required by the province, noted the reworked RAV deal won’t include turnstiles at stations to stop fare evasion. But Campbell shot back: “This is an open process,” meaning items like turnstiles can be included and paid for through economic avenues yet to present themselves. “We simply won’t know [how],” he added. University of B.C. transportation and urban planning expert Michael Goldberg called it an “excellent” decision. “The single most important thing that’s needed to make it work is there’s got to be significant rezoning around every station, not just of RAV but of the Millennium Line and the Expo Line,” said Goldberg. – – – WHAT HAPPENS NEXT? – A final contract has yet to be signed by SNC-Lavalin/Serco and RAVCO, the TransLink subsidiary overseeing the project. TransLink chairman Doug McCallum said the deal will likely be signed in the spring. “We’ve already done some drilling and so forth, but we’ll start the majority of construction next year sometime,” said McCallum. – RAVCO will be TransLink’s watchdog on the project to ensure it stays on time and on budget. “We’ve got an agreement in the best-and-final-offer from SNC-Lavalin on the prices and so forth,” said McCallum. “That’s what we voted on today — $1.72 billion.” – Construction is to be completed by Nov. 30, 2009, so the line can be running before the 2010 Winter Olympics in Vancouver and Whistler beginning Feb. 12. © The Vancouver Province 2004
