[van-announce] Protest at GVRD Board Mtg Against RAV Boondoggle
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Tue May 27 17:55:27 PDT 2003
Protest at GVRD Board Mtg Against RAV Boondoggle
Important GVRD Meeting - This is the last opportunity to influence regional
representatives on the boondoggle issue called "RAV", or the
Richmond-Airport/Vancouver rapid transit line. In the opinion of many it
is a project that the citizens of Vancouver cannot afford. It is ill
conceived -- there has been no study of the need for such a project and also no
study of alternatives to the Bombardier rapid transit line up Cambie. Even
the placement of the line itself is poorly considered.
Be sure to come to the GVRD meeting on Wednesday, May 28. It is at 4330 Kingsway in
the boardroom and the meeting starts at 9 am. Show up early, say at least 8:30
am, so that you can talk to your representative or a representative at the
last minute to convey your concern.
Before Wednesday, phone the corporate secretary at GVRD and get the name and
contact information of your mayor. E-mail or phone him/her and express your concerns.
Be sure to come to the GVRD meeting on Wednesday, May 28. It is at 4330 Kingsway in
the boardroom and the meeting starts at 9 am. Show up early, say at least 8:30
am, so that you can talk to your representative or a representative at the
last minute to convey your concern.
Before Wednesday, phone the corporate secretary at GVRD and get the name and
contact information of your mayor. E-mail or phone him/her and express your
concern very pointedly.
Greater Vancouver
Regional District
4330 Kingsway,
Burnaby, B.C. V5H 4G8
604-432-6200
After Hours 604-444-8401
Fax Line 604-432-6251
24 hr INFORMATION
Voice mail line 604-437-GVRD
Check out the GVRD website at http://www.gvrd.bc.ca/board/index.html
Pass this e-mail on to friends who you think should know and who may also take their
civic responsibility and come to the GVRD meeting.
Background information:
http://vancouver.indymedia.org/news/2003/05/48413.php
CCPA Study Questions Rapid Transit P3 Push
by Canadian Centre for Policy Alternatives • Thursday May 22, 2003 at 02:15 AM
More signals of a one-track mind? British Columbia is preparing to seek bidders
to design, build, operate, maintain and partially finance the new RAV
(Richmond -Airport/ Vancouver) rapid transit line. But a new study says the
government is breaking its own rules by not comparing the public -private
partnership (P3) approach with a fully public model. And on the surface, the
P3 route offers taxpayers only higher risks and higher costs.
May 21, 2003
CCPA study calls for independent public sector comparison of RAV P3 by Auditor
General Author recommends against P3 arrangement, citing higher costs,
poor risk transfer and failure of similar projects elsewhere
(Vancouver) The author of a CCPA report released today on the proposed P3
(public-private partnership) for the RAV (Richmond-Airport/Vancouver
rapid transit line) is calling for the development of an independent
'public sector comparator' by BC's Auditor General. Blair Redlin says such
a comparison of public and private sector costs and risks is needed before
TransLink and the GVRD make a decision about the RAV, and before a Request for
Proposals (RPF) is issued.
Blair Redlin is the author of High Risk: An analysis of the proposed
public-private partnership for the Richmond/Airport-Vancouver Rapid
Transit Project. Redlin is a CCPA research associate, former Deputy
Minister of Transportation, and former President of the Transportation
Association of Canada. The study analyzes the proposed P3 arrangement for
the RAV, in which a private partner would design, build, operate, maintain
and partially finance the new line for a 30- to 35-year period--an
arrangement the provincial government reputedly insists on in exchange
for its financial contribution.
"Municipal authorities and the public are being asked to make a big leap of faith with
this P3," says Redlin. "It is impossible to make an informed
decision without being able to compare the P3 to a conventional project, one
that is entirely publicly owned and operated." Ironically, the
commitment to a P3 in the absence of a 'public sector comparator' violates
the provincial government's own Capital Asset Management Framework,
which requires that a comparator be developed and refined at every stage of
planning for major capital projects.
"TransLink and project staff have also refused to release the PricewaterhouseCoopers
financial feasibility study to TransLink and GVRD Directors, even though
the Directors are accountable to the public for what happens with the
RAV." Redlin says his report raises significant concerns that should
be addressed before a Request for Proposals is issued. These include:
* The P3 could cost transit users and taxpayers considerably more than a
conventional infrastructure project because of higher private financing
and operations costs, and because the private investor must earn a profit;
* The extra costs of private financing are not justified, given the minimal risk
that will be transferred to the private investor.
* Taxpayers will be on the hook if fare revenues are lower than projected, if tunneling
costs increase as a result of unexpected soil and geotechnical conditions,
if savings from cuts to bus routs along the corridor do not materialize, or if
the contractor defaults.
* The RAV project office's estimate for operating costs has already doubled over
the course of one year, which Redlin says doesn't bode well for future cost
overruns.
The report reviews recent P3 rapid transit and airport rail projects in
Australia, the US and the UK. "The record for similar P3 projects is
cause for serious concern. The Sydney Airport Rail Link is in receivership,
the Brisbane Airport Rail Link has been given a significant credit rating
downgrade, and a proposed airport rail link for Melbourne has been deferred
indefinitely. In New Jersey, a P3 light rail contract very similar to the RAV
proposal is far short of ridership expectations, and a new P3 light rail
system for south London is coping with a major financial crisis."
"Lower Mainland mayors and councillors on the boards of TransLink and the GVRD need
to consider whether this is really a model to emulate--taxpayers and
transit users will live with the implications of their decision for decades
to come."
"Work on a public sector comparator should have been started in 2001," says
Redlin. "Let's put the brakes on this P3 until an independent
comparator is developed, and until TransLink and the GVRD have access to the
financial feasibility study. Once this proceeds to the Request for
Proposals stage, it will be very difficult to turn back."
The full report is available on the CCPA website at
http://www.policyalternatives.ca
To arrange an interview, call Shannon Daub at 604-801-5509.
Privatised Airport Transit Line will reap billions in profits with no risks to private
corporations, only to taxpayers
by Charlie Smith - Georgia Straight • Thursday April 24, 2003 at 11:22 AM
Cadman claimed that the private-sector partner's profit over the life of the
contract would be in the $1.6-billion to $1.7-billion range. "The
public is going to pay 7/8 of the bill, and the private sector is going to pay
about 1/7 [sic] of the bill," Cadman said. "Yet the public is then
going to have a 35-year contract to provide somewhere between $40 million
and $60 million a year to that private company."
Gigantic RAV Profits Predicted
By Charlie Smith
A Vancouver city councillor has claimed that TransLink would pay $40 million
to $60 million per year over 35 years to a private company to design, build,
operate, maintain, and partially finance a proposed rapid-transit
project.
Vancouver Coalition of Progressive Electors Coun. David Cadman--a TransLink
director and member of its finance and audit committee--said at the April 22
council meeting that the private-sector partner would invest $200 million
to $300 million into the proposed $1.7-billion Richmond/
Airport/Vancouver transit line.
Cadman claimed that the private-sector partner's profit over the life of the
contract would be in the $1.6-billion to $1.7-billion range. "The
public is going to pay 7/8 of the bill, and the private sector is going to pay
about 1/7 [sic] of the bill," Cadman said. "Yet the public is then
going to have a 35-year contract to provide somewhere between $40 million
and $60 million a year to that private company."
Cadman said that TransLink's annual payments to the private company would be in
addition to TransLink's $300-million capital contribution to the
project. Vancouver's director of engineering services, Dave Rudberg,
responded to Cadman's remarks by telling council that the private company
would be responsible for the RAV line's operating costs as well as financing
charges.
"I think they would expect a return on their investment as well," Rudberg
said. "How much that would be on an annual basis, I don't have that level
of detail."
TransLink has an annual budget of $647 million to operate the transit system, and build
and maintain regional roads. Approximately $250 million of the budget is
raised through transit fares, with the rest coming from gas taxes, property
taxes, and a levy on BC Hydro bills.
On March 26, TransLink chairman and Surrey Mayor Doug McCallum told the
Vancouver Board of Trade that TransLink's $300-million contribution
would be matched by the provincial government and the Vancouver
International Airport Authority.
McCallum said that the funding partners hope the federal government will provide
$450 million. The private-sector partner would finance the remaining
amount.
On April 22, Cadman told council that TransLink's finance-and-audit
committee was told that the private-sector partner's capital
contributions could come in the form of "efficiencies" rather
than "hard capital".
TransLink officials have previously told council that they would pay the
private-sector partner to operate the RAV line in two ways: through transit
fares on the line, based on an estimate of 100,000 riders per day; and by
cutting back the bus system.
When the line opens, TransLink would eliminate the 98-B line and redirect 12
express routes and four local routes to a new RAV Bridgeport station in
Richmond.
Cadman told council that TransLink would need to pay the private-sector partner
$63 million in 2003 prices in the first 10 years of the proposed
rapid-transit line's operation, which would then be repaid by the partner
over the life of the contract. "We have to pay an extra $63 million until
their ridership numbers get up," Cadman said.
Rudberg recommended that council endorse the RAV proposal with certain
conditions. One condition involves developing the line in a tunnel from
Waterfront Station downtown all the way underground along Cambie Street
until 46th Avenue if it's a partially separate-graded system, like a
conventional light-rail line. Another condition would be that the tunnel
would extend to 49th Avenue if it's a separate-graded system like SkyTrain.
"Clearly, there is not an expectation that they'll reach the planned-for ridership
the first year--that there is usually a phased-in period of three, possibly
four years before they reach the expected ridership levels," Rudberg
told council.
Cadman said TransLink officials told the finance and audit committee that the
largest risk was the ridership projections. He told Rudberg that if the
ridership didn't materialize, TransLink would have to cover revenue
shortfalls. Cadman also suggested that TransLink could face additional
financial risks related to the cost of tunnelling and redirecting
utilities.
Civic Non-Partisan Association Coun. Sam Sullivan said he feared that senior
levels of government would withhold funding if council voted against the
project. "We get the benefits," Sullivan said. "Others
pay the bills."
COPE Coun. Anne Roberts, however, said she felt a duty to protect Vancouver
residents, who pay taxes at the regional, provincial, and federal levels.
"This is a huge area that is opening before us, a black hole of possible
tax increases," she said.
Council had planned to hear public comments on April 22, but that has been
rescheduled to May 13.
http://www.city.vancouver.bc.ca/engsvcs/transport/rav/
http://www.straight.com/?defaultarticle=9928&defaultnode=&layout=227&page
function=Load%20Layout&PHPSESSID=da2fb0697f34cef849dec037dc52ad28
_ __________________________________
Special Program Tuesday from noon to 1 pm on Co-op Radio CFRO, 102.7 fm.
I will be discussing the Richmond-Airport/Vancouver (RAV) rapid transit
issue. I have lined up as a first guest Mayor of Bowen Island municipality,
Lisa Barrett who will talk about the rationale for the project, the meeting
of the Translink Board, the upcoming GVRD meeting this Wednesday, etc. As
the second and last guest I will be trying to get a CAP member to speak on the
issue of the borrowing of money to fund the project and the effect of deby
servicing.
Where
4330 Kingsway - GVRD Boardroom
When
Wednesday, 28th of May 2003 from 8:30 AM until approximately 10:30 AM
Cost
nothing
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