Coalition for Effective Transportation Alternatives

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Despite the demolition,
still no Federal OK to begin Link

by John Niles

You may have seen some of the following news stories this week:

Some of these headlines reflect Sound Transit media relations spin.

Here is the plain truth: Sound Transit still does not have Federal funding approved for Central Link Light Rail construction. They do not have permission to begin construction.

Sound Transit received a routine pre-groundbreaking clearance to spend $6.5 million in local funds (our tax dollars) while waiting for a long-delayed Federal funding agreement that may come in early 2003. This funding agreement IF RECEIVED would then allow construction to begin on Central Link Light rail. There are several legally-mandated review steps remaining before the Feds can approve the agreement, and the outcome is not certain.

Detail: Federal Transit Administration (FTA) has given permission to Sound Transit to do some work that includes tearing down some old buildings at the planned site of the Link Light Rail maintenance base. If Sound Transit gets Federal funding, a portion of the local spending will be reimbursed.

The new permission just granted does not include any guarantee that Sound Transit is going to receive the Federal money necessary to build the Initial Segment. In fact, Federal Regulations say: "Letter of No Prejudice pre-award authority is not a legal or moral commitment that the project(s) will be approved for FTA assistance or that FTA will obligate Federal funds. Furthermore, it is not a legal or moral commitment that all items undertaken by the applicant will be eligible for inclusion in the project(s)."

The following Federal clearances are required BEFORE Sound Transit receives any more Federal money in what will be its third attempt to receive a Full Funding Grant Agreement after abandoning two earlier approved grant agreements in November 2000 and June 2001:

1. Review by two outside contractors to the Federal Government known as the Project Management Oversight contractor and the Financial Management Oversight contractor, who were involved in approving the first two grant agreements that turned out to be not worthy of approval.

2. Review and approval by USDOT headquarters following a complete review by FTA staff.

3. Clearance of a number of previously identified deficiencies in a renewed audit of Sound Transit's claims for Link Light Rail and also of the FTA's processes for approving those claims. That audit is by the USDOT Inspector General, and follows up on an interim audit report issued in April 2001.

4. Review and approval by the Presidential Office of Management and Budget (OMB)

5 through 8. Review and concurrence by four committees of the U.S. Congress, one of which is chaired by Senator Patty Murray, and one which is chaired by Rep Hal Rogers, who requested the audit noted above.

The timing is such that these steps will take until about February 2003 when the President's budget for the fiscal year beginning 10-1-03 is released. That budget will probably have some money for Link Light Rail Initial Segment construction if the project passes all of the steps 1 through 8 noted.

In addition, there are several legal cases pending that could block construction.

Finally, a very reliable source from DC with years of experience in the federal transportation funding process, offers this assessment:

"This is a standard "No prejudice" letter that is often issued to projects in final design. FTA has no legal basis for denying an applicant the right to spend his own money, no matter how foolish that may be. Naturally, Ron Sims has put his own spin on it, hoping to fool the public. But basically, the letter changes absolutely nothing."