Green Line Extension Advances, But Significant Risks Remain

Green Line project area map. Source: MassDOT

BOSTON—An ambitious project to extend the Green Line is moving forward, but the multi-billion dollar proposal considered one of the largest undertaken by the Massachusetts Bay Transportation Authority is still in jeopardy of being shelved sometime in the future if costs cannot be contained. The Massachusetts Department of Transportation and the MBTA Fiscal and Management Control Board approved recommendations from state transportation staff and consultants earlier this week that trimmed nearly $700 million from the cost of the Green Line Extension. The new project cost estimate is now approximately $2.3 billion after estimates last year put the GLX at about $3 billion. The cost escalation of the project caused state transportation officials last December to form an Interim Project Management Team to perform an assessment and redesign of the project that has approximately $996 million in federal grant funds committed to the venture. The Federal Transit Administration will have to approve the project’s redesign. MassDOT and the MBTA are on the hook for more than $700 million in sunk in costs on the project that are included in the $2.3-billion estimate. However, not included in the scaled down cost estimate is an estimated $305 million in finance charges. Another potential significant cost escalator is any delay from the current time schedule. According to the consultants’ report received by the two boards at their session earlier this week, “For planning purposes this estimate assumes that procurement begins in May 2016 and that construction begins in October 2017. Escalation costs beyond that are estimated at $1.6 million/month.” The project called for 4.5 miles of new Green Line light rail and trolley track in East Cambridge, Somerville and Medford, along with six new stations and a relocated Lechmere station. The revised plan calls for simpler stations and a smaller planned maintenance facility, simpler viaducts and bridge designs that call for rehabilitation of bridges rather than replacements, modified power and signal systems, modified accessibility design, a shorter and simplified community path and improved construction conditions. The project also includes the purchase of 24 new Green Line cars. One of the key recommendations that was approved by the two agencies was the replacement of the standard competitive bid procurement process with “Design-Build” that will involve putting the project out to bid in one comprehensive contract package. The consultants noted that while the MBTA has some experience with the Design-Build procurement method, it has never used it on a project this large and complex. In its report the consultants related that MBTA could tap the experience of MassDOT on prior bridge and roadway projects and the MBTA Greenbush project that were performed under Design-Build. However, the consultants noted, “technical capacity within the MBTA to manage a Design-Build procurement of this size remains a concern. MBTA staff would need training and would need to be augmented with new expertise.” One example of a large transportation project using the Design-Build procurement method is the New NY Bridge . New York State and the New York State Thruway Authority employed the Design-Build method on its $3.9-billion New NY Bridge, which involves the construction now underway for the replacement of the existing Tappan Zee Bridge over the Hudson River in Westchester and Rockland counties just outside New York City. At press time, there exists a funding gap of approximately $73 million that will need to be filled on the GLX project. However, until recently the funding gap was nearly $300 million. On May 5 ^th , the Boston Region Metropolitan Planning Organization approved a measure to reallocate $152 million in federal highway funds to the GLX project. The City of Somerville and the City of Cambridge submitted a letter of intent also on May 5th to fund $50 million and $25 million respectively for the project. DivcoWest, the developer of the Northpoint area, will pay half of Cambridge’s commitment to GLX. In a joint statement regarding their cities’ financial commitments to the GLX project, Somerville Mayor Joseph Curtatone and Cambridge City Manager Richard Rossi stated, “Despite the fact that our cities bear no responsibility for the cost overruns that brought the GLX to this moment of crisis, we will seek to support the Commonwealth by expanding our cost-sharing role. The Green Line is that important to our communities, our region, and our state.” Billy Pitman , a spokesman for Gov. Charlie Baker , said of the GLX project’s approval by the MassDOT and MBTA boards, “Governor Baker appreciates the MassDOT, FMCB and MBTA’s diligence in examining new proposals for the Green Line Extension, with the understanding any redesign would still require federal approval. As the process continues, the administration and leadership at MassDOT and the MBTA will remain focused on improving the core system, containing costs and investing over $2.5 billion toward the state of good repair backlog, long-term infrastructure needs and winter resiliency upgrades to deliver the reliable service that over 1 million riders depend on daily.”