Sprinter finally out of the blocks

By: PAUL SISSON - Staff Writer | Thursday, December 18, 2003 10:29 PM PST ∞

OCEANSIDE --- An uncertain financial future did not keep the Sprinter light rail project from reaching a milestone Thursday.

North County Transit District board members voted 7-1 to purchase 12 railroad cars from Siemens Transportation Systems for $50 million.

The decision came despite a potential $80 million shortfall in state funding for the $351 million project, which will stretch 22 miles between Oceanside and Escondido.

Board member Lee Thibadeau of San Marcos was the lone no voter, with member Jerome Stocks of Encinitas absent.

Thibadeau pointed to a midyear spending cut proposal recently published by Gov. Arnold Schwarzenegger's office as a reason why the district should not buy the cars immediately. The proposal asks the Legislature to rescind the Transportation Congestion Relief Program, which is supposed to provide $80 million of the Sprinter's funding.

"If it doesn't come, what do we do?" Thibadeau asked.

Schwarzenegger's proposal would need a two-thirds vote of the Legislature to move from suggestion to action.

Transit district Executive Director Karen King said that borrowing is always an option if the $80 million in state transportation funds are delayed or canceled altogether. She said a financial analysis performed by the district shows that future revenue, including other government subsidies used to run the district's Coaster rail line and Breeze bus service, could be used as collateral to make sure there is enough money available for the Sprinter.

But Thibadeau noted that none of the district's existing services generate a profit ---- all are heavily subsidized and could not come close to covering their costs of operation.

"We're looking at a subsidized service. There's no revenue there to pay off the bonds," Thibadeau said.

He insisted that putting the district in a position where it might have to borrow to complete the Sprinter line was not a sound fiscal decision.

"I wouldn't do this with my personal money, let alone anybody else's," he said.

However, the remaining board members expressed satisfaction with the staff's assurances that an $80 million state funding shortfall will not put the district on shaky financial footing.

Before he left the meeting early, Stocks noted that the project's largest source of cash ---- a $152 million federal grant ---- is not in jeopardy. He added that the district can spend federal funds before state funds, allowing construction to proceed with cash already, or soon to be, in the bank.

"There is nothing inappropriate with spending the federal dollars first, so that buys us some time," Stocks said.

Stocks also said the board will have some flexibility when it awards the $130 million main line construction contract next year because it includes a southern loop that will serve Cal State San Marcos. He suggested the loop could be bid separately and postponed if state funding never comes through.

"We do have money for this project. We do have the ability to phase this project and still have an operating train system," Stocks said.

David Druker, a board member from Del Mar, said the purchase makes sense now because Siemens' bid is only valid through Jan. 1. He speculated that, if the purchase were rebid after the state funding issue is resolved, the price would only increase.

"If we have to renegotiate, the fixed price is going to go up," Druker said.

The board can back out of the financial deal within 90 days without suffering any penalty. After that, it could still cancel the contract, but would have to pay Siemens' costs up to the point of cancellation.

The 12 new Sprinter coaches purchased Thursday were designed in the late 1980s to run on Germany's Deutsche Bahn. Each train has its own self-contained diesel engine and seats 120 to 130 passengers, depending on seating configuration. The trains can reach 79 mph and have advanced braking capabilities that should allow them to race from station to station, as the name Sprinter implies.

The $50 million purchase price approved Thursday is $10 million more than originally budgeted. Transit district staffers blamed a steadily widening gap between the dollar and the euro for part of the cost overrun that will be subtracted from the Sprinter's remaining $29 million contingency fund.

Contact staff writer Paul Sisson at (760) 901-4087 or psisson@nctimes.com

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