Beach off the hook for funding HRT light rail study

VIRGINIA BEACH

Just one day before a divided City Council was set to vote on it, Hampton Roads Transit withdrew its request asking Virginia Beach to pay $244,800 to help finish a study on light rail in the city.

Instead, HRT will dip into a fund that comes from its member localities, including Virginia Beach.

Beach council members had been under the impression that HRT was paying for the $6.6 million study until two weeks ago, when agency officials asked for money to match a federal grant. The request angered some council members who accused the agency of reneging on a pledge to pay for the study.

New HRT President Philip Shucet said he dropped the request after reading the transcript from a City Council meeting last May. At the meeting, former HRT President Michael Townes told council

members that HRT would pay for the study. Townes was forced to resign last month over ballooning costs of the Norfolk Tide line.

At the May 19 meeting, Councilman Glenn Davis asked Townes, "This is not city of Virginia Beach paying the bills. It's federal and state money that's allocated for localities to do stuff like this for these studies, correct?"

"Absolutely correct," Townes responded.

On Monday, Shucet said in a prepared statement, "Though our policy is clear that federal grants are locally matched by a partner city, the firm, recorded commitment made by HRT is compelling."

HRT will use money from its " advanced capital contribution" fund, a $1.5 million pot of money member cities pay into based on bus service hours and assets, largely the number of buses, said Tom Holden, HRT's spokesman. The fund is used to match state and federal grants for things including buses, software and studies. This year, Virginia Beach contributed $242,000 to that fund. Service will not be affected, Holden said.

"That to me is HRT building credibility pretty quick," said Mayor Will Sessoms, who had been rallying council members to approve the money for the study.

So far, about $1.5 million has been spent on the study, which is looking at the feasibility and environmental impact of extending the Norfolk Tide system across Virginia Beach to the Oceanfront. The study is now estimated to be finished between August 2011 and December 2011. The previous finish date was late 2010.

The HRT announcement came hours after Shucet had a Monday morning meeting with Vice Mayor Louis Jones and Councilman Bill DeSteph, who both pressed him to withdraw the request. Jones and DeSteph had said they were planning to vote against the request.

"After talking it over, Mr. Shucet decided that the right thing to do was to fulfill their commitment," Jones said.

"This was three guys trying to work out a solution," DeSteph said.

Shucet said that HRT might require cities to match grants in the future.

"... let me be clear: Going forward, we will not waver from our policy requiring localities to meet any local match requirements associated with future appropriations," he said.

Council members praised the decision to use other funds.

"I'm absolutely delighted that HRT is honoring its past commitment," said Councilman Jim Wood, who also chairs the HRT board. "This goes a long way towards rebuilding public confidence for an agency that's suffered a number of black eyes."

Aaron Applegate, (757) 222-5122, aaron.applegate@pilotonline.com