Outgoing HRT CEO on remaining agency officials: “These people tell the truth”

By Jon Cawley, DailyPress.com
3/22/12

HAMPTON — Outgoing Hampton Roads Transit CEO Philip Shucet attended his final meeting Thursday of the agency’s governing board. And in true Shucet style, he didn’t mince words.

Shucet began his monthly management report to the board, that is comprised of local and state officials, by referencing his being hired two years ago to right the listing transit agency. That was done in the wake of a scandal over mismanagement of the Norfolk light rail construction project that resulted in the resignation of several key agency officials and a federal probe.

“It wasn’t necessarily competency that did these people in, but the simple absence of telling the truth,” Shucet said. “And that’s unfortunate.”

During his tenure, Shucet oversaw the completion of light rail construction. Since opening late last summer, ridership has eclipsed initial estimates of 2,900 daily passengers. Shucet also spearheaded other efforts to increase agency transparency and improve bus system efficiency to stave off fare hikes.

Shucet used the meeting opportunity to point out that he considers HRT’s current administration to be a group of “rock solid people.”

“These folks tell the truth. They know what that means,” he said. “They always tell the truth, even when its not pleasant.”

Before moving on to a portion of the meeting where several special presentations were made to Shucet, board Chairwoman Pat Woodbury, a Newport News City Council member, noted he’d done “an outstanding job.”

“I’m sorry to report there is not a bonus,” Woodbury quipped.

During a presentation, HRT’s chief of operations Jim Price talked about how HRT was able to overcome its problems under Shucet’s leadership and successfully open the state’s first light rail line.

“It was wildly successful. And it really was Philip’s effort, attention to detail, leadership, his unwilling to compromise that allowed us to open,” he said. “I tell you, those principles of honesty, openness, not hiding things — he didn’t suffer victims easily. Either you led or you were a victim. If you were the latter, you didn’t hang around very long.”

At the end of the month, Shucet will return to the private sector where he runs a consulting business. His replacement, William E. Harrell, Chesapeake’s city manager, will assume the CEO position April 2.

After the meeting, Harrell said he just wrapped up presenting Chesapeake’s budget and plans to spend his first 90 days as HRT’s CEO developing an action plan. Until that effort is completed, Harrell said he is not ready to discuss potential changes he may recommend.

However, Harrell noted: “One of the things I’m committed to is spending a day a week on the Peninsula doing significant outreach with TRAC (the Transit Riders Advisory Committee) and business owners on the Peninsula to increase ridership.”

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With a 300-year history that includes two devastating fires and a yellow fever epidemic that wiped out a third of its population, Norfolk knows a thing or two about resilience and revival. Now, with the launch of its light-rail system, Virginia’s second-largest city continues to renew itself, while cementing its status as Hampton Roads’ financial and cultural hub.

In August, Norfolk rolled out The Tide, Virginia’s first light-rail system, to fanfare and more than 75,000 riders during a three-day period. Expected to ease traffic congestion and provide an economic boost to the region, the 7.4 mile rail transit system is only the 35th in the nation.

The Tide is just one point of pride for Norfolk these days. Despite the economic downturn of the recent years, Norfolk saw more than $1 billion in construction in 2010. Eastern Virginia Medical School (EVMS) just opened a new four-story classroom and research facility, while Sentara Leigh Hospital is undergoing a $130.6 million expansion, and Lake Taylor Hospital is in the midst of a $25 million modernization project.

The city’s two public universities — Old Dominion and Norfolk State — also continue to expand, with ODU’s mixed-use University Village burgeoning on the west side of Hampton Boulevard and NSU gearing up to build a new 600-unit student dorm.

Meanwhile, more than $500 million in public and private funds have been invested in nearly 4,000 new housing units during the past four years as Norfolk works to spruce up its neighborhoods and add to its population of 242,800 residents.

Redevelopment is essential. The 66-square-mile city is built out. “We’re destined to be a redeveloping city,” says Bob Batcher, the city’s communications director. “Smart land use is one of our challenges.”
That’s one reason why The Tide’s success is critical. The light-rail system runs from EVMS through downtown Norfolk, adjacent to Interstate 264 before ending at the Virginia Beach city line at Newtown Road. About 3,000 passengers are expected to ride it on weekdays during the opening year, eventually climbing to 7,200 riders by 2030.

“The Tide has already changed the city by the fact that it exists,” asserts Philip Shucet, president and CEO of Hampton Roads Transit, The Tide’s operator. The former Virginia commissioner of transportation took over the helm of the HRT in February 2010, in the wake of construction delays, cost overruns and allegations of mismanagement. Shucet admonished staff that there would be no more whining and hand wringing; instead, the agency would handle challenges head on. “We’ve dealt with issues above board at every step,” he says. “We’ve told the truth, worked hard and are grateful for the city’s support.”

Shucet’s no-nonsense approach paid off. The Tide’s final cost amounted to $318.3 million, $20 million less than the projected maximum budgeted amount, thanks to HRT’s aggressive cost management during the past year and a half. “We’ve overcome the drama that gripped HRT and almost pulled it to a dead stop in terms of The Tide,” he says. “We’ve learned how to handle construction projects and how to talk with each other openly and honestly.” The federal government is paying 59 percent of the system’s cost, with the state chipping in 21 percent and the city providing 20 percent.

Although ridership flourished during The Tide’s opening, Shucet wants those numbers to continue to grow. His five-year goal is to beat the 2030 projected passenger numbers. “Cars would fill the park and ride lots and more communities in the region would seriously consider expansion of transit services,” Shucet says.

Norfolk already is poised to expand mass transit services. Within the next few years, the city plans to introduce state-sponsored intercity passenger rail service via Amtrak through a partnership with Norfolk Southern Railway and CSX. The city has proposed a multimodal facility at Harbor Park that would be a fully integrated transportation hub for high-speed rail, light rail, intercity buses, intracity buses and ferry operations. “We expect light rail and intercity rail to be game changers for Norfolk,” Mayor Paul Fraim told those gathered for a ribbon-cutting ceremony to kick off the opening of The Tide.

Shucet expects Norfolk to grow around light rail stations with the system influencing land-use patterns and the development of businesses and neighborhoods. “When new forms of transportation are present, they will influence land-use development around them,” he notes. “When 3,000 people a day get on and off at 11 stations, it’s going to change something.”

Shucet believes that extension of light-rail service to other Hampton Roads cities eventually will happen, despite the opposition of naysayers. “As The Tide is in service for a year, two years, people’s attitudes will change. It’s likely more people will see the value in having a choice that heretofore never existed.”

To prove his point, Shucet describes how a Virginia Beach resident who owns a downtown Norfolk breakfast spot told him he could not wait to park at the Newtown Road lot and ride The Tide into work. “I think there are a lot more of him out there than people think. We may blow that 3,000 out of the water in the first year.”

To encourage ridership, HRT offered ODU, EVMS, NSU and Norfolk Southern Corp. a flat rate for all students and employees to use any HRT service. The agreement covers 33,000 people, including NSU’s 7,000 students.

Tony Atwater, who became president of the university in July, is happy that two of The Tide’s 11 stations are on NSU’s campus. He believes the light-rail stops signal a new era of development for NSU, especially as the university advances plans to develop student housing, retail and an arts and performing venue along the Broad Creek corridor. “It’s an honor and a great opportunity for us,” Atwater says. “It encourages us to look at our role in terms of being a destination.” He believes that as more people ride The Tide, more will visit NSU’s campus for athletic and entertainment events. “It’s an opportunity for the university to have a greater impact on the Norfolk area.”

The Tide’s western terminus is at EVMS where 1,000 students are enrolled in the school’s medical and health-professions programs. Four days before The Tide began service, EVMS opened a four-story, $60 million facility, which will allow it to expand medical-school classes by 30 percent and physician-assistant enrollment by 60 percent or about 30 additional medical and PA students until 2015. This year, EVMS admitted 140 medical students, an increase of 22 over last year.

Three stories of the building have classrooms with up-to-date audio and visual technology, while the top floor will focus on cancer research, one of the school’s primary thrusts. EVMS is one of the first research institutions to focus on proteomics, a promising scientific discipline examining proteins that could yield new cancer-diagnosis tools that show the presence of cancer, as well as its aggressiveness. “This [facility] has contemporary lighting and state-of-the-art equipment,” says EVMS President Harry T. Lester. “Our expectation is that productivity will go up substantially.”

EVMS collaborated with ODU’s modeling and simulation program to develop a CAVE (Cave Automated Virtual Environment) for the building’s second floor. The room-sized virtual-reality system uses advanced technology to create a simulated operating room complete with an attending physician and nurses. CAVE will allow the school to integrate modeling and simulation with clinical rotations in local hospitals. “Our whole modeling and simulation and professional skills program enables all students to get the same clinical experience,” says Mark Babashanian, vice president for administration and finance. “Students can see broken bones or how to react to the flu, and we can better measure their competencies.”

Interaction with local physicians and patients is a prime component of EVMS students’ education. Lester notes that community service is one reason many students are attracted to the school. “It’s remarkable how many students come here because they know they will immediately get out meeting the community,” he adds.

Last year, EVMS students opened Virginia’s only student-run free clinic after performing rotations through free clinics in other Hampton Roads cities because there were none in Norfolk. “This has been a great learning experience for the students and a great opportunity for them to be helpful in the community,” Lester says. “It’s something very important to the community, and I’m pleased our students are the ones who drove this thing.”

EVMS’ role in advancing medical research in the region fits in with Norfolk’s efforts to ensure younger residents put down roots in the city. Concerned about a “brain drain,” city officials are developing policies that encourage vibrant, dynamic and new ideas, such as entrepreneurial businesses. “Those kinds of visionary projects turn the city around so the younger generation decides there is value to stay here,” Batcher says. The city is working with downtown commerce corridors, as well as those in Riverview, Little Creek, Ghent and Ocean View to develop businesses most suitable for the neighborhoods.

With a 9 percent unemployment rate in July, creating and retaining jobs is a top priority. Acknowledging that Norfolk historically has one of the region’s highest unemployment rates, Batcher adds that the city is cultivating neighborhood and school resources to design work-force development programs. One bright spot is the Virginia Renaissance Center, located at the former Ford Norfolk Assembly Plant, which focuses on innovative products and services. Earlier this year, Belgium-based Katoen Natie (KTN) announced plans to set up a warehousing and distribution facility at the center which will ultimately lead to the creation of 225 jobs. KTN has been acquiring permits in preparation to open.

The city also hopes to reinvigorate the fading Waterside. The festival marketplace opened with great fanfare in 1983 and helped spark downtown’s revival, but today many of its retail spaces lie vacant, and the facility is in need of repair. Last year, the city surveyed citizens for their ideas on Waterside’s future. Suggestions included turning the marketplace into a fish market, library or gambling casino. In response, city leaders have decided to turn over Waterside’s management to a private firm and plan to seek bids this fall from companies interested in running the complex. Batcher says city leaders and the community want Waterside to succeed. “This community does care about it and has high expectations for it.”

Norfolk residents also expect great things for their neighborhoods and want to help achieve those expectations. “Citizen engagement is a big thing,” Batcher says, adding that City Manager Marcus Jones ramped up community involvement after starting work last February. Anticipating a $52 million gap in the city’s budget, Jones talked to 1,000 residents over three weeks to determine how to best close it. In May, City Council passed a balanced budget of more than $1 billion. “Our residents want to be part of the solution,” Batcher says.

Judging from initial ridership numbers for The Tide, they want to be part of Norfolk’s light rail system. Shucet is optimistic those numbers will remain high, ultimately affecting the region’s overall growth. “The opportunity for people to make the choice to use a different mode of transportation directly influences how we choose to move in the future.”

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Free rides. HRT has signed up two more businesses for its GoPass 365 program, in which businesses and educational institutions pay an annual flat fee for its employees and students to ride all of HRT’s services for free, including light rail, bus and ferry.

Portfolio Recovery Associates, headquartered next to the Military Highway station with 1,200 employees, and Glasser & Glasser law firm downtown with 220 employees are now participating. Tidewater Community College is considering the program.

They join Old Dominion University, Norfolk State University, Eastern Virginia Medical School and Norfolk Southern Corp. in the program.

In all, just over 34,000 people now qualify for the free rides just by showing their work or student identification. In return, HRT has collected about $368,500 in revenue.

Employers with 500 or more workers pay $75 per employee to be part of the program. Employers with less than 500 pay $125 per head. Educational institutions pay $6.50.

HRT does not have data on how many free rides have been taken.

The Tide is changing.

After one month of service, several revisions are underway to make light rail more attractive and user-friendly, including adding wireless to the trains and an online ticket-purchase option.

“It’s really about what’s the best service for our customers,” said Philip Shucet, Hampton Roads Transit president and CEO, adding that the enhancements will not push the price beyond the latest $318.5 million project cost.

“They add more value to the project overall than their costs,” he said. “They’re very prudent revisions to make.”

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Online ticket sales. Starting sometime next month, customers can purchase $3 round-trip fares online through HRT’s website as part of a three-month pilot project. E-tickets will be sent via e-mail that can be printed or downloaded to handheld phones and computers.

Shucet said HRT has not found another transit agency using e-tickets.

HRT will pay 50 cents per transaction for using the service. It will be evaluated after three months.

The Tide is changing.

After one month of service, several revisions are underway to make light rail more attractive and user-friendly, including adding wireless to the trains and an online ticket-purchase option.

“It’s really about what’s the best service for our customers,” said Philip Shucet, Hampton Roads Transit president and CEO, adding that the enhancements will not push the price beyond the latest $318.5 million project cost.

“They add more value to the project overall than their costs,” he said. “They’re very prudent revisions to make.”

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WiFi. As of last week, all nine light-rail trains were equipped with a wireless network so riders can work on laptops and other computer devices while commuting.

Wireless was part of the original project design, but was cut to reduce costs before construction even began. HRT’s express bus service that caters to commuters known as MAX, already offers WiFi.

The cost: about $30,000.

The Tide is changing.

After one month of service, several revisions are underway to make light rail more attractive and user-friendly, including adding wireless to the trains and an online ticket-purchase option.

“It’s really about what’s the best service for our customers,” said Philip Shucet, Hampton Roads Transit president and CEO, adding that the enhancements will not push the price beyond the latest $318.5 million project cost.

“They add more value to the project overall than their costs,” he said. “They’re very prudent revisions to make.”

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Harbor Park Multimodal Transfer Station

Norfolk has scaled back its plan for a rail, bus and ferry hub, originally costing $16 million.

Instead, the city has set aside $3 million in this year’s budget, which began July 1, for a multimodal transfer station adjacent to Harbor Park.

“The budgeted amount should allow the city to construct the first phase of the multi-phased center,” said Norfolk’s director of development, Rod Woolard.

“The design of the project is now under way with the city having retained Michael Baker Corp.”

The phase-one components are a 3,000-square-foot station and a bus transfer facility similar to that located on Granby Street at Wards Corner, Woolard said.

“It is also still contemplated that a covered walkway connection will be possible between the inter-city passenger rail station and the light rail station,” he said.

Phase-one work includes a 2,400-square-foot passenger rail station with a ticketing desk, small waiting room, baggage room and bathrooms.

Philip Shucet, president and CEO of Hampton Roads Transit, the quasi-public agency that operates Norfolk’s light rail system and the area’s bus system, was the former president of Baker Environmental and Baker Mellon Stuart, two business units of Pittsburgh-based Michael Baker Corp.

The U.S. Department of Transportation turned down Norfolk’s request for a $10 million grant to fund a much larger project with shops and a ferry dock for passengers shuttling back and forth to Portsmouth, as well as the Peninsula.

In the original proposal, the ferry, dock and terminal would have cost $4.4 million and the rail station $2 million.

Norfolk is preparing for 2013 when passenger trains from Richmond will pull into the station and travelers will transfer to buses or to The Tide, Norfolk’s light rail system.

Federally funded Amtrak will operate the daily service between Norfolk, Petersburg and Richmond under an agreement with the state and Norfolk Southern.

The service will cost $4 million a year to operate, state officials say, and will have to be included in the state’s biennium budget.

The state has given Norfolk Southern $87 million to upgrade its signals and track, which the rail conglomerate owns.

Should the service fail or never launch, Norfolk Southern will have a set of new signals and much improved track.

Trains laden with coal and containers travel the route into Portsmouth and Norfolk multiple times a day.

Norfolk Southern officials say freight trains take precedence over passenger trains, so passenger trains will have to move to a side track to allow freight trains to pass, which might cause delays.

City and state officials envision riders from Hampton Roads transferring to high-speed trains for a two-hour ride to Raleigh or to Washington, D.C.

Several states, including Virginia, are negotiating with Amtrak over how much states will have to pay for Amtrak service within their borders in 2013.

The Surface Transportation Board will intervene if Amtrak and states don’t reach a compromise.

There are 13 Amtrak services operating in or through Virginia today.

The state would pick up four of those services in addition to the two state-supported services.

The two state-sponsored trains are the ones launched through Amtrak Virginia.

One offers service from Lynchburg to Washington, and the other from Richmond to Washington.

The state is paying $17.2 million for the two trains to operate over a three-year period.

By Philip Newswanger
philip.newswanger@insidebiz.com

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Colleges, Norfolk Southern paying lump sums for HRT rides

By Debbie Messina
The Virginian-Pilot
© July 27, 2011

NORFOLK

Students and faculty at Old Dominion University, Norfolk State University and Eastern Virginia Medical School will be able to ride light rail, buses and ferries for free. So can Norfolk Southern Corp. employees.

Hampton Roads Transit leaders are making deals around town: Pay us a lump sum and your people don’t pay.

So far, 33,000 qualify for the freebies.

HRT has ample room for them – about 80 percent of seats on buses are empty. And with The Tide’s light-rail launch on Aug. 19, there have never been more options for mass transit in Hampton Roads.

To Philip Shucet, HRT president and CEO, the transit agency can’t lose: Carrying more passengers doesn’t cost anything extra.

“Anything we do to put one more person in an empty seat is good for the region, in my opinion,” Shucet said. “Our service is more efficient, we’re taking cars off the road and we’re transporting more customers.

“And we’re getting some money – though it’s certainly not the high point of the deal.”

HRT is charging educational institutions $6.50 per head for students, faculty and employees for one year of free rides. For businesses of 500 employees or more, it’s $75 a head. HRT is still working on numbers for smaller employers.

So far, contracts have been signed with the three schools and with Norfolk Southern. HRT is talking to others, including Tidewater Community College.

Combined, the four are paying HRT $251,000 for a year.

“We thought it was a great idea,” said John Rathbone, Norfolk Southern executive vice president. “It will provide some flexibility for our employees and their ability to get around. We have several hundred employees downtown who face traffic congestion, so this gives them one more option.”

“We saw it first and foremost as improving our accessibility,” Regina V.K. Williams, an NSU interim vice president, said, “but it also increases our opportunity to be out in the community as well.”

Williams, a former Norfolk city manager, said with two light-rail stations next to campus, students will have better access to internships and jobs. The program also helps reduce the need for parking, which Williams said NSU has been challenged to provide.

ODU already pays for its students to ride on HRT buses, but this program is broader.

“We’ve always had a very good partnership with HRT,” ODU spokeswoman Jennifer Mullen said. “We’re pleased with the opportunity they brought to us, and likewise, with what we can do to help them.”

For now, riders covered under these contracts just need to show their school or work ID to board. Eventually, HRT hopes to adjust fare boxes so that they read the identifications.

“Right now, we have all supply, which is not good from an economic point of view,” Shucet said. “We want to create some demand. If the problem we end up facing is that our system is jammed, that’s a problem I’m willing to have.”

Currently, about 32,000 people take about 54,000 trips a day on HRT’s buses and ferries. Light rail is projected to carry 2,900 riders a day in the first year.

The latest census shows that about 1 percent of Hampton Roads residents ride transit. Shucet figures that means HRT can expect that out of the 33,000 who can ride for free, an extra 330 will ride on any given day.

“We’re hoping for more,” he said.

If only 1 to 1.5 percent of the 33,000 ride each day, HRT will make a little money on the deal.

“If more people ride, we’re increasing ridership on public transportation at no additional cost,” Shucet said. “If we’re wildly successful, then the rates go up when we re-up the contracts.

“The revenue here is not unimportant to me. But these deals are about exposing a larger population to public transportation in a way that the individual rider is not concerned about the cost.”

Debbie Messina, (757) 446-2588, debbie.messina@pilotonline.com

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By Debbie Messina
The Virginian-Pilot
© June 21, 2011
NORFOLK

After a year and a half of delays, passengers can finally board The Tide light-rail line Aug. 19 for a free three-day preview before regular paid service begins Aug. 22.

Hampton Roads Transit President and CEO Philip Shucet said he’s confident that the $338 million system will be ready.

The Tide, which is $106 million over budget, has had three previous opening dates that were missed.

Shucet said the free rides Friday through Sunday are to “promote and celebrate the opening and to get people accustomed to boarding the trains.”

Beginning that Monday, Aug. 22, passengers must pay $1.50 to ride. Daily ridership is estimated to be 2,900 the first year of operation and 7,200 in 20 years, though HRT officials believe the numbers are low considering recently launched light-rail lines exceed projections.

The latest delay in opening the system was because of issues with getting the safety signal and communications systems ordered, installed and tested. Those systems are designed to avoid collisions between trains and vehicles.

Shucet said that work has now been completed successfully.

In preparation for the August opening, light-rail trains will run with increasing frequency this week and will begin running at regular intervals next week to complete staff training and work out any remaining bugs.

“I’m satisfied we are where we need to be to safely begin pre-revenue operations,” Shucet said.

Despite announcing mid-August opening dates, Shucet is not backing away from an internal deadline of finishing work Aug. 1.

Between now and August, HRT must still complete light-rail operator certifications; monitor and adjust signaling and timing systems that balance rail operations and traffic flow on city streets; and finish construction of the three park-and-ride lots at Ballentine Boulevard, Military Highway and Newtown Road.

HRT is urging motorists and pedestrians to be aware that trains will be running on downtown tracks that they’ve become accustomed to seeing empty. That’s especially critical at several downtown locations where trains and cars share the same space.

New traffic signals and instructional signs are in place to guide motorists and pedestrians downtown. In recent weeks, rumble strips and speed bumps were added at critical spots to help keep drivers in the proper lanes. Posts will be added as well.

On the east end of the line, intersections are controlled by gates and bells.

“The alignment is where it is; unfortunately there’s nothing for us to do about that,” said Shucet, who was hired midway through construction to complete the job and control costs. “We’re doing everything we possibly can to make it safe.”

Starting Monday, the trains will run simulated schedules, which means every 10 minutes during peak hours and 15 to 30 minutes at other times.

Operating hours will be 6 a.m. to 11 p.m. Monday through Thursday, 6 a.m. to midnight Friday and Saturday, and 11 a.m. to 9 p.m. Sunday.

During that testing period, various situations will be simulated to train light-rail operators and control-room staff to respond appropriately to avert mishaps. They include traffic signal outages and vehicles stopped on tracks at intersections, both of which occurred Monday just before trains passed through town.

“We’re going to simulate everything that’s likely to happen when we open,” said Jim Price, HRT’s rail operations officer. “We’ll be simulating standard and emergency operations procedures.”

Shucet said he still does not plan on spending all of the budgeted $338 million to complete the project. He said he doesn’t anticipate dipping into the $10 million contingency fund and believes he could possibly save more.

About $196 million comes from federal sources, $71 million from the state and $71 million from the city.

Once light rail opens, the city will pay $6 million to $9 million annually the first five years to operate The Tide and its feeder buses.

Source: HRT

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The president and CEO of Hampton Roads Transit said Wednesday he’s not prepared to set an opening date for Norfolk’s long anticipated light-rail line despite vowing to do so by June 15.

Philip Shucet said an announcement for opening The Tide could come as early as next week depending on the results of tests of the safety and communications systems, which have not been completed to his satisfaction.

Despite the delay, he is standing firm on an internal HRT deadline of finishing its work on light rail by Aug. 1. He told his staff not to come to work Aug. 2 if they’re not done.

“HRT needs a stake in the ground,” Shucet said.

He added that starting passenger service sometime in August is “a good target.”

But first, Shucet wants adjustments made to the safety and communications systems that will keep trains separated from cars and pedestrians on downtown streets.

“I’m not delaying an announcement because I think we have safety issues; rather, it’s an abundance of concern on my part that I know all of the system integration has been completed,” he said.

For example, radar devices meant to detect oncoming trains sometimes pick up large trucks at one intersection, tripping traffic lights to red unnecessarily.

“I’m accountable for making sure it’s as safe as it can be, so I’m not going to rush these final few adjustments for the sake of making an announcement.”

Still, Shucet acknowledges that while he can make sure the systems work flawlessly to avoid accidents, he said he “cannot guarantee a driver or pedestrian will not make a mistake.”

The opening hinges on a complex network of computer systems, communications equipment, signals and gates that must be integrated so that signals sound or gates lower and traffic stops when a train passes an intersection.

Once the communications system is running correctly, HRT needs time to prepare for customers, which includes training operators and other staff members to use the systems.

Shucet first set a May 1 date to finish the $338 million light-rail project after taking the helm of HRT in February 2010 to control costs and finish construction of the beleaguered project. At the time, it was a year behind schedule and $106 million over budget.

It was clear in January that HRT would miss the May date because of delays in design, manufacturing and installation of the safety systems, which were a late addition to the project. Shucet then told the HRT board he would announce an opening date between the end of May and June 15, when the safety tests were expected to be complete.

For every day that trains don’t run, it costs HRT about $17,000 in overhead costs for which it’s not collecting fares or federal and state operating subsidies. Still, Shucet said, HRT is well within the $338 million budget and does not anticipate dipping into a $10 million contingency fund.

source: HRT

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