By JOHN WAYNE FERGUSON
GALVESTON — A decision to bring back the city’s rail trolley system could be made in the next month.
The city has been informed by the Federal Transit Administration that it has “failed to make reasonable progress” on restoring the trolley system.
As a result, the administration has threatened to revoke millions of dollars in grant money awarded to the city in 2010.
In a letter sent Jan. 5, the transit administration wrote that grants would remain open if the city could provide evidence the trolley project is active.
The letter effectively forces the city council to make a decision on the return of the rail trolley.
Transportation consultant Barry Goodman told the council Thursday that the city had the information and funds ready to begin a trolley revitalization project
“We believe that we can repair these trolleys and bring them back to modern-day standards,” Goodman said.
“This system can be operated efficiently and affordably.”
In 2010, the city received a $1.96 million grant to repair the trolley tracks.
The city also has $1.82 million in federal disaster recovery funding to repair trolley vehicles damaged by Hurricane Ike in 2008.
The council was not ready Thursday to issue a decision, however.
Some council members, including Craig Brown and Ralph McMorris, said they supported the trolley’s return.
“I’m a very big believer that the rail trolleys are important to Galveston,” Brown said. “I have no doubts that they would be an asset to not only the locals, but to the tourists.”
District 4 Councilman Norman Pappous said he did not favor the project and cited statistics showing the program had been far exceeding its operating budget.
“I can’t vote to put forward District 4 tax money to a program that has been tried and failed,” Pappous said
Goodman said problems that had caused the deficits — poor management and failing equipment — would be addressed in a restored system.
The city does not anticipate that the trolleys would earn a profit, and details about how operating costs would be paid have not been fully proposed.
Choosing to let the grants go would not eliminate costs for the city, officials said.
If the trolley project were abandoned, the city would still need to pay an estimated $2 million to rip up the tracks, officials said.
Abandoning the project could also cause the transit administration to seek reimbursement of money used to re-establish the city’s trolleys in the 1980s and more recently to expand the line to Pier 21 and the University of Texas Medical Branch Campus.
The grants were contingent on the trolley system operating for an amount of time that has not yet passed.
Goodman told the council the city might have to repay up to $7.3 million to the federal and state governments if the trolleys were abandoned.
He said a waiver could be sought for the repayment costs. Giving up on the project could also hurt the city’s chances of receiving future transit grants, he said.
The council took no vote on trolley issue Thursday, but will likely offer direction at its first meeting in February, which on Feb. 5.