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CLEARWATER BLUFF TO BEACH GUIDEWAY ACTION PLAN - IMPLEMENTATION OPTIONS TECH MEMO e e e e e e e e . . . . e e . e . . . . e . . . . . . . . . . . Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo Prepared for: ~ Clearwater t- - u Prepared by: ~GRIMAIL ~ CRAWFORDlnc. March, 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Table of Contents 1.0 Purpose and Background ............................................................... 1 1.1 Study Purpose........................... ................................................................. 1 1.2 Project Background................................................................................... 1 1.3 Prior Studies............................................................................................... 3 1.3.1 The Pinellas Mobility Major Investment Study....................................... 3 1.3.2 The Pinellas Mobility Initiative ............................................................... 3 1.3.3 The Clearwater Bluff-to-Beach Guideway Reconnaissance Study......... 9 2.0 System Costs ................................................................................. 10 2.1 Pre-Construction Costs ............................................................................ 10 2.1.1 Environmental Studies ........................................................................... 10 2.1.2 Design .................................................................................................... 11 2.2 Right-of-Way Acquisition .............................. ......................................... 12 2.3 Construction............................................................................................. 12 2.4 Operations and Maintenance................................................................... 13 3.0 Funding Source Options ............................................................... 18 3.1 Public Revenue Sources ..........................................................................18 3.1.1 Existing Revenue Sources..................................................................... 18 3.1.1.1 Penny for Pinellas .............................................................................. 18 3.1.1.2 Community Redevelopment Authority.............................................. 18 3.1.1.3 Pinellas Mobility Initiative Federal Earmark..................................... 19 3.1.1.4 City General Fund.............................................................................. 19 3.1.2 Potential New Revenue Sources ........................................................... 19 3.1.2.1 New Penny for Pinellas.. ......... ................ ... ......... ................. .............. 19 3.1.2.2 New Local Transit Sales Surtax......................................................... 20 3.1.2.3 Gas Taxes .................. ............................. ...... ............... ....................... 20 3.1.2.4 Federal Transit Administration New Starts Program......................... 21 3.1.2.5 Ridership Revenues. ..................... ................ ............... .................... .212 3.2 Private Revenue Sources ......................................................................... 23 3.2.1 Rights-of-Way Donations ....................... ................................. .............. 23 3.2.2 Joint Parking Facilities..... ......... ................ ........................... .................. 23 3.2.3 Direct Cash Contributions.... .... ...... ..................... .................. ..... ............ 23 3.2.4 Ride Subsidies............... ........ .......... ..................... ............. ..................... 23 e e e e e e e e e e e e e e e e e e e e e e e e e e e . e e e e Table of Contents (cont'd) 3.2.5 Merchandising and Advertising. ..... ..... ......... ......... ............ ................ .... 24 3.2.6 Joint Retail Development.. ..... ....... ......................... ...... .... ...... ................ 24 3.2.7 Private Sector Funding Opportunities Summary ...................................25 4.0 Implementation Options Overview and Analysis........................ 26 4.1 Implementation Options Overview........ ........... ........................ ........ .......26 4.1.1 Option 1 - Pinellas Suncoast Transit Authority (PSTA)....................... 26 4.1.1.1 Definition of Public Transit ...............................................................26 4.1.1.2 Definition of Transit Operator under PST A Special Act.................. 27 4.1.1.3 PST A's Authority under Special Act................................................. 27 4.1.1.4 Effect of PST A Special Act on Bluff to Beach Project Development27 4.1.2 Option 2 - Private Sector Implementation Options................................ 28 4.1.3 Option 3 - Non-PSTA Public Sector Implementation Options............ 29 4.1.4 Option 4 - Public-Private Partnership Option....................................... 29 4.2 Implementation Options Analysis ...........................................................30 4.2.1 Option 1 - PST A.................................................................................... 30 4.2.2 Option 2 - Private Sector Implementation Options................................ 31 4.2.3 Option 3 - Non-PSTA Public Sector Implementation.......................... 31 4.2.4 Option 4 - Public-Private Partnership Option....................................... 33 5.0 Feasibility Analysis ....................................................................... 38 5.1 Ridership Analysis ...................................................... .............................38 5.2 Feasibility Summary................................................................................ 39 6.0 Recommendations .......... ............. .............. .............. ..................... 41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . List of Figures Figure 1-1 Project Location Concept................................................................... 2 Figure 1-2 Policy Plan Network - Pinellas Mobility Initiative ................................4 Figure 1-3 Locally Preferred Alternative - Pinellas Mobility Initiative................... 5 Figure 1-4 Station Rendering - Pinellas Mobility Initiative ................................... 7 Figure 1-5 Station Rendering - Pinellas Mobility Initiative ................................... 8 Figu re 2-1 Memorial Bridge Typical Section..................................................... 16 Figu re 2-2 Memorial Bridge Typical Section..................................................... 17 Figure 3-1 New Starts Analysis Process.......................................................... 21 Figure 4-1 Sample Operating Structure for Public-Private Partnership ............ 35 List of Tables Table 2-1 Capital Cost Estimates - Bluff to Beach Segment............................ 14 Table 2-2 Operating & Maintenance Costs Estimated by Pinellas Mobility Initiative (2003 Dollars).................... 15 Table 4-1 Option 2 - Private Sector Implementation Summary........................ 32 Table 4-2 Option 4 - Public - Private Implementation Summary ..................... 36 Table 4-3 Implementation Options Summary .................................................. 37 . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . 1.0 Purpose and Background 1.1 Study Purpose The purpose of this tech memo is to provide analyses of alternative implementation scenarios and to identify potential privatization options for the development of a guideway system between downtown Clearwater and Clearwater Beach. Key conclusions of previously completed studies will also be summarized. This people mover connector system has been called the Bluff to Beach Guideway System. The project location concept is shown in Figure 1-1. 1.2 Project Background Over the past several years, there have been ongoing discussions and initiatives relative to the analysis of a Downtown Clearwater to Clearwater Beach fixed guideway system. These initiatives have mostly related to the development of a monorail-type system, to be grade separated from existing traffic to avoid vehicular and pedestrian conflicts. Historically, many outside the community have viewed this system as an alternative means of moving people from downtown to the beach to help alleviate parking congestion problems on the beach. However, over the past few years, the beach and downtown areas have been experiencing tremendous growth in redevelopment projects. These projects have included many new residential units on the beach, and the development of residential and commercial projects in downtown. With the redevelopment activities that are underway, the guideway connector system has the potential to become much more than simply a beach parking reliever. It has the potential to serve the following functions: . Allow beach residents quick and efficient access to the shopping, dining, and recreational activities existing, planned or under development in downtown. · Allow downtown residents the same quick and convenient access to beach areas and activities. · Allow for employees of beach businesses to take the guideway system to the beach for work. These employees could arrive in downtown via the Pinellas Suncoast Transit Authority (PST A) bus system or by private automobile. · Allow for increased economic interaction between visitors to the beach and the downtown areas. Tourists who stay at the beach could come to downtown for shopping, movies, dining, or other activities through a quick and convenient people mover system. . Allow for remote parking of beach patrons in the downtown area, alleviating parking congestion on the beach. · Serve as the 'starter system' for a larger, countywide monorail or guideway initiative as contemplated by the Pinellas Mobility Initiative. Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 1 Grimail Crawford, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... Q., ~ ~ = o ~u . = ~ 0 ~:c = e .2fl 0 ~~ .... ~ ~ .~ e ~ I ... -'-, "'~'-:;- -_. . ........~ .' . . . . . . . NO oS "E o ~ !!! u Oiij oS <!i e: al a: e: .Q '0 <( >.0 alE := Ol ~::2: 05 -5 c.!JOl .t:1- (Jill ale: Olo CC:.;::o oa. -0 ==e: .20 co+=- QiJ9 caai 1: E al~ Ola. -E U_ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . · Further and/or support economic redevelopment initiatives in the downtown and beach areas. Within the current development framework of downtown and beach redevelopment, it is important to remember that the guideway system should be viewed as a viable two-way operation, rather than just a remote beach parking opportunity. Its potential usage and function has grown beyond this initial remote parking concept to encompass the uses identified above. 1.3 Prior Studies This section of a potential guideway system has been previously studied several times. However, the economic development dynamic on the beach and in the downtown areas is substantially different now than it was at the time that these previous studies were completed. Still, it is useful to review the results of these previous studies for background understanding. 1.3.1 The Pinellas Mobility Major Investment Study The MPO began a study in 1997 of major multi-modal transportation improvement alternatives beyond those in the then current Cost Feasible Long Range Transportation Plan (LRTP). The MPO conducted a three-stage screening analysis under the umbrella of the Pinellas Mobility Major Investment Study (MIS). A Transit Policy Plan Network was adopted by the MPO as a result of the MIS process. This plan, which is not financially constrained, indicates the corridors that were identified as part of a full implementation of guideway transit in the county. The Transit Policy Plan Network is shown on the following page as Figure 1-2. Priority segments of the Transit Policy Plan Network were identified through the adoption of the Locally Preferred Alternative (LPA) Report by the MPO at its October 2000 meeting. This report represented the culmination of the Pinellas Mobility MIS. The LP A Report defined a corridor for development of elevated guideway transit, technology parameters, and follow-on activities needed to further build community consensus regarding a guideway project. The priority corridors adopted by the MPO are shown on the following page as Figure 1-3. The Bluff to Beach Guideway System segment was included as a part of the overall concept approved in the LP A. 1.3.2 The Pinellas Mobility Initiative The follow-on study resulting from direction by the MPO at the time of their adoption of the LPA was entitled the Pinellas Mobility Initiative (PM I). The PMI was oriented toward refinement of technology options, capital costs, operating and maintenance costs, financing, land use compatibility and livable communities initiatives, and stations. Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 3 Grimail Crawford, Inc. . e e e . . e e e . . e . e . . . . . . . . . . . . e . . e e . Figure 1-2 Policy Plan Network Pinellas Mobility Initiative . . jl .. i. SI . . I II . . '. t,', "I ..... ,~ >. ~lJ ,., '-il-. ,i-~..: ....! r{ I j' ~,-'" i'''r(w''' S.R~.~ ___ ~J._"'~-"'~1C;~ c....--v '10, fi, ;. ! 'I I Gulf of Mexico Old Tampa Bay ....,r;' ~< ...... ...... October, 2000 Policy Plan Guideway Transit Network Legend -Generalized Guideway Corridor . . I Potential Extension ~ Bus Connections to Hillsborough County ~ if I ,.-/ r - -rl~:f~:C"111 l' : i. i ! b',;}:;!" ~. :. ... _#"",--"'L_+ ,_ ~. .Cl.__ - ~l Tampa Bay I \. o 0.5 1 5_ +N j'; . l' \ Notl!I: G . COIY"idorloc8ioneare end , , Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 4 Grimail Crawford, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Figure 1-3 Locally Preferred Alternative Pinellas Mobility Initiative Pinellas Mobility Initiative 2025 Transit Operations Concept Legend: - ......- CountJysiIe lO au.- ~lOSl""" ~ lO St. Polo ~--Covorogt · - 'Trd..,C_ ,,- , CemrBI Ave. ConIcIar 0 Enhanced ~ Buo SeNioo TrdIoyConlclar o 6 Milel S 2 4 Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 5 Grimail Crawford, Inc. e e e e e e e e e e e e e e e e e e e e e e . e e e . . . e e . Furthermore, the PMI involved the public in the planning and decision-making regarding the potential for a premium transit system in the county. The refinement analysis provides information important to reaching planning-level consensus on the feasibility of fixed guideway transit and/or enhanced bus in the corridor. Benchmark alternatives such as the LRTP and TSM were defined as a base upon which to frame order of magnitude comparisons. The final action of the MPO was to adopt a refined LP A consisting of a system of elevated monorail technology supplemented with express bus, local bus, and small rubber-tired trolleys for circulation. In the Pinellas Mobility Initiative, the Bluff to Beach segment was identified as an early implementation priority of the entire system. As such, it was viewed as in the Mobility Initiative as a first-stage implementation of a larger countywide system. The PMI project, though thoroughly researched and completed, has potential issues related to an interim solution to the Bluff to Beach project. Chief among these is the fact that the PMI has been completed in strict adherence to the requirements and analysis procedures dictated by the Federal Transit Administration through its New Starts program. This New Starts program is the vehicle by which discretionary funding is allocated to transit system projects by the federal government on a national basis. Competition for this funding source is intense, and a defined set of analysis criteria are required to be completed to assist FT A and Congress in evaluating a wide range of projects proposed in diverse local circumstances. There are several issues for ClearWater in the application of these criteria to the Bluff to Beach project: . The criteria are best at analyzing extensions to existing systems as opposed to implementation of new systems. . The criteria are better applied to longer system projects, rather than shorter starter-type projects such as the Bluff to Beach project. . The criteria, through application of the regional modeling and ridership estimating process, do not adequately address tourist-related system ridership and capture potential. . The criteria do not allow recognition of significant redevelopment programs. It is based more on existing land development, with some new activities included, but not the full scale of activities contemplated by Clearwater for its downtown and beach station areas. Despite these shortcomings, the criteria have been well established through practice over a number of years. Therefore, if federal funding is to be sought for the Beach to Bluff fixed guideway system, these criteria will have to be followed. Renderings prepared for the PMI study applicable to the Bluff to Beach study are shown in Figures 1-4 and 1-5. Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 6 Grimail Crawford, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Q,j i>- .... - ~ .s =- .- ..... ~ '"' = I Q,j ~ 1""'1 "Cl .... 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Q)Q. -E u_ e e . e e e e e e . . . . . . . e . . . . e . e . . . . . e . . 1.3.3 The Clearwater Bluff-to-Beach Guideway Reconnaissance Study The Clearwater Bluff-to-Beach Guideway Reconnaissance Study (The Reconnaissance Study), September 2001, prepared by Wade-Trim and Jakes Associates, assessed the feasibility of developing a guideway to connect downtown Clearwater to the beach area. The Reconnaissance Study considered various system technologies and alignments, and developed ridership forecasts. In the Reconnaissance Study, the Bluff-to-Beach system was envisioned as a stand-alone people mover type system that would be largely implemented through private means. This implementation scenario was possible due to aggressive ridership projections that were based upon general order-of-magnitude assumptions. The assumptions used presented a best-case analysis of ridership and patronage forecasts that would not likely hold up under federal funding scrutiny. It should be noted that the Reconnaissance Study presented much good information, and was not intended for use in justifying federal funding consideration. Rather, its purpose was to give order of magnitude information, which it accomplished successfully. Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 9 Grimail Crawford, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.0 System Costs A key element of the implementation options analysis is the cost to design, build, and operate the system. This section provides a summary of cost data developed previously, and updates these data to current year estimates. The costs to implement the system can be segregated into four areas: . Pre-construction activities, which include environmental studies, design, and permitting, . Right-of-Way acquisition, . Construction activities, which include the costs to build the system, including construction management fees,' and . Operations and maintenance costs, which include the costs required to provide ongoing maintenance and operations. Each of these cost elements is described in further detail in the following sections. Each of these cost elements has been previously estimated. Where appropriate, they have been adjusted to reflect current year pricing to update the previously developed estimates. . Supporting information on how these costs were developed is included in the Appendix. Cost estimates developed for the Pinellas Mobility Initiative are the latest costs available, and the basis for this report. 2.1 Pre-Construction Costs Pre-construction costs include the cost required to complete environmental studies, design, and permitting sufficient to begin the right-of-way acquisition process. 2.1.1 Environmental Studies Environmental studies will be required for this project to gain clearance from state, regional, and federal regulatory authorities in order to build the project. To be qualified for state or federal funding participation, environmental studies consistent with the Florida Department of Transportation's (FDOT) Project Development and Environment (PD&E) study process are required. The PD&E process provides a framework for determining location, design concept, and environmental mitigation requirements for major projects to be completed with state or federal funds. The PD&E process is mandated by state law, and embodies the requirements of the Preliminary Engineering studies mandated by the National Environmental Policy Act (NEP A), in addition to other state and federal laws. Issues analyzed and steps followed in a PD&E Study include: . Social and Economic Impacts. . . Air Quality - assessing existing/future conditions and determining if the project conforms with the Clean Air Act. Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 10 Grimail Crawford, Inc. . . e . . . . . . . . e . . e e e . . . e e . . . . . e . e . . · Noise - quantifying the project's noise levels and if they meet criteria, investigate reasonable and feasible noise abatement. · Wetlands - finding the best way to avoid, minimize and mitigate long-term and short-term impacts. . Water Quality - measures to prevent, reduce and/or eliminate pollution of ground and surface water. . WildlifelHabitat hnpacts - efforts are made to identify the presence of and to protect/ensure the continued existence of threatened and/or endangered species and their habitat. . Contamination - identifying and evaluating potential contamination problems within and/or adjacent to a project. . Floodplains - efforts are evaluated to avoid, minimize, and mitigate encroachment within the floodplain. . ParksIHistoric Sites - significance of the sites and avoidance methods are evaluated when recreation lands or historic/archeological sites are impacted by the project. . Conceptual Design - engineering design concepts are developed and evaluated for environmental compatibility and satisfaction of the transportation need. . Public Involvement - a Public Involvement Program is carried out for every PD&E study, to inform/involve all interested parties in the development of the planned transportation project. At the conclusion of the PD&E process, formal Location and Design Approval is granted, along with approval of environmental impact and mitigation information pertinent to the project. For the Bluff-to-Beach project, the PD&E phase is anticipated to cost approximately $1- $1.5 million dollars, and to take roughly 12-18 months to complete. 2.1.2 Design The design phase can begin once the PD&E study has been completed. The design phase will refine the previously developed engineering concepts and will conclude with the development of final engineering plans, specifications, and estimates (PS&E) packages. The documents developed in the PS&E package will allow for construction bids to be taken, and for rights-of-way acquisition to begin. For the Bluff-to-Beach project, the design phase is anticipated to cost approximately $3 million dollars, and to take roughly 12-18 months to complete, assuming use of the Memorial Causeway bridge. If a new bridge is required, then the cost may be higher for a new bridge design, and permitting time would likely lengthen the schedule for completion. The design cost and timeframe will be highly dependent upon the method used to complete the crossing of the Intracoastal Waterway. Use of the existing Memorial Causeway bridge will be less costly and take less time to design, whereas use of a new structure will take more time to design, and considerably more time to permit. Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 11 Grimail Crawford, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2 Right-of-Way Acquisition This phase includes the acquisition of rights-of-way necessary to implement the guideway system. The conceptual location of the proposed Bluff to Beach guideway system was shown on Figure 1-1. In developing the location shown in Figure 1-1, maximum use of publicly owned land was a key consideration in the locational analysis. Use of such lands helps to minimize the overall implementation cost, thereby increasing the viability of the project. Of note in the right-of-way costs is the fact that the alignment has been previously developed to best suit the needs of a regional system by aligning with Court Street to the south of downtown. However, much of the redevelopment activity occurring in downtown is located to the north of Cleveland Street, which could necessitate rethinking the location of the guideway system. If the alignment is moved, the right-of-way costs could vary significantly. Right-of-way costs for the Bluff-to-Beach project have been previously estimated to be approximately $2 million in year 2003 costs. 2.3 Construction Construction cost estimates have been developed for this segment based upon two scenarIOS: . Use of the median of the new Memorial Causeway Bridge to accommodate the guideway system, with associated costs of building barrier walls, lane restriping, and lighting to accommodate the guideway, and . Building a new bridge over the Intracoastal Waterway parallel to the existing bridge. This scenario is viewed as less favorable due to its cost, and due to the complexity of permitting a new crossing. The previously estimated cost of this segment is $50 million - $60 million, depending upon whether the existing bridge is used or a new bridge is built. It should be cautioned that the prices for concrete and steel have fluctuated considerably over the past few years with demand for these products. Further fluctuations could have a substantial impact on actual costs for this segment, and these costs will be reestimated as part of the PD&E study process. For the costs presented in Table 2-1, a cost of $5 million was used to retrofit the new Memorial Causeway bridge to accommodate the guideway, as opposed to building a new bridge. Typical sections for how this arrangement could look are' shown in Figures 2-1 and 2-2. The cost estimate includes allocations to build 250 surface parking spaces, but does not include the cost of building new parking garages. If new parking garages will be required on either end off the project, these costs will be subject to revision. Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 12 Grimail Crawford, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4 Operations and Maintenance Operations and maintenance costs include staff salaries, vehicle cleaning and upkeep, electricity and other utilities, fare collection, insurance, station and guideway cleaning and upkeep, and other costs associated with the longer term operations of the system. Operations and maintenance costs for this system are estimated to be approximately $2 million per year as reported in Table 2-2. Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 13 Grimail Crawford, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Table 2-1 Capital Cost Estimates Bluff to Beach Segment ITEM. UNITS QUANTITY UNIT TOT AL COST COMMENTS Guideway - Standard LF 11,936.00 $285 $3,401,760 Substructure - Standard EA 60 $85,000 $5,100,000 Guideway - Soecial LF 1,310.00 $3,750 $4,912,500 Bridge Modifications to accommodate auideway LS 1 $5,000,000 $5,000,000 Walkway LF 10,218.00 $60 $613,080 Track Shieldino LF 10,218.00 $50 $510,900 Switches EA 2 $500,000 $1,000,000 Electrification MILE 1.94 $1,500,000 $2,910,000 Transformer Substations EA 2 $250,000 $500,000 One oer mile Control System MILE 1.94 $1,500,000 $2,910,000 Communication System MILE 1.94 $500,000 $970,000 SUBTOTAL $27,828,240 Utilitv Relocation LS 1 3.00% $834,847 Roadway Reconstruction LS 1 2.00% . $556,565 Sianina & Strioina LS 1 1.00% $278,282 Traffic Control LS 1 2.00% $556,565 LINE TOTAL $30,054,499 Neiahborhood EA 1 $1,000,000 $1,000,000 Community EA 1 $1,500,000 $1,500,000 Reaional EA $2,000,000 $0 Bus Bays EA $40,000 $0 Parkina (400 SF/Soacel SP 250 $4,000 $1,000,000 SUBTOTAL $3,500,000 Drainaae LS 1 5.00% $175,000 Urban Desian/Landscaping LS 1 3.00% $105,000 STATION TOTAL $0 SEGMENT SUBTOTAL $3,780,000 Mobilization LS 1 3.00% $1,015,035 Continoencies LS 1 20.00% $6,766,900 Desion LS 1 12.00% $4,060,140 Construction Manaaement LS 1 10.00% $3,383,450 Insurance and Leaal LS 1 2.00% $676,690 Subtotal $15,902,215 Note: The above estimates are based upon costs developed for the Pinellas Mobility Initiative. Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 14 Grimail Crawford, Inc. e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e Table 2-2 Operating & Maintenance Costs Estimated by Pinellas Mobility Initiative (2003 Dollars) CATEGORY ANNUAL . COSTS Staff Salaries - Management, Maintenance, Sales, Operators, Security. $885,000 Staff Benefits and Overhead - Taxes, Insurance, Retirement, Office Supplies. $440,000 Power Consumption and Parts - Trains, Offices, Stations, Maintenance $375,000 Contingency @ 10% $170,000 TOTAL $1,870,000 Note: The above costs are planning level estimates based upon numerous assumptions. Refined estimates will be developed as decisions are made concerning technologies, stations and amenities. Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 15 Grimail Crawford, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C Q ..... ..- CJ Q,j \I). - = CJ ~.a '~ N~ Q,j Q,j "" ell ~~ ez .C = 'i ..... "" e Q,j ~ :1 % ,. ~) OIl "'", ~'it" :1 ~ , J.. .. , J.. -~ ~- I II II II I' I' (00 I , -r-.s I , "E I , 0 ~ I l....... e I ... ....... U I r-.... .... 'a; I ..., I E I J I I (3 I ' I I I ' I I , II I , I, I I II I I 'I I I 1\ I , I , I I : \ J I , .J 1.- .,. I .,. .,. , r- -, (' I I I I I , J I: " I ---------a : I I ~ I I I , I , _.J l.. L _ .... "'- .... r_.... .... I '" I , I I , , I I I I I I' I I I' , I II I I ,I I I , , \ , I I \ , I , \ J I I .,. I I l_' ,'" , I ' I r' I I I , I I I , II I' " II I r_- ..LJ e: al a:: e: .Q t5 <( >.0 alE ==CD ~:E '5 {i <.!lCD .s::.1- o<f) ale: CDO CD:.;::::; 00. -0 :t:e: 20 co:.;::::; (i),!g Cijai ~ E al~ CD 0. -E U_ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . = Q ..... - Cj ~ \I.) - = Cj N'a ,>> N~ ~ ~ ::I =tl =tl"C ~ 'C =:l - = ..... s.. e ~ ~ = Q ..... ..- Cj ~ \I.) rI.l rI.l Q s.. U ~ =tl "C ..... s.. =:l =tl = ..... ..- rI.l ..... ~ ~ ,..... ,...~ "E o ~ !!! u .a; E .~ Cl - ..... = s.. Q = Q ~ = = ..... "C ~ ~ ..c - ..... ~ = Q ..... ..- Cj ~ \I.) rI.l rI.l Q s.. U ~ =tl "C ..... s.. =:l ~ al Cl: I:: .2 ~ >>0 alE == (I) ~::?! .5.s::: Clal .s:::1- 000 al .1:: (1)0 CD+:: oc.. -0 :1:1:: .20 cc= ~ al ~'E al(l) ~E al..!!1 (l)c.. -E u_ . e . . e . e e e . e e . e . . . e . e e . . . . e e . e e . e 3.0 Funding Source Options An essential part of selecting an implementation strategy will be to identify how the Bluff to Beach guideway system will be funded. This section will present several public and private funding source options to be considered as part of the implementation strategy. 3.1 Public Revenue Sources There are several potential existing and new public revenue sources that could be used to finance all or part of the Bluff to Beach project. Many of these revenue resources have been previously programmed for use.on other projects, and would require amendments to the City's Capital Improvements Program to access. However, they are still discussed here for reference. There are many other potential public sector funding pools, however those presented in the following sections represent the most likely sources for a fixed guideway transit facility. 3.1.1 Existing Revenue Sources There are several existing potential revenue sources that could be used to assist in the development of a Bluff to Beach guideway system, as discussed in the following paragraphs. 3.1.1.1 Penny for Pinellas The Penny for Pinellas is a 1 ft local option sales tax program administered by Pinellas County. Income derived from this source can only be used to fund capital improvements. No operations and maintenance activities may be funded out of this revenue stream. As part of the program, the City receives approximately 8% of the total revenues generated, which will equal approximately $80 million over the period from the Year 2000 to the Year 2010. 3.1.1.2 Community Redevelopment Authority The City has in place a Community Redevelopment Authority (CRA) that operates with money generated through an ad valorem property tax. For the Clearwater CRA, a Tax Increment Finance District (TIP) was established that fixed tax rates in 1981. The increment in ad valorem taxes on increases in property values since that time form the basis for the TIP funding. The Clearwater Downtown Redevelopment Plan provides estimates on the increases in taxable valuations and the resulting funding to be generated by these increases. The Plan provides an estimate of almost $72 million in ad valorem taxes being generated in the CRA district over a 30 year period from 2003-2033. These funds can be pledged as collateral to repay revenue bonds issued by the CRA to implement projects identified in its plan. Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 18 Grimail Crawford, Inc. . . e . . e . e e e e e . . . . . . . . . . . . . . . . . . . . Implementation of a Bluff to Beach guideway system is not currently included in the CRA plan. However, were it to be included, leveraging the CRA ad valorem revenues as a funding source for local funding needs could represent a significant funding opportunity for such a system. 3.1.1.3 Pinellas Mobility Initiative Federal Earmark In 2005, the Pinellas MPO received an earmark of Federal funds for the Pinellas Mobility Initiative in the amount of approximately $2.85 million. At present, a program of how to use this money is being developed through the MPO and its planning partners. One option being considered is to use a portion of this money to complete the PD&E study necessary for the Bluff to Beach guideway project. Use of the earmarked funds for such a purpose represents an opportunity for the City, in cooperation with the MPO, to complete the PD&E for this segment, which would then potentially qualify the project for additional state and federal funding assistance. 3.1.1.4 City General Fund Like most local governments, the City's needs likely exceed its current general fund revenue stream. However, the City operates with a $111 million annual budget. Depending upon the implementation method selected, and the size of the City's required local funding share, it might be possible for the City to allocate small amounts from its general fund revenues over a finite period of time to help fund capital or operations and maintenance costs for the system. Such allocation would represent a major policy action on behalf of the City, and could help to instigate attracting funds from other state, federal, and private sources. 3.1.2 Potential New Revenue Sources There are several potential new revenue sources that could be used to assist in the development of a Bluff to Beach guideway system, as discussed in the following paragraphs. These sources are available by law, and in some cases would require countywide referendum to enact. However, since they do not currently exist, these sources have not been pledged to other projects, and could represent significant funding opportunities. 3.1.2.1 New Penny for Pinellas The current Penny for Pinellas expires in the Year 2010. If deemed desirable by the County and the Cities, a new Penny for Pinellas program could be put forward to voters to extend the program from 2011-2020. Funds for part or all of the Bluff to Beach system could be included as a part of the package of improvements to be developed with proceeds from the tax. Based upon previous Penny for Pinellas programs, this source could be expected to generate $100 million or more per year on a countywide basis, with the City's funding share to be determined through negotiation with the County. This Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 19 Grimail Crawford, Inc. e e . . . . . . . . e . e e . . e e e . . . . e . e e e . . . . revenue resource in bondable, meaning that some annual portion of the proceeds could be pledged to repay bonds used to build the system. 3.1.2.2 New Local Transit Sales Surtax This revenue source is a 1 (/, local option sales tax available to counties in Florida who had adopted Home Rule Charters prior to June 1, 1984, which qualified Pinellas County to enact this tax. The tax can be enacted through a referendum having been called by a supermajority vote of the County Commission. The proceeds from the tax can be used for capital purpose and for operations or maintenance of a county transit system. Bylaw provision, up to 25% of the proceeds can be used for non-transit items, such as roads, trails, or other transportation improvements. The remaining 75% must be used for transit expenditures, such as buses and guideway construction and operation. The County's budget office estimates that this tax could generate at least $116 million per year over a ten year period, for a lO-year total of nearly $1.2 billion. With this tax in place, the minimum to be dedicated to transit uses would then be $900 million over the ten year period, with the other $300 million being available for other transportation improvements, including transit. By law, this revenue resource is controlled by the County Commission, and there is no revenue sharing requirement with local governments. However, if such a tax were passed, it is likely that some of the proceeds would or could go towards the development of the Bluff to Beach project. Currently, there are no plans at the County level to call a referendum for this tax resource. The City's participation on the MPO, however, will insure that the City is informed if such a movement develops. 3.1.2.3 Gas Taxes The County is currently authorized by state law to levy an additional 5(/, per gallon of gasoline tax for sales within the County. This gas tax requires voter approval by referendum, or by a supermajority vote of the County Commission. By law, these additional taxes must be spent on capacity-adding transportation improvements contained in the Capital Improvements Elements of the local government Comprehensive Plans. The County must split this revenue with the municipalities, at approximately a 75/25 County/municipal split. If enacted, this tax would generate approximately $18 million per year in additional revenues, with the County receiving about $13.5 million, and the Cities splitting the remaining $4.5 million per year. Since the tax is not in place currently, all of this money could be used to finance guideway transit development. Additionally, bonds could be issued against this revenue stream in ten year increments to generate significant capital monies for early use. Similar to the above, the County is also currently authorized to levy a ninth cent local option gas tax. This tax would need to be approved either by voter referendum or by a Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 20 Grimail Crawford, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . supermajonty vote of the County Commission. It is estimated that this tax would generate an additional $3.5 million per year, without a requirement for sharing with the municipalities. Over a 20-year period, this tax could generate $70 million. This could also be bonded against in order to raise capital for advanced improvements, or could be utilized for recurring operating and maintenance expenses. The County Commission discussed the option of implementing all or part of these gas tax options through series of public workshops and forums. Initially, general support was lacking, and consideration of this source was postponed. Currently, there is momentum now building towards implementing the 9th cent only, with the tax to be used for signal system upgrades and intelligent transportation system installations. If dedicated to these uses, this one cent would not then be available for transit system uses. 3.1.2.4 Federal Transit Administration New Starts Program The most significant potential new funding source possibility would be to obtain funds through the Federal Transit Administration (FT A), as prescribed through its New Starts Program. The New Starts program is the funding mechanism by which the FT A provides capital grants to local transit systems. Accessing these funds requires completion of a New Starts evaluation process. A chart of the required analysis elements under the New Starts program is provided in Figure 3-1. Figure 3-1 New Starts Analysis Process Project Recommendation Financial Rating Project Justification Rating Minimum Project Development Requirements which must be met: NEPA Process Approvals Other Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 21 Grimail Crawford, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . By law, non-federal share of capital costs is required to equal or exceed 20%. However, competition for the New Starts funding pool has increased sharply, and it has become practice for the non-federal share to be in the 40%-50% range. It is important to note that non-federal matching funds can take many forms, including parking facilities, rights-of- way donations, and cash contributions from local, state, and private sources. In the recent passage of the new 6 year Transportation Bill, called SAFETEA-LU, a new abbreviated New Starts program for smaller projects, called Small Starts, was authorized. The Small Starts program was designed by Congress to streamline the analysis and approval requirements for smaller projects fixed guideway and bus rapid transit projects. It is anticipated that a reduced version of the New Starts analyses will be required to make a project eligible for funding under the program. As a stand-alone project, the Bluff to Beach project would qualify for the Small Starts funding program. Under the Small Starts program, Ff A will fund up to $75 million of projects with construction costs less than $250 million. This translates to only a 30% federal funding share at the maximum project cost of $250 million. Rules and regulations under this new program are currently being developed, however, and are expected to be released by FfA in 2006. Funding for the Small Starts program is anticipated to be available in Fiscal Year 2007, which begins at the end of 2006. Since these rules this program are still being developed, it is not yet known how much non-federal project cost will be required. However, it is anticipated that due to limited resources in the program, the federal match will be in the 30%-50% range. 3.1.2.5 Ridership Revenues A detailed analysis of ridership forecasts for the system is provided in section 5 of this report. Ridership estimates have ranged from approximately 1,500 riders to 20,000 riders per day, depending upon the methods used and the assumptions made related to redevelopment levels. With these ridership levels, revenue from farebox recovery could range from $720,000 per year to over $9,000,000 per year. Later in this report, a break-even analysis is presented, which estimates the amount of ridership required to fully cover annual operations and maintenance costs, contingent upon other revenue sources as described in Section 5. The results of this analysis indicate . that approximately 2,800 riders per day, with corresponding farebox revenue of approximately $1,300,000, would be the break-even point for the system. Given that this ridership and revenue is on the low end of the range defined above, this level seems reasonable at this point. Further, more detailed analysis will likely result in revised riders~p estimates. Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 22 GrimailCrawford, Inc. . . . . . . . . . . . . . . . . e . . . . . . . . . . . . . . . 3.2 Private Revenue Sources Private revenue sources can take many forms. Some of the most common ones are discussed in the following paragraphs. 3.2.1 Rights-of-Way Donations One common private sector contribution opportunity is rights-of-way donations, most typically for station locations. By assisting in the development of the system through donation of the land required to build a station, a private sector interest can help to influence the location of the station. In many cases, it is advantageous to have station access immediately adjacent to or integrated within a major redevelopment project. In order to get such immediate access, the City can work with developers to secure rights- of-way for stations or parking facilities through donations. 3.2.2 Joint Parking Facilities Another method of capital cost contribution by the private sector would be the development of joint use parking facilities. In joint use development, a developer would allow use of a project's parking areas or decks for transit system patrons, or would allow the transit agency to share the cost of building a larger parking facility, with space allocated accordingly between the developer and the station. Additionally, a development project could allow peak time parking, such as holidays or weekends, in their facilities to accommodate peak demands for the transit facility. 3.2.3 Direct Cash Contributions Developers could also participate in the development of the facility through direct cash contributions. If deemed appropriate by the City, such contributions could be used to offset transportation impact fees. 3.2.4 Ride Subsidies A potentially significant way to help offset operations and maintenance costs would be for businesses to subsidize patron fares through a system similar to validation of a valet check. A restaurant, for example, located in proximity to the station could stamp the guideway fare receipt, and credit the amount of the ride towards the patron's restaurant bill. Such a system would help to promote ridership, which would help to offset operations and maintenance costs. Another subsidized ride example would be for beach hotels to automatically include a weekday, weekend, or weeklong ride pass in the price of lodging for guests. While this option would only add a few dollars a day to the price of the lodging, it would provide a tangible amenity to the guest, and would help to promote ridership on the system. Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 23 Grimail Crawford, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . As automated fare collection systems advance, it may soon be possible even to have hotel room keys be readable by fare collection equipment, so that ride fares are billed back to guest rooms at hotels. In this way, the convenience of riding the system and having it billed back to a guest room would help to promote ridership. 3.2.5 Merchandising and Advertising Another way for the private sector to assist in deferral of system operations and maintenance cost would be to stock and sell guideway system merchandise in their stores. As part of the system development, logos, brands, and other marketing items will be developed, and these brands and items will be marketing to the public for purchase either directly through retail agreements with merchants. A portion of sales proceeds would go directly to the agency or entity operating the system. Scale monorail models, train sets, or other similar items can also be sold, with proceeds returned to the agency. Another common method of private sector contributions is naming rights and advertising fees. The Tampa Trolley system has sold naming rights for its system, and is officially called the TECO Line Streetcar System. Each trolley station has a signature space available for sale, from anywhere $40,000 to $100,000 annually, depending upon the annual number of patrons accessing each station. In addition, there are interior advertisement placards, exterior advertisement sign boards, bench advertisements, and other advertising opportunities. Similar opportunities could be developed to help defray annual operating and maintenance costs. 3.2.6 Joint Retail Development Each station for the proposed guideway system is elevated. One station is located near the marina at the beach, and the other one is located in downtown. There is an optional intermediate station at Island Estates. Each of these stations has a platform size of approximately 5,000 square feet in size. Underneath the platform, we estimate that approximately 2,500 - 3,000 square feet of convenience retail uses could be created. At a conservative rental rate of $20 per square foot, each station could generate approximately $60,000 per year in rental rates, for a total of $120,000 annually for two stations. In addition to the lower level space, another space could be created above, for use as a restaurant, similar to the pier in downtown St. Petersburg. Creation of this space, in addition to providing a neighborhood amenity, could double the numbers above for lease space. Development of these joint retail facilities above and below the stations serves several important functions: · Helps to generate ridership by providing a retail destination.. For example, downtown residents could ride the guideway system to the beach to have dinner at the station restaurant, and vice versa · Helps to build ridership by orienting people to the station Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 24 Grimail Crawford, Inc. - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Provides neighborhood amenities to soften the potential intrusion of a guideway station . Provides increased merchandising opportunities . Generates sales tax revenue . Generates lease space recurring revenue for the guideway operating entity. 3.2.7 Private Sector Funding Opportunities Summary Short of completely financing and building the system for profit, there are ample ways for private sector interests, who have direct benefit from implementation of a Bluff to Beach guideway system, to help fund its annual operations and maintenance cost. No one method alone is likely to completely fund these costs, but the combination of several methods could fund a substantial portion of these costs. Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 25 Grimail Crawford, Inc. e e e e . . e . e . . . . . . . . e e . . . . . . e . e e e e . 4.0 Implementation Options Overview and Analysis In previous studies evaluating the implementation of a guideway system in the Bluff to Beach corridor, several 'general implementation options have been considered: . implementation by the Pinellas Suncoast Transit Authority . implementation by private sector interests, and . implementation by local government interests. This section will present an overview of these strategies, and will develop a third public- private hybrid option. Later in the section, each of the options, and its suitability to this project, are discussed. 4.1 Implementation Options Overview The following paragraphs describe each of the options under review for implementation of the Bluff to Beach guideway system. 4.1.1 Option 1 - Pinellas Suncoast Transit Authority (PST A) One option for consideration is to task the PST A with the PD&E, design, construction, operations and maintenance, and funding of the Bluff to Beach guideway system. Before evaluating this option, the following sections review the legal framework that created PST A, followed by a summary of the option of tasking PST A with its implementation. The Pinellas Suncoast Transit Authority (PST A) was created by special act of the Florida Legislature (Chapter 2000-424, Florida Law). This act specified the PSTA's taxing authority, jurisdictional boundaries, board membership, and rights and responsibilities as the county's authorized transit system operator. ' Key areas of the act that pertain to the development of the Bluff to Beach project are summarized in the following sections. 4.1.1.1 Definition of Public Transit Public Transit is defined in the act as: transportation for hire by means, without limitation, of a street railway, elevated railway, subway, motor vehicle, bus, or other means of conveyance operating as a common carrier within the public transit area as provided, and charter service originating therein. Under this definition, the proposed Bluff to Beach system would be an element of public transit. This fact seems self-evident, but is important to remember when reviewing the authorities granted to PST A by the act. Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 26 Grimail Crawford, Inc. e e e e e e e e e e e e e . . e e . e e e e . e . e e . . . . . 4.1.1.2 Definition of Transit Operator under PST A Special Act A transit 'operator's is defined as follows: Any person engaged in or seeking to engage in the business of providing public transit, but does not include persons engaged primarily in the transportation of children to or from school, in operating taxicabs, buses, limousines, or other means for the transportation of passengers between a common carrier terminal station and a hotel or motel, in operating a common carrier railroad, or a person furnishing transportation solely for his or her or its employees or customers. Again, this definition is self-evident, but is important to the potential development of a Bluff to Beach guideway system. 4.1.1.3 PSTA's Authority under Special Act Under the act, PST A is granted specific authorities, as follows: . .. to purchase, own, and/or operate transit facilities, to contract for transit services, to exercise power of eminent domain, to conduct studies, and to contract with other governmental agencies, private companies, and individuals. Also, To regulate other operators of public transit in the Pinellas Suncoast Transit Area as to franchises, permits, fares, and other charges to establish rules and regulations pertaining to these matters for distribution to the operators and public transit facilities in said area. 4.1.1.4 Effect of PST A Special Act on Bluff to Beach Project Development Public transit operations are the domain of PST A per the special act of the Florida Legislature that created the authority. To the City, this means that development or operation of a public transit facility between the downtown Clearwater and the Beach is subject to regulation by PST A. By law, PSTA is the only entity currently authorized to develop and construct transit facilities. However, PST A is also authorized to execute franchise agreements to provide such services. Therefore, if PST A itself is not to be the implementing agency, a franchise agreement will need to be developed and executed with PST A to cover the details of the system. A franchise agreement would cover, at a minimum, the following topics: · Length of the franchise agreement - specify the length of time for which the franchise agreement is valid; establish end dates, sunsetting provisions, or franchise in perpetuity options. · Financial obligations - specify the financial obligations that PST A and the franchisee have unto each other, and for how long. · Insurance and legal - specify the types and amounts of insurance to be provided; the responsibilities of the parties; and the severability of the franchise agreement. Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 27 Grimail Crawford, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . What actions can be taken to sever the agreement by either or both parties would be identified. · Project limits and future expansion - where exactly would the system be, and what would be required of the franchisee to expand the system beyond the identified limits. · Ownership of transit facility assets - specify who owns the assets - now, in the future, and at the expiration of the agreement. · Funding sources - identify the sources of system capital, operations, and maintenance funds. · Operating parameters and limits - identify what ancillary, if any, services the franchisee could operate, such as shuttle buses to major employers, hotels, etc. · Other items as necessary - such as standards of care, royalties, if any, etc. 4.1.2 Option 2 - Private Sector Implementation Options Private sector implementation options generally assume that a guideway system can be designed and constructed with private sector funds, and can be operated for profit. In this scenario, the system would be expected to recover its initial capital costs as well as its annual operations and maintenance costs, while making a profit either on a year-by- year basis, or over a longer term. To accomplish a fully privatized system, a franchise agreement would need to be granted by PST A. Then, a private entity could begin with the development of the system. Since private developers do not hold the power of eminent domain, it is possible that assistance would be required from the CRA or from the City to acquire necessary rights- of-way to build the system. For right-of-way already under public control, use of the rights-of-way by the private entity will need to be granted. The right-of-way will also need to be certified free of encumbrances, environmental hazards, or contamination that would render system development unreasonably costly. There are many forms of a purely privatized system. Often, it is envisioned that an investor group would form for the purposes of financing the system. It is also suggested that developers will build the system as a part of redevelopment projects to offset impact fees, to provide better access, or as a form of competitive amenity for their projects. Full privatization will offer the least public cost, but also offer the least amount of public control over design, location, aesthetics, operations, advertising and merchandising, station design, and fare policies. An investor group with the resources to privately fund and build the system would likely require final authority in most of these areas. Employees of a private enterprise would be governed by Florida's at-will employment laws. Employees would not be subject to pensions, public employee labor unions, or other public sector employment benefits. Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 28 Grimail Crawford, Inc. . . . e . . . . e e . . . . e . e . . e . e . . e e e e . . e . 4.1.3 Option 3 - Non-PSTA Public Sector Implementation Options Another option to development of a system would be a public entity other than PST A to take the lead in its development and implementation. Until now, the MPO has been the lead agency through the overall PMI planning and development phases. Consistent with the terms and conditions of the federal earmark, the MPO may also maintain lead agency status through the PD&E phase. It is likely that, at the completion of the PD&E phase, the MPO would cede control of the project to the potential implementing agency or entity. A public agency would require franchisee status from PST A as described previously. Upon completion of the PD&E, the local government could then move forward into design and implementation. There are several different routes that a public agency could follow in the implementation phase. They could treat each phase of the project separately, with in-house staff acting overall project management staff, design review staff, financing staff, and legal staff. Any of these functions could also be contracted out to private firms. Upon completion of construction, the public agency would require the development of a transit operations and maintenance capability. Most likely, this function would be developed as a new Department under Public Works or under the City Manager. Collier County, for example, operates transit services as a Departmental function under County government. We are not aware of any city-owned transit services in Florida. Transit operations and maintenance capabilities could be developed in-house, contracted out to other public agencies, or contracted out to private entities. In the Metropolitan Atlanta area, the Georgia Regional Transportation Authority (GRT A) operates a commuter bus system in Clayton County, and contracts out the maintenance and operations functions to the Metropolitan Atlanta Rapid Transit Authority (MARTA). In this way, GRTA did not have to hire and develop operational and maintenance capability from scratch. It is able to contract these capabilities through an already capable local public organization. Similarly, the TECO Line Streetcar contracts its operations and maintenance functions to the Hillsborough Area Regional Transit Authority (HART). A similar situation could be developed locally for the Bluff to Beach system with. PST A or other providers. 4.1.4 Option 4 - Public-Private Partnership Option The last implementation option considered in this report would involve the development of a public-private partnership. This partnership would borrow from, but would not be exactly like, similar ventures implemented in Las Vegas for its monorail system, and in Tampa for the Streetcar system. The details of how this option could be develop follow. Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 29 Grimail Crawford, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The first step in this process would be to create a non-profit, private company would be created. The Board of Directors for this company could be appointed as agreed upon under the franchise agreement; could be appointed by the City Council; or its membership could be prescribed in its articles of incorporation. The Board of Directors could be passive or active, exercising more or less direct control of the operation. It would be preferable for the Board to be established as a policy making body, with direct management and operations of the system under the direction of the President of the company. Creation of this operating company as a non-profit is important because it creates a tax -exempt status. This status is critical so that public funding and grants are not taxed as income to the company. The next step in this process would be to secure a franchise agreement from PST A as previously described. After the franchise agreement is placed, funding would be secured. After funding is secured, then a design-build contract would likely be executed with a design-build team. An operations and maintenance contract would also likely be executed with a private provider, to avoid employment issues. That way, the non-profit organization stays lean in terms of overhead and personnel. Key to his structure is the fact that the operating company is a non-profit. There are a couple of items for consideration implicit in this scenario: . Obviously, the company will not be operating on a for-profit basis. . Commitments as to shortfalls in operations and maintenance costs will need to be pledged, as the operating company is not likely to have large cash surpluses due to its structure. . If operating profits are realized, a method for returning those profits will need to be developed. Options for this return could include returning them back to patrons in the form of reduced fares or 'fare free customer appreciation' types of events; returning them to the capital partners in proportion to the amount of capital funding supplied to the project; sponsorship of community events, like the Jazz Festival; returning them to the agency who guarantees to cover shortfalls; others as developed as a part of the franchise agreement. 4.2 Implementation Options Analysis Each of the options described above has potential advantages and disadvantages to the City in terms of its development of the Bluff to Beach guideway project. This section will address these. Recommendations as to the implementation option that best fits the City at this point in time follow in Section 4.3 4.2.1 Option 1 - PST A The Board of Directors of PSTA has not been directly approached about becoming the owner and developer of the Bluff to Beach guideway system. However, PST A has been very involved in the development of the Pinellas Mobility Initiative (PMI) over the past Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 30 Grimail Crawford, Inc. e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e few years, and should be aware that the Bluff to Beach segment is being considered as a first stage implementation of the overall system. To date, the PST A Board has shown little or no interest in the development, ownership, or operation of fixed guideway transit facilities anywhere in Pinellas County. Over the past few years, PSTA's emphasis has been on efficiently managing and operating the existing bus network within the county, and on developing premium bus rapid transit services. Fixed guideway transit services are generally viewed by the Board as a long-term option, with little immediate relevance to their mission. Due to PSTA's disinterest in owning and developing a system such as the Bluff to Beach system, it is recommended that PST A not be pursued as the implementing agency. Rather, a franchise agreement should be pursued with PST A to allow the design, construction, and operation of the Bluff to Beach system under one of the other operating scenarios. 4.2.2 Option 2 - Private Sector Implementation Options Private sector implementation options are always favored due to the potential for significant private sector contributions to public sector infrastructure projects. In the case of the Bluff to Beach project, however, it is difficult to see where the private sector could earn a substantial return in reward for its substantial investment. Table 4-2 presents an analysis of the costs and potential revenue sources that could be expected to contribute to the capital and operations and maintenance costs for the project. By comparing the amount of total cost outlays to the anticipated non-ridership related revenues, it can be seen that there is a shortfall in the amount of approximately $9 million per year over a 10 year period, and $7 million per year over a 20 year period. To recover this revenue shortfall over a 10 year period would require approximately 19,400 one-way trips per day. To recover it over a 20 year period would require approximately 14,200 riders per day. These numbers are reported in Table 4-1. By comparison, the ridership projections developed for this segment under the PMI program are in the range of 2,000 riders per day, and the Las Vegas Monorail system along the Las Vegas strip is averaging approximately 30,000 riders per day over its four mile length. Given the high amount of ridership required to recover revenue shortfalls, it is unlikely at this time that a private sector investment group would fully fund capital costs in addition to ongoing operations and maintenance costs. 4.2.3 Option 3 - Non-PST A Public Sector Implementation This Bluff to Beach system could be successfully implemented by a non-PST A local government entity such as Pinellas County or the City of Clearwater. However, doing so would require the development of operations and maintenance staff, sales and marketing Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 31 Grimail Crawford, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Table 4-1 Option 2 - Private Sector Implementation Summary Item Recovery Period 10 years 20 years Estimated Cost System Costs Guideway Structure and Civil Works Stations, Parking, and Landscaping Mobilization, Contingencies, Other Total System Costs Annual Debt Service @ 6% Capital Cost Recovery $30,054,500 $3,780,000 $15,902,200 $49,736,700 $2,984,202 $4,973,670 $2,486,835 Annual Operations and Maintenance Costs $1,900,000 Total Annual Costs $9,857,872 $7,371,037 Annual Revenues Ridership required to recover shortfalls Number of riders per day Fare charge per ride Discount % (to account for passes and discounts) Ridership revenue (daily) Annualized ridership revenue 19,400 14,200 $2.00 $2.00 20% 20% $31,040 $22,720 $9,312,000 $6,816,000 $120,000 $120,000 $60,000 $150,000 $108,000 $9,870,000 $7,374,000 $12,128 $2,963 Lease space Retail under stations - 2 @ 3,000 sf @$20/sf Retail over stations - 2 @ 3,000 sf @$20/sf Merchandising and Naming Rights Merchandising Station Naming Rights - 2 @ $75,000 each General Advertisements 30 placards @ $300/month Total Annual Revenues Revenues minus cost Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 32 Grimail Crawford, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . staff, and would require hiring a Fixed Guideway Transit Department Head. The basic difference between this option and Option 4 is that the City or operating entity would need to create some in-house positions to provide oversight and management of the system. This implementation scenario could be viable. 4.2.4 Option 4 - Public-Private Partnership Option This implementation scenario would take some work to accomplish, but in the long run, could consume the least amount of City staff time and effort. A key assumption in this implementation option is that a combination of private, local, state, and federal funds would be utilized to pay all of the capital costs associated with system implementation. If this occurs, then the system need only recover ongoing operations and maintenance costs to have a net zero impact of the deficit guarantor. Since this project is wholly contained within the City, it is presumed that the City would be the deficit guarantor for the project. Conversely, should the system turn a profit, the City could be the beneficiary of such to repay past deficits or to reward the risk associated with the deficit guarantee. Under the scenario where capital costs are not required to be recovered, the system then needs to only recover its annual operations and maintenance costs of approximately $1.9 million per year. With non-ridership revenues estimated to be a little more than $0.5 million per year, the system would then need to recover approximately $1.4 million each year through ridership. This level of revenue generation equates to approximately 2,800 riders per day, which compares favorably, and is slightly more than, the ridership predicted through the PMI modeling process. These numbers are reported in Table 4'-2. To accomplish this implementation scenario, the following steps would need to be taken: · First, incorporate a non-profit corporation and establish its articles of incorporation. This could be completed by City staff, by a willing private sector partner, or the City could contract it out. . Second, secure a franchise agreement from PST A. . Next, secure final funding sources. · Next, establish a Board of Directors. This Board could be made up of key staff from the design-build team, elected officials, community leaders, or some combination thereof. · Next, hire a President of the company, and authorize them to enter into design- build and operations and maintenance contracts. · Hire a design-build project team, and implement the system. · Operations and maintenance forces could be in-house or could be contract employees. Figure 4-1 illustrates how this public-private partnership could be structured, and the responsibilities of each entity. Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 33 Grimail Crawford, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . This option is a viable option in addition to Option 3. The main difference between the two is whether the City (or County or other implementing agency) would want to build an internal transit operations department. If the internal department is desired, then Option 3 would be preferred. If not, then Option 4 would be preferred. Implementation using Option 4 would provide better separation from the other internal implementing agency staff, and would provide for greater flexibility in personnel decisions and procedures. For the above reasons, Option 4 is the recommended option. For the recommended Option 4 to be successful, it is necessary to develop a partnership with the MPO, the County, and PST A to complete the PD&E study, secure operating agreements, and to secure capital funding sources. Therefore, the most immediate task to be accomplished in this recommendation is to solidify this working relationship, and then to begin jointly pursuing the funds to completed the PD&E study. 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Table 4-2 Option 4 - Public - Private Implementation Summary Item Recovery Period Estimated Cost 10 years 20 years System Costs Guideway Structure and Civil Works Stations, Parking, and Landscaping Mobilization, Contingencies, Other Total System Costs $30,054,500 $3,780,000 $15,902,200 $49,736,700 Right-of-Way Donations Capital Cost Contributions $1,500,000 $48,236,700 Annual Debt Service @ 6% Capital Cost Recovery $0 $0 $0 Annual Operations and Maintenance Costs $1,900,000 Total Annual Costs $1,900,000 $1,900,000 Annual Revenues Ridership required to recover shortfalls Number of riders per day Fare charge per ride Discount % (to account for passes and discounts) Ridership revenue (daily) Annualized ridership revenue 2,800 $2.00 20% $4,480 $1,344,000 2,800 $2.00 20% $4,480 $1,344,000 Lease space Retail under stations - 2 @ 3,000 sf @$20/sf Retail over stations - 2 @ 3,000 sf @$20/sf Merchandising and Naming Rights Merchandising Station Naming Rights - 2 @ $75,000 each General Advertisements 30 placards @ $300/month $120,000 $120,000 $60,000 $150,000 $108,000 Total Annual Revenues $1,902,000 $1,902,000 Revenues minus cost $2,000 $2,000 Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 36 Grimail Crawford, Inc. e e e e e e e e e e e e e e e e e e e e e e e e e e e e e . . . Table 4-3 Implementation Options Summary Implementation Option Comments Ratin~ 1 - PST A Implement PST A Board has not shown interest in fixed Less guideway implementation, having chosen to favorable focus on bus rapid transit initiatives instead 2 - Private Sector Ridership is not likely to support recoup of Less capital imorovement costs favorable 3 - Public Sector (non-PST A) Potential viable - required creation of internal Favorable transit ooerations department 4 - Public-Private Partnership Viable - reqUires creation of non-profit Most company to execute design, build and operate favorable contracts Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 37 Grimail Crawford, Inc. e e e e . e e e . . e e . . e e e . e e e e e . e e e e e e e . 5.0 Feasibility Analysis The definition of Feasibility for transit systems varies widely. Often, feasibility is biased either for or against transit, depending upon the perspective of the entity or person performing the analysis. However, there are common elements of such an analysis that used to develop these interpretations. Such elements include: . How many people will ride the system? · How much of the system operations and maintenance cost can be recovered through fare-related revenues? · What other sources of funding are available to assist with operations and maintenance, and how stable are they? · How much of the capital cost can be recovered through total system revenues, and over what period of time can they be recovered? · Is provision of alternative transportation modes a key goal in the development of the system? · Are there economic development goals or interests that compel investments in public transit? · What sorts of development may be induced by the provision of higher transit services, and how much general tax revenue would that development generate? · Does the project relieve automobile-related traffic congestion? Generally, all analyses include some estimates of ridership, capital costs, operations and maintenance costs, and recurring revenue generation. All of these main items have been addressed in this report. Within the context of this study, it was not possible to develop complete analyses for each of the items described above. However, information has been developed that can lead towards an assessment of whether it is feasible to pursue development of a Bluff-to- Beach Guideway System. These elements, and a summary of a general feasibility assessment, are provided in the following sections. 5.1 Ridership Analysis As has been discussed, there have been varying ridership forecasts developed for this guideway segment. A previous study, authored by Wade-Trim and Jakes & Associates, estimated ridership of nearly 20,000 riders per day for the system. This estimate was developed by evaluating the near-term development potential in Downtown and on Clearwater Beach, estimating total person trips generated by this development, applying a mode-split assumption to the trips (% of transit ridership vs. auto ridership), then summing the total trips across all of the developments to arrive at a total aggregate ridership estimate for the system. This analysis was thoughtful and well-prepared, but used a technique that is normally outside the scope of what the Federal Transit Administration (FT A) allows. In addition, this analysis presented a very micro-level Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 38 Grimail Crawford, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . analysis of the Downtown Clearwater area, but did not incorporate macro-level behavioral analysis of Tampa Bay area residents in general. Another ridership estimate was developed for the Pinellas Mobility Initiative (PMI) program, which involved use of the Tampa Bay Regional Planning Model (TBRPM). The TBRPM is the tool that is most widely accepted by Ff A for use in ridership forecasting. Using this tool, ridership was estimated at approximately 1,300 riders per day. Though the TBRPM is the accepted regional forecasting tool, there are problems inherent in its use for a project like the Bluff-to-Beach Guideway system. First and foremost, the model is a regional forecasting tool, designed for estimating automobile trips on a regional basis related to road and highway improvements. The TBRPM includes land use and traffic pattern history data for the following counties: . Pinellas County . , Hillsborough County . Pasco County . Hernando County . Citrus County A tool such as TBRPM is useful in evaluating large-scale transportation improvements. However, as a macro-level tool, it is misapplied to micro-level projects. Implementation of a Bluff-to-Beach Guideway System is a micro-level improvement in the context of the regional modeling and forecasting tool. Differing forecasting methods have resulted in widely varying ridership estimates thus far for this project. The methods developed previously utilized very micro-level or very macro-level tools to develop ridership estimates, which explains the wide variation in the results. It is likely that the actual ridership estimate for this Bluff-to-Beach system would lie somewhere in the range of estimates developed using the methods described above. To develop ridership forecasts, more work needs to be accomplished to develop an intermediate forecasting process to solidify the framework. It is expected that such an analysis framework would be a key component of the PD&E level analysis that would be completed as part of the Next Steps for this project. 5.2 Feasibility Summary Since development of a forecasting procedure was beyond the scope of this report, a different view was taken, which was to answer the question: · How many daily riders are needed on the system to break even on operations and maintenance costs? Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 39 Grimail Crawford, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The answers to this question can be found in Table 4-2. Assuming a fare of $2 each way; current PST A percentages of reduced and free rides; and minimal revenue generation from non-ridership means, it is estimated that ridership of approximately 2,800 people per day will provide enough fare box revenue to offset annual operations and maintenance costs. Given the intensity of development underway on the Beach and in Downtown, the limited availability of parking on the Beach, the tourist nature of the setting in which the Guideway would operate, and the conservative estimates of non-fare revenue, it seems reasonable that ridership at these levels could be achieved by the system. Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 40 Grimail Crawford, Inc. e e e . e e e . . . . . . . . . . . . . . . . . . . . . . . . e 6.0 Recommendations Implementation of the Bluff to Beach guideway represents a milestone opportunity in the evolution of downtown Clearwater and its beach. When previous studies were conducted, much of the redevelopment activity now taking place on both the beach and in the downtown was not quite underway. With the momentum now being experienced, the timing may be right for the City to carefully consider this option, and to incorporate the guideway into its strategic planning processes. Based upon the foregoing analyses, the following recommendations are made. 1. Continue to work through the MPO to complete the PD&E study effort on this segment with the federal earmarked money. Completing this process will qualify the project for state and federal money that can be used for construction and implementation. 2. Incorporate the system into the downtown CRA's Downtown Master Plan and planning processes. So doing will qualify at least some portions of the project, such as a parking deck adjacent to the downtown station, for TIP financing. This could also allow the CRA to assist in right-of-way acquisition for station sites, should they require opportunity purchases or eminent domain proceedings. 3. Begin discussions with the major redevelopment interests in downtown and on the beach to gage their potential involvement in the project. 4. Begin working with PST A on the framework for a franchise agreement to an operator to complete and to operate the project. The City would take the lead in the development of the agreement, and in other matters related to project development. 5. Begin the process of decision making related to Implementation Option 4. This would include the development of the legal framework necessary for incorporating a non-profit company to design, build, and operate the system, working the PST A as described above, and working with the County and FDOT related to funding considerations. It should be noted that the PD&E study would provide more recent and updated cost and ridership estimates. As these estimates are developed, and as items in the list above begin to occur, these recommendations can be revisited to insure that this path towards implementation is still viable. Clearwater Bluff to Beach Guideway Action Plan Implementation Options Tech Memo 41 Grimail Crawford, Inc.