Section 5309 Capital Investment Grant Programs

1. Section 5309 Capital Investment Grant Programs Wisconsin Legislative Council Committee on Regional Transportation Authority August 7, 2008

2. Outline of Presentation • Introduction to the New Starts Program • Expectations for planning for major transit capital investments • New Starts evaluation and rating process • Wisconsin projects under consideration • Small Starts and Very Small Starts • Discussion 2

3. New Starts Program • Over $1.5 billion annually for “fixed guideway” transit investments • Current “pipeline:” 33 projects in PE and Final Design • Total cost of pipeline: >$34 billion, including $14 billion in New Starts funding • FTA tracking >120 planning studies considering major transit capital investments • FTA evaluates and rates candidate projects: a) to advance them through the pipeline; and b) to make funding recommendations 3

4. FTA New Starts Program Goals Promote good planning and decision-making Ensure projects treated consistently nationally Fund meritorious projects which meet demonstrated transportation needs 4

5. New Starts Planning and Project Development Process Systems Planning Systems Planning Alternatives Analysis Alternatives Analysis Select LPA, MPO Action,Develop Criteria, PMP FTA Decision On Entry into PE Preliminary Engineering Preliminary Engineering Complete NEPA Process Refinement of Financial Plan FTA Decision On Entry into Final Design Project Management Oversight Final Design Final Design Commitment of Non-Federal Funding, Construction Plans, ROW Acquisition, Before-After Data Collection Plan, FTA Evaluation for FFGA, Begin Negotiations Full Funding Grant Agreement Major Development Stage Construction Construction 5 Decision Point

6. Project Development Timeline • Alternatives Analysis 100 1-2 years • Preliminary Engineering 10 2-3 years • Final Design 6 3-7 years • Full Funding Grant Agreements 17 3-7 years (to begin construction)

7. 49 USC Section 5309(e)(1)……. …….says that all New Starts projects must be: • (A) based on the results of alternatives analysis and preliminary engineering; • (B) justified based on a comprehensive review of its mobility improvements, environmental benefits, cost effectiveness, and operating efficiencies; and • (C) supported by an acceptable degree of local financial commitment, including evidence of stable and dependable financing sources to construct, maintain, and operate the system extension 7

8. Alternatives Analysis: Guiding Principles • Local process, local decisions • Early and ongoing participation by a wide range of stakeholders • Sufficient level of analysis is necessary to support an informed decision 8

9. Alternatives Analysis: Key Elements • Identification of corridor problems; project “purpose and need;” and goals and objectives • Development of a range of alternatives that address root causes of mobility problems, goals, and objectives • Documentation of analysis of costs, benefits, and impacts of alternatives • Documentation of evaluation of alternatives 9

10. The FTA New Starts Evaluation and Rating Process Project Recommendation Financial Rating Project Justification Rating Other Factors Non-Section 5309 Share Capital Finance Plan Operating Finance Plan Mobility Improvements Environmental Benefits Operating Efficiencies Cost Effectiveness Land Use Transportation System User Benefits Low Income Households Transportation System User Benefits Employment Minimum Project Development Requirements which must be met: Metropolitan Planning and Programming Requirements Other Project Management Technical Capability NEPA Process Approvals 10

11. What Rates Well FTA’s process places a premium on projects which • Save travel time compared to traditional bus service • Lower capital and operating costs • Are supported by transit-oriented land use and policies • Are supported by a reliable commitment of local funding 11

12. Local Financial Commitment • Local Share • Strength of Capital Financing Plan • Strength of Operating Financing Plan

13. What is Happening in Wisconsin? Projects currently under consideration by FTA • Kenosha-Racine-Milwaukee Corridor Study • Madison Transport 2020 • Milwaukee Connector Study 13

14. FTA Small Starts • Project cost must be less than $250 million • Request for Section 5309 Capital Investment grant funding cannot exceed $75 million • Must be a fixed guideway for at least 50% of project length in peak period; and/or • Must be a corridor-based bus project 14

15. Corridor-based bus projects • Substantial Transit Stations • Signal Priority/Pre-emption (for Bus or Light Rail) • Low Floor / level Boarding Vehicles • Special Branding of Service • Frequent Service – 10 min peak / 15 min off peak • Service offered at least 14 hours per day

16. Small Starts Evaluation Process Project Justification Criteria • Cost effectiveness • Land Use • Economic development benefits • Congestion pricing Local Financial Commitment • Plan to secure funding for local share of capital costs • Operating & maintenance costs <5% of agency’s budget • Agency is in reasonably good financial condition

17. Small Starts Project Development Alternatives Analysis Project Development • Complete Alternatives Analysis • Adopt Locally Preferred Alternative (LPA) • LPA included in MPO’s long range plan • Complete NEPA Scoping • Receive a “medium” rating Project Construction Grant Agreement

18. Small Starts Recommended for Funding • Approved to enter into project development • Must be “ready” to be implemented within fiscal year that the project is proposed for funding • Project must be rated at least “medium” 18

19. FTA Very Small Starts • Most requirements similar to Small Starts • Less than $50 million in total cost • Less than $3 million per mile (excluding vehicles) • Must be bus, rail, or ferry project • Existing corridor ridership exceeding 3,000/day 19

20. How FTA Meets Its Goals • Sound and rigorous management of the program • Promote - and assist in - the development of reliable information on costs and benefits • Transparent evaluation process • Local decisions, project ratings, and funding recommendations are based on the best information available to both the public and decision-makers • Facilitate communication between FTA, transit industry, and Congress 20

21. Questions Additional information can be found at: http://www.fta.dot.gov/ R. Stewart McKenzie, AICP Federal Transit Administration 200 W. Adams Street, Room 320 Chicago, IL 60606 (312) 353-2866 stewart.mckenzie@dot.gov