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Section 5309 Capital Investment Grant Programs by kfc12446


									Section 5309 Capital Investment
        Grant Programs

 Wisconsin Legislative Council Committee
  on Regional Transportation Authority

             August 7, 2008
Outline of Presentation

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

New Starts Program
• Over $1.5 billion annually for “fixed guideway” transit

• 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                3
  funding recommendations
FTA New Starts Program Goals
• Promote good planning and decision-making

• Ensure projects treated consistently

• Fund meritorious projects which meet
  demonstrated transportation needs

                    New Starts Planning and Project Development

                                                          Systems Planning                  Systems Planning

                                                        Alternatives Analysis              Alternatives Analysis

                                                           Select LPA,
                                                     MPO Action,Develop Criteria,

                                                             FTA Decision
                                                              On Entry
                                                               into PE

                     Project Management Oversight

                                                      Preliminary Engineering
                                                        Complete NEPA Process
                                                       Refinement of Financial Plan           Engineering
                                                             FTA Decision
                                                               On Entry
                                                           into Final Design
                                                                                               Final Design
                                                               Final Design
                                                    Commitment of Non-Federal Funding,
                                                    Construction Plans, ROW Acquisition,           Full Funding
                                                     Before-After Data Collection Plan,          Grant Agreement
                                                         FTA Evaluation for FFGA,
                                                             Begin Negotiations

Major Development
                                                             Construction                    Construction          5
Decision Point
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)

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

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

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

                   The FTA New Starts Evaluation and Rating Process

                                      Project Recommendation

                                                                               Project Justification
                Financial Rating

  Non-Section         Capital         Operating            Mobility       Environmental    Operating          Cost           Land
  5309 Share       Finance Plan      Finance Plan        Improvements       Benefits       Efficiencies   Effectiveness       Use

                                       Transportation System    Low Income                           Transportation System
                                           User Benefits        Households                               User Benefits


                                  Minimum Project Development Requirements which must be met:
Metropolitan Planning and              Project Management               NEPA Process Approvals                   Other
Programming Requirements               Technical Capability
What Rates Well
FTA’s process places a premium on projects which

• Save travel time compared to traditional bus

• Lower capital and operating costs

• Are supported by transit-oriented land use and

• Are supported by a reliable commitment of local
  funding                                         11
Local Financial Commitment

• Local Share

• Strength of Capital Financing Plan

• Strength of Operating Financing Plan

What is Happening in Wisconsin?

Projects currently under consideration by FTA

• Kenosha-Racine-Milwaukee Corridor Study

• Madison Transport 2020

• Milwaukee Connector Study

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
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

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
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
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

• Project must be rated at least “medium”

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
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
• Facilitate communication between FTA, transit
  industry, and Congress                        20

        Additional information can be found at:

              R. Stewart McKenzie, AICP
             Federal Transit Administration
            200 W. Adams Street, Room 320
                  Chicago, IL 60606
                    (312) 353-2866

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