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HomeMy WebLinkAboutItem #03 - Discussion ItemCITY C!4 FL•DRIDA ,�iTt i�FF'1 E M MOF ANDUP.1 TO. FROM• Members of the City Commission Joseph R. Grassie City Manager October 25, 1979 FILL: S U9JF..crn Premium Funding Support for the Downtown People Mover Project Committee of the REFERENCrSwhole item October 31. ENCLOSURES: Dade County has prepared, in conjunction with the Downtown People Mover Advisory Committee, a proposal for full funding of the Downtown People Mover system total- ing $165,000,000. It is recommended that the Miami City Commission agree to pro- vide the necessary local share of $9,900,000 by committing funds from the Florida Power and Light franchise tax. Background In 1976 the Miami City Commission approved a Downtown People Mover proposal, and agreed to commit $2,217,000. as the City share of the initial funding package (30). Subse- quently the Urban Federal Mass Transit Administration authorized the use of $19,000,000 in Federal funds for construction of the Downtown People Mover and the initiation of the Preliminary Engineering Program in November 1978. Due to the Preliminary Engineering Programa DPM Policy Com- mittee was set up with city representatives, and the City and County Commissions in two joint sessions approved the overall alignment of the system and the phasing of system construction. It is now estimated that the full system will cost $165,000,000.' In order to achieve Federal support for funding the full system, the Dade County Office of Transportation Administration has developed a Premium Funding proposal which is attached to this memorandum. This approach has been endorsed by the DPM Policy Committee as indicated by the attached resolution. The recommended funding plan proposes to increase the local con- tribution required for the funding of the Full System in order that Federal funds are matched by a 2/3 to 1/3 sharing ratio. The maximum funding share from Metropolitan Dade County to be provided by proceeds from the Decade of Progress Bond Program amounts to $25,400,000 for the full DPM System of 4.2 miles which has a total cost of $165,000,000. The remaining portions of the non-federal share would come from the Florida Department 733 r, Q 3 Members of the City Commission Page 2 October 25, 1979 Department of Transportation in the amount of $16,500,000 and the City of Miami in the amount of $9,90.0,000. Upon approval of the resolution supporting the Premium Funding Proposal by the City of Miami the Office of Trans- portation Administration will immediately begin the process of securing the full Federal funding commitment for the Downtown People Mover. Metropolitan Dade County has agreed to provide its share of the additional funds required, and a letter of commitment from the State of Floridais expected soon. If only the base system is funded i.e. the CBD loop, Miami's share will be 3% of $26,000,000 or $2,280,000. Two key charts (nos. 6 and 7) are excerpted from the Premium Funding. package to indicate alternative funding support required from. the City and the anticipated cash flow requirements. The Downtown People Mover will have a tremendously beneficial impact on the City of Miami and, therefore, it is recommended that the. City Commission enact a resolution of supporting full funding for the system and the approach suggested in the Premium Funding package. JR:mb Encs. 79 733 AGENCY UNTA COUNTY STATE CITY JOINT`DEV. TOTAL MINIMUM SYSTEM AMOUNT $ 19,200.000 1,200,000 2,400,000 720,000 480.000 $ 24,000,000 SHARE FIGURE 6 MIAMI DOWNTOWN PEOPLE MOVER FUNDING PROPOSALS BASE SYSTEM .80 $ 60,800.000 .05 4,840,000 .10 7,600,000 .03 2.280,000 .02 480,000 1.00 .80 .06 • 10 .03 .01 STAGE I (NORTH) $ 81,200.000 17,080,000 11,700,000 7,020,000 .69 .15 .10 .06 STAGE I (SOUTH) S 84,530,000 18,190,000. 12,200,000 7,080,000 FULL SYSTEM. SHARE .69 .15 .10 .06 S113,200,000 25.400,000 16.500,000: 9,900,000 .69 .15 .10 .06 1.00 FIGURE 7 CAPITAL EXPENDITURE CASII FLOW ($ x 000,000 PER FEDERAL FISCAL YEAR) AGENCY BASE SYSTEM 1980 1981 : 1982 1983 1984 STAGE I SYSTEM1 1980 1981 1982 1983 1984 FULL SYSTEM 1980 1981 1982 1983 1934 UMTA COUNTY 2 STATE CITY 2.6 7.0 24.7 24.9 1.5 0.3 0.6 2.2 2.2 0.1 0.3 0.9 3.1 3.1 0.2 0.1 0.3 0.9 0.9 0.1 TOTAL 3.3 8.8 30.9 31-.1 1.9 FIVE YEAR TOTAL $76,000,000. 3.3 9.4 33.1 33.9 1.5 0.7 2.0 7.0 7.1 0.3 0.5 1.3 4.8 4.9 0.2 0.3 0.8 2.9 2.9 0.1 4.7 13.6 47.7 48.8 2.2 FIVE YEAR TOTAL $117,000,000 4.8 13.6 45.8 47.2 1.8 1.1 3.0 10.3 10.6 0.4. 0.7 2.0 6.7 6.9 0.2 0.4 1.2 4.0 4.1 0.2 7.0 19.8 66.7 68.8 2.7 FIVE YEAR TOTAL $165,000,000 1. Loop plus north leg 2. Includes private sector funding for base system. , and was passed by voice vote. Mayor Maurice Ferre Co -Chairperson, DPM Committee RESOLUTION WHEREAS, the Downtown.People Mover Policy Committee;: desires to accomplish the purposes outlined in the Premium Funding Proposal, a copy of which is attached to this resolution, for the reasons delineated therein, NOW, THEREFORE, BE IT RESOLVED BY THE DOWNTOWN PEOPLE MOVER POLICY COMMITTEE, that this body approves and endorses the concepts stated in the Premium Funding Proposal and urges the City of Miami Commission and the Dade County Board of Commissioners to expeditiously proceed with the process to obtain a Federal financial commitment for construction of the Full System Downtown People Mover Alignment Ferre. The foregoing resolution was offered by Mayor Maurice , who moved its adoption. The motion was seconded by Mr. William Rubin adopted September 29, 1979. Barbara Levenson Co -Chairperson, DPM Policy Committee Commissioner William G. Oliver Co -Chairperson, DPM Policy Committee ''79.77, METROPOLITAN DARE COUNTY • FLORIDA OFFICE OF COUNTY MANAGER 911 COURTHOUSE MIAMI, FLORIDA 33130 TEL: 579--5311 1.0 BACKGROUND October 1, 1979 DOWNTOWN PEOPLE MOVER PREMIUM FUNDING PROPOSAL In June, 1976, Dade County submitted a proposal for a Downtown People Mover (DPM) Project as part of the national competition encouraged by the. Urban Mass Transportation Administration (UMTA) in guidelines pub- lished in April, 1976. On December 22, 1976, the UMTA Administrator approved Dade County's Stage I Rapid Transit System and authorized the reprogramming of any funds that could be saved to be used in the DPM project. In December, 1977, UMTA again continued the authorization to Dade County to reprogram funds within its existing Federal transit commitment for the funding of a Downtown People Mover. As a result of the authorization, Dade County has reserved $24 million for construction of the DPM. The basis for this fund reservation was that the County would construct a minimum DPM of approximately .7 miles in length. 79-733 The Downtown People Mover system is one of three major elements of Dade County' s planned Unified Transportation System. The first element is an aerial rail rapid transit system, 50.1 miles in total length, the initial stage of which is 20.5 miles. Construction on the rail system began in June, 1979. The second element is a feeder bus system of 1,000 buses. The third element is the Downtown People Mover. The DPM is the downtown distributor and is designated to be integrated both with the rapid transit and feeder bus systems. Based on the December, 1977, letter from the UMTA Administrator, Dade County received in May, 1978, final approval from UMTA to carry out a $1.35 million Preliminary Engineering Program. Subsequently, Dade County entered into a professional services contract with Gannett Fleming/ SKBB, a joint venture, to perform the preliminary engineering for the DPM project. In March, 1979, the Full System alignment was adopted jointly by the Dade County and City of Miami Commissions. The adopted system is 4.1 miles in length and is estimated to cost $165 million. Following the Full System definition, a staging analysis was undertaken to determine the highest priority system increment. One of the conclusions of this analysis was that the minimum system was not as cost effective as other systems and, therefore, should be expanded to better meet the trans- portation needs of downtown as well as the region. The DPM project is of enormous importance to accomplishing the land use, urban development, and transportation goals of the region, the metropol- itan area, and the downtown area. Therefore, Dade County, along with the City of Miami, is committed to paying a premium for additional Federal funding. As an inducement to convince the U. S. Department of Transportation of the overriding importance of the Downtown People Mover project and to persuade them to participate in the capital funding of the Full System, Dade County proposes to increase the local contribution to the project in order that additional Federal funds are matched by a 66.7% to 33.3% ratio. This is equivalent to more than a 13% reduction in Federal funds than would otherwise be required. A combination of existing funds from Dade County bonds, contributions from the City of Miami, the Downtown Development Authority, the private sector and the Florida Department of Transportation, along with the utilization of Federal funds has been developed in order to provide an attractive alternative for consideration by 1J TA. The premium nature of this proposal also has other dimensions which are established in this proposal. • 2. G' DPM' PROJECT SUMMARY Preliminary engineering for the Miami DPM system is currently nearing completion. This phase of the project, which began in November, 1978, includes the following major elements: (1) preliminary investigation and definition of the Full System; (2) capital cost analysis and staging plan; (3) system criteria and requirements; (4) preliminary design; (5) right-of-way acqui- sition requirements; (6) performance specifications; (7) safety and security program; (8) cost estimate and implementation schedule; (9) environmental impact statement; and (10) the procurement bid package. 2.1 DPM Full System Working with a Downtown People Mover Policy Committee consisting of elected public officials of the City and County, and representatives of downtown businesses, major downtown developers, citizen groups, and quasi -public agencies, the. Dade. County Office of Transportation Administration and its General Engineering Consultant have defined the complete DPM system route alignment. The full system, illustrated in Figure 1, consists of 4.1 miles of aerial double guideway connecting the Brickell, Flagler Street and Omni areas of downtown. A total of 19 stations are spaced throughout the route length, based on approximately 1,000 foot station spacing to serve major activity centers. Two DPM stations, the Brickell and Government Center Stations, will interface directly with the Stage I rail line. It is anticipated that construction of the Fu11 System will be com- pleted by July 1984, the scheduled opening date of the Stage I Rapid Transit. Approximately 70,500 daily riders will use the system in 1985., Capital cost for the Full System alignment, projected to the midpoint of construction, has been estimated at $165 million. Operating and maintenance costs have been estimated at $4.9 million per year, in current dollars. 2.2 DPN Staging Concepts Recognizing that the availability of funds will dictate the extent to which the Full System alignment can be initially implemented, several staging con- cepts were developed and studied in detail. Based on operational reliability, cost effectiveness, service performance and other such criteria, agreement was. reached on that segment of the Full System having the highest implementation priority. The Base System alignment, shown in Figure 1 on the following page, consists of a double guideway approximately 1.9 miles long in a loop configuration around the CBD. This alignment includes ten stations and operates with ten vehicles, five on each guideway at two minute headways The round trip time on each guideway will not exceed 11 minutes. In 1985, approximately 45,000 daily riders will use the Base System. The capital cost for thesystem, pro- jected to midpoint of construction, has been estimated at $76 million. Operating and maintenance costs have been estimated at $1.79 million per year, in 1979 dollars. For purposes of this Premium Funding Proposal, an additional staging concept is proposed. The desirable Stage ISystem isa combination of the Base System loop plus a double guideway leg either north to the Omni area, or south to the Brickell area (See Figure 1). The General Engineering Consultants, in their evaluation of the merits of the north versus the south leg concluded that tech- nical differences between the two were not great enough to form the basis for a recommendation on priority. Accordingly, no recommendation is made at this time. In either case, this system would be approximately three miles long and would be utilized by more than 50,000 daily riders in 1985. The estimated capital cost, projected to the midpoint of construction, is $117 million if the route to the north is selected and $122 million if the south leg is selected. Operating and maintenance costs per year, based on 1979 dollars, are estimated at $3.0 million :or the loop plus north leg and $3.7 million for the loop plus south lea. 7'9- 7 33 4 .$TALE I; SYSTEM (' SOUTH ;. LEGEND DPM ALIGNMENT --- DPM STATION - RAPID TRANSIT LINE -!- RAPID TRANSIT STATION 2.3 Rapid Transit System Interface A key function of the DPM system will be to provide downtown dis- tribution for the Dade County rapid transit system. By virtue of the alignment of the rapid transit system, the. Full DPM System will have two stations which are fully integrated within rapid transit stations. The opportunity to develop a coordinated people mover system fully integrated with a rapid transit line is unique in the United States. It insures that the combined ridership on the two systems will be more than would occur on both if they operated separately. The rapid transit line has only three stations in the downtown area. The DPM system expands this by adding another 19 stations. 2.4 Urban Development and Revitalization Downtown Miami is currently experiencing a period of redevelopment and revitalization of unparalleled size and scope. The Comprehensive. Development Master Plan of Dade County and the Miami Comprehensive Neighborhood Plan focus on downtown Miami as the major activity center of the region emphasizing commercial and residential uses in order to conserve energy, promote downtown revitalization and accomplish land use goals for the urban area. In excess of $1.3 billion dollars worth of projects are now underway or in the advanced planning stages in downtown Miami. This downtown revival has extended into all areas of economic activity. Virtually no ground floor retail rental area is currently available in the main commercial districts, despite the addition of more than 170 new shops 8 to the rental inventory over the last six months. Office occupancy rates are approaching all time highs and eight major new office buildings are ready or are under construction. These structures will comprise more than two million square feet of space and represent an investment of more than $150 million dollars. One new hotel with 600 rooms is underway and two others are in the final design stages. The first new residential project to be constructed in downtown in more than two decades is nearing completion, providing 300 new rental housing units at a cost of $23 million. Several other condominium buildings are on the verge of ground breaking. The public sector has been responding to the revitalization of down- town as well. Publicly funded. projects include a $200 million govern- ment complex, a $58.6 million convention complex, and expansion of the downtown Community College complex to more than double its present size. A $40 million World Trade Center containing 400,000 square feet is in the advanced planning stages. The Downtown People Mover is viewed by local officials and business- men as the thread which ties these widespread projects into the ex- isting commercial and governmental fabric of the downtown area. All of the projects described above are, within 500 feet or less of the DPM line and stations. Additionally, the DPM is a critical factor in achieving the energy goals of Dade County and the City of Miami. Once the system is in place, pressures to substantially increase. roadway and parking capacitywill be relieved and short auto trips between downtown destinations will not occur. In short, the DPM will assist in providing the physical infrastructure necessary to achieve the goal of the Master Plan and downtown development plans in a cost effective manner. 2.5 Project Organization The enclosed chart (Figure 2) describes the broad organization of the Downtown People Mover project. This chart outlines the team responsible for the development of Miami's DPM project and shows the functional relationships among the participants. The overall coordination and management of the Downtown People Mover Project in the responsibility of Dade County's Office of Transportation Administration. F• tCORE "' 2 MIAMI DOWNTOWN PEOPLE MOVER PROJECT PROJECT ORGANIZATION PRELIMINARY ENGINEERING PHASE BOARD OF COUNTY 1 CITY OF MIAMI COMMISSIONERS COMMISSIONERS URBAN MASS TRANSPORTAT ION ADMINISTRATION i UMTA's'Project Monitor Frederic R. Harris, Inc. STATE OF FLORIDA DEPARTMENT OF TRANSPORTATION DPM POLICY COMMITTEE I DOWNTOWN PEOPLE MOVER PROJECT GENERAL . ENG. CONSULTANT GANNETT FLEMING / SKBB L G.E.C. SUBCONSULTANTS • N.D. Leo and Assoc. (Systems Engineering) • Wallace McHarg -Roberts and Todd (Environment°, Planning) • Mitchell -Webb. (Utility Engineering) • Nutting Engineers, Inc. (Soils end Foundation) • Albert R. Perez and Assoc. (Landscape Architecture) • Dennis M. Elliot, P.E. (Operations and Procurement) • Metric Engineering. Inc (Surveying and Mopping) • Robert W Schaaf, P.E. (Systems Assurance and Safety) I• David Plummer and Assoc, Inc. (Traffic and Transportation) OFFICE OF TRANSPORTATION ADMINISTRATION CI TY OF MIAMI DOWNTOWN DEVELOPMENT AUTHORITY 3.0 DPM FUNDING SOURCES Funding sources for both capital and operating costs must be identified in order to implement the DPM project. For the purposes of this dis- cussion the two cost categories will be addressed separately. 3.1 Capital Sources In addition to Federal funding there are three sources available for each alternative considered in this proposal. These sources include Dade County Decade of. Progress Bonds, funds from the State of Florida Department of Transportation and funds from the City of Miami Capital Improvements Budget. A fourth non-federal source was identified for funding the minimum . system. This involved private sector contributions through joint development agreements. Such funds have not been included in the alternatives discussed in this proposal because of uncertainties involved in actually estimating the value of these agreements at this time. However, a plan for private sector participation in operating costs is an integral part of this premium funding pro- posal and is discussed in Section 3.2. This contribution by business concerns is viewed as more substantial than that of the original 1976 proposal which allocated 2% of the capital cost to the private sector. The funding share from Metropolitan Dade County will be provided by proceeds from the Decade of Progress Bond Issue which was passed in 1972 by a 2 to 1 majority. This Bond Issue provided for up to $132.5 million to be expended on a unified transportation -733 12 system for Metropolitan Dade County including a fixed guideway rapid transit system, an improved feeder bus system, and other capital improvements as required to insure an integrated trans- portation system. The current total commitment for construction of the DPM is $24 million. This commitment is only sufficient to construct the minimum system. The. Federal share of the $24 millionis 80% with the State of Florida providing 10%, Dade County 5%, the City of Miami 37 and Joint Development providing the remaining 2%. As an inducement to obtain a Federal commitment for a more extensive project than the minimum system, it is proposed that the necessary additional funds for the Full System be matched by a 2/3 to 1/3 sharing ratio. In order to arrive at this ratio it is necessary to increase local funding sources as outlined below. .1 The Full DPM System The Full System is estimated to cost $165 million necessi- tating an increment of $141 trillion over the S24 million minimum system. The funding shares for the increment are: UMTA 67% or an additional $94,000,000 DADE COUNTY - 17% or an additional $24,200,000 STATE - 10% or an additional $14,100,000 CITY - 6% or an additional $ 8,700,000 13 Figure 3 details the distribution of funding requirements among the source agencies. .2 The Desirable Stage I DPM The proposed Stage I System has an estimated cost of $117 million necessitating an increment of $93 million if the north leg is selected. If the south leg is selected, this total cost is $122 million and the increment is $98 million. The proposed Federal/non- Federal split for each increment is as follows: UMTA - 67% or an additional $62,000,000 for the loop plus north and $65,330,000 for the loop plus south DADE COUNTY - STATE CITY 17% or an additional $15,880,000 for the loop plus $16,990,000 for the loop plus 10% or an additional $ 9,300,000 for the loop plus $ 9,800,000 for the loop plus north and south north and south 6% or an additional $ 5,820,000,for the loop plus north and $ 5,880,000 for the loop plus south Figure 4 provides a detailed breakdown of the distribution. of funding requirements among the source agencies. From Figure 7 it can be seen that the maximum year (1983) funding levels are $33.9 million for UMTA, $7.1 million for Dade County, $.9 million for the State of Florida and $2.9 million for the City. .3 The Base DPM System The proposed Base System has an estimated cost of $76 million, an increment of $52 million over the $24 million minimum system. Premium funding is not proposed for the Base System. In the event that only the Base System is undertaken, the increment would be funded as follows: UMTA - 80% or an additional $41,600,000 DADE COUNTY - 7% or an additional $ 3,640,000 STATE - 10% or an additional $ 5,200,000 CITY 3% or an additional $ 1,560,000 Figure 5 summarizes the distribution of funding require- ments among the source agencies. Figure 7 shows that the maximum single year commitment would occur in 1983. In this year, the Federal share would be $24.9 million.` The County share would be $2,2 million and the State and City would contribute $3.1 and $0.9 million respectively. Figure 6 presents a summary of the funding distribution for the various-DP?d funding. systems. Figure 7 illustrates generally the capital expenditure cash flow associated with this distribution. FIGURE'S FULL SYSTEM MIAMI DOWNTOWN PEOPLE MOVER PREMIUM FUNDING PROPOSAL AGENCY' UMTA COUNTY STATE CITY JOINT DEV. MINIMUM SYSTEM $ 19,200,000 1, 200, 000, 2,400,000 720,000 480.000 1.00 cPJ a044 FULL SYSTEM INCRE? E11T $141,000,000 1.00 TOTALFULL SYSTEM $165,000,000 100 11111111111111._._ MINIMUM SYSTEM $ 24,000,000 19,200,000 1,200,000 2,400,000 720,000 480,000 FIGURE 4 DESIRABLE STAGEI SYSTEM DOWNTOWN PEOPLEMOVER PREMIUM FUNDING_ PROPOSALS STAGE 1 INCREMENT $ 62,000,000 15,880,000 9,300,000 5,820,000 $ 65,330,000 16,990,000 9,800,000 5,880,000 1.00 111111111 TOTAL STAGE I SYSTEM $ 84,530,000 18190,000 12,200,000 7,080,000 1111111111111111.111111111111111111111111111111 1.00 1.00 FIGURE:5 BASE SYSTEM MIAMI DOWNTOWN PEOPLE MOVER AGENCY MINIMUM SYSTEM BASE INCREMENT AMOUNT SHARE UMTA. COUNTY STATE CITY JOINT DEV. $ 19,200,000 1,200,000 2,400,000 720,000 480,000 . 80 . 05 . 10 .03 .02 AMOUNT $ 41,600,000 3,640,000 5,200,000 1,560,000 SHARE .80 .07 .10 .03 1.00 1I TOTAL BASE SYSTEM AMOUNT SHARE $ 60,800,000 4,840,000 7,600,000 2,280,000 480,000. $ 76,000,000 .80 .06 .10 .03 .01 1.00 FIGURE'6 MIAMI DOWNTOWN PEOPLE MOVER FUNDING PROPOSALS FIGURE 7 . CAPITAL EXPENDITURE CASH FLOW ($ x 000,000 PER FEDERAL FISCAL YEAR) AGENCY BASE SYSTEM STAGE I SYSTEM' 1980 1981 1982 1983 1984 1980 1981 1982 1983 1984 1980 1981 1982 1983 1934 UMTA 2.6 7.0 24.7 24.9 1.5 3.3 9.4 33.1 33.9 1.5 4.8 13.6 45.8 47.2 1.8 2 1.1 3.0 10.3 10.6 0.4 0.7 2.0 7.0 7.1 0.3 COUNTY 0.3 0.6 2.2 2.2 0.1 STATE 0.5 1.3 4.8 4.9 0.2 0.7 2.0 6.7 6.9 0.2 0.3 0.9 3.1 3.1 0.2 0.1 0.3 0.9 0.9 0.1 0.3 0.8 2.9 2.9 0.1 0.4 1.2 4.0 4.1 0.2 CITY 4.7 13.6 47.7 48.8 2.2 7.0 19.8 66.7 68.8 2.7 TOTAL 3.3 8.8 30.9 31.1 1.9 FIVE YEAR TOTAL`$76,000,000 . Loop plus north leg FULL SYSTEM FIVE YEAR TOTAL $117,000,000 FIVE YEAR TOTAL.$165,000,000 2. Includes private sector funding for base system. OD �dC> IIIII■IA ... - - .__. 20 3.2 0 erating Sources The primary sources of funds for DPM system operating costs are fare box revenues, private sector financial participationand the local Dade County transit subsidies. Section 2.0 identified operating costs for the various staging concepts in 1979 dollars. These figures, escalated to 1985, are estimated to be $7.35 million. for the Full System, $4.5 million for the Stage I (North) System and $2.68 million for the Base System .1 Fare Box Revenue As is the case for current MTA services and the Stage I rapid transit system, fare box revenues are not projected to pay the entire DPM operating cost. The fare is assumed to be 25c when the system starts full service in 1985 with free transfer from bus and rail lines allowed. The 1985 ridership projections and corresponding annual fare box revenues for the DPM system are shown in Figure 8. FIGURE 8 DPM RIDERSHIP AND REVENUE PROJECTIONS Daily Annual Annual Ridership Ridership Revenue Base System ` 45,400 13,620,000 $1,702,500 Stage I System* 54,400 16,303,800 $2,038,000 Full. System 70,500 21,150,000 $2,643,750 *Loop Plus North Leg. The revenue shortage is anticipated to be $1.0 million for the Base System, $2.5 million for the Stage I (North) System, and $4.7 million for the Full System in 1985. , ?) 21 .2 Private Sector Financial Participation The private sector property owners, retail merchants and others located in downtown Miami are exPected to derive major economic benefits from the operation of the DPM system. Their benefits - would accrue in the form of premium rents, higher occupancy rates, increased retail sales and reduced employee costs. The results of an economic benefit study for the DPM project indicate that by 1985 the. private sector will receive $3.5 to $4.0 million annually (stated in 1979 dollars) in DPM-induced benefits. The accrual of these benefits to the private sector provides a strong policy basis for private sector financial participation in the DPM project. On this basis, the benefiting private sector has agreed to contribute all local funds required for the maintenance and operation of DPM stations. The contribution from the private sector will thus be supporting those system facilities which most directly provide benefits, since the DPM stations are the interface point between the system and private properties. DPM station operating costs consist almost entirely of electricity for lighting and the communications system. In some stations, other minor utility costs, such as water, would also be included. All station maintenance can be carried out on a contractual basis for elevator, escalator, landscape maintenance, janitorial services and fare collection equipment. As such, these contractual elements are easily segregated from overall system operational costs and all funds for contract adman- istration come from the private sector contribution. p 79 99 I 22 Annual maintenance and operating costs for stations have been estimated at $21,500 per station. These costs are shown in the figure below. METRO MIAMI DPM ANNUAL STATION MAINTENANCE AND OPERATING COSTS Escalator Maintenance (contract) $ 3,500 Elevator Maintenance (contract) 1,500 Station Cleaning (contract) 3,500 Landscape Maintenance (contract) 2,000 Fare Equipment Maintenance (contract) 2,000 Station. Repairs 5,000 Station Electrical 3,500 Other Station Utilities 500 $21,500 In addition, a capital improvements fund will be established to maintain a high quality appearance in the stations. Any contribution from the private sector not used to meet the utility and maintenance obligations identifed above will be placed in this fund. The fund will be used to make repairs, upgrade stations operationally, make aesthetic improvements, or make other capital improvements. 23 Ft For the three system configurations under consideration, the total annual station operating and maintenance requirement will be $408,500 for the Full System (19 stations); $301,000 for the Stage I (North) System (14 stations); and, $215,000 for the Base System (10 stations). Additionally, it will be desirable to generate about $100,000 annually for the capital improvement fund. Given these assumptions, the annual private sector contribution to DPM operating costs would be approximately $300,000 to $500,000. This represents about 10% of the annual $3.5 to $4.0 million in economic benefits expected to accrue to the private sector as a result of the DPM. The mechanism under consideration for implementing the private sector financial participation program involves the creation of a DPM Special Tax District. The establishment of a DPM Special Tax District is possible under Dade County or City of Miami legislative authority. The boundaries of the district would be based on the relative accessibility of a property to a DPM station, with those properties having a direct physical and func- tional relationship to the DPM included in the district. A legal evaluation indicates that the County has the authority to create such a district, pro- vided that all County funds for the project come from the district tax levy. The City of Miami also has the authority to create such a district. A DPM Special Tax District with a one mill tax levy could generate the necessary $300,000 to $500,000 annually to meet the station maintenance and operating requirements for any of the DPM staging alternatives. 24 In the event that the DPM Special Tax District cannot be finalized before Federal funding commitments are required, the Downtown Develop- ment Authority (DDA) has committed a portion of its tax proceeds to meet the DPM Station 0 & M costs. The DDA is currently funded in part through a special tax levy on downtown property. It is expected that the DDA taxing district will generate revenues well in excess of . $500,000 annually by 1985. Thus, it will be possible to meet the annual station maintenance and operating requirements for any of the DPM staging alternatives by use of this fund The DDA commitment represents an absolute "fall back" position if the tax district cannot be implemen- ted. The County and City will continue to pursue. this option. Upon implementation, the DDA commitment automatically would be voided. Dade County Transit Subsidies The remaining operating cost for the DPM system after deducting fare box revenues and private sector contributions will be funded as part of Dade County's transit operating -budget. These costs are estimated to range from $700,000 to $4,000,000 for the various DPM alternatives. Sources of funds for the County transit operating budget include Dade County general fund appropriations. 25 4.0 DPM PROJECT JUSTIFICATION 4.1 Background The transportation system in downtown Miami will require signifi- cant changes by 1985 as energy becomes more scarce and more costly, land use changes, urban revitalization occurs and new development is opened throughout the area along Brickell Avenue, in DuPont Plaza at the Government Center, in the Educational Complex and northward to Omni. The Metrorail System will have opened, carrying a large portion of all trips into and out of downtown. In 1985, without any consideration of energy impacts, 8,000 persons will use the Government Center rail transit station in the peak one hour. For the Brickell and Washington Heights stations, 1,400 and 2,000 persons, respectively, will enter or leave the area in the same time period. Because this rapid transit system service is focused on the western side of the CBD, the Full Downtown People Mover System is absolutely necessary to meet the growing need for distribution from the rail stations to the eastern or bayfront side. The Full System will also provide important support for north/south trips made in the CBD The implementation of a DPM system will be a decisive factor in the future development and redevelopment of downtown Miami. Improved access afforded by the DPM can create new development sites, enhance. existing sites, and provide a strong linkage between existing activity centers. As such, the DPM will serve as a structuring element to focus attention on the economic development opportunities available in the downtown area. 79 . 7 33 26 This role for the DPM has been assured through a local planning process which established land use and development impacts as one of the highest priority evaluation criterion for system alignment and station location. This is also reflected in the UMTA Objectives for the DPM program which include 'demonstrating positive economic impacts aimed at central city urban development and enhancing the natural and social urban environment. The development impacts of the DPM are consistent with the goals of the Dade County Comprehensive Development Master Plan and Miami Comprehensive Neighborhood Plan which identify downtown as.the major diversified activity center within the urban area. The DPM provides the physical structure to support continued economic. growth necessary to create a downtown that serves as financial, and cultural hub of Dade County and the United States. the social, southeastern The DPM's-land use impacts also reflect positively on another area of national concern. Given the current energy situation, efficient economic use of available energy sources is no longer an idealistic goal, but an ever growing necessity. The Federal government has long exerted considerable influence on patterns of energy use through regu- lations and development of technology. The present administration has pledged substantial financial support to mass transit systems because of the potential massive energy savings these systems represent and, just as importantly, because of the desirable patterns of development that public transit will encourage. 79`" 7 e3 27 Energy savings resulting from the impact of transportation facilities on land use and development patterns cannot be ignored. A high capacity transportation system is going to attract development because of in- creased accessibility. The resulting development is of higher density. At higher densities, attractions or activity centers are closer to- gether, trips are shorter, and overall transportation energy needs are reduced. For all its problems, New York City is by far the most energy efficient city in the nation, with per capita consumption less than half that of Dade County. Miami's DPM should also be considered in the context of the region's implementation of a rapid transit system and expanded feeder bus net- work as one comprehensive transportation system. For instance, it is estimated that each 1,000 bus miles that"will be saved through short- ening bus routes to downtown will result in bus fuel savings in excess of 300 gallons. In order to compare the effects of staged development of the full DPM system, transportation characteristics of this system have been compared to an all, bus alternative and two staged development levels.. The two development levels are the Base System and the Stage I System consisting of the loop plus the north leg. The All -Bus Network As an alternative to a DPM system, the All Bus downtown transit net- work relies primarily on four circulator bus routes. These routes are designed to serve both rapid transit distribution needs and internal circulation requirements during peak hours. The routes operate at five minute headways and an average eight mile per hour speed: 28 A primary feature of the All Bus alternative is the use of priority bus lanes on Biscayne Boulevard between Omni and Flagler Street and the conversion of Flagler Street to a pedestrian transit way. This treatment facilitates the movement of buses through the downtown area, particularly those buses from the north on Biscayne Boulevard and from Miami Beach to the east. Major bus terminals are located in the Omni area and at the Government Center station. Fares for the circulator buses are set at 25c. 4.3 The Base System The Base. System utilized in the comparison of DPM staging alterna- tives includes the two-way loop people'mover system described earlier and a substantially modified bus network. ,A major feature of this transit system is that there are no buses operating within the core of downtown Miami. The DPM serves as a distributor of all downtown trips to local activity centers and feeds rail and bus lines servicing other parts of the study area and the County. This arrangement requires that a person in the center of the area encircled by the DPM walk several blocks to reach a DPM station or bus route. To reduce the inconvenience created by this distance an open air tram is assumed to operate in an east -west Flagler Street corridor between the DPM stations at the Government Center and Biscayne Boulevard. There is no:fare charged and operating speeds are assumed to be five miles per hour. The operation of this route reduces walking distances to one or two blocks to get to the DPM system. 29 4.4 The Stage I System The Stage 1 System substitutes a northern extension of the DPM loop to the Omni area for the Base circulator bus route which ran between Omni and N. B. 5th Street. A major advantage of this leg is that the local bus network entering downtown from the north and from Miami Beach can now be terminated in a transfer area at Omni, thus eliminating thousands of bus miles and 200 buses daily through the downtown area. The remaining circulator and local bus routes are in configurations identical to the Base System. 4.5 The Full System The Full System incorporates legs both north and south from the downtown loop. Only one circulator bus route, between Omni and the Washington Heights rapid transit station, operates under this option other distribution from the rapid transit system is provided by the people mover. Local bus routes which currently end in down- town are terminated at their first point ofcontact with the people mover system. Local routes which pass through downtown are rerouted onto circumferential streets once they make connection with the DPM. 4.6 System Performance The principal physical characteristics of the networks are shown in Figure 10. As DPM route miles increase, it can be seen that` both local and circulator route miles decrease. Figure 11 illustrates the performance characteristics of the various systems. 30 Overall public transportation ridership is highest for the Full System and lowest for the All Bus Alternative. The operating costs required for each system are shown in Figure 12. Earlier sections have described how the costs of the DPM portion will be met through the fare box, downtown private sector financial participation and the ongoing transit subsidy program. This. ongoing program will also be utilized to subsidize the operating costs involved in operating the bus portions of each alternative. Clearly Figures 11 and 12 illustrate that the County is in a position to provide greater transit service with the DPM system than with the All Bus Alternative. Total daily person trips on all public trans- portation modes are 122,370 for the All Bus Alternative. This number represents actual trips made by individuals each day. In contrast, the DPM modes each enable the production of about 135,000 person trips per day for an increase in tripmaking on public transportation of 12,000 to 13,000 trips daily. A downtown transportation system appropriately utilizing DPM in high. volume corridors can be considerably less costly tooperate. example, Figure 12 shows that, despite the increase in total transit ridership, the daily operating costs for the Full System are approximately 60% of the costs for the All Bus Alternative ($39,370 per day vs $24,690) This difference amounts to a direct savings of approximately $4.4 million annually in 1979 dollars. Presuming a trend of continuing inflation for the foreseeable future, this annual savings alone would offset a substantial portion of the capital cost of the project within twenty years. FIGURE 10 ALTERNATIVE BUS AND DPM NETWORK CHARACTERISTICS PEAK MIDDAY ALL BASE STAGE I* FULL BUS SYSTEM SYSTEM SYSTEM ALL BASE STAGE I* FULL BUS SYSTEM SYSTEM SYSTEM ROUTE MILES Local Bus 67 51 42 34 Tram 1 1 1 Circulator 15 9 6 3 DPM - 4 6 9 TOTAL 82 65 55 47 67 51 42 34 1 1 1 15 9 6 3 4 6 9 82 65 55 47 VEHICLE MILES Local Bus 614 283 267 212 Tram 67 67 67 Circulator 435 260 172 106 DPM 161 250 343 TOTAL 1049,E 771 756 728 530 215 212 193 - 67 67 67 437 260 138 50 - 161 250 343 967 703 667 653 VEHICLE REQ. Local Bus 48 35 30 Tram - 7 7 Circulator 52 30 20 DPM - 11 18 TOTAL 100 83 75 24 9 12 30 75 30 23 21 7 8 44 25 14 - 11 18 74 66 61 15 5 20 57 * Loop plus north leg -Stage I (North). 1. , FIGURE 11 ALTERNATIVE BUS AND DPM SYSTEM TRANSIT PERSON TRIPS 1 32 ALL BUS BASE SYSTEM STAGE I SYSTEM FULL SYSTEM AM E. PM Peak 67,890 76,126 76,149 Midday 54,480 58,507 59,604 TOTAL 122,370 134,633 135,753 DAILY TRANSIT. RIDERSHIP (Unlinked Transit Trips)2 77,200 58,406 135,606 ALL BUS BASE SYSTEM STAGE I SYSTEM 1 FULL SYSTEM Circulator Bus 49,560 Flagler Tram - DPM - Local Bus 87,559 Rapid Transit 24,195 TOTAL 161,314 Average Transfers 41,837 14,332 45,419 65,819 32,225 199,632. 1.32 1.48 21,576 16,324 54,346 73,700 28,795 196,842 6,939 17,482 70,463 72,773 28,399 196,056 1.45 1.45 1 Loop plus north leg - Stage I (North) 2 ..:i6ked transit trips include a separate count for each mode. Thus, persons transferring from one mode to another on a single trip are counted twice. FIGURE 12 ALTERNATIVE BUS AND DPM SYSTEMS COMPARISON OF COSTS PEAK 1 HOUR ALL BUS BASE SYSTEM Local Bus $ 1,099 $ 507 Tram - 161 Circulator 979 585 DPM - 296 TOTAL $ 2,078 $ 1,522 MIDDAY 1 HOUR Local Bus Tram Circulator DPM TOTAL 949 983 $ 1,932 STAGE I SYSTEM 1 $ 478 161 415. 418 $ 1,472 33 FULL SYSTEM $ 379 161 240 573 $ 1,353 $ 358 $ 279 $ 345 161 161 161 585 333 111 269 418 578 $ 1,400 $ 1,291 $ 1,195 DAILY COST2 Local Bus $19,730 $ 8,310 Tram 3 - 3,220 Circulator $19,640 11,700 DPM 5,380 TOTAL $39,370 $28,610 1 Loop plus north leg - Stage I (North) 2 Peak 1 hour x 5+ Midday 1 hour x15 3 Tram operates for 10 hours only $ 8,075 3,220 8,735 8,360 $28,390 $ 7,070 3,220 2,865 11,535 $24,690