Backup_JSC_CapMetro_Presentation_20200226 — original pdf

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DRAFT – DO NOT DISTRIBUTE Rob Borowski Capital Metro Joint Sustainability Committee February 26, 2020 1 AGENDA • CAPITAL METRO AT A GLANCE • SYSTEM REDESIGN - CAP REMAP • THE PROBLEM & SOLUTION • EQUITABLE IMPROVEMENTS • VICTORIES & LESSONS LEARNED • LONG-RANGE VISION – PROJECT CONNECT • SYSTEM PLAN • PLANNING & ENGAGEMENT PROCESSES • INVESTMENT OPPORTUNITIES DRAFT – DO NOT DISTRIBUTE 2 CAPITAL METRO AT A GLANCE 33 3 Agency Overview SERVICE AREA 1.1 million residents, 543 square miles MEMBER CITIES 7 cities, including Austin ANNUAL BUDGET $403.7 million ANNUAL RIDERSHIP / AVERAGE WEEKDAY 31 million annual / 119,000 average weekday FLEET SIZE 540 revenue vehicles WORKFORCE 365 administrative, 1150 contract operations DRAFT – DO NOT DISTRIBUTE 4 Agency Governance STATE ENABLING LEGISLATION Chapter 451 – Texas Transportation Code • Metropolitan transportation authority • Member cities vote into system • 1-cent sales tax • Limited revenue sources BOARD STRUCTURE 8-member board • 3 members appointed by MPO • 2 members appointed by City of Austin • 1 member appointed by Travis County • 1 member representing small cities DRAFT – DO NOT DISTRIBUTE 5 Agency Finances ANNUAL BUDGET $403.7 million REVENUE SOURCES FY2020 OPEX $287 million FY2020 CAPEX $110 million SALES TAX $265.7 million GRANTS $60.1 million FARES $22.5 million DRAFT – DO NOT DISTRIBUTE 6 Contract Operations FIXED ROUTE BUS – MV Transportation • $1.4 billion • 5 years, plus two 3-year options PARATRANSIT – MTM Transit (Ride Right) • $210 million • 4 years, plus two 3-year options COMMUTER RAIL – Herzog • $117.5 million • 7 years FREIGHT RAIL – Watco Companies • $5 million (16.5 percent of revenue) • 20 years, plus five 6-year options DRAFT – DO NOT DISTRIBUTE 7 Agency Fares Current Fare Structure • Under 18 ride free • University partnerships • Transit Empowerment Fund • MetroWorks program • Reduced Fare program Seniors • • Medicare • Customers with disabilities • Military personnel DRAFT – DO NOT DISTRIBUTE 8 Agency Fares Farebox Recovery Comparisons DRAFT – DO NOT DISTRIBUTE 9 Agency Facilities PARK & RIDES 17 facilities RAIL STATIONS 9 stations (1 additional proposed) BRT STATIONS 48 station pairs MAINTENANCE FACILITIES 3 facilities, 300,000 square feet • Electric fleet facility U/C ADMINISTRATIVE SPACES 6 facilities, 100,000 square feet DRAFT – DO NOT DISTRIBUTE 10 Agency Innovation DRAFT – DO NOT DISTRIBUTE AUTONOMOUS VEHICLE PILOT • Easy Mile ON-DEMAND PICKUP SERVICE • 6 active microtransit zones • Positive ridership growth INTEGRATED FARE SYSTEM • Study complete, into procurement FLEET ELECTRIFICATION • 2 vehicles onsite, 8 on order • 4 Proterra buses, 6 New Flyer STOP AMENITIES PROGRAM • Real-time departure, solar 11 Agency Successes Continuous Improvement • 15 straight months of ridership gains • Up 26.3 percent on MetroExpress • Up 5.7 percent on MetroRapid • K-12 Ride Free • Over 3 million trips (and counting) • Expansion of On-Demand Pickup Service • 6 active zones, growing ridership • State and National Awards • Texas Agency of the Year • Safety, Mobile Technology recognitions DRAFT – DO NOT DISTRIBUTE 12 Agency Successes Continuous Improvement • Stop Amenities • 125 shelters and 80 solar lights • E-paper, real-time departure units • Downtown Station Reconstruction • $37 million terminal station • Operational flexibility, new plaza • New Transit Centers • 4 new transit facilities • MetroRail Track Improvements • TIGER V double-tracking, PTC DRAFT – DO NOT DISTRIBUTE 13 SYSTEM REDESIGN CAP REMAP 1414 14 The Problem DRAFT – DO NOT DISTRIBUTE 15 The Solution DRAFT – DO NOT DISTRIBUTE 16 Cap Remap Goals BUILD RIDERSHIP • Retain existing customers, create new markets MATCH SERVICE TO MARKETS • The right service for the environment ENHANCE CUSTOMER EXPERIENCE • Safe, secure, inviting, innovative ENSURE FINANCIAL SUSTAINABILITY • Improve the system for the long term DRAFT – DO NOT DISTRIBUTE 17 Households Within ½ Mile of Frequent Routes DRAFT – DO NOT DISTRIBUTE June 2017 June 2018 POPULATION SERVED BY HIGH FREQUENCY ROUTES • 331,600 (31%) before • 542,500 (51%) after BEFORE – 6 Frequent Routes • 30 percent weekday trips • 12 percent weekend trips AFTER – 14 Frequent Routes • 53 percent weekday trips • 65 percent weekend trips 6 routes 14 routes 18 Households in Poverty Within a 5-Minute Walk DRAFT – DO NOT DISTRIBUTE Before Cap Remap After Cap Remap 15% 4,073 27% 7,069 19 Households in Poverty Within a 10-Minute Walk DRAFT – DO NOT DISTRIBUTE Before Cap Remap After Cap Remap 33% 8,647 48% 12,678 20 Minority Populations within a 5-Minute Walk DRAFT – DO NOT DISTRIBUTE Before Cap Remap After Cap Remap 12% 59,029 22% 109,781 21 Minority Populations within a 10-Minute Walk DRAFT – DO NOT DISTRIBUTE Before Cap Remap After Cap Remap 25% 127,007 39% 197,264 22 Cap Remap Victories INCREASED RIDERSHIP • 15 straight months, 15-percent increase INCREASED SERVICE HOURS • Additional 120,000 hours of service MORE CONSISTENT FREQUENCY • Elimination of weekend, alternate schedules MORE BALANCED RIDERSHIP • Increased weekend, midday, late night trips DRAFT – DO NOT DISTRIBUTE 23 LONG-RANGE VISION PROJECT CONNECT 2424 24 A Growing Challenge Austin MSA Population DRAFT – DO NOT DISTRIBUTE 25 It’s A Matter of Geometry TRANSITWAYS DRAFT – DO NOT DISTRIBUTE PEOPLE MOVED PER LIGHT CYCLE 126 People - 80 in transit. PEOPLE MOVED PER LIGHT CYCLE 235 People - 204 in transit. 26 DRAFT – DO NOT DISTRIBUTE Local Bus Service DRAFT – DO NOT DISTRIBUTE Local Bus Service Commuter Rail Red & Future Green Lines DRAFT – DO NOT DISTRIBUTE Red & Future Green Lines DRAFT – DO NOT DISTRIBUTE Red & Future Green Lines DRAFT – DO NOT DISTRIBUTE Red & Future Green Lines • Better bus stops • Greater frequency • Real time arrival info • Greater capacity DRAFT – DO NOT DISTRIBUTE Red & Future Green Lines DRAFT – DO NOT DISTRIBUTE Local Bus Service Tech Ridge Triangle Auditorium Shores Manor Crestview ACC Highland Colony Park Slaughter Commuter Rail Red & Future Green Lines High Capacity Rapid Transit Dedicated Pathways Alternative Operating Route MetroRapid Routes Transit Priority Treatments Neighborhood Circulators Proposed Park & Ride Existing Regional Express Routes Proposed Regional Express Routes 33 Republic Square Downtown/Convention Center Airport (AUS) Existing Park & Ride PPLEARNING, LISTENING, COLLABORATING CENTRAL TEXAS OUTREACH Over 25,000 residents engaged to date City Council & Capital Metro Work Sessions MAR 4 OCT 30 JAN 14 AUG 6 MAR 9 NOV 28 MAY 28 Virtual Open Houses and Dashboard Stakeholder Groups Engaged Technical Advisory Committee (TAC) Project Connect Ambassador Network (PCAN) Businesses, neighborhoods, government agencies, faith communities, and more - - - 34 34 Peer City Visits DRAFT – DO NOT DISTRIBUTE LOS ANGELES Measure M - $120 Billion (40 years) SEATTLE Sound Transit 3 - $54 Billion DENVER FasTracks - $8 Billion MINNEAPOLIS System Expansion - $3.1 Billion INDIANAPOLIS Red Line BRT Project - $100 Million 35 Art in Transit & Placemaking DRAFT – DO NOT DISTRIBUTE Integrated Art Elements – Houston METRO Placemaking – Denver Union Station 36 Art in Transit & Placemaking DRAFT – DO NOT DISTRIBUTE LEED Certified Facilities – Julia Carson Transit Center (IndyGo) Art in Station Design – Hollywood / Highland (LA Metro) 37 Transit & Technology DRAFT – DO NOT DISTRIBUTE Proterra Electric Buses – In Service Volvo Autonomous Bus - Singapore Surface Current Collection - France Automated Maintenance - Singapore Suica Card – Japan Hydrogen Fuel Cells - Germany 38 Transit & Economic Development DRAFT – DO NOT DISTRIBUTE • Every $1 invested in public transportation = $4 in economic returns • Every $1 billion invested = 50,000 jobs created • Every $10 million in investment yields $30 million increased business sales • An estimated $37 billion of public transportation expenditures flows to the private sector • Home values near high-frequency public transportation performed 42 percent better *American Public Transportation Association 39 Transit & Sustainability DRAFT – DO NOT DISTRIBUTE AIR QUALITY IMPROVEMENTS - Transportation accounts for 29 percent of greenhouse emissions - 37 million tons of CO2 reduced by public transportation use FLEET ELECTRIFICATION - 2 electric vehicles in service, 8 on order - Construction underway on electric charging facility for 214 buses - Project Connect envisions an all-electric future fleet 40 FEDERAL INVESTMENT OPPORTUNITIES 4141 41 CAPITAL INVESTMENT GRANT OPPORTUNITIES New Starts • Fixed guideway • Greater than $300M total or • Greater than $100M in CIG funds • Recent Federal Average Participation 45% • Orange, Blue and Gold Lines; potential Green Line Core Capacity • Infrastructure investments for systems at or above 95% • Existing fixed guideway at capacity within 5 years • Expands capacity by more than 10% • Recent Federal Average Participation 42% • Existing Red Line 42 CAPITAL INVESTMENT GRANT OPPORTUNITIES Small Starts • Fixed guideway or corridor-based BRT • Less than $300M total or • Less than $100M in CIG funds • Recent average funding is 53% Potential MetroRapid Opportunities • New and existing BRT lines 4343 CAPITAL METRO INVESTMENT OPPORTUNITIES 4444 4444 CAPITAL METRO’S FINANCIAL OUTLOOK LONG RANGE FINANCIAL PLANNING POLICY AND PROCESS Total Revenues and Total Expenses • Aligns financial capacity with long term service objectives • Ensures fiscal stability and sustainability • All reserves are fully funded • 3 months operating reserve • New capital expansion fund • State of good repair s n o i l l i M $700 $600 $500 $400 $300 $200 $100 $0 • Zero debt with AA bond rating Fiscal Year Operating Expenses Capital Projects Revenues 2024 2028 2032 2036 2040 4545 CAPITAL INVESTMENT OPPORTUNITIES AGENCY FUNDING OPTIONS Planned in Long Range Financial Plan Project Connect Planning & Development • Capital Expansion Fund • Revenue available after funding existing operations and asset management requirements • Estimated $60 - $70 million by 2022 • NEPA, Project Development, Record of Decision • and 30% design Total of $56 million programmed for Project Connect, with $13.4 million spent to date 4646 OPERATING SOURCES PROJECTED RECURRING SOURCES O&M Funding Sources • Revenue available after funding existing operations • FY 2023 to FY 2040 sales tax growth of 3.75% would generate an average of $36 million per year Reallocation of Existing Resources • Service replacement of current Route 801 and partial Route 20 with implementation of Orange and Blue Lines • Approximately $7 to 16 million available for reallocation 4747 POTENTIAL REVENUE Fare Revenue with Ridership Increases • Additional $17 to 40 million per year (estimate) • 10% fare recovery today Parking Revenue • Annual estimated revenues of $5 to $10 million Vehicle Emissions Tax (VET) • Existing legislative authority, election must be held • Long term revenue likely impacted by electric vehicles • Forecasted revenue between $5 million and $6 million 4848 POTENTIAL OPERATING REVENUE OPTIONS Potential Vehicle Emissions Tax Potential Park & Ride Fees 2028 ($M) 2040 ($M) Low High Low High 5 4 7 33 6 5 16 39 5 8 8 33 6 10 79 18 39 Additional Fare Revenues 17 40 28 Routes 801 & 20 Service Reallocation Potential Available Sales Taxes TOTAL 66 106 82 152 4949 CITY OF AUSTIN INVESTMENT OPPORTUNITIES 5050 5050 LOCAL FUNDING OPTIONS: CITY OF AUSTIN General Obligation Bonds • Public Improvement Bonds (PIBs) are authorized via Bond Elections • Since 2010, City has conducted six Bond Elections • Per City’s financial policies, next scheduled bond election would be 2024 Criteria for Funding: Bonds Capital Operations & Maintenance Capital Repair & Replacement Operating Reserves Debt Reserves Yes No No No Yes Leverage Federal Funding Partial 5151 LOCAL FUNDING OPTIONS: CITY OF AUSTIN Tax Rate Election • New State Law (Senate Bill 2) • 3.5% cap on funding increases; election required Capital Criteria for Funding: Tax Rate Election • Transparency for voters on specific transit investment • In subsequent years, the “new” piece of tax rate revenue would be dedicated to the specified purpose • Existing O&M tax rate & uses would not be impacted Operations & Maintenance Capital Repair & Replacement Operating Reserves Debt Reserves Leverage Federal Funding Yes Yes Yes Yes Yes Yes 5252 CITY OF AUSTIN / CAPITAL METRO PARTNERSHIP Local Government Corporation • • • • • • Can be established under state law Dedicated joint governance to implement project Transparency for taxpayers Can issue revenue bonds Can leverage federal funding opportunities Can fund operations & maintenance 5353 via aJoint Development AgreementCityof AustinFundingCapitalMetroFundingLocal Government CorporationFederalFundingPROJECT CONNECT NEXT STEPS 5454 54 PROJECT TIMELINE DRAFT – DO NOT DISTRIBUTE 55 ENHANCING TRANSIT FOR ALL 5656 56 DRAFT – DO NOT DISTRIBUTE Rob Borowski, Sustainability Officer Capital Metro Joint Sustainability Committee February 26, 2020 57