Appendix C-2 Atlanta Streetcar O&M Cost Estimation Methodology Report

Introduction This report presents the Operating and Maintenance (O&M) methodology and cost estimates for the Atlanta Streetcar project. The full Atlanta Streetcar project proposes a Modern Streetcar system within the downtown and midtown Atlanta areas. The proposed streetcar system consists of two alignments, an east‐ west alignment and a north‐south alignment, with various operating scenarios, listed below.

Segments 1a & 1b: Segment 1a was previously identified as a potential starter line for the Peachtree Streetcar. The segment would run almost entirely on Peachtree Street with a southern terminus in the Five Points station plaza at Broad Street and Marietta Street and a northern terminus at MARTA’s Arts Center Station. Heading north, the alignment would turn onto Peachtree Street at Broad Street. It would remain on Peachtree Street until 16th Street. In order to access Arts Center Station, the streetcar would loop using 16th Street, Arts Center Way and 15th Street. Segment 1b has been identified as a potential extension of Segment 1a from 16th Street north to the Peachtree Pointe offices at the intersection of Peachtree Street and Beverly Road.

Segments 2a & 2b: Segments 2a and 2b were designed to provide enhanced transit connectivity between Five Points/Central Business District and the historic Auburn and Edgewood Avenue corridors. Both segments would operate in a counter‐clockwise fashion on Auburn Avenue, Broad Street, Marietta Street and Edgewood Avenue. Segment 2a would close the loop using Boulevard between Edgewood and Auburn Avenues. Segment 2b would extend east to a future BeltLine station (Irwin). The segment would turn north from Edgewood Avenue onto Randolph Street, operate with bi‐directional service east on Auburn Avenue to access the Irwin Street BeltLine station and then return west past Randolph Street via Auburn Avenue.

Segments 1a + 2a: Segments 1a and 2a may potentially be combined to provide an L‐shaped North‐South/East‐West line. This option would mirror the alignments of segments 1a and 2a except that the alignment would no longer operate south on Peachtree Street between Edgewood Avenue and Wall Street.

Segments 1b + 2a: Segments 1b and 2a may potentially be combined to provide an L‐shaped North‐South/East‐West line. This option would mirror the alignments of segments 1b and 2a except that the alignment would no longer operate south on Peachtree Street between Edgewood Avenue and Wall Street.

Segment 3a: Segment 3a would provide circulation between Peachtree Street and Centennial Olympic Park (COP). The segment would primarily be a counter‐clockwise loop using Williams Street, Peachtree Street, Ellis Street, Carnegie Way and Andrew Young International Boulevard. The service on Andrew Young International Boulevard west of Williams Street would be bi‐directional.

Segment 4a & 4b: Segments 4a and 4b essentially combine Segments 2a and 2b with Segment 3, creating a more expansive east‐west route. Segment 3a would be adapted to turn south on Peachtree at Williams Street. The route would follow the Peachtree

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Appendix C-2 Atlanta Streetcar O&M Cost Estimation Methodology Report

alignment, turning onto Broad Street en route to Five Points Station. At Broad Street and Marietta Street the alignment would turn east onto Marietta Street and then turn again, onto Edgewood Avenue. On the return eastbound trips along Auburn Avenue, the route would turn north onto Peachtree Street and then west onto Ellis Street.

Segment 5a: Segment 5a would provide circulation between MARTA’s Arts Center Station and the Atlantic Station development. Starting at a western terminus at 17th Street and Northside Drive, the segment would follow 17th Street east across I‐75/I‐85 and then use a one‐way loop via Spring Street, a proposed 15th Street extension and West Peachtree Street to access the Arts Center Station.

Segment 6a: Segment 6a would provide circulation between MARTA’s Midtown station and Piedmont Park and the Monroe Drive BeltLine station via 10th Street. At the Midtown station end‐of‐line, the alignment would loop clockwise via Columbia Avenue, Peachtree Place, West Peachtree Street and 10th Street. At the Monroe Drive BeltLine station end‐of‐line, the alignment would terminate near the intersection of 10th Street and Monroe Drive. O&M Cost Methodology This section presents the proposed methodology for developing annual operating and maintenance (O&M) costs estimates for the Peachtree Streetcar project.

Steps required for estimating O&M costs are as follows:

1. Development of an O&M cost model, 2. Calibration of the models based on peer streetcar system operations and finances, 3. Generation of operating plans and statistics for each alternative, and 4. Calculation of annual operating and maintenance (O&M) costs. The O&M cost model that has been developed for streetcar operations is originally based on actual FY 2007 operating expenses for the following medium‐sized U.S. streetcar systems1.

Memphis (Memphis Area Transit Authority) Tacoma (Sound Transit ‐ Tacoma Link) Tampa (Hillsborough Area Regional Transit Authority ‐ TECO Line)

The streetcar cost model identifies specific streetcar‐related line item costs and tabulates those costs for specific cost centers (e.g., Rail Transportation, Rail Vehicle Maintenance, Rail Facilities Maintenance and General Administration). Within each cost center, line items are defined as labor, materials, services, utilities, fuel, insurance, taxes and miscellaneous costs. Cost data from the peer systems has been used in the cost model. The peer system cost data was obtained from FTA’s 2007 National Transit Database (NTD) Reports.

1 The Portland Streetcar system was not included because Tri‐Met reports Streetcar and Light Rail are co‐mingled in its National Transit Database reports. New Orleans’ streetcar system was not included because Hurricane Katrina disrupted normal operations throughout FY07. The Kenosha streetcar system was excluded because of volunteer/non‐profit labor that skewed labor productivity and unit cost indices. Little Rock’s streetcar system was excluded because the reported NTD average cost per revenue car hour was an outlier at less than $60 per hour.

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Appendix C-2 Atlanta Streetcar O&M Cost Estimation Methodology Report

Specific line items are provided in the model for unique labor positions such as train operator, and also for non‐labor expenses such as propulsion power and station maintenance materials and supplies. Each labor and non‐labor expense is modeled separately to ensure that equations are mutually exclusive and cover all operating costs. O&M costs are calculated from the quantity of service supplied (e.g., number of peak cars) or some other system characteristic (e.g., number of directional route‐miles).

The model assumes a number of contract functions because, in recent years, transit operators have relied on the private sector to perform many operational functions with the intent of reducing O&M costs.

A general description of the streetcar cost model tables are presented below. Input Statistics Input statistics determine nearly all costs in the model. Some items are linked to secondary variables such as employment or total cost. The O&M model requires seven input variables for the test scenario. Those variables as follows:

• Peak Cars • Fleet Cars • Annual Revenue Car‐Miles • Annual Revenue Car‐Hours • Passenger Stations • Directional Route Mileage • Maintenance Facilities Labor Cost Listing The cost model assumes that a new streetcar division will be created through MARTA. The streetcar operation will be responsible for all rail transportation and maintenance functions. General and Administrative aspects pertaining to streetcar could be accomplished under MARTA's current organizational structure or through a private operator. The model assumes four cost centers (departments): Rail Transportation, Rail Vehicle Maintenance, Rail Facilities Maintenance and General Administration.

Job positions and wage assumptions have been defined using staffing plans from selected streetcar systems and staff experience. Non‐Labor Cost Listing Non‐labor costs are based on NTD cost data reported by the peer streetcar systems. Non‐labor costs are identified by cost category (e.g., Vehicle Operations, Vehicle Maintenance) and by cost type (e.g., services, materials and supplies, utilities). There were some cases where a peer system’s unit cost for a particular line item was inconsistent with the other systems. In those instances, “outliers” were not used in the model’s calculation of a unit cost rate. Line Item Detail Table The Line Item Detail table in the cost model combines labor with non‐labor expenses and calculates costs and staffing requirements based on the system inputs. Cost items are listed by streetcar department (Vehicle Operations, Vehicle Maintenance, Facilities Maintenance, and Administration).

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Appendix C-2 Atlanta Streetcar O&M Cost Estimation Methodology Report

Expenses are generally a function of the calibration system cost, and the calibration values and project values (e.g., Peachtree Streetcar) of the driving variables. This function assumes that current rates of consumption will continue in future years.

Cost equations used by the model are generally of the form:

Projected Calibration Calibration Project Annual = System ÷ Driving × Driving Cost Cost Variable Variable where:

Calibration System Cost: Expense for the calibration system modeled. Calibration Driving Variable: The quantity of the input variable in the calibration system. Project Driving Variable: The projected quantity of the input variable for the project.

Line item costs are listed by cost center: Rail Transportation, Rail Vehicle Maintenance, Rail Facilities Maintenance and General Administration. Within each function, the labor cost items are listed first, followed by non‐labor costs. Staffing requirements, in Full‐time Equivalents (FTEs), are calculated from labor productivity equations for each job classification. Labor cost equals the calculated staffing requirement multiplied by the average employee salary for the particular job classification (e.g., train operators). Total labor productivity is calculated for each function (e.g., vehicle operations employees per revenue train‐hour) to check the validity of model results. Similarly, non‐labor unit costs are calculated for each function (e.g., vehicle maintenance non‐labor cost per car‐mile). Cost Summary Tables The model summarizes the results of a single model run by showing the input variables that constitutes the test system, a tabulation of cost estimates by department and cost type, and calculations of various system cost productivity indexes.

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Appendix C-2 Atlanta Streetcar O&M Cost Estimation Methodology Report

Summary of O&M Cost Estimates Utilizing the O&M cost models described above, annual O&M costs were estimated for streetcar operations in the study area. The following tables present annual O&M cost estimates for the various study alternatives. The first table provides cost estimates for the Baseline service frequency scenario, followed by increasing levels of service in the Technical Committee and Executive Committee scenarios. Detailed inputs for the cost model are provided in Appendix A.

System Characteristics Base 1b Base 4a Base 1b+4a Base 2a Base 3a Peak Cars 6 2 8 2 1 Fleet Cars 7 3 10 3 2 Rev. Car‐Miles 229,400 74,200 303,600 53,300 19,700 Rev. Car‐Hours 33,480 13,420 46,900 9,760 6,710 Directional Route Miles 6.67 2.88 9.55 2.50 1.18 Rail Stations 30 13 43 12 7 Maintenance Facilities 1 1 1 1 1 Annual O&M Cost: $4,425,233 $2,098,989 $5,737,733 $1,819,528 $1,356,247 $/Rev Veh Hour: $132.18 $156.41 $122.34 $186.43 $202.12

System Characteristics Tech 1b Tech 4a Tech 1b+4a Tech 2a Tech 3a Peak Cars 6 3 9 3 2 Fleet Cars 7 4 11 4 3 Rev. Car‐Miles 236,600 99,700 336,300 71,700 26,400 Rev. Car‐Hours 34,520 13,420 47,940 14,680 9,760 Directional Route Miles 6.67 2.88 9.55 2.50 1.18 Rail Stations 30 13 43 12 7 Maintenance Facilities 1 1 1 1 1 Annual O&M Cost: $4,494,183 $2,291,121 $5,995,704 $2,220,361 $1,599,053 $/Rev Veh Hour: $130.19 $170.72 $125.07 $151.25 $163.84

System Characteristics Exec 1b Exec 4a Exec 1b+4a Exec 2a Exec 3a Peak Cars 6 3 9 3 2 Fleet Cars 7 4 11 4 3 Rev. Car‐Miles 290,300 128,700 419,000 92,500 34,200 Rev. Car‐Hours 42,380 20,110 62,490 20,110 13,420 Directional Route Miles 6.67 2.88 9.55 2.50 1.18 Rail Stations 30 13 43 12 7 Maintenance Facilities 1 1 1 1 1 Annual O&M Cost: $5,142,419 $2,743,765 $7,124,217 $2,569,620 $1,789,986 $/Rev Veh Hour: $121.34 $136.44 $114.01 $127.78 $133.38

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Appendix A: O&M Cost Model Input Variables

Operating Cost Subtotals by Department

Input 0040 4003 4041 Cost Item Variable Tacoma Memphis Tampa Vehicle Operations Operator Salaries Train-Hour $497,129 $1,091,882 $475,660 Other Salaries Train-Hour $0 $290,830 $239,483 Fringe Benefits % of Salary $272,080 $753,491 $277,105 Services Train-Hour $415,370 $0 $16,481 Other Mat'ls & Supplies Train-Hour $0 $0 $0 Utilities/Propulsion Power Car-Mile $35,123 $192,951 $83,502 Misc. Expenses V.O. Empl. $0 $0 $0 Vehicle Maintenance Other Salaries Car-Mile $100,862 $508,450 $229,868 Fringe Benefits % of Salary $55,690 $159,899 $92,996 Services Car-Mile $54,399 $148,748 $3,062 Other Mat'ls & Supplies Car-Mile $87,873 $344,606 $370,973 Misc. Expenses V.M. Empl. $0 $0 $0 Non-Vehicle Maintenance Other Salaries Route-Mile $81,403 $0 $130,076 Fringe Benefits % of Salary $44,979 $0 $55,193 Services Route-Mile $122,679 $121,031 $18,601 Fuel, Lube, Tires, Tubes Fleet Cars $0 $0 $0 Other Mat'ls & Supplies Route-Mile $53,081 $45,119 $46,200 Utilities Yards $0 $0 $0 Misc. Expenses N.V.M. Empl. $0 $0 $0 General Administration Other Salaries Peak Car $190,467 $237,960 $38,202 Fringe Benefits % of Salary $115,773 $55,309 $6,747 Services Peak Car $56,146 $27,111 $180,664 Other Mat'ls & Supplies Peak Car $16,707 $3,601 $4,457 Utilities Total FTEs $56,344 $159,320 $84,360 Casualty/Liability Car-Mile $253,915 $120,794 ($31,591) Taxes Fleet Cars $37 $0 $0 Misc. Expenses G.A. FTEs $3,133 $7,543 $0 Expense Transfers Not Modeled Total Operating Cost $1,912,224 $2,940,792 $1,375,070 Total Maintenance Cost $600,966 $1,327,853 $946,969 Total O&M Cost $2,513,190 $4,268,645 $2,322,039 Labor Cost $1,358,383 $3,097,821 $1,545,330 Non-Labor Cost $1,154,807 $1,170,824 $776,709 V.O. Cost/Train Hour $121.24 $38.57 $60.73 V.M. Cost/Car Mile $3.08 $2.58 $8.00 N.V.M. Cost/Route Mile $83,928 $16,615 $52,098 G.A. Cost/Peak Car $346,261.00 $50,969.83 $35,354.88 NOTES: Data is from National Transit Database (formerly Section 15) reports. [1] All fuel and lube costs aggregated as a Non‐Vehicle Maintenance expense. [2] All casualty and liability costs aggregated as a General Administration expense. [3] All operator salaries aggregated as a Vehicle Operations expense. [4] Propulsion power costs included as Vehicle Operations expense.

Operating Cost Unit Costs by Department

Input 0040 4003 4041 Cost Item Variable Tacoma Memphis Tampa Vehicle Operations Operator Salaries Train-Hour $49.42 $18.08 $26.45 Other Salaries Train-Hour $0.00 $4.82 $13.32 Fringe Benefits % of Salary 54.7% 54.5% 38.7% Services Train-Hour $41.29 $0.00 $0.92 Other Mat'ls & Supplies Train-Hour $0.00 $0.00 $0.00 Utilities/Propulsion Power Car-Mile $0.36 $0.43 $0.96 Misc. Expenses V.O. Empl. $0.00 $0.00 $0.00 Vehicle Maintenance Other Salaries Car-Mile $1.04 $1.13 $2.64 Fringe Benefits % of Salary 55.2% 31.4% 40.5% Services Car-Mile $0.56 $0.33 $0.04 Other Mat'ls & Supplies Car-Mile $0.90 $0.76 $4.26 Misc. Expenses V.M. Empl. $0.00 $0.00 $0.00 Non-Vehicle Maintenance Other Salaries Route-Mile $22,612 $0 $27,099 Fringe Benefits % of Salary 55.3% N/A 42.4% Services Route-Mile $34,078 $12,103 $3,875 Fuel, Lube, Tires, Tubes Fleet Cars $0 $0 $0 Other Mat'ls & Supplies Route-Mile $14,745 $4,512 $9,625 Utilities Yards $0 $0 $0 Misc. Expenses N.V.M. Empl. $0.00 N/A $0.00 General Administration Other Salaries Peak Car $95,234 $19,830 $4,775 Fringe Benefits % of Salary 60.8% 23.2% 17.7% Services Peak Car $28,073 $2,259 $22,583 Other Mat'ls & Supplies Peak Car $8,354 $300 $557 Utilities Total FTEs $3,314 $2,570 $3,124 Casualty/Liability Car-Mile $2.61 $0.27 ($0.36) Taxes Fleet Cars $12 $0 $0 Misc. Expenses G.A. FTEs $1,044 $1,509 $0 Expense Transfers Not Modeled O&M Cost per Train-Hour $249.82 $70.70 $129.11 O&M Cost per Car-Mile $25.88 $9.47 $26.65

NOTES: Unit costs calculated from data in "Summary" and "Labor Productivity" tables.

Cost Drivers by Department & Position

Object Average Productivity Cost ESTIMATED COST ITEM Dept. Class Salary Factor Driver FTEs Cost '07$

VEHICLE OPERATIONS Manager Rail Transportation 100 LABOR $75,000 1.00 YARD 1.0 $75,000 Transit Supervisor/Controller 100 LABOR $40,800 3.00 YARD 3.0 $122,400 Train Operator 100 LABOR $35,000 1,650 TR HOURS 18.0 $630,000 Transportation Instructor 100 LABOR $50,100 0.50 YARD 0.5 $25,050 Division Clerk 100 LABOR $23,800 0.50 YARD 0.5 $11,900 Fare Inspector 100 LABOR $35,000 0.50 PEAK CARS 3.5 $122,500 Fringe Benefits 100 LABOR 49.3% V.O. wages $486,754 Prof/Tech Services 100 SERV $14.07 TR HOURS $414,670 Materials/Supplies 100 MATL $0.00 TR HOURS $0 Utilities/Propulsion Power 100 UTIL $0.58 CAR MILES $123,340 Vehicle Operations Subtotal 26.5 $2,011,615 Train Hours/FTE 1,112 V.O. Cost/Train-Hour $68.25

VEHICLE MAINTENANCE Manager Maintenance 200 LABOR $75,000 0.50 YARD 0.5 $37,500 Parts Clerk 200 LABOR $22,900 0.50 YARD 0.5 $11,450 Maintenance Foreman/Instructor 200 LABOR $45,000 0.50 YARD 0.5 $22,500 Mechanic 200 LABOR $40,000 0.20 CAR MILES 4.0 $160,000 Vehicle Service Person 200 LABOR $25,000 0.20 FLEET CARS 2.0 $50,000 Fringe Benefits 200 LABOR 42.4% V.M. wages $119,258 Prof/Tech Services 200 SERV $0.31 CAR MILES $65,291 Materials/Supplies 200 MATL $1.98 CAR MILES $418,190 Vehicle Maintenance Subtotal 7.5 $884,189 Car-Miles/FTE 28,227 V.M. Cost/Car-Mile $4.18

NON-VEHICLE MAINTENANCE Manager Maintenance 300 LABOR $75,000 0.50 YARD 0.5 $37,500 Track Maintainer 300 LABOR $41,300 0.10 RTEMILE 0.5 $20,650 Facility Maintainer 300 LABOR $41,300 0.05 STATION 0.5 $20,650 Power & Signal Maintainer 300 LABOR $47,100 0.08 RTEMILE 0.5 $23,550 Rail Laborer 300 LABOR $30,000 0.25 # maint. 0.5 $15,000 Fare Equipment Maintainer 300 LABOR $47,100 0.05 STATION 0.5 $23,550 Fringe Benefits 300 LABOR 48.8% N.V.M. wages $68,820 Prof/Tech Services 300 SERV $16,685 RTEMILE $102,336 Other Mat'ls & Supplies 300 MATL $9,627 RTEMILE $59,047 Utilities 300 UTIL $50,000 YARD $50,000 Non-Vehicle Maintenance Subtotal 3.0 $421,103 Route-Miles/FTE 2.04 Non-V.M. Cost/Route-Mile $68,658

GENERAL ADMINISTRATION Director Streetcar 400 LABOR $90,000 1.00 YARD 1.0 $90,000 Secretary 400 LABOR $30,000 1.00 YARD 1.0 $30,000 Systems/Equip. Engineer 400 LABOR $75,000 0.05 FLEET CARS 0.5 $37,500 Accounting Support 400 LABOR $32,900 $10,000,000 LRT Budget 0.5 $16,450 HR Support 400 LABOR $32,100 0.01 Total FTEs 0.5 $16,050 Customer Service Representative 400 LABOR $21,300 0.15 PEAK CARS 1.0 $21,300 Fringe Benefits 400 LABOR 33.9% G.A. wages $71,622 Prof/Tech Services 400 SERV $17,638 PEAK CARS $129,348 Materials/Supplies 400 MATL $3,070 PEAK CARS $22,515 Utilities 400 UTIL $3,003 Total FTEs $124,617 Insurance 400 INSUR $0.84 CAR MILES $177,832 Taxes 400 TAX $4.11 FLEET CARS $41 Misc. Expenses 400 MISC $851 G.A. FTEs $3,829 General Administration Subtotal 4.5 $741,106 Peak Car/FTE 1.63 Non-G.A./Peak Car $101,060

TOTALS/COST SUMMARY 41.5 $4,058,013 Labor Costs: $2,366,955 Non-Labor Costs $1,691,058 AVERAGE COSTS Cost per Train-Hour: $137.68 Cost per Car-Mile: $19.17

NOTES: [1] Job Classifications and average salaries based on 2004 research. [2] Prof/Tech/Outside Services include: System Security, Fare Collection, Component Repair, Station Cleaning, Landscaping, Building Maintenance, Elevator/Escalator Maintenance [3] Costs in FY 2007 dollars.