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Portal North Bridge Project Financial Plan

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Portal North Bridge Project Financial Plan September 13, 2019 Submitted by The New Jersey Transit Corporation (Portal North Bridge Project Sponsor) In partnership with: The National Railroad Passenger Corporation (Amtrak) Portal North Bridge Project Financial Plan Table of Contents 1.0 INTRODUCTION ......................................................................................................... 1-1 1.1 Gateway Program Overview ........................................................................... 1-2 1.2 Commitment of Project Partners .................................................................... 1-3 Phase 1A: Portal North Bridge Project ................................................................................. 1-4 1.3 Portal North Bridge Project Overview ............................................................. 1-4 1.4 Description of the of the PNB Project Sponsor and Funding Partners ........... 1-5 1.4.1 PNB Project Sponsor ........................................................................ 1-5 1.4.2 PNB Funding Partners ...................................................................... 1-6 1.5 Description of the Portal North Bridge Project ................................................ 1-9 1.5.1 Portal North Bridge Project Identification ......................................... 1-10 1.5.2 Portal North Bridge Setting .............................................................. 1-10 1.5.3 Portal Bridge Current Conditions ..................................................... 1-10 1.5.4 Portal North Bridge Project Purpose ............................................... 1-12 1.5.5 Portal North Bridge Project Summary ............................................. 1-13 Phase 1B: Hudson Tunnel Project ...................................................................................... 1-14 1.6 Hudson Tunnel Project Overview ................................................................. 1-14 1.6.1 Status of Environmental Review ...................................................... 1-15 1.7 Description of the of the HTP Sponsor and Supporting Partners ................. 1-16 1.7.1 HTP Project Sponsor ....................................................................... 1-16 1.7.2 HTP Supporting Partners ................................................................ 1-16 1.7.3 HTP Funding Partners ..................................................................... 1-17 1.8 Description of the Hudson Tunnel Project .................................................... 1-19 1.8.1 Hudson Tunnel Project Identification ............................................... 1-19 1.8.2 Hudson Tunnel Project Setting ........................................................ 1-20 1.8.3 Hudson Tunnel Project Current Conditions ..................................... 1-22 1.8.4 Hudson Tunnel Project Purpose...................................................... 1-23 1.8.5 Hudson Tunnel Project Summary .................................................... 1-25 2.0 PORTAL NORTH BRIDGE PROJECT FINANCIAL PLAN ........................................ 2-1 2.1 Portal North Bridge Financial Plan Revisions since FTA FY 2020 Rating ...... 2-1 2.2 Capital Plan .................................................................................................... 2-2 2.2.1 Capital Plan Uses of Funds ............................................................... 2-2 2.2.2 Capital Plan Sources of Funds ........................................................ 2-11 2.2.3 Capital Financing Strategy .............................................................. 2-21 2.2.4 Capital Sources and Uses of Funds ................................................ 2-22 2.3 Operating Plan ............................................................................................. 2-27 2.3.1 PNB Ownership ............................................................................... 2-27 2.3.2 Real Property Ownership ................................................................ 2-27 2.3.3 Operations and Maintenance of the Portal North Bridge Project ..... 2-27 2.3.4 Infrastructure Operating Plan .......................................................... 2-27 2.3.5 Rail Service Operating Plan ............................................................ 2-29 2.4 Portal North Bridge: Risks and Uncertainties ............................................... 2-31 PORTAL NORTH BRIDGE a n d H U D S O N T U N N E L PROJECT September 2019 Page i Portal North Bridge Project Financial Plan 2.4.1 Discussion of Major Sources of Risk and Uncertainty ..................... 2-31 2.4.2 Capital Plan ..................................................................................... 2-32 2.4.3 Operating and Maintenance Plan .................................................... 2-36 2.4.4 Mitigation Strategies ........................................................................ 2-37 2.4.5 Sensitivity Analysis .......................................................................... 2-37 4.0 NJ TRANSIT SYSTEM-WIDE FINANCIAL PLAN ...................................................... 4-1 4.1 Introduction .................................................................................................... 4-1 4.2 Capital Plan .................................................................................................... 4-2 4.2.1 Historic Capital Plan Sources of Funds ............................................. 4-2 4.2.2 Historic Capital Plan Uses of Funds .................................................. 4-3 4.2.3 Forecast Capital Plan Sources of Funds ........................................... 4-4 4.2.4 Forecast Capital Plan Uses of Funds ................................................ 4-7 4.3 Operating Plan ............................................................................................... 4-9 4.3.1 Historic Operating Sources of Funds ................................................. 4-9 4.3.2 Historic Operating Uses of Funds .................................................... 4-11 4.3.3 Forecast Operating Budget ............................................................. 4-13 4.4 New Jersey Transit Risks and Uncertainties ................................................ 4-17 4.4.1 Bus and Rail Fleet Age .................................................................... 4-17 4.4.2 NJTTF Financial Stability ................................................................ 4-18 4.4.3 NJ TRANSIT Liquidity ..................................................................... 4-21 Appendix A – Summary of Regional Economic Forecasts Appendix B – PANYNJ Financial Information Appendix C – List of Supporting Documents Appendix D – Local Financial Commitment Checklist PORTAL NORTH BRIDGE a n d H U D S O N T U N N E L PROJECT September 2019 Page ii Portal North Bridge Project Financial Plan List of Acronyms Amtrak National Railroad Passenger Corporation BCC Baseline Capital Charge BCI Building Cost Index CAA Clean Air Act CAGR Compound Annual Growth Rate CCI Construction Cost Index CCIP Contractor Controlled Insurance Program CE Categorical Exclusion CEO Chief Executive Officer CIG Capital Investment Grant CM Construction Manager CMAQ Congestion Mitigation and Air Quality Improvement Program Commission Gateway Development Commission Corporation Gateway Program Development Corporation CPI Consumer Price Index CRP Credit Risk Premium DEA David Evans and Associates, Inc. DEIS Draft Environmental Impact Statement DSCR Debt Service Coverage Ratio DVRPC Delaware Valley Regional Planning Commission EDA Economic Development Authority EPA Environmental Protection Agency ESB Emergency Services Building ESWA Early Systems Work Agreement FAST Act Fixing American’s Surface Transportation Act FEIS Final Environmental Impact Statement FFGA Full Funding Grant Agreement FHWA Federal Highway Administration FMOC Financial Management Oversight Contractor FONSI Finding of No Significant Impact FRA Federal Railroad Administration FTA Federal Transit Administration PORTAL NORTH BRIDGE a n d H U D S O N T U N N E L PROJECT September 2019 Page iii Portal North Bridge Project Financial Plan FY Fiscal Year GAN Grant Anticipation Notes GC General Contractor HTP Hudson Tunnel Project HYCC Hudson Yards Concrete Casing LIRR Long Island Rail Road LONP Letter of No Prejudice MAP-21 Moving Ahead for Progress in the 21st Century MBTA Massachusetts Bay Transportation Authority MLMU Multilevel Multiple Units MPO Metropolitan Planning Organization NEC Northeast Corridor NEPA National Environmental Policy Act NFPA National Fire Protection Association NJ TRANSIT New Jersey Transit NJDEP New Jersey Department of Environmental Protection NJDOT New Jersey Department of Transportation NJEDA New Jersey Economic Development Authority NJHA New Jersey Highway Authority NJTA New Jersey Turnpike Authority NJTPA North Jersey Transportation Planning Authority NJTTF New Jersey Transportation Trust Fund NJTTFA New Jersey Transportation Trust Fund Authority NYCDOT New York City Department of Transportation NYMTC New York Metropolitan Transportation Council NYSDOT New York State Department of Transportation O&M Operations and Maintenance OCIP Owner Controlled Insurance Program OMB Office of Management and Budget P&E Planning and Expense PAB Private Activity Bond PANYNJ Port Authority of New York and New Jersey Parkway Garden State Parkway PATH Port Authority Trans-Hudson PORTAL NORTH BRIDGE a n d H U D S O N T U N N E L PROJECT September 2019 Page iv Portal North Bridge Project Financial
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