March 2015 Streetcar Project Fund Report Attachment 1

OREGON STREETCAR FUND FINAL REPORT

Report: This is the fourth annual and final report on the Oregon Streetcar Fund project. This report covers the period of January 2013 to July 2014 when the project was completed.

Legislative History: Chapter 746, Oregon Laws 2007, passed by the Oregon Legislature and signed by the Governor on July 3, 2007, created the Oregon Streetcar Project Fund, allowing for the issuance of $20,000,000 in lottery funds for the purpose of financing grants through the Oregon Department of Transportation (ODOT) to municipalities to provide for the purchase of streetcars from an Oregon-owned and Oregon-based manufacturer for use in public transit systems. By entering into and enhancing participation in the emerging streetcar vehicle market, Oregon manufacturers will create jobs for Oregon residents. The department is to report progress on jobs development to the Oregon Transportation Commission.

Administrative History: On April 23, 2008, the Oregon Transportation Commission (OTC) approved Oregon Administrative Rule 732-035-0010 through 732-035-0080 relating to the Oregon Streetcar Project Fund Program. The rules established the Oregon Streetcar Project Fund Program, definitions, eligibility standards and application requirements.

Grant History: On September 15, 2008, ODOT informed the City of Portland that their application for a grant to purchase streetcars using funds from the Oregon Streetcar Fund was approved. City of Portland/State Agreement No. 25414 was executed on July 28, 2009 for the full $20,000,000. Agreement No. 25414 called for the procurement of up to seven fixed guideway, electric streetcars, as well as all necessary safety and street use equipment, spare parts, special tools and equipment for the streetcars, service and safety manuals, training, and cost for consultant or staff inspection of the design and manufacture of the streetcars. It includes all related materials, services and equipment necessary to outfit the streetcars for City of Portland service.

Contract History: City of Portland authorized a contract with , Inc. (OIW) an Oregon based company, for the production and delivery of vehicles that are compatible with the existing Portland Streetcar fleet and able to be operated on the present Portland Streetcar system, as well as on the expanded system following completion of the Portland Streetcar Loop Project.

Progress: In July 2010 the City updated ODOT on the status of the design changes being contemplated regarding a major component of the streetcars, the propulsion and electrical system. The original proposal was to provide a propulsion system similar to the one installed at that time on the Portland Streetcar Prototype, funded by the Federal Transit Administration through its National Research Program. After completing an analysis of available alternatives, City staff, City consultants and TriMet’s systems management staff all concurred that proceeding with a propulsion/electrical system provided by Elin EBG Traction (Elin), a subsidiary of Siemens AG, was preferred. This change came at a cost of time and money. The base order was reduced from six (6) streetcar vehicles to five (5) and non-recurring engineering costs to make the Elin change were added.

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March 2015 Oregon Streetcar Project Fund Report However, provisions were provided for the City to option the sixth car and to recover a portion of the non-recurring engineering costs. The milestone payment schedule was updated and it was agreed that five streetcars will be purchased.

Current Progress. In September 2013 the new service loop was initiated. The following chart shows the increase in ridership through 2014 when the system expanded with the new loop.

Ridership Numbers

Annual & Daily Ridership Graphs and Counts as of September 30, 2014 (PDF Format)

• HOME • RIDER INFO • MAP • SCHEDULE • FARES • HOW TO RIDE • ARRIVALS

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March 2015 Oregon Streetcar Project Fund Report

• ACCESSIBILITY • RIDERSHIP COUNTS • SAFETY AND CONDUCT • PUBLIC INVOLVEMENT Car Delivery: On January 21, 2013, car #021, the first production vehicle, was delivered to the Portland Streetcar Maintenance and Operations Facility. Since that time the vehicle has proceeded through final low speed and high speed testing, including several high speed tests on TriMet’s Banfield line. This testing of the propulsion and control system, the braking system and all functional aspects of the vehicle proceeded very well. To complete these tests, OIW adds sandbags as weight to the vehicles in order to test propulsion and braking a various load conditions. One potentially significant issue arose after the vehicle was loaded to its highest weight limit. The secondary suspension on the vehicle settled significantly under the heavy load, as expected; however, the springs did not return to their original height after the vehicle was unloaded. The issue was resolved and delivery of the vehicle to the City for acceptance was completed on June 11, 2013. Subsequent delivery of Car 022, 023, 024, and 025 have been completed and are in Revenue Service. In addition, in November 2014 a sixth car was added to the fleet through negotiation and using other resources.

Jobs: In 2010, four full-time equivalent jobs at were supported by the streetcar project, primarily professional and management positions. The actual number of unique individuals contributing their efforts was higher and included some hours by administrative and production staff as well. In addition, over $190,000 dollars was paid to Oregon based subcontractors or suppliers.

Development and production activity increased significantly in 2011, supporting 41 full-time equivalent jobs at United Streetcar. The number of production/shop workers in the fabrication group increased as the physical fabrication of the streetcars began. Over $1.4 million was paid to Oregon based subcontractors or suppliers.

In 2012 production continued to increase with hours that supported 47.5 full-time equivalent jobs. This effort included full or part time work for over 218 workers. Additionally, over $1.3 million was paid to Oregon businesses for related materials and supplies.

Reports for 2013 show 58.6 full time equivalent jobs with work for 242 employees with increased shop labor, quality control, and testing related hours and jobs.

Jobs Development: OIW has an order for seven vehicles from the City of Tucson, Arizona and an order for three vehicles for City of Seattle. These orders are valued at $40 million in current contracts. Work on external contracts has been completed. Oregon Iron Works has currently restructured its workforce to expand into marine manufacturing work.

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March 2015 Oregon Streetcar Project Fund Report

Streetcar Project Summary

Total Manage Paid to Streetcar Jobs ment/pr Producti Total Paid to OR other Paid Summary ofession Admin on/main Jobs Hours Payroll suppliers Suppliers Materials 2009 8 7 15 4,594 $166,127 $392,117 $209,794 $601,911 2010 28 3 17 48 8,365 $338,240 $189,112 $18,191 $207,303 2011 36 11 181 228 85,004 $2,832,224 $1,443,262 $3,513,383 $4,956,645 2012 39 6 173 218 98,925 $2,693,213 $1,269,659 $14,376,303 $15,645,962 2013 51 7 184 242 122,052 $4,042,376 $5,607,182 $9,522,622 $15,129,804 Total 318,940 $10,072,180 $8,901,332 $27,640,293 $36,541,625

Economic Development Potential: Since Portland Streetcar opening in 2001; over 46 million square feet of new construction including over 18,000 new housing units have been built adjacent to the streetcar alignment, according to City permitting data.

Project Completion and Payments: The project was extended for six months to make sure that all the supporting manuals, safety related training and final inspections are fully complete and documented. Final payment for the project has been made as activities are completed. The Portland Streetcar Project was successfully completed and grant closed June 2014. All cars are in service and the new loop is successful. A full loop expansion will complete with the opening of the new bridge in September 2015.

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