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BOARD ACTION: Approved As Recommended [ ] Other [ ] Approved with Modification(S) [ ] ACTION MEMO AC TRANSIT DISTRICT GM Memo No. 07-209 Board of Directors Executive Summary Meeting Date: September 19, 2007 Committees: Planning Committee Finance Committee External Affairs Committee Operations Committee Rider Complaint Committee Paratransit Committee Board of Directors Financing Corporation SUBJECT: Consider receiving semi-annual report and update on the Transbay Terminal Project RECOMMENDED ACTION: Information Only Briefing Item Recommended Motion 1. Receive update on progress of Transbay Terminal project i. Consider designs for Transbay Transit Center ii. Consider designs for Bus Storage Facility iii. Consider designs for Temporary Terminal 2. Review Transbay Joint Powers Authority (TJPA) Competition Jury Report recommending selection of Pelli/Hines team as Designer/Developer for Transbay Transit Center, consider supporting said recommendation and have the Board President send letter to TJPA. Fiscal Impact: BOARD ACTION: Approved as Recommended [ ] Other [ ] Approved with Modification(s) [ ] [To be filled in by District Secretary after Board/Committee Meeting] The above order was passed on ___________________, 2007. Linda Nemeroff, District Secretary By GM Memo No. 07-209 Subject: Update on Transbay Terminal Project Date: September 19, 2007 Page 2 of 18 There is likely to be an increase in annual operating costs of an unknown amount resulting from increased rental charges, starting in 2014. The net deficit in Transbay services could be offset by a large but unknown increase in fare revenue. There will be a Capital contribution of about $50 to 60 million, net present value based on a 25 cent Passenger Facility Charge (PFC) paid over 35 years. Background/Discussion: Schedule: • The project continues to proceed on schedule with construction on the new Transbay Transit Center starting in late 2009 and completion of the bus components in late 2013 or early 2014. • The Temporary Terminal will begin construction in mid-2008 with completion and occupancy in 2009. Bus Storage may lag about six to 12 months behind Temporary Terminal occupancy. Substantial progress continues to be made on delivering the Transbay Terminal project by the TJPA, of which AC Transit is a member agency. As of July 2007, the TJPA has expended about $97 million for project delivery, of which about $59 million is for property purchases, $19 million for project engineering, $17 million for program management and $3 million for TJPA administration. Next phase expenditures are estimated at about $13 million for the Temporary Terminal construction, $31 million for Bus Storage and an additional amount for required property purchases. Project Description As detailed in previous communications to the Board, the Transbay Terminal / Caltrain Downtown Extension / Redevelopment Project consists of three key components: A new, multimodal transportation terminal that will provide convenient and efficient connections among AC Transit, Muni, Caltrain, BART, Golden Gate Transit, Samtrans, Greyhound, other transit operators, and the proposed California high speed rail system; An extension of Caltrain commuter rail service from its current terminus at Fourth and Townsend Streets to a new underground terminal at the Transbay Terminal site; and GM Memo No. 07-209 Subject: Update on Transbay Terminal Project Date: September 19, 2007 Page 3 of 18 Establishment of a Redevelopment Area Plan designed to revitalize the Transbay Terminal area and alleviate blight by supporting transit-oriented development. Funding status is as follows: • Terminal – Including AC Transit facilities and Muni, Samtrans and Golden Gate areas, and bus ramps and bus storage. Also includes Temporary Terminal. o Cost: $1 billion Status: Fully Funded • Rail Extension – Including underground rail facilities, Transbay rail platforms, permanent intercity bus depot, new 4th and Townsend rail station. o Cost: $2.4 billion Status: Partially Funded • Redevelopment Project – All development expenses and infrastructure improvements in 40 acre redevelopment area. o Cost: $TBD billion Status: Internally Funded The total updated project cost for the terminal and the Caltrain extension is about $3.4 billion (Year of Expenditure dollars). Cost of the terminal building (included in the $3.4 billion total) is about $1 billion (Year of Expenditure dollars). The location of the facility is First and Mission, present site of the Transbay Terminal, pursuant to the interests of AC Transit and consistent with state law (AB 812; SB 916). The new, multimodal terminal will produce significant improvements in both the aesthetics and the comfort of transit, and it will be convenient, efficient and safe for passengers. Passengers will be able to quickly and easily transfer among all transit operators serving San Francisco in a single location. Pursuant to Legislative mandate, the facility will be designed to include the proposed California high speed rail system. It will provide shops, restaurants, and other uses designed to appeal to passengers, and contribute to the vibrancy of the area. The existing facility does not meet current seismic safety or space utilization standards; these deficiencies have been documented in the adopted Final Environmental Impact Statement (FEIS)/Final Environmental Impact Report (FEIR). The proposed project, which has been under development for more than ten years, is the result of strong public involvement, technical analysis, and political support. AC Transit Facilities and Bus Operations The adopted Terminal design provides for the expansion of Bay Bridge bus service to meet estimated year 2030 demand. This demand results in the operation of about 150 GM Memo No. 07-209 Subject: Update on Transbay Terminal Project Date: September 19, 2007 Page 4 of 18 peak hour bus trips (up from about 100 currently). The project accommodates these vehicles in a single level, center platform facility where buses operate clockwise and passengers wait in an enclosed, conditioned waiting area. The design provides 30 stop locations on a 1,300 foot platform, an increase from the 23 stops that are currently used by AC, Muni and Westcat buses. Articulated buses will be accommodated at 26 of the 30 stop locations. Intercity buses will be located one level below street level on the mezzanine, adjacent to the rail waiting area. In phase 2 of the project, Caltrain and ultimately intercity high speed rail trains will be located in the lowest levels of the terminal in a six track facility. Buses will access the terminal on a dedicated ramp structure leading directly into both bus levels, looping inside the terminal. Traffic simulations have demonstrated the ability of the ramps and terminal structure to accommodate post-2030 bus service demand levels. AC Transit also performed a full-scale demonstration of the terminal configuration in August 2005 at Alameda Point, testing the ability of the design to accommodate 145 bus departures in a one hour period. The test demonstrated successful functioning of the design. The terminal building is intended to be a signature project for San Francisco and for the entire Bay Area. Three competing visions of the project ensure that the region and the transit operators will provide service in an attractive storefront for transit which would also have superior operational functionality. Dedicated bus storage will be provided to AC Transit in the area under the I-80 freeway in San Francisco, between Second and Third Streets. Up to 70 AC Transit buses could be stored at this site between the morning and afternoon peaks, thus reducing the number of required deadhead trips to and from the East Bay. Funding Scenarios The Transbay Project has more than a billion dollars in committed funding, as follows: Source Amount (in million $) Bridge Tolls Regional Measure 1 $54 Regional Measure 2 $150 MTC Discretionary RTIP $28 AB 1171 $150 GM Memo No. 07-209 Subject: Update on Transbay Terminal Project Date: September 19, 2007 Page 5 of 18 Local Sales Tax San Mateo Sales Tax $31 San Francisco Sales Tax $148 Land and Tax Increment Land Sales $360 Loans TIFIA (secured with tax increment, etc) $512 Federal SAFETEA-LU $56 FTA Section 1601 (TEA-21) $11 Total Committed Revenues $1500 There are also other revenues that have been identified but not committed: High Speed Rail Bonds $475.0 Passenger Facility Charges $873.0 Prop 1B, 1C Infrastructure Bonds $TBD These revenues are neither discounted nor escalated, and would allow the TJPA to obtain a loan to bridge the funding gap and also bring future funding (such as land sales and tax increment revenues) forward. A portion of the PFCs are proposed to be derived from AC Transit passengers. Land Sales and Tax Increment In July 2003, the TJPA entered into a Cooperative Agreement with Caltrans and the City and County of San Francisco that will transfer right-of-way in the Transbay Terminal area from state ownership to City and TJPA ownership. Redevelopment of this right-of-way is expected to help achieve the goals of the Project, including improving the area’s economic vitality and providing funding for the Project. Pursuant to the Agreement, all sales proceeds from the property transfer will be dedicated to the terminal project, as will all tax increments generated by the new land uses. The California Transportation Commission is expected to consider approval of the land transfer agreement later this year. GM Memo No. 07-209 Subject: Update on Transbay Terminal Project Date: September 19, 2007 Page 6 of 18 Ridership Study Under a contract with the Water Transit Authority (funded by TJPA, AC Transit and MTC), Cambridge Systematics has been revising ridership forecasts for the Bay Bridge Corridor covering BART, AC Transit and ferry services, as well as automobile trips. In addition, under a separate contract with the TJPA, Cambridge Systematics has been providing updated information on ridership in the Peninsula Corridor, both for Caltrain and for BART, as well as bus services. The model improves on the existing MTC models in several ways: • It provides a peak hour estimate, which the current MTC model does not provide. • It provides an interactive feature allowing diversion from crowded modes to less crowded modes.
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