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Rio Metro Regional Transit District Budget and Capital Plan FY2021 - FY2027

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Rio Metro Regional Transit District Budget and Capital Plan FY2021 - FY2027 Rio Metro Regional Transit District Budget and Capital Plan FY2021 - FY2027 May 2020 Table of Contents Introduction .................................................................................................................................................. 3 I.1 Plan Structure ...................................................................................................................................... 3 I.2 Relationship to the TAM Plan ............................................................................................................. 3 I.3 Key Issues for FY2021 .......................................................................................................................... 4 Section 1: FY2021 Budget and FY2022-FY2027 Projections ......................................................................... 5 1.1 New Mexico Rail Runner Express Budget .......................................................................................... 5 1.2 Transit Budget .................................................................................................................................... 7 1.3 Accomplishments and Goals ............................................................................................................ 10 Section 2: New Mexico Rail Runner Express Capital Plan ........................................................................... 13 2.1 Capital Maintenance Program ......................................................................................................... 14 2.2 Grade Crossing Improvement Program ........................................................................................... 19 2.3 Bridge Improvement Program ......................................................................................................... 22 2.4 Capital Projects Program .................................................................................................................. 23 2.5 Plans and Studies ............................................................................................................................. 31 Section 3: Transit Capital Plan .................................................................................................................... 32 3.1 Revenue Vehicle Replacement Program .......................................................................................... 32 3.2 Service Vehicle Replacement Program ............................................................................................ 34 3.3 Capital Projects Program .................................................................................................................. 35 3.4 Plans and Studies ............................................................................................................................. 37 Section 4: FY2022-FY2026 Infrastructure Capital Improvement Plan ........................................................ 41 Introduction I.1 Plan Structure The Rio Metro Regional Transit District (Rio Metro) Budget and Capital Plan is divided into four sections: . Section 1 supplements the budget resolution by providing a more detailed breakdown of the FY2021 budget and projections for the following six years. This section also highlights each division’s accomplishments in the last fiscal year and its goals for the upcoming fiscal year, including progress on major capital projects called out elsewhere in this document, as well as smaller initiatives that are funded within the operating budget. Section 2, the New Mexico Rail Runner Express (NMRX) Capital Plan, satisfies the requirement in Rio Metro’s memorandum of agreement with NMDOT to jointly develop a five-year capital maintenance plan/capital improvement plan for the NMRX system. Through its direct relationship to Rio Metro’s Transit Asset Management (TAM) Plan, the NMRX Capital Plan also satisfies 49 USC 5337(b)(2), which requires that projects receiving Section 5337 State of Good Repair funding be included in a recipient’s TAM Plan. Section 3, the Transit Capital Plan, describes Rio Metro’s non-rail capital needs, with particular emphasis on revenue vehicle and service vehicle replacement. Like the NMRX Capital Plan, it also describes plans and studies that may ultimately give rise to capital projects or operating enchantments. Section 4, the Infrastructure and Capital Improvement Plan (ICIP), prioritizes unfunded and underfunded projects vetted in sections 2 and 3 for inclusion in the State of New Mexico’s ICIP database. That database, in turn, becomes the basis for requesting capital outlay and other state funds from the legislature and cabinet departments. I.2 Relationship to the TAM Plan Rio Metro created an intentional relationship between the TAM Plan and this document (previously the Short Range Plan). Above all, the investment priorities that were established in the TAM Plan—adopted every four years—are revisited and refined annually in this plan. This occurs in two ways. First, lifecycle cost models that were developed in tandem with the TAM Plan help identify capital maintenance and replacement needs without regard to funding (i.e., an “unconstrained” scenario). The models’ outputs are subsequently weighed against staff’s knowledge of asset condition and known budget constraints to determine Rio Metro’s annual investment priorities. Second, when replacing certain assets, staff also consider evaluation criteria from the TAM Plan to guide prioritization. For example, the criteria below, listed in descending order of importance, inform which cutaway buses should be replaced when funding is inadequate for the entire need: . Safety: Does the condition of the asset pose a safety risk to the traveling public, operators or others that cannot be easily mitigated through routine maintenance? . Impacts to Service/Operations: Does the condition of the asset impact the ability to provide revenue service and meet existing levels of service? . Maintenance: What is the level of maintenance and inspection required to keep the asset in working condition? . Age: Is the asset beyond its useful life? . Condition: What is the condition of the asset? 3 In summary, the graphic below demonstrates how the lifecycle cost models, evaluation criteria and staff input work together to inform this plan: Figure I-1: Planning Approach I.3 Key Issues for FY2021 This iteration of the Budget and Capital Plan is shaped by two issues. First, Rio Metro is concluding the installation and testing of Positive Train Control (PTC), a congressionally-mandated system designed to protect against train-on-train collisions, overspeed derailments, work zone incursions, and movements through red signals and misaligned switches. Rio Metro expects to fully implement this $60 million system by the December 31, 2020 deadline; however, the estimated $3.4-million annual maintenance cost of PTC will hinder Rio Metro’s ongoing ability to undertake other capital projects. Second, as with Rio Metro’s member governments, the near- and long-term fiscal impacts of the COVID- 19 pandemic are not entirely clear. Because Rail Runner service was temporarily suspended at the Governor’s order and Rio Metro eliminated or reduced corresponding bus services, some anticipated costs (e.g., fuel) were never incurred. Nevertheless, the negative impact of the pandemic on GRT and farebox revenue in the coming year may hamper Rio Metro’s ability to fund operations and match federal funds for capital maintenance. Also, some federal formula funds are calculated, in part, based on the amount of transit service (i.e., revenue vehicle miles and hours) provided two years earlier; therefore, the FY2020 suspension could lead to lower federal funding in FY2022. However, the Coronavirus Aid, Relief, and Economic Security (CARES) Act will provide significant relief. Essentially, it provides approximately three times Rio Metro’s annual FTA formula funding for “operating costs to maintain service and lost revenue due to the coronavirus public health emergency…”. As reflected in the budget, Rio Metro primarily intends to use these funds for operations in anticipation of lost GRT and farebox revenue. 4 Section 1: FY2021 Budget and FY2022-FY2027 Projections Rio Metro’s budget is divided into two sections based on mode. The first accounts for all revenues and costs associated with the Rail Runner. The second accounts for all other transit services and administration. In both cases, FY2021 constitutes the adopted budget, and subsequent years are provided for reference, though subject to change. 1.1 New Mexico Rail Runner Express Budget The FY2021 budget for the Rail Runner amounts to $120.8 million in revenues and $56.4 million in costs. Costs are split between operations and maintenance (O&M; $28.7 million) and capital ($27.6 million). O&M costs reflect an unchanged level of service, and have not been revised to reflect possible service adjustments (cars per train, trains per day, cleaning protocols, etc.) after the COVID-19 Rail Runner suspension is lifted and related stay-at-home restrictions are eased. Capital costs are largely associated with the conclusion of PTC implementation, capital maintenance (including long-term PTC maintenance), and other projects identified in the NMRX Capital Plan. Also, PTC debt service payments on the $10 million State Infrastructure Bank loan began in FY2020 and will grow to $786,000 annually by FY2023. The $64.4 million carryover from FY2021 into FY2022 is driven significantly by the recent infusion of CARES Act funding,
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