Bay Link Miami-Miami Beach Transportation Corridor Study
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Mi ami • Mi ami B each T r ans por t at i on Cor r i dor S t u dy November 2004 Financial Plan MiMiamamii--DDaaddee MeMetropolliitaann Planning Organization and U.S. Department of Transportation Federal Transit Administration MIAMI-MIAMI BEACH TRANSPORTATION (BAY LINK) CORRIDOR STUDY FINANCIAL PLAN Submitted to: Miami-Dade Metropolitan Planning Organization 111 NW First Street, Suite 910 Miami, Florida 33128 Submitted by: Parsons Brinckerhoff 7300 Corporate Center Drive Suite 600 Miami, Florida 33126 November 2004 Table of Contents TABLE OF CONTENTS 1.0 Introduction ......................................................................................................................1 2.0 Project Sponsor ...............................................................................................................1 3.0 Major Funding Partners...................................................................................................2 3.1 Capacity of Partners to Fund Construction and Operation of the Proposed Project.........................................................................2 4.0 Project Description ..........................................................................................................3 5.0 Project Purpose and Need ..............................................................................................3 6.0 Summary of the Financial Plan.......................................................................................5 6.1 Strategy to Provide the Local Share of Project Funding.................................................5 6.2 Other Considerations......................................................................................................6 7.0 Capital Plan.......................................................................................................................7 7.1. Capital Cost Estimates for the Proposed Project ...........................................................7 7.2. Project Schedule ............................................................................................................9 7.3. Capital Funding Sources ..............................................................................................12 7.4. Agency-Wide Capital Plan............................................................................................13 8.0 Revenue Sources ...........................................................................................................14 8.1 Countywide Half-Cent Sales Tax..................................................................................14 8.2 State Funds ..................................................................................................................16 8.3 Federal Transit Administration (FTA) Grants................................................................17 8.4 Miami-Dade County Debt Burden.................................................................................18 9.0 Operating Plan................................................................................................................18 9.1 Operating and Maintenance Cost Model and Forecast ................................................19 10.0 Projected Revenue Sources ......................................................................................21 10.1 Florida Department of Transportation (FDOT) .............................................................21 10.2 Local Option Gas Tax...................................................................................................21 10.3 County General Fund Support......................................................................................22 10.4 Transit Related Revenues ............................................................................................22 10.5 Cash Flow Analysis ......................................................................................................22 i Table of Contents LIST OF TABLES Table 1 Miami-Dade County Transit Operating Resources (2004)..............................................3 Table 2 Project Cost Summary ....................................................................................................9 Table 3 Historical Inflation Rates .................................................................................................9 Table 4 LPA Cash Flow Schedule Base and Year of Expenditure (Millions of Dollars).............10 Table 5 LPA Cash Flow Schedule Base and Year of Expenditure (Millions of Dollars).............11 Table 6 Annual Capital Outlay and Funding Needs ($millions) .................................................12 Table 7 MDT Systemwide New Start Outlays............................................................................13 Table 8 Proposed MDT Capital Bond Program .........................................................................15 Table 9 Half-Cent Sales Tax Revenue Projections....................................................................16 Table 10 Bay Link Annual O&M Costs (2004 Dollars) ...............................................................20 Table 11 MDT Bus O&M ...........................................................................................................21 LIST OF FIGURES Figure 1. Refined Locally Preferred Alternative ........................................................................... 4 Figure 2. Components of a Financial Plan................................................................................... 7 November 2004 Page ii Miami-Miami Beach Transportation Corridor Financial Plan 1.0 Introduction This plan examines the financial capacity of Miami-Dade Transit (MDT) to construct and operate the Miami-Miami Beach Transportation Corridor (Bay Link) segment of its public transportation system and supports MDT’s formal request to enter into the preliminary engineering phase of the project. The segment consists of an approximate 18 mile light rail track connection between Downtown Miami and South Miami Beach serving 42 stations. The following analysis is generally based on the assumption that the share of Federal New Starts funding for the project is capped at 50 percent, the State share would be 25 percent and the local share would be 25 percent. Currently, the Bay Link project is listed in the Miami-Dade Metropolitan Planning Organization’s (MPO) Long Range Transportation Plan as a Priority II project pending a vote on the project by the City of Miami Beach. The citizens of Miami Beach approved the Bay Link initiative on November 2, 2004 and the priority of the Bay Link project will be reassessed at a MPO Board meeting in the near future. This report relies heavily on the People’s Transportation Plan Pro Forma adopted by Miami-Dade County in December 2003. Both the federal and the county fiscal year extend from October 1st through September 30th, and the State of Florida conforms to a fiscal year beginning July 1st and extending through June 30th. The information presented hereinafter relates to the county/federal fiscal year. For example, fiscal year (FY) 2007 refers to the period October 1, 2006 to September 30, 2007. All year references in this report refer to the MDT’s fiscal year. The financial analysis does not consider costs, resources, or funding strategies associated with transit service provided by entities other than MDT. During the development of the projects included in the People’s Transportation Plan, each local government’s needs were anticipated in the definition of future bus services. This was done with the mutual understanding that the local and state funding sources that currently support local bus operations would cover additional capital and operating costs associated with new services or that the local governments or agencies that participated in bus service planning are committed to establishing new revenue sources, as needed. 2.0 Project Sponsor The project sponsor is Miami-Dade County (the County) through MDT. MDT is the largest transit agency in the State of Florida. MDT operates Metrorail, Metromover and Metrobus service, as well as providing contracted paratransit service, throughout Miami-Dade County with approximately 300,000 daily passengers. MDT is a successor to the County’s initial public transit system organized in 1960, when the Dade County Commission passed an ordinance creating the Metropolitan Transit Authority (MTA) to unify existing private and public transit operations into a countywide service. In 1974, Coral Gables Transit, a municipal system was merged into the MTA. The County ordinance provides for the purchase, development, and operation of an adequate mass transit system by the County. Since 1960, the MTA has evolved into the Metro-Dade Transportation Administration, the Metro-Dade Transit Agency, the Miami-Dade Transit Agency, and currently MDT. November 2004 Page 1 Miami-Miami Beach Transportation Corridor Financial Plan The Metrorail system operates on a 44 track miles (Stage 1) with 136 cars and 22 stations. The system runs about 22 route miles from the Dadeland South Station near Kendall Drive (SW 88th Street) to the Palmetto Station near NW 79th Avenue and NW 79th Street. Metrorail service runs 20 hours a day, seven days a week. Metrorail service frequency is currently 6-minutes during weekday peak hours; 10-minutes during weekday midday hours, and every 30-minutes after 8:00 PM on weekdays, Saturdays, and Sundays. During FY 2004, Metrorail averaged about 48,000 daily boardings. The Metromover – the automated guideway system in downtown Miami