THE ROLE OF STREETCARS IN SACRAMENTO: CAN STREETCARS BE A LOWER COST ALTERNATIVE TO LIGHT RAIL? Clint T. Holtzen B.A., University of California, Santa Cruz, 2005 THESIS Submitted in partial satisfaction of the requirements for the degree of MASTER OF SCIENCE in URBAN LAND DEVELOPMENT at CALIFORNIA STATE UNIVERSITY, SACRAMENTO SPRING 2011 © 2011 Clint T. Holtzen ALL RIGHTS RESERVED ii THE ROLE OF STREETCARS IN SACRAMENTO: CAN STREETCARS BE A LOWER COST ALTERNATIVE TO LIGHT RAIL? A Thesis by Clint T. Holtzen Approved by: __________________________________, Committee Chair Su Jin Jez, Ph.D. __________________________________, Second Reader David Booher ____________________________ Date iii Student: Clint T. Holtzen I certify that this student has met the requirements for format contained in the University format manual, and that this thesis is suitable for shelving in the Library and credit is to be awarded for the thesis. __________________________, Department Chair ___________________ Robert Wassmer, Ph.D. Date Department of Public Policy Administration iv Abstract of THE ROLE OF STREETCARS IN SACRAMENTO: CAN STREETCARS BE A LOWER COST ALTERNATIVE TO LIGHT RAIL? by Clint T. Holtzen This report examines the history and purpose of streetcars in the United States, provides a review of literature related to the functions, costs, and benefits of streetcar projects, and uses case study and cost-benefit analysis to examine the potential of a streetcar alternative for a planned light rail project in Sacramento, California. The cost- benefit analysis reveals some marginal savings for a streetcar alternative, but also found that the project’s benefits do not outweigh the initial investment over a 20-year life cycle. Despite the negative results of the analysis, the paper concludes that additional study is needed to determine whether the addition of land use benefits may return more positive results. _______________________, Committee Chair Su Jin Jez, Ph.D. _______________________ Date v ACKNOWLEDGMENTS I would like to thank my primary and secondary advisors, Dr. Su Jin Jez and David Booher, for their thoughtful comments and guidance on this thesis. I would also like to thank my colleagues at the Sacramento Area Council of Governments for their willingness to share knowledge and insights throughout the process of drafting this paper. Most of all, I am grateful for the love and patience offered by my wife, Lacey, during the past several years of graduate school and this final hurdle. vi TABLE OF CONTENTS Acknowledgments.............................................................................................................. vi List of Tables ...................................................................................................................... x List of Figures .................................................................................................................... xi Chapter 1. INTRODUCTION AND BACKGROUND ................................................................. 1 Purpose of Report ................................................................................................... 2 Media Attention for Streetcars ................................................................................ 3 Layout of Report ..................................................................................................... 4 2. LITERATURE REVIEW ............................................................................................. 6 Streetcars: Historical Context ................................................................................. 6 Streetcars: A Review of Existing Systems............................................................ 12 Streetcars and Light Rail Transit .......................................................................... 17 Bus Rapid Transit ................................................................................................. 19 3. REPORT METHODOLOGY AND COSTS AND BENEFITS OF STREETCARS 21 Case Study Methodology ...................................................................................... 22 Cost-Benefit Methodology.................................................................................... 23 Streetcars: Costs and Benefits ............................................................................... 23 Costs: Initial Funding ............................................................................................ 24 Costs: Ongoing Operations and Maintenance....................................................... 26 Benefits: Rail versus Bus Transit .......................................................................... 28 vii Benefits: Land Use ................................................................................................ 30 Other Benefits ....................................................................................................... 32 Cost-Benefit Model: Cal-B/C ............................................................................... 33 4. CASE STUDY OF PORTLAND, OREGON ............................................................. 35 Background and History ....................................................................................... 35 Impacts of the Portland Streetcar .......................................................................... 39 Keys to Success..................................................................................................... 40 Lake Oswego Extension ....................................................................................... 42 5. COSTS AND BENEFITS OF SACRAMENTO’S GREEN LINE ............................ 48 Project Description................................................................................................ 50 Upfront Capital Costs ........................................................................................... 53 Light Rail .............................................................................................................. 54 Streetcar ................................................................................................................ 54 Enhanced Bus........................................................................................................ 57 Operations and Maintenance Costs ....................................................................... 58 Calculated Benefits ............................................................................................... 60 Model Inputs ......................................................................................................... 61 Discounting Costs and Benefits ............................................................................ 66 Cost-Benefit Analysis Results .............................................................................. 66 Implications........................................................................................................... 69 6. SUMMARY AND RECOMMENDATIONS............................................................. 72 viii Report Summary ................................................................................................... 72 Recommendations and Future Efforts .................................................................. 76 Appendix A Cal-BC Parameters ....................................................................................... 79 References ......................................................................................................................... 81 ix LIST OF TABLES Page 1. Table 2.1: Review of Current U.S. Streetcar System Characteristics ....................... 13 2. Table 2.2: Capital Costs of Streetcar Projects .......................................................... 24 3. Table 5.1: Itemized Capital Costs for Green Line Alternatives ............................... 53 4. Table 5.2: Annual Operating Costs for Green Line Alternatives ............................. 59 5. Table 5.3: Interstate 5 Design and Travel Characteristics ........................................ 62 6. Table 5.4: Average Annual Daily Traffic on the Impacted Segment of Interstate 5 ............................................................................................ 63 7. Table 5.5: Green Line Alternative Cal-B/C Model Inputs ....................................... 64 8. Table 5.6: Life-Cycle Costs, Benefits, and Net Present Value of Green Line Alternatives ............................................................................................................... 66 x LIST OF FIGURES Page 1. Figure 1.1: Map of Sacramento’s Light Rail Network ............................................. 10 2. Figure 1.2: Map of Planned Blue Line Extension..................................................... 11 3. Figure 4.1: Map of Portland Streetcar ....................................................................... 37 4. Figure 5.1: Map of the Green Line Light Rail Project .............................................. 52 xi 1 Chapter 1 INTRODUCTION AND BACKGROUND Following World War II, the structure of America’s land use patterns underwent a major shift from previous decades. The introduction of the automobile at the turn of the century, government programs to increase home ownership among returning soldiers, and a desire to flee, what were perceived as dirty, crime ridden cities caused American communities to expand at a more rapid and greater extent than any other time in previous history. However, over time, this new suburban lifestyle created its own set