1 european metropolitan transport authorities autumn general meeting, birmingham, uk public...
TRANSCRIPT
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European Metropolitan Transport Authorities Autumn General Meeting, Birmingham, UK
Public Transportation in the U.S.: Trends and Prospects
Art Guzzetti
Vice President - Policy
American Public Transportation Association
November 11, 2011
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What is APTA?• Public transportation sector organization based in
United States, with 1,500 transit, business, and other members worldwide.
• Began in 1882 - the era of horse-drawn street railway cars.
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Presentation Overview
• Forward Looking Trends
• Overview of Public Transportation Finance in the U.S.
• Specific Case Studies
What is Public Transportation?
• Buses, heavy rail, commuter rail, light rail, streetcars, ferryboats, paratransit, vanpools
• Scale of operations
– Large Urban (Rail, Bus, Paratransit)
– Small to Medium Urban (Bus, streetcars, light rail)
– Rural (Demand response, limited fixed-route service)
• Typically local/regional delivery with local, state and federal funds
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Public Transportation in the U.S.
• 35 million boardings every weekday.
• 10.2 billion annual boardings in 2010.
• Approximately 7,700 transit providers in U.S., but 70% of usage on top 30 systems.
• 46% of U.S. households have no access
• $55 billion / yr. industry; directly employs 400,000 and supports 1.9 million jobs.
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Trends Point to an Expanding Role
• Population Growth
• Urbanization
• Social & Demographic
• Economic
• Energy & Environment
• Household & Affordability
• Public Choice
Significant Expansion Nationally(# of rail systems)
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(15%) (21%) (31%)
Public Transit Use Growing Faster Than Highway Use (1995 – 2009)
Sources of Transit Funding
• Federal
• State
• Local
• Directly Generated
– Fares
– Agency taxes
– Other (parking, advertising, etc.)
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2008 Industry Revenue Sources – $55 Billion
2008 Capital Funding - $17.4 Billion 2008 Operating Funds- $38.0 Billion
Sources of State/Local Funding Assistance
• Sales Taxes
• Property Taxes
• Motor Fuel
• Vehicle Fees
• Car Rental / Leases
• Room/Occupancy
• Impact Fees
• Realty Transfer
• Naming Rights, etc.
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• Assessment Districts
• Parking Fees
• Tolls / Road Pricing
• Employer/ Payroll/ Earnings/ Personal Income / Wage
• Corporate Income
• Utility Fees
• Corporate Franchise Taxes
Sources of State Dedicated Tax Revenue for Operating (U.S Total)
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Sources of Local Dedicated Tax Revenue for Operating (U.S. Total)
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Sources of Directly Generated Dedicated Tax Revenue forOperating (U.S Total)
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Sources of State Dedicated Tax Revenue for Capital
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Sources of Local Dedicated Tax Revenue for Capital
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Sources of Directly Generated Dedicated Tax Revenue for Capital
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Specific Case Studies:
• Transit Ballot Initiatives
• APTA Task Force on Public-Private Partnerships
• Denver Eagle P3 Project
• Los Angeles: America Fast Forward
• Denton County, Texas: Financing Through Tolls
• Los Angeles: Metro ExpressLanes
• Value Capture
• NCTD Private Contractor
Public Transportation Measures Win at the Polls
• 71% Approval Rate for Transportation Measures
• Twice the Approval Rate of All Ballot Measures
• Success Across Region, Population, Party Affiliation
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Key Trends
• Voters Continue to Support Transportation Investment in
Difficult Economic and Electoral Climates
• Frequency of Advisory Measures ↑
• Trend towards New Financing Tools
• Three-way Partnership – Locals Continue to Pick up
Greater Share of Funding; Waiting for Federal and State
Support to Catch Up
• Public Education Efforts are Working
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Public-Private Partnerships
Growing Markets
bring
Greater Private Sector Interest
bring
A New and Evolving Private
Sector Role
APTA TransitVision 2050
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Back to 2007…
APTA Task Force on Public-Private Partnerships:
• Determine the Viability of Private Sector Investments
in Transit.
• Identify Barriers and Impediments.
• Recommend ways to enhance PPPs as a
management tool for project finance and project
delivery.
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Since 2007…
• Continued good work by FTA.
• APTA PPP recommendations for surface
transportation authorization.
• DOT / HUD / EPA Livability initiative makes the
connection between transit and real estate.
• Collapse of National and International Finance,
Credit and Insurance Markets.
• Landmark PPP deals in Denver, Virginia,California….
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Denver Eagle P3 Project
• Includes East Rail Line, Gold Line, Commuter Rail
Maintenance Facility and a portion of Northwest Rail
Line (to south Westminster)
• Projects Funding - $2.1 billion
- $1.03 billion in federal funds (largest FFGA under Obama )
- $486 million in private equity
- $500 million in local funds
- Pursuit of $280 million TIFIA loan in process
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Denver Eagle P3
• First full transit P3 in the United States (broader than
earlier precedents in New Jersey)
• Leverages a Local Revenue stream (sales tax)
• Project is part of FTA’s Public-Private-Partnership-
Pilot Program (Penta P)
• DBFOM – design-build-finance-operate-maintain
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Denver Eagle P3
• 34-year term (6 years – design/build; 28 years O&M)
• Availability payment model
• Includes incentives and penalties
• RTD retains ownership of assets
• Performance requirements
• Appropriate risk sharing
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America Fast Forward Initiative (LA)
• Leverages a local revenue stream (sales tax) to
accelerate program delivery.
• 30-year capital program implemented within ten years.
• Expanded use of direct federal loans through the
Transportation Infrastructure Finance and Innovation Act
(TIFIA) program.
• Qualified Transportation Improvement Bonds (QTIB):
Federal tax credits in lieu of interest.
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Denton County, Texas:A Toll Road and a Train
• TXDOT granted authority to enter into Corridor
Development Authority
• Expedite near-term, near-neighbor transportation projects
with excess toll revenue
• New Toll Road: 26 miles of State Highway121 connecting
to DFW
• Private sector ($2.8B) ultimately outbid by North Texas
Tollroad Authority ($3.2B) to finance, design, construct,
operate and maintain SH121 for 52 years
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RTRFI: Value of SH 121 Project
Up-front Concession Fee $2.50B
Excess Revenue Over Time $0.83B
Construction of SH 121 $0.69B
Future O&M (Net Present Value) $1.30B
Profit to NTTA $1.36B
$6.68B
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Los Angeles County MTA ExpressLanes
Summary of Transit Advantages:
• Significant investment in transit stations. Increase in transit
service prior to opening the ExpressLanes
• Toll-free travel for public transit & privately operated buses
• Minimum peak tolls shall be no less than 150% of Metro transit
fare on the ExpressLane
• Toll Credits are available to frequent ExpressLane transit riders
• Net toll revenues are reinvested in transit improvements in the
corridor where generated
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Value Capture – Implementation:
• Special Assessment Districts
• Municipal Management Districts
• Transportation Reinvestment Zone
• Public Improvement District
• Tax Increment Financing
• Developer Support
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North County Transit District (NCTD)Oceanside, California
Transition to Private Contracting for Bus Operations
and Maintenance
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Core Terms of Agreement betweenNCTD and the Private Contractor
• NCTD responsibilities:
- Contract management and contractor oversight
- Providing and replacing revenue vehicles and major
capital maintenance equipment
- Fuel costs
- Providing facilities
- Developing service/route schedules
- Marketing and customer service
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Core Terms of Agreement betweenNCTD and the Private Contractor
• NCTD is at risk for:
- Contract costs
• Service levels drive cost
• Payment is based on cost-per-mile with rates
for big bus and small bus
- Reputation/Public Perception
• Performance of contract reflects/impacts
perception of NCTD
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Core Terms of Agreement betweenNCTD and the Private Contractor
• Contractor is at risk for:
- Budget for service delivery
• Contractor required to negotiate agreement with
Union
- Cost escalation for wages, benefits, materials and
services
- Accidents – claims processing
- Labor negotiations
