Application for Transit Investment Generating Economic Recovery (TIGER) Grant New Orleans UPT/French Quarter Streetcar September 15, 2009 TABLE OF CONTENTS T A B L E O F C O N T E N T S .............................................................................. I L I S T O F T A B L E S .......................................................................................... II L I S T O F F I G U R E S .......................................................................................... II 1. PROJECT DESCRIPTION ..............................................................................................1 1.1 Project Parties ........................................................................................4 1.2 Grant Funds and Sources and Uses of Project Funds ........................4 2.0 PRIMARY SELECTION CRITERIA ..............................................................................5 2.1 Long-Term Outcomes...........................................................................5 2.1.1 State of Good Repair .................................................................... 5 2.1.2 Economic Competitiveness .......................................................... 6 2.1.3 Livability .................................................................................... 11 2.1.4 Sustainability .............................................................................. 15 2.1.5 Safety – Reduced Accident Costs............................................... 16 2.1.6 Evaluation of Project Performance ............................................. 17 2.2 Job Creation & Economic Stimulus ...................................................17 2.2.1 Project Schedule ......................................................................... 18 2.2.2 Environmental Approvals ........................................................... 19 2.2.3 Legislative Approvals................................................................. 19 2.2.4 State and Local Planning ............................................................ 20 2.2.5 Technical Feasibility .................................................................. 20 2.2.6 Financial Feasibility ................................................................... 20 3.0 SECONDARY SELECTION CRITERIA ......................................................................22 3.1 Innovation .............................................................................................22 3.2 Partnership ...........................................................................................23 3.2.1 Jurisdictional & Stakeholder Collaboration................................. 23 3.2.2. Disciplinary Integration .............................................................. 23   i 3.3 Program Specific Criteria ....................................................................24 3.4 Federal Wage Rate Requirement .......................................................24 3.5 National Environmental Policy Act (NEPA) Requirement ..............24 3.6 Environmentally Related Federal, State and Local Actions ............24 Certification Requirements ...........................................................................25   LIST OF TABLES Table 1: Benefits and Descriptions by Evaluation Criteria .........................................7 Table 2: Summary of Cost-Benefit Analysis Results; 20 Year Lifecycle, 7% Discount Rate..........................................................................................7 Table 3: Incremental Economic Development Benefits ..............................................9 Table 4: Short Term Direct, Indirect and Induced Employment, Value Added and Labor Income by Year ................................................................9 Table 5: Short Term Employment Key Industries .......................................................9 Table 6: Daily Ridership by Source...........................................................................15 Table 7: Daily Net VMT and Auto Trip Reduction...................................................15 Table 8: New Orleans UPT/French Quarter Streetcar: Annual Power Consumption ...............................................................................................16 Table 9: Employment for Low Income-Workers ......................................................17 Table 10: Financial Plan ............................................................................................21 LIST OF FIGURES Figure 1: Project Map ..................................................................................................3 Figure 2: Major Activity Centers ..............................................................................14    ii   New Orleans Streetcar TIGER Grant Application Type of Project:  Location:  Transit  New Orleans, Louisiana, Orleans Parish  Congressional Districts 1 and 2  Area:  The New Orleans Urbanized Area   Funds Requested:  $95,627,572  Type of information included:  This application contains no confidential information  Contact Information:  Justin T. Augustine, III  Chief Executive Officer  2817 Canal Street  New Orleans, Louisiana 70119  504‐827‐8302  Justin.Augustine@veoliatransportation.com    1. PROJECT DESCRIPTION On June 25, 2009, the Board of Commissioners of the New Orleans Regional Transit Authority (RTA) adopted a set of three corridors representing a streetcar Program of Projects. This Program of Projects was adopted as the Locally Preferred Alternative (LPA) resulting from the CBD to French Quarter Alternatives Analysis (AA). This AA was completed in adherence to Federal Transit Administration (FTA) New Starts/Small Starts guidelines. Each of the streetcar corridors within the Program of Projects – the UPT/Loyola; the French Quarter; and the Convention Center – has great merit. The RTA has combined two of the three streetcar alignments into one contiguous project, known as the New Orleans UPT/French Quarter Streetcar project, for which RTA is seeking TIGER funding. The UPT/French Quarter Streetcar project, consisting of 6.54 track miles, or 3.27 route miles, will provide transit-dependent and workforce residents living in the neighborhoods along the French Quarter alignment with needed, direct, connection to employment centers in New Orleans’ Central Business District (CBD). In addition, RTA is seeking FTA New Starts Exempt funding for the remaining alignment in the Program of Projects, the Convention Center/Riverfront line, (1.71 track and route miles). The Convention Center Line and the UPT/French Quarter Line together represent a comprehensive, synergistic, Program of Projects that promotes mobility, livability and economic stimulus. Both projects within the Streetcar Program of Projects will proceed concurrently, with heavy local financial commitment in addition to the requested Federal support. The Program of Projects approach maximizes the synergies that will result from the creation of intelligent new connections to existing streetcar routes and permits RTA to take full advantage of the efficiencies generated by planning, engineering, designing and building two alignments at one time. Simply put, this Program of Projects leverages federal investment with strong local financial commitment, creates an efficient and effective interconnected public transportation system, and connects residents in economically challenged areas that were hit hard by Katrina with growing job centers.   1   The 3.27 mile New Orleans UPT/French Quarter Streetcar (the Project) line will run in existing travel lanes, between the Union Passenger Terminal (UPT) and Press Street, travelling on Loyola Avenue, North Rampart Street, and St. Claude Avenue. The Project also includes an extension that will run perpendicular to St. Claude Avenue on Elysian Fields Avenue toward the Mississippi River, connecting with the existing Riverfront Streetcar line. At the intersection of Canal Street and Loyola Avenue, the Project will intersect with the existing Canal Streetcar line. These connections to existing streetcar service will improve public transportation service, create a seamless streetcar network, and optimize rail and bus transit operations throughout the New Orleans CBD and French Quarter. The UPT, built in 1954, is the terminus for Amtrak and Greyhound Bus. Studies are underway by the Louisiana Department of Transportation and Development to implement high-speed rail service between New Orleans and Baton Rouge, with the UPT as the southern terminus. Moreover, the Project will be integrated into RTA’s bus terminal that will be relocated to the UPT. The UPT will then function as a true multi-modal hub, where streetcar (the Project), local and intercity express bus, Amtrak and Greyhound Bus will all interconnect. (This streetcar program will reinstate service in historic streetcar neighborhoods. Between the mid 1800’s and the 1950’s, streetcar lines ran along the proposed project alignment.) The Project will provide improved access to employment centers and entertainment districts, and promote economic redevelopment and recovery in the project area, via service integrated with RTA’s comprehensive transit delivery system. Some project benefits of the Project are: • Improved connectivity between existing Canal Streetcar and RTA bus service, • Improved intermodal transfer at the UPT, to facilitate trip redistribution throughout the New Orleans CBD; • Connection to existing and future major activity centers in New Orleans; and • Connection of five National Register of Historic Places (NRHP) Districts: Vieux Carre NRHP District; Lower Central Business NRHP District; Esplanade Ridge NRHP District; Upper Central Business NRHP District; and Faubourg Marigny NRHP District.   2 NEW ORLEANS (LUAR Figure 1: Project Map - It. . a: )6 lac-(irqu -. af?igs?siln?t?j Ranmamas-3.1539 . inmanti'??b (r .5, - Arn?gNEW ORLEANS UPTIFREHCH QUARTER STREETGAR PROJECT :5 Proposed - I Study Area Boundary 0 4w 3W . Proposed Platforms Tulane School at Medicine if? I t- .1 f? Existing Streetcar Routes - Hotels <14" . Existing Streetcar Stops El Hotels Under Construction ?l_,1 w, ~351- iv ?Jig; {Fr-:3 my. . 5.11 -.. ?5i   Conservative forecasts for the proposed UPT/French Quarter Project yield estimates between 2,048 and 2,410 new daily trips, which represents a 7.4% to 8% increase over the Baseline estimate. (The Baseline is derived from the RTA’s Streetcar Service Plan.) Of these new daily trips, 72% are projected to be New Orleans residents and 28% are expected to be drawn from visitors/non-residents. This indicates that this new transit project would provide a central benefit for journey-to-work trips for New Orleans residents. http://www.norta.com/tiger/Draft_DRAFTForecastMethodology_Revised_June_9_09-FINAL.pdf Project history, goals and background are provided on the project website: http://www.norta.com/tiger/Project_History_and_Goals.doc 1.1 Project Parties The RTA is the proposed grant recipient. The Louisiana State Legislature created the RTA in 1979 to serve the parishes of Orleans, Jefferson, St. Tammany, St. Bernard and Plaquemines. Currently, RTA serves Orleans Parish/City of New Orleans, and the City of Kenner in Jefferson Parish. RTA is governed by a board of eight commissioners, five from Orleans Parish and three from Jefferson Parish. Effective September 2009, RTA operates the transit system thorough delegated management with Veolia Transportation, Inc., which means the management, and operation of the public operating system and its employees is delegated to Veolia working in partnership to deliver the wishes and desires of the RTA Board. Veolia’s core business is the operation and maintenance of passenger transit services under contract to local, regional and national authorities. Veolia has more than a century of experience in transit operations, maintenance and knowledge of local and regional requirements. This experience makes Veolia an international leader in the operations and maintenance of public transportation systems. Veolia Transport employs over 82,000 people worldwide. The RTA Board of Commissioners remains in charge of policy, approves the budget and fees, and retains the legal and audit functions as a check and balance system of the oversight. Veolia is responsible for implementing public policy within the financial means of the system. Private sector methods and processes are applied to achieve public policy in a way that most effectively meets the efficiency and effectiveness goals of the system. http://www.norta.com/tiger/RTA_Veolia_Fact_Sheet.doc The City of New Orleans and the Regional Planning Commission (RPC) will continue to play a significant role in the design and delivery of the entire Streetcar Program of Projects. In addition, local civic authorities and organizations, such as the Ernest N. Morial Convention Center Authority will continue project support. 1.2 Grant Funds and Sources and Uses of Project Funds The RTA is requesting $95,627,572 of TIGER discretionary funds for the UPT/French Quarter project, representing 59% of the $160,837,572 total project costs. Remaining funds for the project are committed and available, including $52,210,000 in RTA Sales Tax Revenue Bonds, and $13,000,000 in RTA Capital Projects Reserve. http://www.norta.com/tiger/SP_Bond_Rating.pdf           4   2.0 PRIMARY SELECTION CRITERIA 2.1 Long-Term Outcomes 2.1.1 State of Good Repair The Streetcar Program of Projects, including the UPT/French Quarter streetcar project as requested in this TIGER application, will rehabilitate and upgrade transit infrastructure in the New Orleans CBD and French Quarter area, contributing toward improved economic stability. In addition, the new streetcar projects will continue RTA improvements in system condition and utilization of facilities and equipment. RTA operates a network of 27 fixed routes and 3 demand responsive routes and 3 streetcar routes. Service is provided weekdays, Saturdays and Sundays from 5:00am-2:00 a.m. The RTA’s paratransit service known as Lift, a complement to fixed route service operates during the same days and hours of service as the fixed routes. Currently, the average weekday ridership on the entire system is approximately 35,400 riders, continuing recovery since Hurricane Katrina. RTA operates a fleet of 63 buses (consisting of standard 30, 35 and 40 foot transit coaches) for fixed route service, which includes 10 sprinters and with a spare ratio of 20 buses. In addition the RTA has 20 buses in its contingency fleet. This contingency fleet is available for use only under extreme emergency situations (i.e. evacuation during hurricanes). The RTA also operates 39 paratransit vehicles and 23 streetcars. The RTA has a total of 66 streetcars. Thirty five (35) are dedicated to the historic St. Charles line, thirty one (31) Red cars are dedicated to the Canal and Riverfront Routes. Presently, 23 cars are used in daily operations with an adequate inventory remaining to operate the proposed new streetcar lines. As we approach 2010, the RTA is entering a new era in its transit life. A full scale restructuring of the services is underway with large adjustments pending in 2010-2012. All of these adjustments are based on the RTA’s ability to meet or exceed its fleet needs, and plans are already in motion to do just that. FIXED BUS – Total in service of 73: The current fixed bus fleet is comprised of seventy-three (73) units in revenue service. The first step in the rebuilding of the bus fleet was the 2008 procurement of thirty-nine (39) 2008 Orion 35’ buses. In addition to those newer vehicles, the fleet is comprised of thirty-four (34) 40’ buses comprised of 1997, 1998 and 1999 Orion vehicles. The RTA is currently under contract with Orion to accept delivery of a full contingent of new 40’ Orion buses for replacement of the thirty-four (34) older buses. This replacement delivery will be accepted during April 2010. An additional group of new fixed buses are due for delivery, if desired, during the final quarter of 2010. Determination of this need will take place during the final quarter of 2009. These units would be used in the reshaping of the system, and the expansion of bus services. During the first quarter of 2011, the RTA will take delivery of five (5) 60’ rapid transit buses, through a contract with New Flyer of America. These units will be critical in our recreation of the fixed service we provide. This will be the beginning of the cross-town bus rapid transit core operation. LIL’ EASY – Total in service of 10: Via direct purchase by Veolia Transportation Services, the RTA currently is in possession of ten (10) 2009 Daimler Chrysler Sprinters. These units have brought the agency a brand new mode in   5   transportation – Lil’ Easy (neighborhood demand response service). These units are multimodal, allowing the RTA the ability to use these units in light duty fixed service and para-transit services, as well as their primary role as Lil’ Easy units. The proposed new streetcar route on UPT/French Quarter is coordinated with Lil’ Easy service. STREETCAR – Total available for service of 59 (7 more to be available by December 2009): The RTA’s streetcar fleet is almost back to its previous form. All thirty-five (35) of the Perley-Thomas St. Charles streetcars are available for service, and each of the twenty-four (24) NORTA-built Canal Street red streetcars has been completely rebuilt in-house. The final rebuild stage will consist of rebuilding the seven (7) Riverfront “Ladies in Red”, which is due for completion by December of 2009. The spare ratio created by Hurricane Katrina allows us to use existing streetcars to operate the proposed new streetcar lines. There is no initial added vehicular expense for the streetcar expansion. In fact, the Streetcar Program of Projects advances RTA’s goal of more efficient use of existing facilities, equipment and infrastructure. PARATRANSIT – The current paratransit fleet consists of fourteen (14) 2008 Chevy Uplanders, twelve (12) 2006 Ford/Eldorado Lift vehicles, eight (8) 2004 Crown Victoria sedans, and (4) 2009 Chevy/Eldorado Lift vehicles. Twelve (12) additional 2009 Chevy/Eldorado Lift vehicles are on order from Bus Group and will be delivered by end of November 2009. The units delivered in November will replace a number of the Ford/Eldorado units and/or the Crown/Victoria sedans. The paratransit service is seeing immense growth, and full replacement of all 2006 Ford/Eldorado lifts units, as well as the 2004 Crown Victoria sedans is planned for October 2010. By the end of the 2nd quarter of 2010 the entire RTA fleet will be in excellent shape, with all units being an average age of 2 years – except of course the Perley-Thomas St. Charles streetcars. By the end of October 2010, the entire paratransit fleet will also be an average age of 2 years. The New Orleans Regional Transit Authority is well on its way to rebuilding and reforming its fleet – setting the stage for a true system renewal. The RTA has a 5-year plan for fleet replacement in place and each of the components above are contained within that fleet plan. 2.1.2 Economic Competitiveness Expected Project Costs and Benefits In support of this application, costs and benefits of the UPT/French Quarter streetcar investment have been estimated over a 20 year lifecycle at present value using the required 7% discount rate. All benefits are estimated using unit values prescribed by USDOT or where specific guidance was not provided, standard industry practice. A summary of methods, data and assumptions have been posted online and is accessible at http://www.norta.com/tiger/NOLA_Economic_Development_06-10-09_FINAL.pdf The present value of lifecycle costs has been estimated based on the capital construction cost and an annual operations  and maintenance cost estimate. In real 2009 dollars, the 20 year present value cost of the UPT/French Quarter streetcar  project is estimated to be $163 million. This figure includes $136.5 million over three years in capital construction and  $3.3 million annually in operations and maintenance expenses.  Benefits have been estimated for each primary evaluation criteria. Where appropriate, these are aggregated and compared to project costs. Table 1, below describes each benefit estimated for each criterion. Table 2, describes the primary outcomes of the evaluation and presents the benefit-cost analysis outcomes. As Table 2 indicates, at 7% discount rate, discounted benefits exceed costs by 1.5 to 1 and generate net social welfare valued at $78 million   6   (in present value). If the discount rate is reduced to 3 percent, a $181 million cost results in over $341 million in net benefits and a benefit-cost ratio of about 1.9. Table 1: Benefits and Descriptions by Evaluation Criteria Criterion State of Good Repair Benefit(s) Description Pavement Maintenance Savings Reductions in pavement maintenance costs due to reductions in roadway usage Short Term Employment Value of new short-term jobs created Economic Development Incremental property value appreciation due to commuter rail proximity, net of travel time savings Vehicle Operating Cost and User Cost Savings Reductions in monetary costs to drivers and taxi users switching to public transit Travel Time Savings Door-to-door trip time savings to both commuter rail users and remaining roadway users Impacts to Low Income Population Portion of total trip cost and time savings accruing to low income users Sustainability Emissions Reductions Reductions in pollutants and green house gasses due to auto use reductions relative to the no-build condition Safety Accident Reduction Reductions in property losses and injuries and deaths due to reductions in automobile use and removal or upgrade of existing at-grade crossings Economic Competitiveness Livability Table 2: Summary of Cost-Benefit Analysis Results; 20 Year Lifecycle, 7% Discount Rate Summary of Primary Selection Criteria - Long Term Outcomes 7% Discount Rate 3% Discount Rate $0.006 $0.008 State Of Good Repair Pavement Maintenance Savings ($ millions) Economic Competitiveness 2,772 Additional Short-Term Employment (No. of New Jobs) 1,122 • Direct Employment • Indirect Employment 542 • Induced Employment 1,107 Benefits of Short-Term Employment ($ millions) $93.93 $100.01 Economic Development ($ millions) $116.43 $194.60 VOC Savings ($ millions) $22.10 $33.65 Travel Time Savings ($ millions) $24.30 $24.30 Low-Income Mobility ($ millions) $7.10 $7.10 Livability Sustainability Gallons of Gasoline Avoided (From the reduction in VMT) Reduced Emissions (tons), from the reduction in VMT •   7 VOC 1.94   • CO 41.79 • NOX 1.23 • PM 0.05 • SO2 0.03 • CO2 1,659.01 Emissions Savings ($ millions) • VOC $0.002 $0.0024 • CO $0.010 $0.015 • NOX $0.003 $0.004 • PM $0.004 $0.006 • SO2 $0.000 $0.000 • CO2 $0.026 $0.039 $0.04 $0.07 Total Discounted Benefits ($ millions) $124.79 $147.12 Total Discounted Cost ($ millions) $163.01 $181.11 0.77 0.81 -$38.22 -$34.00 Safety Accident Cost Savings ($ millions) Benefit Cost Analysis Results Without Incremental Economic Development Benefit - Cost Ratio Net Present Value ($ millions) Internal Rate of Return -9.31% With Incremental Economic Development Total Discounted Benefits ($ millions) Total Discounted Costs ($ millions) Benefit - Cost Ratio Net Present Value ($ millions) Internal Rate of Return $241.22 $163.01 1.5 $78 $341.71 $181.11 1.9 $161 15.5% Economic Competitiveness Can Be Increased The Project is expected to attract new investment, as well as raise the value of existing properties in proximity to alignment. Empirical studies have indicated proximity premiums (additional property value due to transit proximity holding all other value-affecting attributes constant) of 2% to over 30%. Applying a conservative 2% premium to the development potential identified in the Alternatives Analysis, we estimate that economic development will provide over $119 million in (on a discounted basis) monetized benefits net of total travel time savings as illustrated in Table 3. These estimates are considered conservative, particularly given the amount of currently committed and projected development in the corridor.   8   Table 3: Incremental Economic Development Benefits Economic Development Incremental Appreciation 2009 (2009 $M) 2030 (2009 $M) Cumulative Total (2009 $M) $5.1 $28.1 $119.9 Creating Jobs and Stimulating the Economy The construction of the Project is estimated to create 2,771 short-term direct, indirect and induced jobs throughout the construction period with a value added to the economy estimated at $211.9 million, of which $145.0 is labor income (Table 4). The total estimated jobs created, 1,678 jobs (60 percent of the total) are projected to be in key industries that traditionally employ low income workers resulting in a total benefit of $72.8 million in labor income during the construction period as illustrated in Table 5. Table 4: Short Term Direct, Indirect and Induced Employment, Value Added and Labor Income by Year Employment Value Added Labor Income 2010 2011 2012 TOTAL 1,232 $94.0 $64.4 1,232 $94.0 $64.4 308 $23.5 $16.1 2,771 $211.9 $145.0 Table 5: Short Term Employment Key Industries Key Industries Employing Low-Income People Agriculture, forestry, fishing and hunting Construction Retail trade Truck transportation Administrative and support and waste management and remediation services Nursing and residential care facilities, home health care services Accommodation and food services Personal and laundry services Total Job Years Labor Income ($ Million) 28 1,016 203 38 150 90 133 21 1,678 $0.60 $53.40 $6.20 $1.80 $4.70 $2.80 $2.90 $0.50 $72.80 The Streetcar Program of Projects, including the UPT/French Quarter alignment, has the potential to provide benefits that will enhance the long term economic outlook and competitiveness of New Orleans. The Program of Projects will do so by connecting major drivers of the New Orleans economy, connecting these drivers to areas in need of redevelopment (spurring economic development) and increasing transportation efficiency, notably by better connecting residents to job centers. Many of the areas directly served and benefitting from increased transit services and jobs creation are economically distressed communities.   9   Three major elements of the New Orleans economy are: convention/tourism/entertainment; energy and health care/biosciences. The proposed new streetcar alignments will create improved movement within and between the geographic areas in which much of these sectors are concentrated. Tourism is concentrated in two main areas: the French Quarter and the Mississippi Riverfront. The French Quarter is a world-class destination that attracts 2,000,000+ visitors per year. The Riverfront area houses a large number of hotel rooms, the Ernest N. Morial Convention Center and the Port of New Orleans’ cruise ship passenger terminals. The Program of Projects connects these two areas together, providing for opportunities for cross patronizing by customers. Improved access will allow cruise ship customers, including international visitors, to spend additional time and money within New Orleans prior to or subsequent to their cruise. Similarly, an improved connection between the areas allows for a greater capture of conventioneer dollars. Already one of the top 5 convention destinations within the United States, this connection provides better access for visitors to entertainment amenities located within the French Quarter. This improved amenity access enhances the attractiveness and competitive profile of New Orleans as a destination for both domestic and international conventions. Another major component in the New Orleans entertainment/tourism sector is the stadium/arena area. Both the New Orleans Arena and the Louisiana Superdome are accessible within ¼ mile of the Project, making a connection for visitors convenient. The energy and healthcare/biosciences sectors are emerging major drivers in the New Orleans economy. These sectors are well represented within the central/northern area of the city’s CBD. The Project provides for improved circulation within this area as well as for connections between this business center and the amenities of the French Quarter. The City is already using its first rate medical school and other components of the Greater New Orleans Biosciences Economic Development District (GNOBEDD) to leverage convention activity. A significant portion of the GNOBEDD is located within ¼ mile of the Project. In addition to the connection of existing economic engines, the alignment will further connect the areas discussed above to underdeveloped and/or distressed areas that are in need of redevelopment. This connection provides an opportunity for these distressed areas to augment and be tied into the local economy. Approximately 83 acres of land have been identified as easily developable along (within ¼ mile) the Project route. Conservatively, 25% of this land is anticipated to be built-out over the analysis period. In addition to this new development, property values are projected to increase by a conservative 2% due to route proximity (based on previous studies). The result of new development, combined with the incremental property value increase is conservatively estimated to be approximately $119.9M of economic development over the analysis period (through 2030). Jobs resulting from this development are projected to total over 5,200 over the longer term analysis period. An additional area of improved economic competitiveness will come from more effectively linking jobs to residents, particularly in economically distressed communities. The Project will link the Faubourg-Marigny and Tremé neighborhoods to job centers in the CBD, French Quarter, and Convention Center/riverfront area. This connection, along with the job creation cited above, will bring opportunities for employment close to home for these neighborhood residents. This benefit is a “two-way street”. The economic competitiveness of local businesses benefits by having a more reliable link to nearby workers, potentially increasing productivity. Workers are provided with projected jobs in close proximity, minimizing travel expenses and time. A more detailed presentation of the travel time and other, related savings is included in the Benefit-Cost Analysis documented in this application. http://www.norta.com/tiger/NOLA_Economic_Development_06-10-09_FINAL.pdf   10   In addition to linking CBD and French Quarter employment centers to existing residential neighborhoods, the proposed route provides the opportunity to build upon the recent trend of new denser housing within the CBD. The urban professional and creative classes seek vibrant urban centers with easy access to jobs, entertainment, restaurants and other amenities. By linking the New Orleans’ CBD job center to the amenities of the French Quarter and to opportunity areas identified for dense residential urban development, New Orleans is positioning itself to attract the workers that are driving the new economy. The City’s competitive profile in attracting these types of workers will be enhanced. 2.1.3 Livability The Project improves the quality of living and working environments in the city as a whole, but particularly in the neighborhoods of Treme, Faubourg, Marigny, and vicinity. The Project improves access to jobs and provides additional choices for mobility, particularly for the transit-dependent and workforce residents who live in the downriver neighborhoods, distant from the CBD. The quality of the living environment will be enhanced through redevelopment and upgrading of deteriorating properties and infill development of vacant or industrial properties to provide higher quality properties and land uses. Planned developments in the CBD and vicinity will attract new residents and provide further support to the French Quarter’s renowned entertainment district. Existing residents in the historic French Quarter neighborhoods will benefit from this redevelopment, reinforcing a robust CBD, neighborhood businesses and Main Street revitalization projects. New residents drawn to the area by the planned development projects will enjoy greater travel choices and comprehensive public transportation service coverage throughout the CBD. Improving connectivity and making the transit network denser encourages pedestrian activity, thereby reducing dependence on the automobile. This will create an even more attractive, safer pedestrian environment for the visitors and entertainment industry workers who provide an important backbone of the New Orleans economy. The resulting reduction of automobile trips will increase livability by easing congestion and will contribute to the improvement of air quality. Improving mobility means improving access to neighborhood and community assets. The Project encompasses several segments that have distinctively different, but compatible, mutually supportive characteristics. The following sections describe those segments. The UPT/Loyola Avenue Segment The segment between the UPT and Canal Streetcar line, approximately .78 miles, increases the ability of the New Orleans CBD to attract development and redevelopment of under-utilized properties along Loyola Avenue. The project provides improved connectivity between the existing Canal Streetcar and NORTA bus service, with robust intermodal transfer capability at the UPT. The UPT is a major southern hub for Amtrak, with 3 trains serving the station and 154,000 boardings and alightings per year. The proposed corridor will serve as an important connector of the UPT to the Canal Street line and from there to other activity areas of the city, including the French Quarter, CBD and convention center. The Loyola Avenue corridor is home to significant office development, particularly near the intersection of Loyola Avenue and Poydras Street. The area already employs many people in the energy, government, healthcare and financial sectors and the biosciences sector is growing. With over 4 million square feet of occupied office space located within ¼-mile of the Loyola Avenue corridor (as of January 2009), the area contains one of the region’s largest concentrations of office space and as such is a major regional employment center. Office occupancy rates   11   that have exceeded 90% for the past six quarters indicate relative local stability in a sector that is struggling nationally, further indicating the vitality of the CBD. While the near-term potential for this area to absorb development is important, the longer term view is equally vital. The large amount of land in the CBD, combined with the major levels of existing development, should allow the CBD to continue to increase its role in the local and regional economy over the next few decades. Streetcar service encourages the growth of these and other sectors by providing urban mobility, connectivity and an important demonstration of public transportation investment. Approximately 650+ residential units have recently been completed or are currently under construction in or near the Loyola Avenue Corridor. Many of these are conversions of Class B or C office space to new residential units. In addition to this existing growth, a recent study published by the New Orleans Downtown Development District has forecasted demand for up to 3,000 additional units in the downtown area over the next 5 years. More than 13 acres of vacant or underutilized land lie within one block of Loyola Avenue. An additional approximately 30 acres of land that is available for redevelopment lies within ¼-mile of Loyola Avenue. With a currently proposed planned density of 18.0 FAR, as much as 10M square feet of development could be accommodated in just the 13 acres adjacent to Loyola Avenue. The additional 30 acres could accommodate up to an additional 35M square feet. Thus, much of the new development would be in the Loyola Avenue corridor. The UPT/Loyola Avenue corridor also serves several of the City’s most prominent event-related activity generators. The City’s two major sports venues, Louisiana Superdome and the New Orleans Arena are located between approximately 1,000 feet and 1,320 (¼-mile) from the proposed alignment. The combined facilities account for upwards of 2,000,000 attendees per year. At the Louisiana Superdome, more than 70,000 fans attend each of the New Orleans Saints seven regular season games and two preseason games, more than 26,000 fans attend each of Tulane University’s home football games, and additional large crowds attend the Allstate Sugar Bowl, other football events and a regular schedule of major events, including the Essence Music Festival and numerous trade shows and exhibits. For the 2008-2009 season, the New Orleans Arena enjoyed average home attendance of almost 17,000 fans for each of the NBA Hornets basketball games 41 games. The Arena also hosts a regular concert schedule including a number of annual shows with more than 10,000. A greater economic role for the CBD will help support New Orleans’ residential population, providing a tax base and resources that will benefit people city-wide. It will enhance the city’s economic base outside of the tourism industry. Improved transit service along Loyola Avenue will provide linkages to other parts of the larger district via connections to the Canal Street line as well as via a future planned transit line along Tulane Avenue. The development of streetcar service along this corridor improves access for employees to and within the area. A streetcar line along this corridor connecting to the Canal Street line and the potential French Quarter Loop expands transit access to this major regional employment center for the population of the Tremé and Faubourg-Marigny neighborhoods. Finally, this improved transit access provided by the Project allows the daytime office population to access restaurants and other amenities located at a greater distance, such as in the French Quarter. The French Quarter Segment The approximately 2.5-mile segment that runs through the French Quarter, between the Canal Streetcar line and Press Street, with 13 stops located at various intersections and major attractors throughout the corridor, will provide a significant population of workforce, transit-dependent residents with direct access to employment opportunities in the CBD. More than 70,000 residents live in the medium density neighborhoods located within ¼-mile of the French Quarter corridor. Much of the housing within this area is affordable to workers and, consequently, the area contains   12   a substantial supply of the area’s workforce housing. Connecting these workers to the streetcar system affords them increased access to the significant employment opportunities available in the French Quarter and the CBD. With its large population base, this urban residential segment could be significantly impacted by even small levels of development. The area is currently planned and developed at densities of 24-36 dwelling units per acre (DUA). Approximately 40 acres remain available for infill development within ¼-mile of the proposed route, which would help reinforce the existing substantial population, thereby ensuring that the corridor remains vital and continues to rebuild, and is not subjected to further blight or abandonment. The new streetcar investment provides a catalytic opportunity to stabilize historically notable neighborhoods and residential populations. The reemergence of Rampart Street as a vital neighborhood commercial core and the reinvigoration of Armstrong Park will improve the quality of life of the existing population while supporting the ongoing health of existing businesses in the French Quarter. Another strength of this segment is its ability to tie into the Loyola Avenue corridor. As stated, the Loyola Avenue corridor provides a tremendous employment and activity base. A connection to the significant population in the French Quarter vicinity would provide two-way employment access for residents and business, thereby increasing the viability of both areas and contributing to a strong, sustainable greater core for the City of New Orleans. The corridor currently faces issues that include traffic congestion, insufficient interface between parking facilities and bus access, and indirect access to major employment centers. Although New Orleans continues to work to recover from the aftermath of Hurricane Katrina in August 2005, even as restoration of residential and business populations improves it is widely accepted that the economic base of New Orleans has changed drastically and will take years to stabilize. As the city recovers, the transportation challenges remain. Direct benefits to low income populations are derived from the proportion of transit users assumed to be low income (those estimated to be below the poverty line). It is assumed that the proportion of transit users who are low income is 34 percent. These low income riders experience both time savings and trip cost reductions. The low income proportion of trip cost and time savings is estimated to be $7.0 million for these riders. These benefits are discussed here for informational purposes, but are aggregated with all travel benefits in the benefit-cost analysis to avoid double-counting. Connecting Internationally Known Destinations A multitude of significant attractions are located in the project area. These provide significant employment, commercial, entertainment and retail resources, and are expected to generate greater and greater demand for travel and access.   13   Figure 2: Major Activity Centers French Quarter: International Entertainment Destination The French Quarter is an international tourist destination that attracts more than 2,000,000 visitors per year. Half of this number comes to the city for the world famous Mardi Gras celebration. The other half visits to attend other festivals throughout the year and to experience the French Quarter’s world class food, arts and entertainment attractions. The French Quarter Loop will surround the epicenter of this activity on two sides and connect the area to existing neighborhoods, allowing current and future neighborhood residents additional access to employment and entertainment activities within the French Quarter. In addition to existing attractions within the Quarter, an entertainment area is re-emerging along North Rampart Street. The rebuilding of Louis Armstrong Park and Saenger Theater will provide over 5,000 seats in two major theaters and additional outdoor venue space. The project also includes an extension that would run perpendicular from St. Claude Avenue on Elysian Fields Avenue toward the Mississippi River, to connect with the existing Riverfront Streetcar line, which operates parallel to the banks of the River. At the intersection of Canal Street and Loyola Avenue, the new streetcar line would connect with the existing Canal Streetcar line. These connections to existing streetcar service would provide improved public transportation service and optimized transit operations throughout the New Orleans CBD and French Quarter. Convention Center Line Further Enhances Service to Major Activity Centers The Ernest N. Morial Convention Center, the New Orleans Sports Complex and other large hotels are not located within walking distance of the current transit system. The City of New Orleans is consistently one of the nation’s top five convention destinations. Convention Center contains 1.1M square feet of contiguous exhibit space along with   14   140 meeting rooms, two ball rooms containing over 30,000 square feet each and a 4,000+ seat auditorium. For 2009, the center has 39 conferences reserved with planned attendance of 3,000 or more per conference. The downtown hotel district currently contains nearly 17,000 rooms in nearly 100 hotels. The Riverfront hotels and the attractions downriver from the Convention Center in the CBD and French Quarter have access to the Riverfront Line; however, with the exception of the entrance to the Convention Center near Canal Street, the Convention center is essentially isolated from the current transit system, from the hotels, and from downriver attractions. This isolation is somewhat alleviated by means of alternate transit options, such as charter buses. The new Convention Center line, for which RTA is not seeking TIGER funds, will connect the hotels, Convention Center and downriver attractions with the streetcar system. 2.1.4 Sustainability The streetcar Program of Projects, including the UPT/French Quarter alignment, are not primarily intended to reduce traffic congestion, reduce dependence on oil, or minimize greenhouse gas emissions by directly diverting huge numbers of auto drivers to streetcar transit in the corridor. However, the re-establishment of an integrated network of streetcar services in the CBD, French Quarter and riverfront areas, will continue to encourage sustainable, pedestrian oriented development and travel. Even though the primary purpose of the streetcar projects is not to reduce auto use, the project does yield favorable results. Table 6 indicates the estimated daily ridership in selected years by mode and in total. Table 7 indicates the estimated daily net reduction in VMT and auto trips for these same years. The table shows 131 daily auto trips reduced. These are calculated from the riders assumed to be using the streetcar. The 145 riders diverted from autos would have previously taken vehicle trips. Assuming a vehicle occupancy rate of 1.1, this translates into 131 vehicles off the road per day. The New Orleans UPT/French Quarter Streetcar will reduce dependence on oil by providing choice in travel. An estimated 11,600 vehicle miles traveled will be avoided by 2030 as a result of this project or an overall 464 gallons of gasoline saved on a daily basis. Table 7: Daily Net VMT and Auto Trip Reduction Table 6: Daily Ridership by Source 2012 2022 2031 2,410 2,503 2,590 Diverted from Auto 145 150 155 Diverted from Bus 1,205 1,252 1,295 Diverted from Taxi 482 501 518 Diverted from Walking 241 250 259 Induced Trips 337 350 363 Total Daily Trips   15 Daily VMT Without Streetcar Daily VMT Reduced Because 2012 2022 2031 82,113 85,293 88,261 657 683 706 131 137 141 of Streetcar Daily Auto Trips Reduced   Streetcars are powered by electricity. The amount of electricity used is shown in Table 8. Table 8: New Orleans UPT/French Quarter Streetcar: Annual Power Consumption  Average Speed (MPH)*  One‐Way Time (Min)*    Cycle Time    (Min)*    Peak Headway     (Min)*    Fleet Requirement*    Total Daily Trips    Total Daily Miles  Total Annual Miles    One‐way Length (Miles)*    Days/Year*    Hours/Day*  Projected Annual Revenue Miles     Full (5 AM to 7 PM) 14 364 2.7 6.0 27.2 64.4 17 4 99 269 97,843   Off Peak (7 PM to 10 PM) 3 364 2.7 6.0 27.2 64.4 33 2 11 30 10,801   Off Peak (10 PM to 1 AM) 3 364 2.7 6.0 27.2 64.0 64.4 1 6 15 5,535   114,179   Service    Estimated Total   *Source: New Orleans CBD/French Quarter Alternatives Analysis Conceptual Operations Plan & Operating Cost Estimates  **Source: New Orleans CBD/French Quarter Alternatives Analysis Conceptual Engineering Report    PORTLAND STREETCAR AVERAGE KWH/MILE Annual Revenue Miles* Annual Power Consumption (kWh)* kWh/Mile NEW ORLEANS STREETCAR GOLD LINE ESTIMATED POWER CONSUMPTION 210,000 1,700,000 8.1 Estimated Annual Revenue Miles Average kWh/Mile Power Consumption (kWh) 114,179 8.1 924,304 *Source: Portland Streetcar Administration, 503‐823‐2900 Avoidance of Environmental Impacts The Streetcar project will be built in existing travel lanes within existing public rights-of-way, in an environment with a long-standing history and comfort with streetcar interaction with pedestrian and auto traffic. No impacts to property will occur from the construction of this project. The additional service for this mode will reduce the need for singleoccupancy private automobiles, thereby reducing emissions that would negatively affect air quality. In several segments within the project alignment, the streetcar will be reinstated on streets where streetcars have run historically. Previous RTA experience indicates that new streetcar projects introduced with attention to historical design features will be acceptable to historic preservation officials and neighborhood organizations. 2.1.5 Safety – Reduced Accident Costs The reduction of accident costs, like other variable costs, is dependant on the reduction of vehicle-miles traveled. The reduction in vehicles on the road is combined with a multiplier or per-unit of cost accident. This multiplier is a weighted average of fatal, injury, property damage only (PDO) accidents. In the analysis, the opening year savings in accident costs were calculated at approximately $3,813 and the net accident savings throughout the study period at $44,452.   16   Evaluation of Expected Project Costs and Benefits RTA completed a cost benefit analysis as discussed in the Primary Selection Criterion of Economic Competitiveness. At a 7 percent discount rate, a $163 million lifecycle cost results in over $241 million net benefits and with benefit to cost ratio of about 1.5. The estimated rate of return is 15.5 percent. If the discount rate is reduced to 3 percent, a $181 million cost results in over $341 million in net benefits and a benefit-cost ratio of about 1.9. http://www.norta.com/tiger/NOLA_Streetcar_CBA_Appendix.Delivered.8.28.09.doc 2.1.6 Evaluation of Project Performance The RTA will implement the New Orleans UPT/French Quarter Streetcar Project Performance Plan in accordance with the detailed matrix below. Specifically the plan will focus on evaluating the post-construction success of the streetcar project and measuring both the short and long-term performance with respect to the economic recovery measures and long-tem outcomes mandated by “Grants for Transportation Investment Generating Economic Recovery (TIGER Discretionary Grants).” The RTA will establish a one quarter mile performance zone extending on each side of the New Orleans UPT/French Quarter streetcar alignment starting at Loyola/Howard and concluding at St. Claude/Press streets. The RTA strongly believes that the New Orleans UPT/French Quarter Streetcar Project Performance Plan will show that a significant return on this iconic streetcar investment is measurable and sustainable into the twenty-second century. Project Performance measures are contained in the link below. http://www.norta.com/tiger/Performance_Measures.doc 2.2 Job Creation & Economic Stimulus The Project is estimated to cost $160,837,572.00 (in year of expenditure dollars) to design and construct. Construction is estimated to create 2,771 short-term direct, indirect and induced jobs throughout the construction period with a value added to the economy estimated at $211.9 million, of which $145.0 is labor income. Of this total, 1,678 jobs (60 percent of the total) are projected to be in key industries that traditionally employ low income workers resulting in a total benefit of $72.8 million in labor income during the construction period The Project’s construction will increase employment in sectors of business that hire many low-income employees. Table 9 indicates the short-term employment in key industries that employ low income workers estimated to be generated by the streetcar investment. The second column of the table refers to the numbers of job created in the respective sector during the construction period. The third column provides labor income (in millions of dollars) which represent not only salaries but all benefits. Table 9: Employment Opportunities for Low-Income Workers Key Industries Employing Low-Income Residents Agriculture, forestry, fishing and hunting Construction Job Years Labor Income ($ Million) 28 $0.60 1,016 $53.40 Retail trade 203 $6.20 Truck transportation 38 $1.80 Administrative and support and waste management and remediation services 150 $4.70 Nursing and residential care facilities, home health care services 90 $2.80 Accommodation and food services 133 $2.90 Personal and laundry services Total   17 21 $0.50 1,678 $72.80   These employment opportunities will be a great boost to the economically deprived areas and neighborhoods along the project corridor. In addition, RTA and the City of New Orleans will implement hiring programs and apprenticeships targeting low-income workers. 2.2.1 Project Schedule       18   The project schedule illustrates that the Project can begin design and construction within a realistic and reasonable timeframe, and that construction will be completed in February 2012. The RTA has completed the AA following FTA guidelines for New Starts/Small Starts, and will begin National Environmental Policy Act (NEPA) studies and Preliminary Engineering (PE) in late September – October 2009. Environmental clearance is expected to be completed within 9 months, with a Finding of No Significant Impact (FONSI) anticipated in June 2010 Concurrently, PE will be completed by May-June 2010. The procurement process to enlist the services of a Design-Build Contractor will begin prior to the official completion of PE, when sufficient technical information will be available for compilation into required procurement and bid documents. Frequent and regular coordination with the FTA will be conducted throughout the NEPA/PE phase, to ensure timely agency submittals and reviews. The RTA is coordinating with FTA’s Regional Office in Fort Worth, TX to ensure that the PMOC play a key role in the NEPA/PE phase to facilitate timely agency review and concurrence with project findings. At the initiation of PE, the RTA will pursue and execute Memoranda of Agreement with State and local permitting agencies to facilitate expedited reviews and approvals. RTA is confident this schedule will be met because the Environmental Assessment and PE work will apply technical information already developed in the AA. An 18-month design-build schedule is to be completed. After cautious review and analysis, the RTA is confident that this schedule is realistic and feasible, given that the project will be built entirely within public rights-of-way, in existing travel lanes, and therefore will not generate property impacts. The RTA is in possession of the required number of additional streetcar vehicles (estimated at 10:8 revenue vehicles and 2 spares) to run this new service. Vehicle procurement, often a major schedule risk, will not be necessary in this project. The RTA believes that the Project schedule is aggressive but wholly achievable, and will ensure the necessary local inter-agency reviews and agreements are executed in an expedited manner, to assure a projected opening date in February, 2012. RTA has also considered a number of scenarios that could affect the schedule and estimates that any schedule lag will not exceed three months. Consequently, although RTA is confident of a February, 2012 opening date it has determined that in the event of construction delays the opening date will be no later than May 30, 2012. 2.2.2 Environmental Approvals RTA has completed an Alternatives Analysis following FTA guidelines. RTA is scheduled to complete NEPA approval, by completing an Environmental Assessment and Finding of No Significant Impact (FONSI) by June 2010. (See project schedule above.) 2.2.3 Legislative Approvals No outstanding local or State legislative approvals are needed to complete this project. However, approvals and actions taken to date in the completion of the Alternatives Analysis are documented in Section VI: Environmentally Related Federal, State and Local Actions Please see resolutions and letters of support on project website. http://www.norta.com/tiger/letters.pdf http://www.norta.com/tiger/resolutions.pdf   19   2.2.4 State and Local Planning Please see documentation in Section 3.5: Environmentally Related Federal, State and Local Actions, and Section 3.2 Disciplinary Integration. 2.2.5 Technical Feasibility Conceptual engineering completed in the Alternatives Analysis (August 2009) confirms that this project, which will be built in existing travel lanes on public rights-of-way, is technically feasible and constructible. Conceptual engineering work was coordinated with RTA’s Operations staff. The Conceptual Engineering and Operations & Maintenance Reports are on the project website. http://www.norta.com/tiger/Draft_Operations_Plan.pdf The RTA has demonstrated technical and management capability. For example, RTA successfully completed the Canal Streetcar Project that began revenue service in 2004. The Canal Streetcar Project restored streetcar service on Canal Street that had been removed in 1964 and replaced with bus service. The Project also included a spur line on North Carrollton Avenue to connect City Park and the New Orleans Museum of Art with the Central Business District and the French Quarter. The Project included approximately 5.5 miles of double trackway utilizing 0.55 miles of existing track on Canal Street and 0.89 miles of Riverfront track running downriver to the French Quarter. The trackway was constructed partly in the neutral ground (median) of Canal Street and partly in a shared travel line of Carrollton Avenue. In addition to trackwork the Project included the assembly of 24 new red streetcars by RTA craftsmen at our Carrollton facility, and a new Service, Inspection, and Storage Facility in the rear quadrant of our existing A. Philip Randolph site. The budget for the Canal Streetcar Project was $161.3 million and included 9 construction and supply/installation contracts, 17 vehicle and component contracts, and 7 professional service contracts. Each of these contracts was publicly advertised and procured following all federal, state and local regulations. The entire project was delivered on schedule and under budget. The Canal Streetcar Project set an established and successful standard for future trackwork design that will be utilized for future streetcar projects. This established standard will simplify and speed the design of additional trackway constructed in the City. Part of Veolia’s management structure includes Veolia Transportation Maintenance and Infrastructure, Inc. (VTMI). VTMI is proficient in executing, administering and coordinating all aspects of the construction work necessary to complete projects on time and within budget. The staff of engineers, project managers, superintendents and administrative personnel have proven experience and capability to design, construct and maintain all components in the rail and transit industry. These experts will assist in keeping the Project on time and within budget. RTA Grants Management: The RTA’s Grant Department staff has more than 40 years’ experience in the development and implementation of various grant programs. Staff consists of: Director; Senior Grants Manager; Senior Grants Analyst; Manager of Compliance; and Project Control Accountant. Responsive to the opportunities for capital investments, the Grants Department works with the Federal, State, Metropolitan Planning Organization, and other regional authorities to partner in maximizing the fullest investment potentials. The Grants Department has successfully managed over $778,400,366 in grant projects inclusive of Rehabilitation of St. Charles Streetcar ($37m), Canal Streetcar Corridor Project ($161m) and the St. Charles Catenary Project ($14m). 2.2.6 Financial Feasibility The RTA’s funding approach to the streetcar Program of Projects incorporates multiple financing mechanisms, as presented in Section 1.3 Grant Funds and Sources and Uses of Project Funds under Primary Selection Criteria.   20   Approximately 43% of the total project program cost will be funded by the RTA through Capital Reserves and Sales Tax Revenue Bonds. All non-Federal funding sources are available and committed. The RTA was recently rated at A- minus by Standard & Poor’s. Additionally we have identified a new dedicated revenue source that will be restricted to debt service. The balance of project funding (57%) will consist of federal participation (New Starts Exempt Funds and TIGER funds). Construction cost estimates were completed as part of the AA under FTA guidelines, based on 2011 escalated cost values. The requested TIGER funding, totaling $95.6 million, is critical to leveraging the comprehensive set of local and federal funding sources in order to deliver the streetcar Program of Projects. Table 10: Financial Plan UPT/French Quarter Project Convention Center Loop Project % Total Program of Projects % % Source Of Funds: RTA- Sales Tax Revenue Bonds Federal TIGER Funds RTA Capital Projects Reserve Convention Center Capital Reserve FTA New Starts Exempt Funds TOTAL SOURCES 52,210,000 (1) 32.5% 21,290,000 95,627,572 (2) 59.5% 13,000,000 (3) 41.5% 73,500,000 34.6% 0 0% 95,627,572 45.1% 8.1% 0 0% 13,000,000 6.1% 0 0% 5,000,000 (4) 9.7% 5,000,000 2.4% 0 0% 24,999,999 (5) 48.7% 24,999,999 11.8% 160,837,572 (1) 51,289,999 212,127,571 Uses Of Funds: Construction Construction Contingency Engineering Construction Management Project Management Deposit to Debt Service Reserve Fund Total Underwriter's Discount Costs of Issuance 109,710,370 (6) 68.2% 34,574,734 (6) 67.4% 144,285,104 68.0% 19,360,654 (7) 12.0% 6,101,424 (7) 11.9% 25,462,078 12.0% 10,325,682 (8) 6.4% 3,254,093 (8) 6.3% 13,579,775 6.4% 7,744,261 (9) 4.8% 2,440,569 (9) 4.8% 10,184,831 4.8% 7,744,261 (9) 4.8% 2,440,569 (9) 4.8% 10,184,831 4.8% 5,214,013 (10) 3.2% 2,124,950 (10) 4.1% 7,338,963 3.5% 522,100 (10) 0.3% 212,900 (10) 0.4% 735,000 0.3% 215,000 140,000 355,000 0.2% 0.0% 760 51,289,999 (10) (10) 0.3% 1,232 160,837,572 (10) (10) 0.1% Rounding Amounts TOTAL USES Federal Participation RTA/Local Participation 0.0% 1,992 212,127,571 0.0% 59.5% 48.7% 56.9% 40.5% 51.3% 43.1% Note(A) Construction cost estimates were calculated by AECON. For purposes of this report, year 2011 escalated cost values were applied. However based on our preliminary projections, construction will start in 2010 and end February 2012. Please note that bond estimates are based on a A- rating.   Note(1) Please see the debt service debt service schedule for the referenced financing. Taxable Build America Bonds (A- Underlying) (2) Federal funding will be applied for via FTA Tiger Funds. (3) In 2010 the RTA will make the last $6.5 million Capital Lease payment. In 2011/12 $6.5 ($13m) will be applied as Capital Project Reserve. (4) Contribution to the project from the Ernest N. Morial New Orleans Exhibition Hall Authority Transit Fund. (5) Federal funding will be applied for via the FTA New Starts Exempt Funds. (6) Construction cost has been escalated to projected 2011 construction period cost. (7) Represents 15% of the projected construction cost. (8) Represents 8% of the projected construction cost. (9) Represents 6% of the projected construction cost. (10) Detailed costs of issuance. See attached project debt service summary. 21   3.0 SECONDARY SELECTION CRITERIA 3.1 Innovation Funding, Management & Operations Innovation: RTA’s Program of Projects approach relies upon several innovative funding and financing, contracting, project delivery, asset management and public-private partnership innovations. The partnership between RTA and Veolia has already yielded swift, positive results. The delegated management approach that RTA and Veolia employ is the first of its kind in this country, and is a true partnership between RTA, a public entity, and Veolia, a private industry leader in public transportation. RTA benefits from Veolia’s in-house stable of experts on financing, contracting and rail construction, among other assets. Veolia’s management has led to a thoroughly rehabilitated bond rating for RTA, which lowers RTA’s cost of money for capital projects such as the Program of Projects. Moreover, Veolia’s leadership promotes a disciplined approach to capital projects as well as to containing operating costs. In addition to this funding and financing innovation, the Program of Projects shows a deliberate and well-thought-out emphasis on shortening the times to complete the substantial steps needed to bring the program to fruition: alternatives analysis was completed in nine months and RTA fully expects to complete the environmental assessment and preliminary engineering phase in the same efficient manner. RTA will further expedite procurement of the design-build contract for both of the new lines in the Program of Projects. Technological Applications: RTA puts technology in the top tier of its priorities, believing that technology is a tool that can both save costs and improve performance. RTA is evaluating the following technological applications for implementation throughout the streetcar program: • CUSTOMERS COUNT! TM Satisfaction Survey – develop a sophisticated regression matrix based on statistics that allow the RTA to plot what customers believe are most important to them for their satisfaction. The survey will show how satisfied they are in each of 20 important areas. • Real-Time Passenger Notification (Commuter Alerts) – provide up to the minute information to customers on the status of specific services or the transit network in general. These alerts are communicated via mobile phones, text messaging, and email. • Wireless Technology – provide an onboard solution for commuters desirous of utilizing wireless technology during their commute. This will allow passengers to access the internet, e-mail, corporate networks, and other business/personal applications. • Smart Card Technology/Magnetic Card Technology – RTA has implemented magnetic ticket technology during the last 6 months, utilizing the GFI Genfare farebox system. This new technology has increased revenue, and improved customer boarding times. The next phase of this form of technology will be true Smart Card utilization throughout the system. This will allow passengers to move with greater ease throughout the transit system with less interaction with the fare systems. • Next-Bus Technology – the RTA is in discussions with private vendors that currently display such real-time data at stop sites. Simultaneously, the agency is attempting to develop its own real-time data displays with existing technology (ONGO Live). The next bus technology will also be tied into message boards throughout the system, at major stop sites.   22   3.2 Partnership 3.2.1 Jurisdictional & Stakeholder Collaboration RTA seeks to use TIGER funds to help New Orleans help itself. As the project budget shows, RTA seeks $95.6 million in TIGER funding for the $160.8 million UPT/French Quarter Streetcar. RTA’s local financial commitment will make up the rest of the funding. The reason for this extraordinary local commitment is simple: all of the local stakeholders are united in their support for the Program of Projects. RTA has identified committed local funding of $65.2 million for the Project (approximately 40% local funding) and $26.3 million for the Convention Center Loop (more than 50% local funding). This impressive amount of local financial commitment is possible principally because the RTA has reached out to the local stakeholders, the State, Federal and local political and civic leaders, and the community at large to ensure that all of the relevant entities support the Program of Projects. In addition, RTA has already begun working with the City and other entities that control local utility and other infrastructure activities to ensure that all parties are prepared to support and advance construction of the Program of Projects. 3.2.2 Disciplinary Integration The Project connects myriad projects and programs from public agencies and private developers that are pursuing shared objectives. In general, the corridor connects large-scale economic development projects in the downtown core of the city to finer-grained, small business and community economic development projects in the downtown and downriver neighborhoods including the French Quarter, Marigny, Treme and Bywater neighborhoods. Transit investment in the corridor integrates and mutually supports local, state, and federal planning efforts while fostering economic development, livable communities, and the resiliency and sustainability of New Orleans’ downtown and downriver neighborhoods. Detailed description of supportive Federal, state and local planning efforts are contained at the project website, however, a brief listing follows. http://www.norta.com/tiger/Disciplinary_Integration.doc Local Planning Efforts Several local planning efforts since Hurricane Katrina have given significance to the CBD/French Quarter study area as a critical and transformative transit corridor (these are described in greater detail in the Weblink above), including: ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐   23 Bring New Orleans Back Commission Unified New Orleans Plan (UNOP) Office of Recovery and Development Administration (ORDA) Finance Authority of New Orleans (FANO) City Planning Commission (CPC) New Orleans Building Corporation (NOBC) New Orleans Redevelopment Authority (NORA) Providence Community Housing/Enterprise Canal Street Development Corporation Vieux Carré Commission (VCC) Historic Districts Landmarks Commission (HDLC) Industrial Development Board of New Orleans (IDB) New Orleans Tourism Marketing Corporation   State and Federal Programs An array of state and federal programs and entities will be supported by the proposed transit investment in the project corridor, tying together both major economic development and employment centers in the city and region, as well as neighborhood-based, small business and community economic development initiatives. ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Louisiana Stadium and Exposition District (LSED) Downtown Development District (DDD) Louisiana Main Streets National Park Service Musical and Theatrical Tax Credit New Markets Tax Credits Louisiana Housing Finance Agency Neighborhood Stabilization Program Louisiana Enterprise Zone and New Orleans Renewal Community 3.3 Program Specific Criteria As specified in the four programs identified in the Federal Register Guidance for this application, this project falls into the transit program. RTA completed the AA in compliance with FTA guidelines and is working with FTA staff on final documentation as well as advancement into FTA New Starts Exempt status for the Convention Center alignment. 3.4 Federal Wage Rate Requirement RTA will comply with the requirements of subchapter IV of chapter 31 of title 40, United States Code Weblink contains the New Orleans RTA’s Federal Wage Rate certification. http://www.norta.com/tiger/Federal_Wage_Rate_Requirement.pdf 3.5 National Environmental Policy Act (NEPA) Requirement The status of the NEPA requirements for the project are more completely documented in the evaluation criteria. RTA will complete the NEPA clearance by June 2010 with completion of an EA/FONSI. An Alternatives Analysis study was completed in August 2009, along with Conceptual Engineering and development of design criteria. The AA documentation was submitted to FTA for review September 4, 2009. 3.6 Environmentally Related Federal, State and Local Actions The New Orleans Central Business District/French Quarter Alternatives Analysis project has received review and approval from: • The Board of Commissioners of the Regional Transit Authority Resolution, June 25, 2009. No, 04-092 http://www.norta.com/tiger/resolutions.pdf • The Transportation Policy Committee of the Regional Planning Commission (RPC) in its Financially Constrained Plan August 11, 2009, Resolution 09-2011. • The Mayor of New Orleans and New Orleans City Council, August 6, 2009, Resolution 09-048; • The Ground Transportation Committee of the New Orleans City Council; and • Members of the Louisiana Congressional Delegation have written letters of support for the project.   24   It is anticipated as the project proceeds through the environmental assessment phase, the RTA will continue consultation with the State Historic Preservation Office. Further, local review and permit offices/agencies including Safety and Permits, Public Works, Sewerage and Water Board, utility companies, City Planning Commission and the Regional Planning Commission will also be necessary. Certification Requirements In compliance with the transparency and oversight requirements of the Recovery Act, RTA has a signed Section 1511 Certification available at: http://www.norta.com/tiger/1511.pdf   25