Board Packet February 28, 2006

Transcription

Hillsborough Area Regional Transit Authority
Tampa Historic Streetcar, Inc.
Joint Board Meeting
Tuesday, February 28, 2006
9:00 a.m.
th
201 East Kennedy Blvd., 5 Floor Conference Room (Suite 510)
Agenda
Tab
I.
Welcome and Chairs’ Opening Statements
II.
Response to HART Board Concerns (20 min.)
III.
Streetcar Operating Agreement & Request for Proposals (20 min.)
IV.
Streetcar Extension (15 min.)
V.
Discussion
VI.
Public Comment
VII.
Adjournment
VIII.
Background Information
A. History
B. Streetcar Purpose, Goals & Objectives
C. Interlocal & Tri-Party Agreements
D. Accomplishments – 2005 Annual Report
E. Endowment and Revenue Development Program
Hillsborough Area Regional Transit Authority Board of Directors
Ricardo A. Roig, Chairman
Commissioner Brian Blair
John Byczek
Commissioner Kathy Castor
Brian Delamer
City of Tampa Councilmember John Dingfelder
Edward F. Giunta, II
City of Temple Terrace Councilmember Ron Govin
Alison Hewitt
Mr. David Mechanik
David A. Storck
Commissioner Ronda Storms
Clark Jordan-Holmes, General Counsel
Mission Statement
The mission of the Hillsborough Area Regional Transit Authority (HART) is to
provide public transportation services, which are safe, dependable, and cost
effective thereby enhancing the quality of life in our community.
Tampa Historic Streetcar, Inc. Board of Directors
Michael English, President
City of Tampa Councilmember Mary Alvarez
Michael Chen
City of Temple Terrace Councilmember Ron Govin David Mechanik
Regan Haines
Joan Jennewein
David Mechanik
John Moors
Jan Smith
Alternates:
Eddie Hamp
Chris Prather
Jo Jeter
Lee Huffstutler
Richard Schlosser, General Counsel
Mission Statement
Tampa Historic Streetcar, Inc. (THS) will offer a dynamic new component to
Tampa’s transportation system by providing attractive, reliable, comfortable,
convenient and safe streetcar service to local residents and visitors alike.
TAB II
Response to HART Board Concerns Voiced on October 12, 2005
1. Withdrawals from the endowment fund.
2. The amount of money withdrawn annually from the endowment fund should not exceed
what is earned from the endowment.
Response:
a. Questions 1 and 2 are essentially the same concern. The financial structure of the
streetcar system has always depended on withdrawals from the endowment to
provide operating funds. The initial 1998 interlocal agreement between HART
and the City of Tampa included a ten-year forecast of the endowment. The
forecast showed growth in the endowment during the first several years, but after
commencement of streetcar operations there would be net withdrawals (earnings
minus withdrawals) of $200,000 to $300,000 per year. Accordingly, the
endowment fund balance was expected to grow at first and then decline over the
initial ten years.
3. A serious look needs to be taken at a worst-case scenario over the next year so that when
the 2007 budget is submitted for approval, there are suggestions on additional revenue
sources.
Response:
a. The key financial variables have been varied to portray a best-case, worst-case
and mid-range scenario. See Exhibit 1, Streetcar Business Plan Scenarios.
4. A mutual effort should be taken to lobby the State legislature to assist with removing or
cutting the expenses for the insurance.
Response:
a. THS has $100 million in passenger rail liability insurance. This coverage is
stipulated in the “Tampa Interlocking Operating and Maintenance Agreement” in
which CSX Transportation, Inc. (CSXT) granted HART a license for the streetcar
to cross CSXT tracks at grade in Ybor City. This agreement was later assigned by
HART to THS. THS must pay an annual insurance premium of up to $369,000.
This equates to 15 percent of its FY 2006 budget.
b. In the Interlocking Agreement, CSXT agreed that if Florida law limits CSXT’s
exposure to a specific amount, then HART (and by assignment THS) must
maintain liability insurance equal to that amount or $100 million, whichever is
greater. CSXT later agreed to discuss possible legislation to address liability for
accidents involving passenger rail, insurance for such accidents in the State of
Florida, and the streetcar crossing. These discussions would also involve the City
of Tampa and THS.
c. The agreement further states that if HART is able access the State of Florida’s
self-insurance fund for rail liability, and provides proof to CSXT, HART may self
insure for up to the first $5 million of liability
Page 1
To date, the state has not been willing to provide access to the self-insurance
pool.
d. A solution to the premium expense issue is to reduce the potential liability of CSX
for a crossing accident. That will require state legislation. During negotiations
of the agreement with CSX, CSX indicated extreme interest in having the
City/HART/THS representatives push for such legislation. The only way this can
be accomplished is for representatives of the THS owners and Board to approach
the Florida legislature for someone to sponsor such legislation. This is a political
problem that needs a political solution at this time.
CSXT has recently pursued legislative caps of $200 million in other states and
may pursue such a cap in Florida. In such an event, THS should seek to have the
streetcar system exempted from such legislation in order to maintain its current
$100 million or less in coverage.
5. The projected 8 percent of rate of return is too optimistic.
Response:
a. The historical trend depends greatly on the timeframe being considered and
whether the overall market was moving up or down during this period. The rate
of return can vary considerably over the short term. The rate of return also
depends on the blend of assets in the endowment portfolio. In December 2004,
the THS Board made the decision to alter the blend of assets from 50% equities /
50% fixed income to 65% equities / 35% fixed income.
The following table shows the endowment’s actual performance through
December2005 as well as a longer historical trend of portfolios with this blend of
assets.
Period
Asset Blend
Annualized Rate of
Return
Jan. 2005 – Dec. 2005
Actual Performance
65% equities / 35%
fixed income
4.20 percent
Last 36 months, Actual
Performance
(Jan. 2002 – Dec. 2005)
Last 80 months (Life of
Endowment), Actual
Performance
50% equities / 50%
fixed
9.08 percent
50% equities / 50%
fixed
1.97 percent
Ten-Year Historical Perf.
(through 9/30/05)*
65% equities / 35%
fixed income
7.59 percent
Twenty-Year Historical
Perf. (through 9/30/05)*
65% equities / 35%
fixed income
10.91 percent
*
See Exhibit 2 for tables prepared by Trusco Capital Management.
6. A confirmation is required from the Port Authority on their annual contribution.
Response:
Page 2
a. The Port Authority is committed to help fund streetcar operations through fiscal
year 2007. The business plan includes a proposal for their contribution to
continue based on the assumption that the Port Authority will acknowledge the
benefits of economic development encouraged by the streetcar system.
b. HART’s Executive Director has initiated discussions with the Port Authority’s
Executive Director.
c. The Port Authority Executive Director asked for information on cruise ship
passengers using the streetcar. A survey of streetcar passengers is scheduled for
February 2006.
7. Reconsideration of the structure by which the streetcar is governed. A three-tier Board
does not have strong stewardship and general government sensitivities.
Response:
a. The current structure of the streetcar arose out of a concern on the part of the
prior Mayor that too much control should not be put in either the City or HART,
so the idea of a separate corporation was created, giving only slightly more
control to the City than to HART. It was also the original plan for HART to
operate the system under the authority of the THS Board and shortfall funding to
come solely from the City of Tampa. From a legal standpoint, the current system
is cumbersome, but it may serve some existing political need.
b. If the rationale has changed for operating through a somewhat independent
agency, much of the enabling documentation of Tampa Historic Streetcar, Inc.
will need to be changed, including the original Inter-local Agreement between the
City and HART and the Tri-party Agreement among the City, HART and the
streetcar company.
c. It may be helpful to have legal counsel prepare a summary of the existing
contractual arrangements before any wholesale change in the structure is
undertaken because both control and funding obligations are part of the current
agreements. These will have to be analyzed and changed with care.
8. The 20-year business plan contains too many unrealistic assumptions.
Response:
a. The business plan is a working document that allows THS and other decision
makers to chart a course and identify future actions to sustain the streetcar
system. Like many other plans it is based on assumptions that will change over
time and the forecast will change as well.
b. The key financial variables include ridership growth, performance of the
endowment, sales of the naming rights, growth of the assessment district,
contributions from other sources such as the Port Authority, cost to operate the
streetcar system, and insurance costs. As noted in response to question 3, these
have been varied to portray a best-case, worst-case and mid-range scenario.
9. It needs to be determined how much money will be required to build the streetcar
extension to Whiting Street prior to discussing projections of the business plan.
Page 3
Response:
a. The business plan is needed to justify state and federal grants to build the
extension. It was developed taking the Whiting Street extension, also known as
the Phase II-A project, into account. In developing this plan, the Florida
Department of Transportation has stressed the importance of demonstrating a
tangible local financial commitment to the extension project.
b. The business plan is premised on adding the segment to Whiting Street. No
engineering studies have been conducted to provide an estimate of the cost to
design and build the extension. However, HART has secured federal funding and
authorization to proceed with the environmental assessment phase of the
extension project. HART and the City of Tampa have drafted an agreement to
define the roles and responsibilities for the Whiting Street extension project. See
Tab IV.
c. HART has $375,000 in federal funds currently allocated to this project. An
additional $1.7 million in future federal funding is in the FDOT work program for
this project. Congestion Mitigation and Air Quality (CMAQ) funding was
previously programmed for the extension, however, because the Tampa Bay area
has met national air quality goals, CMAQ funds are not longer available to this
project. Therefore, FDOT has suggested the pursuit of other funding such as the
state’s New Starts funding. Any state or federal funding is subject to the outcome
of environmental assessment of the extension project.
10. Commissioner Blair did not support the proposal of assessment of homesteaded
residential properties along the streetcar line. He thought it would have been reasonable
to moth-ball the streetcar operations until the downtown area grows enough to survive off
the revenues generated solely from the ridership.
Response: 635 new residential units have been built in the Downtown and Channel
Districts, 1,854 are under construction and more than 5,000 are on the drawing board.
See Exhibit 3.
As the downtown and Channel District, and Ybor City, continue to become populated
with new urban residents and supporting retail, service and office uses, the mission of the
Streetcar System will evolve from its current mission of primarily serving visitors.
Many residents will also work in the immediate area and, we anticipate, ask for morning
streetcar service with quicker travel times. In addition, we expect that residents will
utilize the streetcar system for shopping and leisure activity travel in the area,
particularly as auto congestion increases in the area, as it is expected to do continually
over the next decade.
As residents demand new and faster service, the justification for adding homesteaded
residential property into the special assessment district will be justifiable, and should be
made a subject for public debate.
Furthermore, if the system were mothballed (i.e., withdrawing the equipment and
facilities from service before the end of their normal life cycle) HART would incur
significant costs related to preserving its assets and reimbursing the federal and state
governments for their shares of these assets. See Exhibit 4.
Page 4
Exhibit 1
Streetcar Business Plan
Scenarios
Inputs
Ridership Annual Growth Rate
Endowment Rate of Return
Years to Sell Remaining Naming Rights to
Streetcars - 8 Remaining
Stations - 3 Remaining + 1 Future
Port Authority Annual Contribution after 2007
Special Assessment
Years to Add Incremental Revenue from Planned Construction
Average Annual Growth Rate through 2014
Result - Year Endowment is Depleted
Q:\Joint THS HART Board Meeting\TAB II - Exhibit 1 - Streetcar Proformas - 121005
Worst Case
Mid-Range
Best Case
2%
4%
3%
6%
4%
8%
15
10
8
7
100,000
4
3
150,000
$
-
$
$
8
3.0%
6
5.4%
3
8.0%
2011
2014
2025
December 2005
Projected Streetcar Ridership
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Worst Case
Mid-Range
Best Case
Monthly Farebox Revenue
$1.80
$60,000
$1.60
$50,000
$1.20
Total Dollars
$40,000
$1.00
$30,000
$0.80
$0.60
$20,000
$0.40
$10,000
$0.20
$0
$0.00
Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05
Farebox Revenue
Average Fare per Boarding
Average Fare per Boarding
$1.40
Projected Sales of Naming Rights
$1,400,000
$1,200,000
Sell-Out by 2009 (Best Case)
$1,000,000
Sell-Out by 2013
(Mid-Range)
$800,000
Sell-Out by 2020
(Worst Case)
$600,000
$400,000
$200,000
$0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Worst Case
Mid-Range
Best Case
Special Assessment District Projected Revenue
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Best Case
Mid-Range
Worst Case
Endowment Fund Projected Balance
$10,000,000
$5,000,000
$0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
-$5,000,000
-$10,000,000
-$15,000,000
-$20,000,000
-$25,000,000
Year
Mid-Range
Worst Case
Best Case
DRAFT
TECO Line
Streetcar
Business Plan
Mid-Range Case
Endowment and Operations
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z
1
Actual
Rev Budget
2 Escalator
Year
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
5
Ridership
6
1.03 Ridership Phase I (3% Growth Rate)
420,000
425,614
434,498
398,304
410,253
422,561
417,284
429,803
442,697
439,259
452,436
466,010
464,150
478,075
492,417
491,974
521,492
537,137
538,037
554,178
570,803
573,003
590,193
7
1.03 Ridership Phase IIa (3% Growth Rate)
73,000
75,920
78,957
78,344
80,694
83,115
82,783
85,267
87,825
87,746
90,378
93,089
93,245
96,042
98,924
99,305
102,284
10
Total Ridership (3% Growth Rate)
420,000
425,614
434,498
398,304
410,253
422,561
490,284
505,723
521,654
517,602
533,130
549,124
546,933
563,341
580,241
579,719
611,870
630,226
631,282
650,220
669,727
672,308
692,477
11
Cash Fare
$1.25
$1.50
$1.50
$2.00
$2.00
$2.00
$2.25
$2.25
$2.25
$2.50
$2.50
$2.50
$2.75
$2.75
$2.75
$3.00
$3.00
$3.00
$3.25
$3.25
$3.25
$3.50
$3.50
12
0.776 Estimated Average Fare
$0.97
$1.05
$1.02
$1.35
$1.43
$1.43
$1.68
$1.68
$1.75
$1.94
$1.94
$1.94
$2.13
$2.13
$2.13
$2.33
$2.33
$2.33
$2.52
$2.52
$2.52
$2.72
$2.72
13
14
Cumulative
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Endowment
15
Balance Forward
4,005,000
4,034,917
4,761,550
5,260,388
4,558,797
3,957,269
3,271,229
2,582,041
2,045,179
1,543,320
1,034,872
603,889
173,251
16
Prepaid Items
100,000
17
TECO
800,000
200,000
18
Time Warner (car)
250,000
15,000
15,000
19
TB Credit Union (station)
100,000
15,000
15,000
20
Suntrust (car)
150,000
50,000
28,000
21
Who. Furn. (Cadrecha station)
33,333
66,667
15,000
15,000
22
TYCSRS (term. FY 2004)
25,000
12,500
23
Vigo - Breezer Car Sponsor
87,500
49,500
54,450
59,895
65,885
72477
24
1.03 New Vehicle Naming Rights Sold and Renewed
35,000
70,000
105,000
140,000
175,000
210,000
245,000
280,000
288,400
297,052
305,964
315,142
324,597
334,335
344,365
354,696
365,336
376,297
387,585
399,213
25
95,481
98,345
101,296
104,335
107,465
110,689
114,009
117,430
120,952
124,581
128,318
132,168
1.03 New Station Naming Rights Sold and Renewed
30,000
30,000
30,000
60,000
60,000
60,000
90,000
92,700
27
1.03 Ticket Naming Rights
20,000
20,600
21,218
21,855
22,510
23,185
23,881
24,597
25,335
26,095
26,878
27,685
28,515
29,371
30,252
31,159
32,094
33,057
28
1.03 Phase II Station Naming and Renewals
30,000
30,900
31,827
32,782
33,765
34,778
35,822
36,896
38,003
39,143
40,317
41,527
42,773
44,056
29 Actual
Change in Investment Value
(1,228,416)
482,466
470,838
30
6.0% Estimated ROR on Balance Forward (less bank fees)
315,623
273,528
237,436
196,274
154,922
122,711
92,599
62,092
36,233
10,395
31
Operating (Shortfall)
(1,204,714)
(940,056) (1,023,476) (1,040,461)
(912,385)
(930,287)
(947,352)
(940,481)
(1,004,542)
(1,075,692)
(1,085,299)
(1,171,334)
(1,262,224)
(1,285,071)
(1,351,014)
(1,456,033)
(1,486,208)
(1,602,300)
(1,725,140)
(1,768,864)
(1,903,842)
32
33
Endowment Balance
4,034,917
4,761,550
5,260,388
4,558,797
3,957,269
3,271,229
2,582,041
2,045,179
1,543,320
1,034,872
603,889
173,251
(379,980)
(632,522)
(704,973)
(781,873)
(790,309)
(841,410)
(931,141)
(945,569)
(1,045,442)
(1,106,576)
(1,178,094)
(1,295,348)
34
35
Revenues
36
Prior Fund Balance
847,271
852,973
119,286
37 Advance Payment of Operating Expenses
(100,000)
38
Grant Funds:
39
CMAQ - Phase I Operations
1,450,000
664,322
40
CMAQ - Streetcar Events Management
22,000
41
CMAQ - Phase II Operations
42
State Service Development (Marketing)
25,000
25000
43
1 Section 5307 Federal Formula Grant - Capitalized Maintenance
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
44
100,000
100,000
100,000
1 State Block Grant - Operations
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
45
Other Revenues:
46
Farebox - Phase I
$ 408,082 $ 448,088 $ 430,000 $ 536,444 $ 587,483 $ 605,107 $ 700,412 $ 721,424 $ 772,949 $
852,162 $
877,727 $
904,058 $
990,496 $ 1,020,211 $ 1,050,818 $ 1,145,315 $ 1,214,034 $ 1,250,455 $ 1,356,928 $ 1,397,636 $ 1,439,565 $ 1,556,276 $ 1,602,964
47
Farebox - Phase IIa
0
0
0
0
0
0
122,531
127,432
137,859
151,987
156,546
161,243
176,659
181,959
187,418
204,272
210,400
216,712
235,164
242,219
249,486
269,712
277,804
50
5.4% Special Assessment
337,620
319,126
300,000
360,000
429,000
502,000
579,000
670,000
706,000
740,000
772,000
802,000
829,000
853,000
878,000
903,000
929,000
956,000
984,000
1,012,000
1,041,000
1,071,000
1,102,000
51
Port of Tampa Contribution
200,000
200,000
150,000
150,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
52
1.03 Sales of Int. Adverts., Merchandise & Spec. Service
15,000
25,342
15,000
45,000
61,350
78,191
80,536
82,952
85,441
88,004
90,644
93,364
96,164
99,049
102,021
105,081
108,234
111,481
114,825
118,270
121,818
125,473
129,237
53
Interest
11,816
10,000
9,000
54
58,000
54,500
55
Inkind Advertising
25,000
25,000
56
Joint Development - Ybor Station
0
0
0
0
0
0
0
0
0
0
0
0
57
Total Revenue
3,057,973
2,721,667
1,279,286
1,479,944
1,527,833
1,610,298
1,907,478
2,001,808
2,102,248
2,232,152
2,296,917
2,360,664
2,492,320
2,554,219
2,618,256
2,757,668
2,861,667
2,934,647
3,090,918
3,170,125
3,251,869
3,422,461
3,512,005
58
59 OPERATING SCENARIO: Phase IIa to Whiting, existing base service with 4 vehicles and capital improvements to improve operations
60
Operating Expenses
61
1.05 HART Operations - Phase I Only
1,884,000
1,436,545
1,544,700
1,581,600
1,644,300
1,726,515
1,812,841
1,903,483
1,998,657
2,098,590
2,203,519
2,313,695
2,429,380
2,550,849
2,678,391
2,812,311
2,952,927
3,100,573
3,255,602
3,418,382
3,589,301
3,768,766
3,957,204
62
1 HART Operations - Capitalized Maint. Charged to Fed. Grant
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
63
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
1 HART Operations - Charged to State Block Grant
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
64
1.05 HART Operations - Anticipated Extra Service (funded by CMAQ)
5,000
22,000
10,000
10,500
11,025
11,576
12,155
12,763
13,401
14,071
14,775
15,513
16,289
17,103
17,959
18,856
19,799
20,789
21,829
22,920
24,066
25,270
65
1.05 HART Operations - Purchased Service
4,362
15,000
15,750
16,538
17,364
18,233
19,144
20,101
21,107
22,162
23,270
24,433
25,655
26,938
28,285
29,699
31,184
32,743
34,380
36,099
37,904
66
1.05 HART Operations - Phase I Commuter Service (Not Included in Scenario)
67
1.05 HART Operations - Add in Phase IIa
65,000
68,250
71,663
75,246
79,008
82,958
87,106
91,462
96,035
100,836
105,878
111,172
116,731
122,567
128,696
135,130
141,887
70
69,556
71,643
73,792
76,006
78,286
80,635
83,054
85,546
88,112
90,755
93,478
96,282
99,171
102,146
105,210
1.03 Marketing (Revenue Development) Program\
20,000
58,100
61,800
63,654
65,564
67,531
71
1.03 CSX Interlock Flagman (& Insur thru 2004)
250,000
874,125
220,000
72
1.03 CSX Interlock Insurance (FY 2005 and beyond)
373,000
369,000
380,070
391,472
403,216
415,313
427,772
440,605
453,823
467,438
481,461
495,905
510,782
526,106
541,889
558,146
574,890
592,137
609,901
628,198
647,044
73
1.03 Board
71,000
82,349
104,300
86,300
88,889
91,556
94,302
97,131
100,045
103,047
106,138
109,322
112,602
115,980
119,459
123,043
126,734
130,536
134,453
138,486
142,641
146,920
151,328
74
1 Operating Contingencies
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
75
Total Expenses
2,205,000
2,602,381
2,484,000
2,420,000
2,551,309
2,650,759
2,819,864
2,932,095
3,049,600
3,172,633
3,301,459
3,436,357
3,577,619
3,725,553
3,880,480
4,042,738
4,212,681
4,390,681
4,577,126
4,772,426
4,977,009
5,191,325
5,415,846
76
77
Ending Fund Balance (Annual)
852,973
119,286
(1,204,714)
(940,056) (1,023,476) (1,040,461)
(912,385)
(930,287)
(947,352)
(940,481)
(1,004,542)
(1,075,692)
(1,085,299)
(1,171,334)
(1,262,224)
(1,285,071)
(1,351,014)
(1,456,033)
(1,486,208)
(1,602,300)
(1,725,140)
(1,768,864)
(1,903,842)
78
79
ANNUAL SURPLUS/ (SHORTFALL)
603,889
173,251
(379,980)
(632,522)
(704,973)
(781,873)
(790,309)
(841,410)
(931,141)
(945,569)
(1,045,442)
(1,106,576)
(1,178,094)
(1,295,348)
80
Legend
81
Subject to Approval of THS or Others
82
Renewal of Existing Naming Right
83
Phase IIa Extension to Whiting Street
84
Key Assumption
85
DRAFT December 2005
DRAFT
TECO Line
Streetcar
Business Plan
Worst Case Scenario
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z
1
Actual
Rev Budget
2 Escalator
Year
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
5
Ridership
6
420,000
425,614
434,498
394,437
402,326
410,373
401,314
409,340
417,527
410,262
418,467
426,836
421,006
429,426
438,014
433,371
459,374
468,561
464,789
474,085
483,567
480,717
490,332
7
73,000
75,920
78,957
77,583
79,135
80,717
79,615
81,207
82,831
81,953
83,592
85,264
84,578
86,269
87,995
87,476
89,226
10
420,000
425,614
434,498
394,437
402,326
410,373
474,314
485,260
496,483
487,845
497,602
507,554
500,620
510,633
520,845
515,324
542,966
553,825
549,367
560,354
571,561
568,193
579,557
11
Cash Fare
$1.25
$1.50
$1.50
$2.00
$2.00
$2.00
$2.25
$2.25
$2.25
$2.50
$2.50
$2.50
$2.75
$2.75
$2.75
$3.00
$3.00
$3.00
$3.25
$3.25
$3.25
$3.50
$3.50
12
$0.97
$1.05
$1.02
$1.35
$1.43
$1.43
$1.68
$1.68
$1.75
$1.94
$1.94
$1.94
$2.13
$2.13
$2.13
$2.33
$2.33
$2.33
$2.52
$2.52
$2.52
$2.72
$2.72
13
14
Cumulative
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Endowment
15
Balance Forward
4,005,000
4,034,917
4,761,550
5,260,388
4,453,590
3,751,469
2,908,699
1,938,132
1,020,065
83,952
16
Prepaid Items
100,000
17
TECO
800,000
200,000
18
Time Warner (car)
250,000
15,000
15,000
19
100,000
15,000
15,000
20
Suntrust (car)
150,000
50,000
28,000
21
33,333
66,667
15,000
15,000
22
25,000
12,500
23
87,500
49,500
54,450
59,895
65,885
72477
24
35,000
35,000
70,000
70,000
105,000
105,000
140,000
140,000
175,000
175,000
210,000
210,000
245,000
245,000
280,000
288,400
297,052
305,964
315,142
324,597
25
60,000
60,000
90,000
92,700
95,481
98,345
101,296
104,335
107,465
110,689
114,009
117,430
30,000
30,000
30,000
30,000
30,000
60,000
60,000
60,000
27
20,000
20,600
21,218
21,855
22,510
23,185
23,881
24,597
25,335
26,095
26,878
27,685
28,515
29,371
30,252
31,159
32,094
33,057
28
30,000
30,900
31,827
32,782
33,765
34,778
35,822
36,896
38,003
39,143
40,317
41,527
42,773
44,056
29 Actual
(1,228,416)
482,466
470,838
30
210,416
178,144
150,059
116,348
77,525
40,803
3,358
31
(1,204,714)
(945,265) (1,057,828) (1,206,915) (1,116,192) (1,182,634) (1,193,299)
(1,181,210)
(1,268,468)
(1,361,339)
(1,395,131)
(1,496,813)
(1,604,975)
(1,652,981)
(1,731,423)
(1,856,895)
(1,918,797)
(2,056,943)
(2,202,713)
(2,284,639)
(2,446,532)
32
33
Endowment Balance
4,034,917
4,761,550
5,260,388
4,453,590
3,751,469
2,908,699
1,938,132
1,020,065
83,952
(864,685)
(868,805)
(903,497)
(998,154)
(1,102,751)
(1,137,713)
(1,241,402)
(1,249,801)
(1,323,497)
(1,409,081)
(1,457,549)
(1,581,857)
(1,668,375)
(1,780,620)
(1,927,392)
34
35
Revenues
36
Prior Fund Balance
847,271
852,973
119,286
(100,000)
38
Grant Funds:
39
1,450,000
664,322
40
22,000
41
42
25,000
25000
43
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
44
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
45
Other Revenues:
46
Farebox - Phase I
$ 408,082 $ 448,088 $ 430,000 $ 531,235 $ 576,131 $ 587,653 $ 673,605 $ 687,077 $ 729,002 $
795,908 $
811,826 $
828,062 $
898,426 $
916,395 $
934,723 $ 1,008,888 $ 1,069,422 $ 1,090,810 $ 1,172,198 $ 1,195,642 $ 1,219,555 $ 1,305,628 $ 1,331,741
47
Farebox - Phase IIa
0
0
0
0
0
0
122,531
127,432
137,859
150,511
153,521
156,592
169,898
173,296
176,762
190,787
194,603
198,495
213,305
217,571
221,922
237,585
242,337
50
337,620
319,126
300,000
360,000
406,000
453,000
502,000
552,000
604,000
657,000
677,000
697,000
718,000
740,000
762,000
785,000
809,000
833,000
858,000
884,000
911,000
938,000
966,000
51
200,000
200,000
150,000
150,000
52
15,000
25,342
15,000
45,000
61,350
78,191
80,536
82,952
85,441
88,004
90,644
93,364
96,164
99,049
102,021
105,081
108,234
111,481
114,825
118,270
121,818
125,473
129,237
53
Interest
11,816
10,000
9,000
54
58,000
54,500
55
Inkind Advertising
25,000
25,000
56
0
0
0
0
0
0
0
0
0
0
0
0
57
Total Revenue
3,057,973
2,721,667
1,279,286
1,474,735
1,493,481
1,443,844
1,703,672
1,749,461
1,856,301
1,991,423
2,032,991
2,075,017
2,182,488
2,228,740
2,275,505
2,389,757
2,481,258
2,533,786
2,658,329
2,715,483
2,774,296
2,906,686
2,969,315
58
60
Operating Expenses
61
1,884,000
1,436,545
1,544,700
1,581,600
1,644,300
1,726,515
1,812,841
1,903,483
1,998,657
2,098,590
2,203,519
2,313,695
2,429,380
2,550,849
2,678,391
2,812,311
2,952,927
3,100,573
3,255,602
3,418,382
3,589,301
3,768,766
3,957,204
62
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
63
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
64
5,000
22,000
10,000
10,500
11,025
11,576
12,155
12,763
13,401
14,071
14,775
15,513
16,289
17,103
17,959
18,856
19,799
20,789
21,829
22,920
24,066
25,270
65
4,362
15,000
15,750
16,538
17,364
18,233
19,144
20,101
21,107
22,162
23,270
24,433
25,655
26,938
28,285
29,699
31,184
32,743
34,380
36,099
37,904
66
67
65,000
68,250
71,663
75,246
79,008
82,958
87,106
91,462
96,035
100,836
105,878
111,172
116,731
122,567
128,696
135,130
141,887
70
69,556
71,643
73,792
76,006
78,286
80,635
83,054
85,546
88,112
90,755
93,478
96,282
99,171
102,146
105,210
20,000
58,100
61,800
63,654
65,564
67,531
71
250,000
874,125
220,000
72
373,000
369,000
380,070
391,472
403,216
415,313
427,772
440,605
453,823
467,438
481,461
495,905
510,782
526,106
541,889
558,146
574,890
592,137
609,901
628,198
647,044
73
1.03 Board
71,000
82,349
104,300
86,300
88,889
91,556
94,302
97,131
100,045
103,047
106,138
109,322
112,602
115,980
119,459
123,043
126,734
130,536
134,453
138,486
142,641
146,920
151,328
74
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
75
Total Expenses
2,205,000
2,602,381
2,484,000
2,420,000
2,551,309
2,650,759
2,819,864
2,932,095
3,049,600
3,172,633
3,301,459
3,436,357
3,577,619
3,725,553
3,880,480
4,042,738
4,212,681
4,390,681
4,577,126
4,772,426
4,977,009
5,191,325
5,415,846
76
77
852,973
119,286
(1,204,714)
(945,265) (1,057,828) (1,206,915) (1,116,192) (1,182,634) (1,193,299)
(1,181,210)
(1,268,468)
(1,361,339)
(1,395,131)
(1,496,813)
(1,604,975)
(1,652,981)
(1,731,423)
(1,856,895)
(1,918,797)
(2,056,943)
(2,202,713)
(2,284,639)
(2,446,532)
78
79
1,020,065
83,952
(864,685)
(868,805)
(903,497)
(998,154)
(1,102,751)
(1,137,713)
(1,241,402)
(1,249,801)
(1,323,497)
(1,409,081)
(1,457,549)
(1,581,857)
(1,668,375)
(1,780,620)
(1,927,392)
80
Legend
81
82
83
84
Key Assumption
85
DRAFT December 2005
DRAFT
TECO Line
Streetcar
Business Plan
Best Case Scenario
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z
1
Actual
Rev Budget
2 Escalator
Year
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
5
Ridership
6
420,000
425,614
434,498
402,171
418,258
434,989
433,727
451,076
469,119
469,995
488,795
508,346
511,234
531,683
552,951
557,817
591,286
614,937
621,947
646,825
672,698
681,847
709,121
7
73,000
75,920
78,957
79,104
82,268
85,559
86,045
89,487
93,066
93,885
97,641
101,546
102,704
106,812
111,085
112,595
117,099
10
420,000
425,614
434,498
402,171
418,258
434,989
506,727
526,996
548,076
549,099
571,063
593,906
597,279
621,170
646,017
651,702
688,926
716,483
724,651
753,637
783,783
794,442
826,220
11
Cash Fare
$1.25
$1.50
$1.50
$2.00
$2.00
$2.00
$2.25
$2.25
$2.25
$2.50
$2.50
$2.50
$2.75
$2.75
$2.75
$3.00
$3.00
$3.00
$3.25
$3.25
$3.25
$3.50
$3.50
12
$0.97
$1.05
$1.02
$1.35
$1.43
$1.43
$1.68
$1.68
$1.75
$1.94
$1.94
$1.94
$2.13
$2.13
$2.13
$2.33
$2.33
$2.33
$2.52
$2.52
$2.52
$2.72
$2.72
13
14
Cumulative
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Endowment
15
Balance Forward
4,005,000
4,034,917
4,761,550
5,260,388
4,664,005
4,202,277
3,786,446
3,572,697
3,527,026
3,486,208
3,460,588
3,507,722
3,572,836
3,557,093
3,492,201
3,370,126
3,182,875
3,004,999
2,779,230
2,472,765
2,167,750
1,769,580
1,311,084
794,344
16
Prepaid Items
100,000
17
TECO
800,000
200,000
18
Time Warner (car)
250,000
15,000
15,000
19
100,000
15,000
15,000
20
Suntrust (car)
150,000
50,000
28,000
21
33,333
66,667
15,000
15,000
22
25,000
12,500
23
87,500
49,500
54,450
59,895
65,885
72477
24
70,000
140,000
210,000
280,000
288,400
297,052
305,964
315,142
324,597
334,335
344,365
354,696
365,336
376,297
387,585
399,213
411,189
423,525
436,231
449,318
25
107,465
110,689
114,009
117,430
120,952
124,581
128,318
132,168
136,133
140,217
144,424
148,756
30,000
60,000
90,000
92,700
95,481
98,345
101,296
104,335
27
20,000
20,600
21,218
21,855
22,510
23,185
23,881
24,597
25,335
26,095
26,878
27,685
28,515
29,371
30,252
31,159
32,094
33,057
28
30,000
30,900
31,827
32,782
33,765
34,778
35,822
36,896
38,003
39,143
40,317
41,527
42,773
44,056
29 Actual
(1,228,416)
482,466
470,838
30
420,831
373,120
336,182
302,916
285,816
282,162
278,897
276,847
280,618
285,827
284,567
279,376
269,610
254,630
240,400
222,338
197,821
173,420
141,566
104,887
63,548
31
(1,204,714)
(934,848)
(952,013)
(836,665)
(724,786)
(777,580)
(776,219)
(749,377)
(799,952)
(861,816)
(851,861)
(918,927)
(989,859)
(981,495)
(1,031,627)
(1,111,227)
(1,102,730)
(1,189,483)
(1,281,491)
(1,277,147)
(1,376,596)
32
33
Endowment Balance
4,034,917
4,761,550
5,260,388
4,664,005
4,202,277
3,786,446
3,572,697
3,527,026
3,486,208
3,460,588
3,507,722
3,572,836
3,557,093
3,492,201
3,370,126
3,182,875
3,004,999
2,779,230
2,472,765
2,167,750
1,769,580
1,311,084
794,344
156,483
34
35
Revenues
36
Prior Fund Balance
847,271
852,973
119,286
(100,000)
38
Grant Funds:
39
1,450,000
664,322
40
22,000
41
42
25,000
25000
43
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
44
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
45
Other Revenues:
46
Farebox - Phase I
$ 408,082 $ 448,088 $ 430,000 $ 541,652 $ 598,946 $ 622,904 $ 728,011 $ 757,131 $ 819,082 $
911,790 $
948,262 $
986,192 $ 1,090,973 $ 1,134,612 $ 1,179,996 $ 1,298,597 $ 1,376,513 $ 1,431,573 $ 1,568,551 $ 1,631,293 $ 1,696,545 $ 1,851,896 $ 1,925,972
47
Farebox - Phase IIa
0
0
0
0
0
0
122,531
127,432
137,859
153,462
159,601
165,985
183,620
190,965
198,604
218,565
227,308
236,400
259,019
269,380
280,155
305,809
318,041
50
337,620
319,126
300,000
360,000
489,000
638,000
689,000
737,000
781,000
820,000
853,000
879,000
905,000
932,000
960,000
989,000
1,019,000
1,050,000
1,082,000
1,114,000
1,147,000
1,181,000
1,216,000
51
200,000
200,000
150,000
150,000
150,000
150,000
150,000
150,000
150,000
150,000
150,000
150,000
150,000
150,000
150,000
150,000
150,000
150,000
150,000
150,000
150,000
150,000
52
15,000
25,342
15,000
45,000
61,350
78,191
80,536
82,952
85,441
88,004
90,644
93,364
96,164
99,049
102,021
105,081
108,234
111,481
114,825
118,270
121,818
125,473
129,237
53
Interest
11,816
10,000
9,000
54
58,000
54,500
55
Inkind Advertising
25,000
25,000
56
0
0
0
0
0
0
0
0
0
0
0
0
57
Total Revenue
3,057,973
2,721,667
1,279,286
1,485,152
1,599,296
1,814,094
2,095,078
2,154,515
2,273,382
2,423,256
2,501,506
2,574,540
2,725,758
2,806,626
2,890,621
3,061,243
3,181,054
3,279,454
3,474,396
3,582,943
3,695,518
3,914,178
4,039,250
58
60
Operating Expenses
61
1,884,000
1,436,545
1,544,700
1,581,600
1,644,300
1,726,515
1,812,841
1,903,483
1,998,657
2,098,590
2,203,519
2,313,695
2,429,380
2,550,849
2,678,391
2,812,311
2,952,927
3,100,573
3,255,602
3,418,382
3,589,301
3,768,766
3,957,204
62
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
63
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
64
5,000
22,000
10,000
10,500
11,025
11,576
12,155
12,763
13,401
14,071
14,775
15,513
16,289
17,103
17,959
18,856
19,799
20,789
21,829
22,920
24,066
25,270
65
4,362
15,000
15,750
16,538
17,364
18,233
19,144
20,101
21,107
22,162
23,270
24,433
25,655
26,938
28,285
29,699
31,184
32,743
34,380
36,099
37,904
66
67
65,000
68,250
71,663
75,246
79,008
82,958
87,106
91,462
96,035
100,836
105,878
111,172
116,731
122,567
128,696
135,130
141,887
70
69,556
71,643
73,792
76,006
78,286
80,635
83,054
85,546
88,112
90,755
93,478
96,282
99,171
102,146
105,210
20,000
58,100
61,800
63,654
65,564
67,531
71
250,000
874,125
220,000
72
373,000
369,000
380,070
391,472
403,216
415,313
427,772
440,605
453,823
467,438
481,461
495,905
510,782
526,106
541,889
558,146
574,890
592,137
609,901
628,198
647,044
73
1.03 Board
71,000
82,349
104,300
86,300
88,889
91,556
94,302
97,131
100,045
103,047
106,138
109,322
112,602
115,980
119,459
123,043
126,734
130,536
134,453
138,486
142,641
146,920
151,328
74
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
75
Total Expenses
2,205,000
2,602,381
2,484,000
2,420,000
2,551,309
2,650,759
2,819,864
2,932,095
3,049,600
3,172,633
3,301,459
3,436,357
3,577,619
3,725,553
3,880,480
4,042,738
4,212,681
4,390,681
4,577,126
4,772,426
4,977,009
5,191,325
5,415,846
76
77
852,973
119,286
(1,204,714)
(934,848)
(952,013)
(836,665)
(724,786)
(777,580)
(776,219)
(749,377)
(799,952)
(861,816)
(851,861)
(918,927)
(989,859)
(981,495)
(1,031,627)
(1,111,227)
(1,102,730)
(1,189,483)
(1,281,491)
(1,277,147)
(1,376,596)
78
79
794,344
156,483
80
Legend
81
82
83
84
Key Assumption
85
DRAFT December 2005
Exhibit 4
Federal Transit Administration (FTA) and Florida Department of Transportation
(FDOT) Requirements If the Streetcar System is Moth-Balled.
Since the vast majority of the streetcar system’s construction was funded by federal and
state grants, the use of grant funded vehicles, equipment, and other property is subject to
FTA and FDOT requirements.
There are no specific provisions for “moth-balling” grant-funded transit assets. However,
there are requirements if a grantee removes a vehicle from service before the end of its
service life.
At a minimum, if service were discontinued, HART would be responsible for securing
and maintaining the streetcar equipment and facilities in operable condition. This could
cost several hundred thousand dollars per year.
Certain streetcar assets were purchased with federal and state funds. These include the
fleet of streetcars, the Ybor Station streetcar building (but not the land which is leased
from the City of Tampa), and the Southern Transportation Plaza. The City owns the
remaining assets such as the tracks, overhead catenary, and the signal equipment. If by
mutual agreement the streetcar ceased operations altogether, HART would likely put the
vehicles up for sale and return the federal share of their remaining value to the Federal
Transit Administration (FTA).
FTA Requirements
However, FTA defines a minimum normal service life of 25 years for rail vehicles. If a
grantee removes a vehicle from service before the expiration of its service life, then the
grantee is legally obligated to FTA for an amount equal to the federal share of the
vehicle’s remaining value. The value is determined by straight-line depreciation. See
Exhibit 4-A, which is an excerpt from FTA’s Grant Management Guidelines.
Real property, improvements and equipment funded by grants would also need to go
through a disposition process if they were no longer needed for their original purpose.
For example, with FTA’s approval, real property could be used for other transit or other
federal grant program purposes. It also could be competitively sold and the proceeds
used to reimburse FTA its share of the fair market value, net of reasonable sales costs.
Exhibit 4-B explains this in more detail.
FDOT Requirements
FDOT has stated that they have essentially the same requirements as FTA.
Exhibit 4-A
Federal Transit Administration
http:fta.dot.gov/337_1052_ENG_Printable.htm
3. Contingency Fleet. Buses may be placed in an inactive contingency fleet -- stockpiled -- in
preparation for emergencies. No bus may be stockpiled before the vehicle has reached the end of
its minimum normal service life. Buses held in a contingency fleet must be properly stored,
maintained, and documented in a contingency plan, updated as necessary, to support the
continuation of a contingency fleet. A contingency plan is not an application requirement,
although FTA may request information about the contingency fleet during application review.
Contingency plans are subject to review during triennial reviews required for the Urbanized Area
Formula Program. Any rolling stock not supported by a contingency plan will be considered part
of the active fleet. Since vehicles in the contingency fleet are not part of the active fleet, they do
not count in the calculation of spare ratio.
d. Requirements for Fixed Guideway Rolling Stock.
1. Service Life. In the case of rail vehicles acquired with FTA assistance, FTA has
established a minimum normal service life of 25 years. Service life of rolling stock
begins on the date the vehicle is placed in revenue service and continues until it
is removed from service. The service life in years refers to total time in normal
transit service, not time spent stockpiled or otherwise unavailable for regular
transit use. A grantee that regularly measures lifespan by hours of operations, or
by any other measure, may develop an appropriate methodology for converting
its system to years of service. The reasonableness of such methodologies will be
subject to examination, particularly if the grantee proposes to retire a vehicle
before FTA's service life requirement has expired.
When a grantee removes a vehicle financed by FTA from service before
expiration of its minimum normal service life--except for reasons of fire, collision,
or natural disaster-- the grantee is legally obligated to FTA for an amount equal
to the Federal share of the vehicle's remaining value, as explained further below.
The value of a vehicle prior to the end of its minimum normal service life is
calculated on the basis of straight-line depreciation.
2. Replacement. (Also see Chapter II of this circular on Equipment Disposition.)
a. Replacement at End of Minimum Normal Service Life. Before a grantee
may replace an old rail vehicle with a new rail vehicle, the old vehicle
must have reached or exceeded its 25-year minimum normal service life.
For purposes of a rail vehicle replacement project, the age of the vehicle
to be replaced is its age at the time the new vehicle is introduced into
service. FTA's 25-year service life requirement is a minimum standard.
b. Early Disposition. If a vehicle is replaced before the end of its minimum
normal service life, the grant applicant has the option of returning to FTA
an amount equal to the remaining Federal interest in the vehicle or using
FTA's "Like Kind Exchange" policy and putting an amount equal to the
remaining Federal interest in the vehicle into a newly purchased vehicle.
To determine the Federal interest remaining in a federally financed rail
vehicle, one must first calculate the total value remaining in the vehicle
using the straight-line depreciation method. Based on straight-line
depreciation, the value of a rail vehicle with a 25-year minimum normal
service life decreases by 1/25 of the purchase price for each year the
vehicle has been in transit service. Thus, a rail vehicle in service for 20
years has a total remaining value of 5/25 or 1/5 of the original purchase
price. Having calculated the total remaining value, one then multiplies
that figure by the percentage of Federal assistance that was provided to
purchase the vehicle. The product of this multiplication represents the
Federal interest remaining in the vehicle.
c.
Use of Like-Kind Exchange. A vehicle may be traded-in or sold before
the end of its minimum normal service life, if a grantee so chooses.
Moreover, a grantee may elect to use the trade-in value or the sales
proceeds from the vehicle to acquire a replacement vehicle of like kind.
"Like-Kind" means a bus for a bus with a similar service life and a rail
vehicle for a rail vehicle. Under the Like-Kind Exchange policy, proceeds
from the vehicle sales are not returned to the FTA; instead, all proceeds
must be invested in acquisition of the like-kind replacement vehicles. If
sales proceeds are less than the amount of the Federal interest in the
vehicle to be replaced, the grantee is responsible for providing the
difference, along with the grantee's local share of the cost of the
replacement vehicle. If sales proceeds are equal to or greater than the
amount of the Federal interest, all the proceeds also must be used to
purchase the like-kind replacement vehicle, and the reinvestment
amounts to a lowering of the gross project cost. Grant applicants
interested in buying a replacement vehicle before the end of the
minimum normal service life of the vehicle to be replaced should refer to
the FTA Federal Register Notice, "Change in Policy on Sale and
Replacement of Transit Vehicles," 57 Fed. Reg., 39328, August 28,
1992.
d. Rebuilding. Any rail vehicle that will be rebuilt must have an accumulated
service life of at least 12 years (mid-life rebuild) or must have reached
the end of its minimum normal service life (end-of-life rebuild). The
eligibility of this major capital rail rebuild work is in addition to the
eligibility for vehicle overhauls (paragraph c below). The rebuilding is
also eligible as preventive maintenance.
e. Spare Ratio. Because rail transit operations tend to be highly
individualized, FTA has not established a specific number to serve as an
acceptable spare ratio for rail transit operations. Nevertheless, rail
operators should be aware that the grant applicant's rail vehicle spare
ratio and the rationale underlying that spare ratio will be examined as
part of the grant application review whenever FTA assistance is
requested to purchase rail vehicles, and during the triennial review. A
fleet status report must be submitted with any grant application for
assistance to acquire rolling stock. As in the calculation of spare ratio for
bus fleets, scheduled standby fixed guideway vehicles are permitted to
be included as "vehicles operated in maximum service."
The following guidance should be used to support an operator's
proposed spare ratio when the spare ratio is under review by FTA:
1. An operator of a rail system must have in its file available upon
request by FTA a fleet management plan that addresses
operating policies (level of service requirements, train failure
definitions and actions); peak vehicle requirements (service
period and make-up, e.g., standby trains); maintenance and
overhaul program (schedules, unscheduled, and overhaul);
system and service expansions; rail car procurements and
related schedules; and spare ratio justification.
2. Spare ratio justification should consider: average number of cars
out of service for scheduled maintenance, unscheduled
maintenance and overhaul program; allowance for ridership
variation (historical data); ridership changes that affect car
needs caused by expansion of system or services; contingency
for destroyed cars; and car procurements for replacements and
system expansions.
3. Cars delivered for future expansion and cars that have been
replaced, but are in the process of being disposed of, should be
identified and separated from other spares because they unfairly
inflate the spare ratio.
4. Peak Vehicle Requirement includes "standby" trains that are
scheduled, ready for service, and have a designated crew.
5. Factors that may influence spare ratio are: equipment make-up
(locomotive hauled trains; married pair units or single cars;
equipment design, reliability and age); environmental conditions
(weather, above ground or underground operation, loading and
track layout); operational policies (standby trains, load factors,
headways); maintenance policies (conditions for removing cars
from service, maintenance during nights and weekends, and
labor agreement conditions; and maintenance facilities and staff
capabilities.
Exhibit 4-B
b. Incidental use of project real property is subject to the following considerations.
1. Needed Property. This policy applies only to property that continues to
be needed and used for an FTA project or program. It is FTA's intention
to assist only in the purchase of property that is needed for an FTA
project.
2. Purpose & Activity. The incidental use must not compromise the safe
conduct of the intended purpose and activity of the initial mass transit
project activity.
3. Continuing Control. Incidental use must not in any way interfere with the
grantee's continuing control over the use of the property or its continued
ability to carry out the project or program.
4. Non-Profit Use. While FTA is particularly interested in encouraging
incidental use as a means of supplementing transit revenues, non-profit
uses are also permitted.
5. Air Rights Income. Proceeds from licensing and leasing of air rights
should reflect appraised fair market value. Income received from the
authorized use of air rights may be retained by the grantees (without
returning the Federal share) if the income is used for eligible transit
planning, capital and operating expenses. This income cannot be used
as part of the local share of the grant from which it was derived.
However, it may be used as part of the local share of another FTA grant.
c. Disposition.
1. Excess Real Property Inventory and Utilization Plan. The grantee should
prepare and keep up to date an excess property utilization plan for all
property that is no longer needed to carry out the originally intended
purpose. Grantees are also required to notify FTA when property is
removed from the service originally intended at grant approval and put to
additional or substitute uses.
The grantee's plan should identify and explain the reason for excess
property. Such reasons may include one or more of the following.
a. The parcel, when purchased, exceeded the grantee's need
(uneconomic remnant, purchased to logical boundary, part of
administrative settlement, etc.);
b. The property was purchased for construction staging purposes
such as access, storage or underpinning, and construction is
completed;
c. The intended use of the parcel is no longer possible because of
system changes, such as alignment, or amendments to the
project grant agreement;
d. Improvements to real property were damaged or destroyed, and
therefore the property is not being used for project purposes, but
it is still be needed for the project. If so, the improvements may
be renovated or replaced. In this case, applicable cost principles
must be observed; or
e. A portion of the parcel remains unused, will not be used for
project purposes in the foreseeable future, and can be sold or
otherwise disposed.
The inventory list should include such things as property location;
summary of any conditions on the title, original acquisition cost and the
-83-
Federal participation ratio; FTA grant number, appraised value and date;
a brief description of improvements; current use of the property; and the
anticipated disposition or action proposed.
Unless FTA and the grantee agree otherwise, the excess real property
inventory and updated excess property utilization plan is to be retained
by the grantee, available upon FTA request and during the Triennial
Review process.
2. Disposition Alternatives. If the grantee determines that real property is no
longer needed for the approved project, FTA may approve use of the
property for other purposes. This may include use in other Federal grant
programs or in non-Federal programs that have consistent purposes with
those authorized for support by FTA.
In those situations where a grantee or subgrantee is disposing of real
property acquired with grant funds and acquiring replacement real
property under the same program, FTA may permit the net proceeds
from the disposition to be used as an offset to the cost of the
replacement property.
When real property is no longer needed for the originally authorized
purpose, the grantee will request disposition instructions from FTA.
Following are the allowable alternative disposition methods.
a. Sell and Reimburse FTA. Competitively market and sell the
property and pay FTA its share of the fair market value of the
property. This is the percentage of FTA participation in the
original grant times the best obtainable price, net of reasonable
sales costs.
b. Offset. Sell property and apply the net proceeds from the sale to
the cost of replacement property under the same program.
Return any excess proceeds to FTA. [Common Rule CFR49 part
18.31]
c. Sell and Use Proceeds for Other Capital Projects. Sell property
and use the proceeds to reduce the gross project cost of another
FTA eligible capital transit project. [49 U.S.C., 5334(g)(4)]. The
grantee is expected to record the receipt of the proceeds in the
grantee's accounting system, showing that the funds are
restricted for use in a subsequent capital project, and reduce the
liabilitiy as the proceeds are applied to one or more FTA
approved capital projects. The subsequent capital grant
application should contain information showing FTA that the
gross project cost has been reduced with proceeds from the
earlier transaction.
d. Sell and Keep Proceeds in Open Project. If the grant is still open,
the grantee may sell excess property and apply the proceeds to
the original cost of the total real property purchased for that
project.
e. Transfer to Public Agency for Non-Transit Use. Follow
procedures for publication in Federal Register to transfer
property (land or equipment) to public agency with no repayment
to FTA. This is a competitive process and there is no guarantee
-84-
that a particular public agency will be awarded the excess
property. [49 U.S.C., 5334(g)(1)]
f. Transfer to Other Project. Transfer property to another FTA
eligible project. The Federal interest continues.
g. Retain Title With Buyout. Compensate FTA by computing
percentage of FTA participation in the original cost. Multiply the
current fair market value of the property by this percentage. The
grantee must document the basis for value determination;
typically this is an appraisal or market survey.
Sales procedures shall be followed that provide for competition
to the extent practicable and result in the highest possible return
or at least payment of appraised fair market value.
h. Joint Development. A transfer meeting the three tests for joint
development is not a disposition and the proceeds are deemed
program income.
[See Joint Development Appendix at end of this
circular for more detailed information. Also see
FTA Circular 9300.1A, Capital Program: Grant
Application Instructions, Appendix B]
3. EQUIPMENT. Certain equipment management standards apply to equipment purchased
with Federal funds. Following are guidelines for the acquisition, use and disposition of
equipment.
a. State recipients. A State will use, manage, and dispose of equipment acquired
under a grant by the State in accordance with State laws and procedures. [49
CFR, part 18.32(b)]
b. Title. Subject to the obligations and conditions set forth in this section, title to
equipment acquired under a grant or subgrant will vest upon acquisition in the
grantee, subgrantee or another participating public body.
c. Use of Equipment.
1. Equipment is to be used by the grantee in the programs or project for
which it was acquired as long as needed, whether or not the program or
project continues to be supported by Federal funds. When need no
longer exists, see disposition guidelines.
2. The grantee may make equipment available for use on other projects or
programs currently or previously supported by the Federal Government,
providing such use will not interfere with the work on the project or
program for which it was originally acquired. FTA reserves the right in the
grant agreement to require the grantee,with FTA approval,to transfer title
to equipment no longer needed or used for the purposes of the grant (or
program) to the Federal Government or an otherwise eligible grantee.
(49 CFR.18.32)
3. The grantee must not use equipment acquired with grant funds to
provide services to compete unfairly with private companies that provide
equivalent services. Non-transit use of FTA financially assisted
equipment is acceptable so long as it is incidental, does not interfere with
transit use (i.e., transit has priority), and income generated is retained by
the grantee for transit use.
-85-
d. Leasing Agreement. The grantee may enter into a contract for leasing its project
equipment and facilities to a private operator (the lessee). Under this
arrangement the grantee (the lessor) should include the following provisions in
the proposed lease agreement:
1. The project equipment shall be operated by the lessee to serve the best
interest and welfare of the project sponsor lessor and the public. The
terms and conditions for operation of service imposed by the grantee
shall be evidenced in a service agreement.
2. The lessee shall maintain project equipment at a high level of
cleanliness, safety, and mechanical soundness under maintenance
procedures outlined by the project sponsor. The project sponsor lessor
and/or FTA shall have the right to conduct periodic maintenance
inspections for the purpose of confirming the existence, condition, and
the proper maintenance of the project equipment.
3. The lease needs to cross reference a service agreement. A default under
the lease is a default under the service agreement and vice versa.
e. Management. Equipment management procedures include the following
minimum requirements:
1. Rail systems are required to submit a fleet management plan that
addresses operating policies (level of service requirements, train failure
definitions and actions); peak vehicle requirements (service period and
make-up, e.g. standby trains); maintenance and overhaul program
(scheduled, unscheduled, and overhaul); system and service
expansions; rail car procurements and related schedules; and spare ratio
justification.
2. Property records must be maintained by the grantee. Records must
include a description, identification number, procurement source,
acquisition date, cost, percentage of Federal participation in the cost, the
grant project under which it was procured, location, use and condition,
and any disposition data , including the date of disposal and sale price,
or, where applicable, the method used to determine its fair market value.
The grantee should also state who holds title to the equipment.
3. A physical inventory of equipment must be taken and the results
reconciled with equipment records at least once every two years. Any
differences must be investigated to determine the cause of the
difference.
4. A control system must be developed to ensure adequate safeguards to
prevent loss, damage, or theft of property. Any loss, damage, or theft
must be investigated and documented by the grantee.
5. Adequate maintenance procedures must be developed and implemented
to keep the property in good condition. These procedures should be
consistent with the maintenance plan required of grantees for equipment
funded under 49 U.S.C. 5309 and 5307 and should be documented and
available for audit or triennial review.
6. Warranty standards, when part of equipment contracts, should provide
for correction of defective or unacceptable materials or workmanship.
These should specify coverage and duration and meet currently
available industry standards. Grantees are responsible for :
a. Establishing and maintaining a system for recording warranty
claims. This system should provide information needed by the
-86-
grantee on the extent and provisions of coverage and on claims
processing procedures;
b. Identifying and diligently enforcing warranty system for recording
warranty claims; and
c. Tagging or otherwise identifying property as Government
property.
f.
Disposition.
1. Disposition Before End of Service Life: Any disposition of rolling stock
before the end of its service life requires prior FTA approval. FTA is
reimbursed its share of the proceeds from disposition. If revenue rolling
stock is being removed from service before the end of its useful life, the
return to FTA is the greater of the FTA share of the unamortized value of
the remaining service life per unit, based on straight line depreciation of
the original purchase price, or the Federal share of the sales price (even
though the unamortized value is $5,000 or less).
2. Retain and Use Elsewhere. When original or replacement equipment is
no longer needed for the original project or program, it may be used by
the grantee for other projects or programs. FTA prior approval of this
alternative is required. FTA retains its interest.
3. Value Over $5,000: After the service life of equipment is reached,
equipment with a current market value exceeding $5,000 per unit, or
unused supplies with a total aggregate fair market value of more than
$5,000, may be retained or sold, with reimbursement to FTA of an
amount calculated by multiplying the total aggregate fair market value at
the time of disposition, or the net sale proceeds, by the percentage of
FTA's participation in the original grant. The grantee's transmittal letter
should state whether the equipment will be retained or sold. Use of sales
proceeds are discussed elsewhere in this chapter.
4. Less than $5,000 value: Equipment with a unit market value of $5,000 or
less, or supplies with a total aggregate market value of $5,000 or less,
may be retained, sold or otherwise disposed of with no obligation to
reimburse FTA, providing useful service life requirements have been
met. Records of this action must be retained.
5. Like-Kind Trade-In or Offset Exchange. With prior FTA approval, the
grantee may elect to use the trade-in value or the sales proceeds to
offset the cost of a replacement bus or rail transit vehicle to acquire a
replacement vehicle, applying 100 percent of the net proceeds to
acquisition of the replacement vehicle/s. (See 49 CFR, Part 18.32; and
Federal Register pp. 39328/39329, dated August 28, 1992). Remaining
cost differences, if more than the proceeds, are to be met by the grantee.
Excess proceeds, if any, are returned to FTA minus a deduction for
prorata local share.
6. Transfer to Public Agency for Non-Transit Use. With prior FTA approval,
the grantee may follow procedures for publication in the Federal Register
to transfer property (including land or equipment) to a public agency with
no repayment to FTA. These procedures are available from the
appropriate FTA regional office. [49 U.S.C. 5334(g)(1)].
7. Sell and Use Proceeds for Other Capital Projects. With prior FTA
approval, the grantee may sell equipment or supplies and use the
proceeds to reduce the gross project cost of other FTA eligible capital
transit projects. [49 U.S.C., 5334(g)(4)] The grantee is expected to
record the receipt of the proceeds in the grantee's accounting system,
showing that the funds are restricted for use in a subsequent capital
-87-
project, and reduce the liabilitiy as the proceeds are applied to one or
more FTA approved, capital projects. The subsequent capital grant
application should contain information showing FTA that the gross
project cost has been reduced with proceeds from the earlier transaction.
8. Unused Supplies. Disposition of unused supplies before the end of the
industry standard life expectancy is determined in total aggregate fair
market value and if found to exceed $5,000, the grantee or subgrantee
shall compensate FTA for its share; or transfer the sales proceeds to
reduce gross project cost of other capital project/s. [49 U.S.C.
5334(g)(4)].
-88-
TAB III
Summary of Operator’s Agreement for the TECO Streetcar Line
Article II – Project Description
Section 1: system shall be expanded as resources permit, subject to City’s approval.
Section 2: THS hires HART as operator and independent contractor.
Section 4: Agreement terminates September 30, 2006 (as modified). Negotiations shall
begin 270 days prior to this date, which is January 3, 2006, and renewal shall take place
180 days prior to this date, which is April 3, 2006.
Article III – General Rights and Duties
Section 1: HART assumes complete responsibility for:
a.
b.
Operation, management and maintenance of system:
i.
According to Operations and Maintenance Plan.
ii.
Using its own streetcars, operators, supervisors, maintenance,
administrative and marketing staff.
iii.
Bears cost of all third party contracts.
iv.
Renders invoices for expenses authorized by annual budget.
Maintaining system in good repair and acceptable appearance, including:
i.
In accordance with highest industry standards and Operations and
Maintenance Plan,
ii.
Routine inspections and PM program.
iii.
Purchase of electric traction power
iv.
Development of emergency plan
v.
Issuance and acceptance of fare instruments provided for HART
bus system users, plus any special fare instruments from THS.
c.
Keeping streetcars clean and in suitable condition for customers.
d.
Submitting reports as follows:
Performance Criteria
Measurement/Detail
Report
Monthly Ridership and
ADA Boardings
Boardings
Monthly Ridership Report
Actual Miles Operated
Trips Completed x Miles per
Trip
Monthly O&M Performance and Contract
Compliance Report
Vehicle Hours Operated
Total Vehicle Hours
Compliance Report
Revenue Collected
Average Fare per Passenger
Monthly Finance and Funding Reports
Streetcar Revenues
Power Usage
Kilowatts / TECO Power Bills
Compliance Report
Platform Hours Worked
Criteria converted to lost
trips (see recommendations
below)
Compliance Report
Performance Criteria
Measurement
Report
Damage Reports
Accidents/ Incidents
Compliance Report
Preventative
Maintenance Reports
Maintenance by vehicle
Compliance Report
On-time Departures /
Delays of More than 10
Minutes
Criteria converted to lost
trips (see recommendations
below)
Compliance Report
Annual Cost per
passenger
FTA Requirement
Annual Finance and Funding Reports
Annual Cost per Vehicle
Mile
FTA Requirement
Annual Cost per Vehicle
Hour
FTA Requirement
Hours of Extra Service
Number of vehicles added to
maintain headways
Compliance Report
Hours of Special Service
Charters
Compliance Report
Customer Comments
Complaints, responses and
compliments
Compliance Report
Traction Power System
Failures
Included as Reason for Lost
Trip
Compliance Report
Vehicle Failures and
Type
Trip
Compliance Report
ADA Bridge Mechanism
failures
Trip
Compliance Report
e.
Performing to the following minimum criteria:
i.
95 % on-time departures from EOL.
ii.
All scheduled vehicle maintenance following mfr’s specs.
2
iii.
Respond to customer complaints within 72 hours, M – F.
iv.
Pressure wash all stations every other day.
v.
No more than one accident/incident per 1,560 vehicle hours
(equivalent to one month of service).
Conduct periodic customer satisfaction surveys.
Use reporting data from other streetcar systems as benchmarks.
f.
Negotiating and administering any labor contracts.
g.
Assuming risk of loss of streetcar and all other property owned and
controlled by HART.
h.
Maximizing warranty claims.
i.
Damages sustained whether due to streetcar or not. However, HART is
entitled to recover from THS all expenses due to shutdown caused by
hurricane or other act of God, if not covered by insurance.
j.
Retaining all farebox, advertising and other revenues, which shall be
deducted from sums due from THS. THS shall retain rights to license
naming of streetcar stations and vehicles, and revenue therefrom. Naming
rights shall not apply to any intermodal terminal owned by HART.
l.
Naming contact persons:
m.
i.
With full authority to make operating and policy decisions
ii.
Who shall report on service conditions and performance
Providing qualified personnel to operate restored streetcar owned by
Tampa & Ybor Street Railway Society and allowing the Society to
provide its own trained and licenses operators.
Section 2 – THS Rights and Duties
a.
Operator (HART) shall prepare an Operating and Maintenance Plan
spelling out days and hours of operation, frequency, and projection of
staffing and equipment needs. O & M Plan is subject to approval by THS
and City, shall be updated annually, and is attached as Exhibit A.
b.
Annual Operating Budget.
i.
Subject to approval by THS and City; attached as Exhibit B, and
must be submitted 90 days before end of FY (July 1)
ii.
If not approved by both parties, then prior budget remains in effect
with no more than 10 % increase in any line item or overall budget.
3
iii.
c.
City and/or HART may require THS to adjust base service if
revenues to not meet expenses.
Payment
i.
As determined by approved operating budget, net of farebox,
advertising and other revenue.
ii.
Extra service beyond normal operating schedule or number of
streetcars as requested by City, THS or HART.
d.
e.
Operator shall establish tracking system for all streetcar revenues and
expenses and submit monthly reports to City and THS.
f.
Upon request, Operator shall provide THS copies of third party contracts.
All such contracts shall permit assignment to THS but THS is not
obligated to accept an assignment.
g.
THS will develop and implement a Marketing Program to be coordinated
with HART bus marketing efforts. Operator will provide staffing and
support without additional compensation.
Section 3 – Insurance and Liability
a.
Each party preserves sovereign immunity rights. HART cannot
contractually indemnify THS without express waiver by the Florida
Legislature.
b.
THS may maintain its own coverages.
c.
Operator must report all potential claims to THS and City by the end of
the working day following an occurrence.
Section 4 – Miscellaneous
a. Operator and THS shall conduct an annual audit of Streetcar books and
records within 90 days of FY end, and submit it to THS and City.
b. Parties shall first attempt to resolve disputes through FL Governmental
Conflict Resolution Act process.
c. Operator shall comply with all federal and state laws and regulations, such
as Civil Rights, ADA, EEOC.
d.
e.
4
f. Notice shall be given to THS President, attorney, HART Exec. Director,
attorney, City of Tampa Finance Director, City Council, and attorney.
Notice of Claims shall be given to City’s and HART’s Risk Management
Departments.
g. Termination of Agreement may occur if:
i. Expiration
ii. Material breach and no cure within 30 days of notice
iii. THS bankruptcy
iv. THS, City and Operator cannot reach agreement on annual budget
v. Fraud or malfeasance in handling THS funds.
h. If Agreement terminates, shall be a 180 day transition period during which
to transfer control to a new operator.
i. If agreement is breached, THS assumes any and all subcontracts then in
effect and provided for in annual budget.
j.
k.
l. Terms of Tri-Party Agreement prevail over this agreement.
Section 5 – Agreement is not effective until approved by THS Board, HART Board and
THS obtaining an opinion from City’s bond counsel that it does not violate Rev Proc 9713.
Section 6 – Agreement is a third party beneficiary contract running in favor of the City
and City has right to enforce its terms as if it were a party.
5
O & M PLAN – revised January 2004 – Specifies:
1.
Hours of operation and frequency of base service
2.
Fares (base fare increased from $1.25 in October 2003 to $1.50, and increased
again to $2.00 in October 2005)
3.
Running time, fleet size, personnel selection and training, service policies,
uniforms, communications, grade crossing and CSX crossing protocols, safety
and security program, emergency operation
4.
Maintenance program for facilities, equipment and vehicles
5.
Staffing of system management and operations, contracted services, support
from other HART departments (Finance, Admin., Operations, Planning,
Engineering and Public Relations, and coordination w/ City of Tampa
6.
Annual Base service hours delivered, operating cost per hour and HART
grants (from approved annual budgets):
Annual Base Service
Base Service Cost
Extra Service (within
Base period)
Extra Service (outside
Base period)
Special Service to third
parties (excluding THS
profit margin)
HART Grant (FTA
preventive maint.)
HART Grant (State
Block Grant)
2004
17,260 hours
$94.55
$54.50
2005
17,212 hours
$101.37
$58.42
2006
17,202
$108.03
$59.50
$67.00
$71.82
$72.23
$102.00
$102.00
$108.03
$200,000
$200,000
$200,000
$100,000
7.
Modifications to base service require 90 day notice to allow for operator
markup and supervisory adjustments.
8.
Net reductions in service schedules result in savings of $22 per vehicle hour
(2004 costs)
9.
Contract administration: monthly invoicing, O & M Plan to be updated
annually after approval of budget, financial reporting by HART and City,
annual report to THS (including operational and maintenance performance
data, safety audit)
10.
Appendices include policies for:
a. Cessation of service due to parades, changes for special events
b. Special service
c. Interior advertising
6
TAB IV
DRAFT
INTERLOCAL AGREEMENT FOR PHASE II-A
PROJECT OF THE TECO LINE STREETCAR SYSTEM
HART AGREEMENT NO.___________________
THIS AGREEMENT dated this ______________ is made and entered into by and
between the CITY OF TAMPA (“CITY”) and the HILLSBOROUGH TRANSIT
AUTHORITY, a regional transportation authority organized and existing under the laws
of the State of Florida, hereinafter referred to as “HART”. (CITY and HART referred to
collectively herein as the “Parties”).
A.
WHEREAS, Chapter 163, Part I, Florida Statutes, authorizes government units to
cooperate and make the most effective use of their powers and resources by entering into
Interlocal Agreements, and
B.
WHEREAS, the CITY and HART entered into an interlocal agreement dated
June 6, 1998 for the purposes of creating, designing, constructing, funding and providing
for the operation of an electric streetcar system to connect the Ybor City area to the South
Central Business District Area of Tampa, also known as Phase I, and
C.
WHEREAS, the Tampa-Ybor Historic Electric Streetcar, now known as the
TECO Line Streetcar System, is a community project now recognized by the CITY,
HART, business owners and developers as an impetus for economic development,
tourism, civic pride, and transportation enhancement, and
D.
WHEREAS, the TECO Line Streetcar System connects Tampa’s visitor
attractions and commercial and emerging residential areas that offers residents and
visitors one of the cleanest, most cost-effective forms of travel as well as serving as an
attraction and enhancement to any visit to Tampa, and
E.
WHEREAS, the Phase I of the Streetcar System was completed and began
service in October 2002, and
F.
WHEREAS, HART and the CITY have determined that a need exists to link the
streetcar system to the core of the Central Business District of Tampa from its current
terminus at the Southern Transportation Plaza to the vicinity of Whiting Street, and
G.
WHEREAS, it is the intent and purpose of this Agreement to establish the rights
and responsibilities of the Parties in connection with this link, more particularly defined
and referred to herein as the Phase II-A project,
1
NOW, THEREFORE, in consideration of mutual covenants and provisions
herein contained, the Parties agree as follows:
ARTICLE I – DEFINITIONS
1.
“ADA” means the Americans with Disabilities Act of 1990 and all related
regulations and laws.
2.
“NEPA” means the National Environmental Policy Act.
3.
“Phase I of the Streetcar System” means all physical aspects of the light rail
system constructed and in operation to date from 8th Ave./20th Street area in Ybor
City to the Southern Transportation Plaza in the vicinity of St. Petersburg Times
Forum Drive and Florida Avenue in downtown Tampa.
4.
The “Phase II-A Project” means the extension of the TECO Line Streetcar
System from its current terminus at the Southern Transportation Plaza, located in
the vicinity St. Petersburg Times Forum Drive and Florida Avenue in downtown
Tampa to the vicinity of the intersection of Franklin Street and Whiting Street.
The Phase II-A Project shall include all planning, environmental studies, design,
construction, management, operation and maintenance aspects related thereto,
including but not limited to the track, switchgear, pedestrian and access
improvements, electrical services systems, ties and ballast, concrete trackslab,
drainage system, station stops, utility relocations, street and landscape.
5.
“Phase II of the Streetcar System” is intended to include the potential Phase IIA Project extension, plus potential completion of additional segments of the
Streetcar System to a destination in the vicinity of I-275.
6.
The “Streetcar System” shall mean the completed segments of Phase II of the
Streetcar System together with all components of Phase I of the Streetcar System.
7.
The “Streetcar Vehicles” shall mean the electric replica streetcars.
8.
“FDOT” means the State of Florida Department of Transportation.
9.
“FHWA” means the Federal Highway Administration.
10.
“FTA” means the Federal Transit Administration.
ARTICLE II – PHASE II-A PROJECT DESCRIPTION
Section I – Overall Phase II-A Project Description
The Phase II-A Project, the initial component of Phase II of the Streetcar System, consists
of a potential 0.3 mile extension to Phase I of the Streetcar System. The Phase II-A
2
Project design includes roadway modification, utility re-design and relocation, a two-way
single or double track system, passenger station(s) and overhead electric lines to power
the existing replica streetcars that currently operate on the Phase I project.
The Phase II-A Project is a potential HART construction project subject to CITY review
and approval of design and construction plans. The CITY’s review is solely for purposes
of confirming compliance with municipal ordinances, plans and policies. The City is not
reviewing the technical merit or safety of the system and shall not be responsible for
same. Subject to the selection of a “build” alternative in compliance with NEPA
requirements, HART is considering the construction of Phase II-A Project, which will
link Phase I of the Streetcar System to the core of the Central Business District Area of
Tampa. All physical aspects of the Phase II-A Project, including pedestrian access to all
improvements and approaches to all station areas, shall comply with the Americans with
Disabilities Act (ADA).
The CITY shall continue to own all existing rights to any real property upon which Phase
II of the Streetcar System is constructed as well as improvements added to said real
property including all physical aspects of the Phase II-A Project. Upon completion of the
potential Phase II-A Project, the CITY or its designee, the Tampa Historic Streetcar, Inc.
(THS) shall resume the duty to maintain said physical aspects.
Section 2 – Background and Administrative Structure of the Project
Phase I of the Streetcar System consists of a 2.4 mile light rail system that originally
included eight (8) Streetcar Vehicles powered by overhead electric line(s), a two-way
single-track system with passing track sections, ten station stops, and a car barn for
maintenance and operations. Two (2) additional Streetcar Vehicles have since been
purchased by HART and are in use as part of the Streetcar System and an additional
Streetcar Vehicle is available by lease on an ‘as needed’ basis for a total of eleven (11)
Streetcar Vehicles that can be available to service the system.
Due to the expenditure of federal grant funding, any project alternatives, including a “no
build” alternative, must be rigorously evaluated as required by the National
Environmental Policy Act (NEPA) under the auspices of the Federal Transit
Administration (FTA). FTA has agreed to be the lead federal agency for the Phase II-A
Project.
ARTICLE III – OPERATION AND MANAGEMENT OF THE POTENTIAL
PHASE II-A PROJECT
HART has acquired what it believes to be sufficient grant funding and has FTA
authorization to conduct a required NEPA evaluation, if any, for project alternatives from
the vicinities of the Southern Transportation Plaza to Whiting Street. HART, at its sole
cost and expense, shall select and contract with a consultant, to carry out the NEPA
evaluation for the Phase II-A Project. Both the CITY and HART shall review the
evaluation. The evaluation shall identify, at a minimum, the impacts, benefits and costs
3
associated with the Phase II-A Project alternatives and lead to the selection of a preferred
alternative.
If a “build” alternative is selected as the preferred alternative, it is the intent of the Parties
that upon satisfactory completion of the Phase II-A Project, the Streetcar System will
continue to be managed, operated and maintained by the Tampa Historic Streetcar Inc.
(“THS”), pursuant to the Tri-Party Streetcar Agreement between the CITY, HART and
THS (HART Agreement No. 2000-05-09).
ARTICLE IV – FUNDING AND EXPENDITURES OF THE PROJECT
Section 1 – Potential Capital Funding and Expenditures
Based on engineering alternative estimates derived from the consultant’s NEPA
evaluation, if a “build” alternative is selected as the preferred alternative, the consultant
shall forecast the capital costs and timeline for the planning, design and acquisition of
right-of-ways and construction of the Phase II-A Project. If warranted by the selection of
a “build” alternative, HART shall continue to seek and provide capital funding from
grants and other sources for the Phase II-A Project. However, HART does not guarantee
the availability of any grants or other funds or sources of funds for the Phase II-A Project.
The Parties agree that HART’s obligation to finance the Phase II-A Project is subject to
funds available, and that HART has the authority to take all necessary actions to carry out
the intent of this agreement within the amount of budgeted funds available.
The CITY shall cooperate with HART in the completion of the Phase II-A Project, and if
warranted by the selection of a “build” alternative, shall contribute reasonable and
necessary access and rights to CITY property for that purpose and upon the granting of
approval to begin construction.
The CITY acknowledges that HART may obtain grant funds for this project from the
State of Florida Department of Transportation (FDOT) and/or the Federal Transit
Administration (FTA). The CITY further acknowledges that HART will have to comply
with certain FDOT and FTA requirements. The CITY agrees that any assets potentially
acquired by the CITY as a result of the Phase II-A Project will be acquired by the CITY
as a sub grantee of HART’s with the same limitations and requirements attached thereto.
Subject to mutual approval by HART and the CITY, the Consultant’s Capital Funding
forecast and timeline of the Phase II-A Project’s potential capital costs shall be set forth
in a “Capital Expenditures and Funding” Table. The estimated capital funding,
expenditures and timeline shall be subject to refinements and/or modifications to the
design.
4
Section 2 – Potential Operational Funding and Expenditures
If the NEPA evaluation results in a selection of a “build” alternative, it shall enable
HART to make a twenty (20) year forecast of annual ridership, farebox revenue,
operation funding and cost of the Phase II-A Project, based on preliminary engineering
estimates and assumptions identified therein.
Said forecast of operating costs and funding shall be set forth in an “Operations Financial
Projections” Table to be prepared by the above-described Consultant and submitted for
review by the City.
ARTICLE V – POTENTIAL DESIGN AND CONSTRUCTION OF THE PHASE
II-A PROJECT
Section 1 – Contract for Final Design; Design approval; and, Construction of Phase II-A
Project
Upon completion of the NEPA evaluation, if a “build” alternative is selected, and subject
to federal, state and local concurrence, the CITY and HART must approve the
advancement of the Phase II-A Project to each of the following phases: the design,
acquisition and construction phases; provided that all necessary resources to begin each
stated phase of the Phase II-A Project has been acquired or provided by the CITY and/or
HART.
HART shall select the consultant to carry out the final design of the Phase II-A Project.
HART, at its sole cost and expense, shall prepare, manage and administer the issuance of
a Request for Proposal (RFP) for the design contract of the Phase II-A Project. Final
Phase II-A Project design shall be submitted to the CITY for review, comment and
approval as provided herein. Upon receiving CITY approval of the final Phase II-A
Project design and upon HART’s acquisition of what HART determines to be sufficient
funding and property rights, HART shall proceed with constructing the Phase II-A
Project per the approved design.
Section 2 – Phase II-A Potential Project Management and Implementation
HART shall manage and administer the potential construction of the Phase II-A Project.
All procurement procedures for construction services and supplies shall be in
conformance with applicable federal, state and local regulations, procedures and policies.
Whether managing the Phase II-A Project in-house or through a consultant, HART shall
be responsible for all Phase II-A Project costs including those associated with or resulting
from a Change Order(s).
5
ARTICLE VI – INSURANCE
HART shall require all consultants and contractors, and such other entities with which it
may contract, to obtain and maintain general liability insurance as required under CITY
and HART guidelines for construction, consulting or other services.
ARTICLE VII – NOTICES
All notices required by or regarding this Agreement shall be sent in writing to the
respective party at the address set forth herein or to such other addresses as the Parties
may direct from time to time by written notice in accordance with this paragraph. All
notices shall be sent either by (a) registered or certified mail, return receipt requested; or,
(b) hand delivery.
The City:
City of Tampa
Transportation Manager
306 East Jackson Street – 4E
Tampa, Florida 33602
Phone: (813) 274-8333
Fax: (813) 274-8809
HART:
HART, Executive Director
201 E. Kennedy Blvd., Suite 900
Tampa, Florida 33602
Phone: (813) 223-6831
Fax:
(813) 223-2976
ARTICLE VIII –MODIFICATION
This Agreement, including any Exhibits, shall not be modified or amended without a
written instrument duly executed by the CITY and HART.
ARTICLE IX – EFFECTIVE DATE; TERM OF AGREEMENT
As required by Section 163.01(11) Florida Statutes, upon execution by the Parties, this
Agreement shall be recorded by the CITY with the Clerk of the Circuit Court of
Hillsborough County. As further required by statute, this Agreement shall be effective
upon recording.
6
ARTICLE X – NO ASSUMPTION OF LIABILITY
The CITY and HART hereto agree that each shall be solely responsible for the negligent
or wrongful acts of its employees and agents. However, nothing contained herein shall
constitute a waiver by either party of its sovereign immunity or the provisions of Section
768.28, Florida Statutes.
ARTICLE XI – DELEGATION OF DUTY
Nothing contained herein shall be deemed to authorize the delegation of constitutional or
statutory duties of the CITY or HART.
ARTICLE XII – WAIVER
The failure of either party to enforce any provision of this Agreement shall not be a
waiver of any such provision or of any party’s right to enforce each such provision.
ARTICLE XIII – SEVERABILITY
Should any provision of this Agreement be determined by a court to be unenforceable,
such determination shall not affect the validity or enforceability of any other section or
part of this Agreement.
ARTICLE XIV – THIRD PARTY BENEFICIARY
The CITY and THS shall be third party beneficiaries of any contracts or agreements
HART enters into for the purpose of carrying out the construction of the Phase II-A
Project, and each of such HART contracts and agreements shall so state.
IN WITNESS WHEREOF, the Parties hereto, by and through the undersigned,
have entered into this Interlocal Agreement on the date and year first written above.
CITY OF TAMPA
ATTEST
By:_______________________
_____________________
City Clerk
APPROVED AS TO FORM:
ROLANDO J. SANTIAGO
ASSISTANT CITY ATTORNEY
7
IN WITNESS WHEREOF, the Parties hereto, by and through the undersigned,
have entered into this Interlocal Agreement on the date and year first written above.
HILLSBOROUGH TRANSIT AUTHORITY
By____________________________
Chairman
_____________________
Secretary
APPROVED AS TO FORM:
_____________________
HART General Counsel
8
TAB VIII-A
TECO Line Streetcar History
x
1984 – Tampa & Ybor City Street Railway Society formed
x
1986 – City commissioned a study to evaluate the feasibility of possible
streetcar system
x
1994 – Downtown Tampa Transportation Master Plan recommends
construction of streetcar system
x
1984-1995 – Streetcar system discussed at meetings of civic associations,
government agencies, chambers of commerce, and other places
x
1995 – HART Board passes resolution authorizing the creation of
streetcar task force. In December 1995, committee published Tampa’s
Electric Streetcar.
Data from report formed basis for a Livable
Communities Initiative Project grant sponsored by the FTA.
x
1995 – Report issued outlining benefits, costs, and alternative routes for
possible system
x
1996 – Interlocal agreement signed by City of Tampa and HART, forming
a partnership to develop streetcar system
x
With assistance of MPO, FDOT, and the FTA a capital funding strategy
was put together
x
February 1996 –Staff technical team (team included staff from HART, City,
MPO, FDOT, Hillsborough County, and TECO) formed to refine concepts
developed by streetcar task force and advance project to development
phase.
x
June 1996 – HART is presented with $1.4 check for streetcar project by
the FTA
x
September 1997 – May 1998 – Phase 1 of project was initiated. The
environmental assessment was prepared and the Findings of No
Significant Impact (FONSI) received; 30 percent engineering was
completed and business plan written.
x
December 1997 – HART Board authorizes Executive Director to negotiate
and finalize an agreement with Beneficial Finance as it relates to their
obligations for transit linking downtown and Harbour Island
x
City and HART agree to create nonprofit corporation to oversee operation
of system to select operator. Agreed that HART could bid on operations.
x
Agreed to form assessment district to raise partial operational funding
x
Endowment fund marketing established to sell naming rights
x
June 1998 – Phase 2 of project begins; City agrees to cover any operating
deficits and FDOT released funds for final engineering and construction.
HART Board authorizes HART staff to proceed with the streetcar project
and authorizes the Executive Director to negotiate the Tri-party
Agreement.
x
November 1998 – Tampa Historic Streetcar, Inc. is formed when the
Articles of Incorporation and Bylaws are approved by the State of Florida
x
December 1998 – HART Board authorizes Executive Director to execute
Interlocal Agreement.
x
January 1999 – HART Board awards Gomaco Trolley Company a contract
for eight streetcars
x
September 1999 – THS Board members are appointed
x
October 1999 – HART Board approves the People Mover contract
termination and release agreement
x
November 1999 – THS Board meets for the first time
x
November 1999 – March 2000 – Construction of first segment of track is
done
x
March 2000 – First streetcar is delivered by Gomaco
x
April 2000 – July 2000 – Construction of second segment of track is done
x
April 2000 – HART Board authorizes Executive Director to negotiate and
purchase substations from IMPulse NC
x
July 2000 – HART Board awards a contract to Progress Rail Services for
track materials and special track work
x
August 2000 – City Council approved non-ad valorem special assessment
district for streetcar
x
December 2000 – HART Board authorizes Executive Director to execute
agreement between HART, City of Tampa, and Tampa Historic Streetcar,
Inc. related to funding, maintenance and operations of the TECO Line
Streetcar System (Tri-party Agreement)
x
2000 – City of Tampa awards contract to Herzog Construction to build
streetcar line
x
January 2001 – Herzog begins construction of the TECO Line Streetcar
System
x
March 2001 – Ceremonial “Welding of the First Rail”
x
October 19, 2002 – Grand opening of TECO Line Streetcar System
x
October 21, 2002 – First day of revenue operations for the streetcar
system
-40-
Tab VIII-B
Streetcar Purpose, Goals & Objectives
INTRODUCTION
Enthusiasm for the return of streetcars to Tampa led to the formation of the Tampa and Ybor
City Street Railway Society in 1984. Through the initial efforts of the Street Railway Society, the
concept was discussed at meetings of civic associations, government agencies, chambers of
commerce, and other places between 1984 and 1995 and culminated in a report outlining
benefits, costs, and alternative routes that might comprise the system.
At the same time, the first wave of redevelopment was occurring in three areas, totaling
approximately 121 hm 2 (300 acres) in the heart of Tampa—the central business district (CBD),
the Channel District, and historic Ybor City. Redevelopment activities included the construction
of eight high-rise office buildings, a new convention center, the Florida Aquarium, the Ice Palace
hockey arena, 1,400 new hotel rooms, and more than 80 entertainment establishments in Ybor
City. This added thousands of short automobile trips because it is too far to walk between many
of the venues during Tampa’s long, hot, and rainy summers.
In 1996, Hillsborough Area Regional Transit (HART) formed a partnership with the City of
Tampa (COT) and the community to develop the first line of a streetcar system. The estimated
cost of the first line segment at that time, including the construction of eight double-truck replica
Birney streetcars, was $23 million. Working with the Metropolitan Planning Organization
(MPO), the Florida Department of Transportation (FDOT), and the FTA, the partnership put
together a capital funding strategy for the project. The strategy relied on a contribution by the
COT of $5 million and proceeds generated by the COT sale of gas tax bonds to provide short
term financing that would be repaid from $18 million in grants to be received by HART over a
period of 5 years.
Efforts by the partnership then turned to the development of a business plan to operate the
system without subsidy by HART or the COT. The business plan estimated a revenue need of
approximately $1.2 million annually. A number of potential revenue sources were explored and
the partnership decided on a strategy that included revenues from four sources: (a) the creation of
a new tax assessment district that covers the approximately 21 hm 2 (300 acres) comprising the
area served by the streetcar; (b) an endowment fund created from private sector contributions for
naming rights of the system, streetcars, stations, and so forth; (c) advertising; and (d) fares.
The system began operation in October 2002. A facility was constructed, eight Birney replica
streetcars were delivered, the nonprofit corporation formed and a board of directors appointed,
the endowment fund had approximately $5 million currently earning a return and an additional
$1.5 million in commitments, and the city put in place the special assessment district by October
of 2000.
PROJECT DESCRIPTION
The first line segment, illustrated in Figure 1, extends from Ybor City through the Channelside
and Garrison Seaport Districts to the Tampa Convention Center in the CBD. The system is
designed to operate as a single-track bidirectional line with six passing tracks to permit the
1
Tab VIII-B
meeting and passing of streetcars traveling in opposite directions. This configuration provides
the flexibility needed to allow up to eight streetcars to operate simultaneously and serve 12
station stops every 6 to 9 min in either direction. The ability to meet this schedule with this
limited design configuration is possible because the streetcars have their own separate right of
way (ROW) and thus are not competing with automobile traffic. The vast majority of the ROW,
approximately 70 percent, is owned by public entities. The remaining 30 percent in private
ownership is being donated to the project.
The line operates with hard meets, and the location of the meets depends on the number of
streetcars operating at any one time. All of the sidings are directional with spring-runthru
switches to control meets. Power for the system is 600 volts direct current (DC) supplied by an
overhead power distribution system. Each of the stations includes a covered waiting area, a
specially designed high block and bridge mechanism to comply with guidelines established by
the Americans with Disabilities Act. In addition, each station site has appropriate patron
amenities, additional lighting, and security cameras.
Eight replica double-truck Birney streetcars capable of handling up to 84 passengers were
constructed for this first line. These are first streetcars with four wheelchair positions, door
sensing edging, a voice attenuation digital display system, interior bicycle racks, insulation and
air conditioning, and an inverter to convert DC power to alternating current to run the air
conditioning system. Each car is equipped with four 122-cm (48-in.) doors and a 102-cm (40-in.)
clear opening to accommodate wheelchairs.
PROJECT PURPOSE, GOALS, AND OBJECTIVES
The stated purpose of the project is to provide mobility and connectivity between Ybor City, the
Channelside and Garrison Seaport Districts, and the Convention Center in a way that stabilize
existing and stimulate new economic development and preserve the historic character of the area.
Goals and objectives to be realized as a result of project implementation include:
-
Completion of a community vision,
Provision of transit accessibility,
Historic preservation,
Provision of a safe and secure environment,
Provision of passenger convenience,
Enhancement of urban aesthetics,
Provision of an efficient and dependable operation,
Provision of intermodal connections,
Reduction of roadway congestion,
Connection of parking with venues, and
Improvement of air quality.
2
Tab VIII-B
Figure 1: Existing Streetcar System
3
TAB VIII-C
TAB VIII-C
TAB VIII-E
Streetcar Endowment and Revenue Development Program
HISTORY & BACKGROUND
From June 1998 to June 2005 the THS Board with the assistance of HART staff sold naming rights on the
streetcar system. Naming rights were sold on stations and streetcars and a sponsor benefit package was
presented to potential sponsors (Attachment A). The rights to six stations and three streetcars were sold,
as well as the naming rights to the entire system. Attachment B shows the current sponsors and
agreement terms.
In December 2004 THS issued a Request for Qualifications to solicit proposals for a qualified sales and
marketing consultant to evaluate the current endowment program and the revenue development programs
of the TECO Line Streetcar System.
The contract was awarded to Front Row Marketing Services, LLC. Front Row has extensive experience
in naming rights consultation and sales, product and vendor rights and event marketing. John McDonald,
on behalf of Front Row Marketing, presented a draft of Front Row’s analysis and recommendations of the
endowment and revenue development program to the THS Finance Committee at their December 7, 2004
meeting and the draft was approved by the THS Board in at the December 2004 meeting.
The Program Evaluation Analysis provided by Front Row Marketing would be the basis for a revamped
package to market naming rights and secure sponsors.
At the THS Finance Committee in May 2005 Mr. McDonald presented a forecast of potential revenues as
high as $196,000 per year. This was based on the media value of “impressions” received by auto, transit,
and pedestrian traffic. He also presented a proposal to manage the naming rights program for a cost not to
exceed 15% of sales. After negotiations, an amendment was made to his original contract extending the
scope of services and providing for six percent (6%) commission.
The proposal also called for HART’s Business Development Coordinator, to be utilized as the sales
representative. THS would pay for half of this position’s salary and would split its working hours
between HART duties and THS. Front Row would charge $3,000 the first six months of the program to
create and oversee it. After the first six months THS could evaluate Front Row’s performance, and if they
wished to renew Front Row’s involvement for another six months, the charge would be another $3,000.
Front Row would also receive six percent commission on all naming right sales; no commissions would
go to HART.
Marketing expenses were to be $15,000 for a full year. Included in this amount were the merchandise
inventory start-up costs and consulting fees for merchandising and retail fixtures (Attachment C)
CURRENT PROGRAM
At the May THS Board meeting the Board approved the assignment of the HART position to the THS
Endowment and Revenue Development Program. The following action plan was implemented at that
time.
x
Development of Sales/Marketing Collateral. With the help of Front Row Marketing individual
marketing sales packages were created for prospect visits. Attachment D is an example.
x
Development of an accounting process for the streetcar revenue program. HART’s Business
Development Coordinator met with the City of Tampa Accounting Department staff to design a
process for advertising revenue. Revenue is received for interior, exterior, station, step,
merchandise and private streetcar rentals.
x
Development of a prospect list for naming rights. A list was developed in July. Key prospects
were identified and meetings were held with each.
x
Revision of the TECO Line Streetcar System website www.tecolinestreetcar.org. The website
includes advertising opportunities, information about private rentals sale of merchandise. It will
be used as a marketing and sales tool. Communication will be ongoing with convention meeting
planners planning conventions in downtown Tampa directing them to the website for information
on charters and sponsor exterior advertising.
x
Installation of exterior signage on a standard streetcar. The signage was installed on the standard
car in September. The car serves as a rolling billboard along the streetcar line promoting streetcar
advertising and private rentals. The temporary signage streetcar is sold in three-month intervals
for special events and in five day intervals convention sponsors. See Attachment E.
x
Revision of the interior advertising program. Interior advertising is available on nine standard
cars and on the Breezer streetcar.
x
Introduction of banner advertising and station vending. The plan is to sell banner advertising at
streetcar stations and vending machines at key stations. This involves reviewing the existing
code with the City of Tampa.
x
Introduction of Farecard advertising. The streetcar one day unlimited ride card is sold to the
Tampa Bay Federal Credit Union. The contract will begin in January 2006 is exclusive ticketback advertising on 150,000 farecards sold in fareboxes and along the streetcar line.
x
Development of a Merchandise Line & Points of Sale. A line of merchandise was created. All
items are branded with the logo and website address. Merchandising items include a t-shirt, train
whistle, and postcards. Points of sale include the Fresh Market at Centennial Park, Ybor City
State Museum, Ybor City Visitors Center, Tampa Bay Convention & Visitors Bureau, Tampa
Convention Center, The Lair in Ybor City and the Tampa Bay History Center. An interior
advertising card was created for installation in all cars to promote the sales of merchandise and
points of sale.
ATTACHMENT B
Naming Rights Sponsors
Sponsor & Contact
Tampa & Ybor City Street Railway Society, Inc.
(Richard Swirbul, Treasurer)
Type
Station
Location
Effective
Date
15th Street
2/20/2002
Amount
Terms
#2
#3
25,000 $
25,000 $
25,000 $
15,000
$
15,000 $
15,000
10 years. Renewal two successive terms of 10
years each with display advertising credit
having a value of $100k for each ten year
renewal computed to the rate in effect at that
time.
30 years, 3 installments; renewal every 10
$100,000 years
$
33,333 $
33,333 $
33,333 $
15,000
$
15,000 $
15,000
100,000
$
15,000
$
225,000
$
48,375
$
Tampa Tribune (Amy Chown)
Tampa Wholesale Furniture, Inc. (Robert
Cadrecha)
Station
Beneficial
THS Display
advertising credit in
the Tampa Tribune,
other inserts and
editions from time to
time and TBO, value
of $125k - five years
to use - charged
6/20/2003 until reduced to zero
Station
13th St
5/17/2002
Tampa Bay Federal Credit Union (Eddie Hamp)
TECO
Station
System
Centro Ybor
6/11/2003
Household Finance Corporation
Station
Forum Drive
Channelside
Drive
6/12/1998
$100,000 10 years, one payment, renewal every 10 years $
$1,000,000
No end date on contract. Household changed
names since the station was named. Need to
contact Tim Mann - 571-8470 to discuss
renaming.
The Port Authority
Station
BrightHouse
streetcar
$250,000 Do not have contract
SunTrust
streetcar
$228,000 Do not have contract
5 years, one payment; renewal for 5 renewal
$225,000 terms of one year each
Vigo Importing Company (Laura Alessi De Lucia) streetcar
Computer One
2nd Anni.
Renewal #1
#4
#5
15,000 $
15,000
52,003 $
55,903 $
60,096 $
Do not have contract
6/13/2005
Contract
Pending
12/05
streetcar
Execution of
Agreement
1st Anniv.
$
30 years, renewal every 10 years, 3
$75,000 installments
5 years, billed monthly, renewal for 5 renewal
$175,000 terms of one year each
$
$35,000
$35,000
$35,000
$35,000
64,603
$35,000
Pending Sponsors
Centennial Park
station
Cumberland
station
York Street
station
8th Avenue 20th
Channelside &
Cumberland
Channelside &
York Street
Richard Gonzmart declined
ongoing communication with Thom Stork
ongoing communication with Sam Ellison
Schiffino Lee Advertising & Post Properties
streetcar
2/15/2006
Florida Association of Mortgage Brokers
streetcar
7/1/2006
Tampa Bay Federal Credit Union (Eddie Hamp)
farecard
1/22/2006
Q:\Joint THS HART Board Meeting\TAB VIII-E attachment B - naming rights sponsors
$5,000 Temporary Advertising - 3 months
$2,000 Temporary Advertising Convention 5 days
Includes cost of farecard printing/encoding
design ($5000) for 150,000 (50M sold in outlets
along the streetcar line) and 100M in farebox one year contract. $5,000 revenue. This
saves $5,000 from the streetcar marketing
budget that would have been used to pay for
printing the farecards to be used for something
$10,000 else.
$5,000
$2,000
$10,000
December 15, 2005
ATTACHMENT C
THS
Endowment Revenue Program
Expense
Item
Front Row Marketing
FRM Commission
Marketing Start Up Expense
Actual Expense
Toni Short (Oct 1 2005-Sep 30 2006=$39,630.74)
(prorate adjustment for 2005=$14,071.47)
Cost
Remarks
$6,000.00 $3,000 support fee (June 2005) with an additional $3,000 payable for performance results
6% commssion for the term of all contracted marketing, branding, advertising, vending, promotional and merchandise sales.
$15,000 $7,592 exterior package; $5622 products; $176.00 merchandise interior card (13,393.62)
$13,393.62.
Product sales to date: $2665.00 (five retail shops)
See Start Up Budget Spreadsheet for details.
$53,702.21
Annual Revenue
Item
Car Naming Rights
Car Naming Rights
Station Naming Rights
Station Naming Rights
INTERIOR ADVERTISING
Interior Advertising (commercial rate $300/month)
Interior Advertising (non-profit rate ($100/month)
Farecard Advertising
Step Advertising (commercial rate $300/month)
Product Sales to date:
Temporary Streetcar Exterior Advertising (3 month)
Temporary Streetcar Exterior Advertising (5 day)
Total Amount:
Sales to Date (includes contracts pending signature)
Contract
Term
Price
$35,000
$35,000
$30,000
$30,000
5
5
5
5
$3,600
1
$2,430
$3,600
$3,600
$3,600
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$300
$300
$100
$100
$10,000
$3,600
$3,600
$3,600
1
1
1
1
1
1
1
1
1
1
1
3 months
3 months
1 month
1 month
1 year
$5,000 3 month
$2,000 5 day
1
1
1
Contracted
Revenue
$35,000
$35,000
$30,000
$30,000
Remarks
SOLD - contract with Attorney - roll out event in January 06
Aquarium - pending
Beck - pending
Revenue only - does not include production or installation. 26 interior spaces (13 per
side) X 8 streetcars-10 public service (1 map); (1 fare), (4 safety), (3 community/event,
e.g., Fresh Market) - (1 product card); 16 cards per car remaining - 12 month contract
10% off or 6 month - 5% off
$3,240 SOLD - ROCK IN SPORTS
SOLD - CHANNELSIDE.US - RECEIVED
$2,430 3 MONTH FREE AS DTAA MEMBER
$3,240
$3,240
$3,240
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$300
$300 SOLD - ST. PATRICK'S PARADE
$100 SOLD - GUAVAWEEN
$100 SOLD - SPIRIT OF YBOR
$10,000 SOLD - 150,000 FARECARDS - TBFCU TO START JAN 22 - Revenue $5,000
$3,240 1 step
$3,240 1 step
$3,240 1 step
$3,233 Whistle, T-Shirt, Postcards
$5,000 Schiffino Lee for Post Properties - to start Feb 15 - contract with customer - pending signature
$2,000 Florida Mortage Brokers for July 06 - contract pending
$183,143
$59,403.00
ATTACHMENT D
-18-
Benefits
Streetcar ($250,000)
Station Stop ($100,000)
Tax Credit
Streetcar sponsors qualify for a tax credit of up to 50
percent value of their donation (up to a maximum
credit of $200,000 per year) under Florida’s
Community Contribution Tax Credit Program. This
credit applies against State of Florida corporate
income tax liability and now, due to changes in the
law in 2001, to sales and use tax liability. In the case
of sales and tax liability, the credit is handled as a
refund of taxes actually paid. This benefit shall
continue for as long as the program remains in place,
is adequately funded by the State of Florida, and the
TECO Line Streetcar is a qualified recipient.
Station Stop sponsors qualify for a tax credit of up to 50
percent value of their donation (up to a maximum credit of
$200,000 per year) under Florida’s Community Contribution
Tax Credit Program. This credit applies against State of
Florida corporate income tax liability and now, due to changes
in the law in 2001, to sales and use tax liability. In the case of
sales and tax liability, the credit is handled as a refund of taxes
actually paid. This benefit shall continue for as long as the
program remains in place, is adequately funded by the State of
Florida, and the TECO Line Streetcar is a qualified recipient.
x
Sponsor’s name or logo on car’s exterior (front
& back) and interior.
x
Sponsor’s name on station stop. No logos.
x
x
Renaming is permitted with the expressed
approval of THS. The sponsor will be responsible
for any and all necessary changes in signage and
marketing materials required as a result of the
name change.
All station signs will be one standard size to be
determined by the THS board of directors.
x
The type font can match the sponsors’ logotype but must
be a standard font type letter size and a standard color
to be determined by THS.
x
Renaming is permitted with the expressed approval of
THS. The sponsor will be responsible for any and all
necessary changes in signage and marketing materials
required as a result of the name change.
x
THS board of directors has final approval on the “look”
and information on signage.
Signage
x
THS board of directors has final approval on the
“look” and information on signage.
Benefits
Printed Materials
-19-
Advertising
x
The sponsor’s name will appear on the map
mounted at each station stop. (If approved by the
Barrio Latino and City of Tampa, the sponsor’s
logo may also be placed on the map mounted at
each station.)
x
The sponsor’s name will appear on the map mounted at
each station stop. (If approved by the Barrio Latino and
City of Tampa, the sponsor’s logo may also be placed on
the map mounted at each station.)
x
The sponsor’s name and logo will appear on the x
system map/brochure distributed on the streetcar,
at stations and by marketing partners (hotels,
Tampa Bay Convention and Visitor’s Bureau, the
Florida Aquarium, etc.)
The sponsor’s name and logo will appear on the system
map/brochure distributed on the streetcar, at stations and
by marketing partners (hotels, Tampa Bay Convention and
Visitor’s Bureau, the Florida Aquarium, etc.)
x
Each streetcar sponsor will be entitled to $20,000
in system advertising opportunities provided by
the system operator during the first year.
x
Each station stop sponsor will be entitled to $10,000 in
system advertising opportunities provided by the system
operator during the first year.
x
The system operator will create and provide an
advertising rate card for all advertising
opportunities that may include: video time on all
monitors in the cars and at various stations;
signage in the streetcars, and display ads on the
system map/brochure distributed to riders and
through marketing partners. Sponsors may select
the designated dollar amount of advertising from
the menu of opportunities.
x
The system operator will create and provide an advertising
rate card for all advertising opportunities that may include:
video time on all monitors in the cars and at various
stations; signage in the streetcars, and display ads on the
system map/brochure distributed to riders and through
marketing partners. Sponsors may select the designated
dollar amount of advertising from the menu of
opportunities.
x
Sponsors who advertise without interruption will
receive an advertising discount of 15% as long as
they continue to advertise.
x
Sponsors who advertise without interruption will receive
an advertising discount of 15% as long as they continue to
advertise.
Benefits
Special Events
x
Each streetcar sponsor is entitled to hold two
special events on the streetcar, during normal
operating hours, each year.
x
Each station stop sponsor is entitled to hold one special
event on the streetcar, during normal business hours,
annually.
x
Streetcar sponsors will be invited to meet with the
THS board of directors periodically and asked to
serve on an ad hoc Advisory Committee to the
board.
x
Station sponsors will be invited to meet with the THS
board of directors periodically and asked to serve on an ad
hoc Advisory Committee to the board.
-20-
Sponsorship Terms
Duration of Term
Term Renewal Options
-21-
Payment Period
Deposits
Naming rights are for 10 years.
Naming rights are for 10 years.
At the end of the original 10 year term,
THS will offer three (3) 10 year renewal
options at $15,000 per renewal period.
At the end of the original 10 year term,
THS will offer three (3) 10 year renewal
options at $15,000 per renewal period.
The maximum allowable payment period
is two years. One-third is due and payable
upon execution of the contract for naming
rights and one-third each due upon the first
and second anniversary of the naming
rights contract.
The maximum allowable payment period
is two years. One-third is due and payable
upon execution of the contract for naming
rights and one-third each due upon the first
and second anniversary of the naming
rights contract.
THS will accept non-refundable deposits,
but not refundable options, for limited
periods of time.
THS will accept non-refundable deposits,
but not refundable options, for limited
periods of time.
THS will also accept “back-up
commitments” under justifiable
circumstances.
THS will also accept “back-up
commitments” under justifiable
circumstances.
ATTACHMENT E
CORPORATE PARTNERSHIPS
Corporate Logo Here
TECO Line Street car System General Information
The TECO Line Streetcar System is operated by the Hillsborough Area Regional Transit
Authority (HART) under contract to Tampa Historic Streetcar, Inc. The mission of the
Tampa Historic Streetcar, Inc. (THS) is to offer a dynamic new component to Tampa’s
transportation system by providing attractive, reliable, comfortable, convenient and safe
streetcar service to local residents and visitors alike.
In their heyday, Tampa's streetcars whisked passengers to and from Ybor City, Ballast
Point, Hyde Park, Sulphur Springs and points beyond. Operated by uniformed
conductors, the Birney cars were a welcome sight, and the familiar clang of the streetcar
bell was music to the ears. To ride the streetcar was to feel the pulse of the community.
Today, electric streetcars are back in Tampa, supporting continued growth in downtown,
Channelside and Ybor City. The first phase of the TECO Line Streetcar System is a 2.3
mile section that connects these three areas, improving transportation capacity,
supporting Tampa’s thriving cruise industry and transporting workers to and from their
jobs. Phase II will bring the streetcar up to the Hyatt Hotel on Franklin at Whiting.
Corporate Sponsors Make History and Support Economic Development
Generous support from the local business community is making Tampa's electric streetcar
project possible. In fact, the system's name, the TECO Line Streetcar System, is the result
of TECO Energy's early and fitting sponsorship of the system. The company known
today as TECO Energy began more than a century ago as Tampa Electric, the owner and
operator of Tampa's original fleet of electric streetcars.
x
x
x
x
x
x
x
x
x
x
x
IAMS
TECO
Brighthouse
Vigo Alessi
SunTrust Bank
Household Finance Corporation
Tampa Bay Federal Credit Union
Tampa Design Interiors
Wholesale Furniture
Tampa Port Authority
Tampa Tribune
Tampa & Ybor City Street
Railway Society
2
Media Relations
Media interest in the streetcar system has been significant. The TECO Line Streetcar
System has been featured in such publications as:
x
x
x
x
x
x
x
x
x
x
x
Tampa Bay Destination Guide and Meeting Planners Guide’
AAA Going Places
Southern Living Magazine
Travel & Leisure Magazine
Daily Mirror (UK newspaper)
Tampa Tribune
St. Petersburg Times
American Planning Association Magazine
Smithsonian Magazine
Calgary Sun
ESPN, ABC Sports and many others.
One key message prevalent in the local media this year was the connectivity between
parking venues and community events. Examples include the 2004 Stanley Cup Playoffs,
Outback Bowl, Fireworks Series and Gasparilla. Over the next several years we look
forward to worldwide exposure as we host several major sporting events and conventions
including the 2006 International Shriner’s Convention, 2006 National Dragonboat
Championships, 2007 ACC Men’s Basketball Tournament, 2008 NCAA Men’s
Basketball Tournament 1st and 2nd round, 2008 NCAA Women’s Basketball Final Four
and the 2009 Super Bowl event.
3
Streetcar Facts
x
In FY 2005 streetcar ridership was 434,498, a 2.1% increase from 2004.
x
The Port of Tampa is the nation's fastest growing cruise homeports posting a
record year for 2003 with 810,000 passengers passing through its cruise terminals.
x
New cruise lines have joined the Port igniting fascinating 4, 5, 7, 10, 11 and 14day itineraries. This season Radisson Seven Seas Navigator joined the fleet along
with Carnival Cruise Line, Holland America Line, Royal Caribbean Cruise Line
and Celebrity Cruises.
x
There are thirty-one conventions from Nov 05 to the Shriner’s Convention in July
06 bringing in more than 86,000 people into downtown Tampa in convention
traffic alone. Many large groups arrive without transportation and rely on the
streetcar system to travel to restaurants and entertainment venues.
x
More and more groups are renting private streetcars directly from the Marriott
Waterside to Ybor City for dining/entertainment. In 2005 there were more than
forty private charters. Of the 40 charters, 27 were for group travel to dinner from
hotels. The Embassy Suites Hotel will add to that number when it opens in 2006
and when the streetcar extends to Whiting the Hyatt Hotel will be located on the
tracks too. People enjoy the convenience of taking the streetcar directly from
their hotel to dinner, receptions and entertainment.
x
Residential growth in the Channel District and downtown Tampa is exploding.
There are 5,783 condo units planned over the next 3 years.
x
The automated next stop announcement system announces each station prior to
arrival and a streetcar arrives every 15 minutes. Now approaching “The [Your
Corporate Name]” Station will be announced each time and your corporate name
will receive exposure as a destination station on the streetcar line.
x
Stations are named in display maps along the stations and maps are laminated and
provided to hotels along the line. Your corporation will receive exposure at all
stations on the streetcar line as well as lobby hotels.
4
Ridership
More than 430,000 rides annually have been taken on the streetcar system. The TECO
Line Streetcar System runs daily along a 2.4-mile route connecting downtown Tampa, the
Channel District, and Ybor City. The service is seven days a week, with extended hours
on the weekends.
A few details about our patrons:
32% board the streetcar spontaneously, without a specific destination
48% are from within Florida
52% are visitors from outside of Florida
80% travel in groups of two or more people.
Station Stop Naming Rights:
Streetcar Naming Rights Sponsorship Evaluation Analysis Introduction
The following is a comprehensive Naming Rights sponsorship evaluation analysis of the
(10) TECO Line Station Stops. In an effort to provide the most accurate analysis of this
sponsorship, we have compiled an impression comparison of the current and proposed
elements.
This evaluation was measured utilizing current industry standards related to
sponsorship impression values and ridership using 2003 annual ridership for the
TECO Line of 425,614 boardings.
5
Station Stop Naming Rights Sponsorship Evaluation Analysis:
The Station Stop Naming Rights program was analyzed using all of the advertising
locations for each station stop and combined for an overall per stop value.
Station Stops Total Impressions and Media Value
Station
Stop
1
2
3
4
5
6
7
8
9
10
Station
Southern
Transportation
Household Finance
Corp
The Tampa Tribune
Station
Cumberland Ave
Station
Address
Franklin Street & Ice
Palace Dr
Morgan St & Ice
Palace Dr
Beneficial Dr &
Channelside Dr
Cumberland Ave &
Channelside Dr
York St &
York St
Channelside Dr
McKay St &
Port Authority
Channelside Dr
Cadrecha Plaza Station 13th St & 7th Ave
Streetcar Society
Station
15th St & 8th Ave
Tampa Bay Federal
Credit Union
16th St & 8th Ave
Centennial Park
Station
20th St & 8th Ave
Impressions Impressions Impressions Impressions
from Vehicle
from
from Foot
from
Traffic
Ridership
Traffic
Collateral
2,737,500
857,088
730,000
2,287,500
2,737,500
10,842
365,000
2,287,500
5,844,015
378,126
624,150
2,287,500
2,372,500
403,332
699,340
2,287,500
2,482,000
11,850
109,500
2,287,500
2,482,000
4,516,875
126,042
32,772
109,500
340,910
2,287,500
2,287,500
2,007,500
30,252
559,910
2,287,500
2,007,500
529,374
559,910
2,287,500
2,007,500
176,460
425,590
2,287,500
6
Station
Stop
1
2
3
4
5
6
7
8
9
10
Station
Southern
Transportation
Household Finance
Corp
The Tampa Tribune
Station
Cumberland Ave
Station
York St
Port Authority
Cadrecha Plaza Station
Streetcar Society
Station
Tampa Bay Federal
Credit Union
Centennial Park
Station
Annual
Total
Media
Impressions Value
Address
Franklin Street & Ice Palace
Dr
6,612,088
Morgan St & Ice Palace Dr
Beneficial Dr & Channelside
Dr
Cumberland Ave &
Channelside Dr
York St & Channelside Dr
McKay St & Channelside Dr
13th St & 7th Ave
$66,121
5,400,842
$54,008
9,133,791
$91,338
5,762,672
4,890,850
5,005,042
7,178,057
$57,627
$48,909
$50,050
$71,781
15th St & 8th Ave
4,885,162
$48,852
16th St & 8th Ave
5,384,284
$53,843
20th St & 8th Ave
4,897,050
$48,971
7
PROPOSAL
¾ Station Naming Rights
Naming rights to Centennial Park Station
THE BOTTOM LINE
Total Investment:
$35,000/annually
Term of Agreement:
5-Year Commitment
All signage and production costs associated with this partnership are to be the
responsibility of the advertiser.
8

Board Packet February 28, 2006

Transcription

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