Small Starts/Very Small Starts Interim Guidance

April 12, 2007

Key SAFETEA-LU Provisions

 Separate Funding Category beginning FY 07 ($200 million authorized annually)  Rulemaking Required 2

Small Starts

 Simplified Process    Planning and Alternatives Analysis Project Development Construction  Simplified “Project Construction Grant Agreement”     Scope Cost Schedule Federal Funding Maximum Amount and Schedule  Local Funding Sources 3

Eligibility - Costs

• Total cost ≤ $250 million • New Starts share ≤ $75 million • Exempt projects (≤ $25 million New Starts share) may: – Remain exempt until Final Rule – then be evaluated and rated – Be evaluated and rated now 4

Eligibility - Project Definition

• Fixed guideways, or • Corridor bus project including at least: – Substantial transit stations – Traffic signal priority or pre-emption – Low floor buses or level boarding – Branding of the proposed service – 10 min peak/15 min off-peak headways or better while operating at least 14 hours a day 5

Eligibility – Very Small Starts

• Simple, low-cost projects that qualify for streamlined process • Very Small Starts eligibility criteria: – Existing daily riders over 3,000/weekday – Total cost under $50 million – Under $3 million per mile, excluding rolling stock 6

Alternatives Analysis for Small Starts

• Refer to existing alternatives analysis guidance for New Starts • Narrower range of alternatives • Potentially less complex analytical methods 7

Alternatives Analysis for Very Small Starts

• Identification of corridor problems or opportunities • Definition of the project • Analysis of costs, benefits, and impacts of the project compared to existing conditions • Determination of financial viability • Explanation of choice of preferred alternative • Implementation Plan 8

Evaluation of Small Starts

• Use Existing New Starts Criteria for Small Starts – Project Justification - Land-use - Cost-effectiveness - Other factors, including economic development, congestion and pricing strategies – Local Financial Commitment • Simplifications to New Starts Framework – Fewer criteria – Opening year forecasts – Simpler travel forecasting procedures possible 9

Evaluation of Small Starts

Cost Effectiveness Rating • Use current breakpoints for ratings • Increase opening year user benefits to reflect average national 20-year growth rate 10

Evaluation of Small or Very Small Starts – Local Financial Commitment

• Small or Very Small Starts projects receive “medium” for local financial commitment if: – Reasonable plan to secure local share (all non-New Starts funding committed for PCGA) – Project O&M under 5 percent of agency operating budget – Agency in solid financial condition • Projects that cannot meet the conditions above submit a financial plan – According to FTA guidance – Covering period up to and including opening year – Evaluated based on criteria used for New Starts 11

FTA Funding Recommendations

• Small or Very Small Starts eligible for funding if: – In project development – “Ready” to implement project – Summary rating of “Medium” or better • Like all New Starts - No funding guarantee 12

FY08 Small Starts Funding

• • •

FTA recommends $51.8 million for four small starts projects. Each project:

– –

Is rated Medium Has a Medium or better cost effectiveness rating $48.2 million remaining for other emerging projects Location

Los Angeles, CA

Project Metro Rapid Bus System Gap Closure Rating

Medium

Total New Starts Share

$16.7 M (65%)

Total Project Cost

$25.7 M

FY 2008 Budget

$16.68

Kansas City, MO Springfield, OR

Troost Corridor BRT

Medium $30.7 M $6.26

King County, WA

Pioneer Parkway EMX BRT Pacific Highway South BRT

Medium Medium $24.6 M (80%) $29.6 M (80%) $14.1 M (56%) $37.0 M $25.1 M $14.80

$14.08

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