VelociRFTA BRT/CNG Project West Slope CNG Collabora;ve Workshop April 13, 2012
Agenda RFTA Background VelociRFTA Bus Rapid Transit (BRT) RFTA CNG Due Diligence Effort RFTA CNG Decision RFTA Es;mated CNG Financing RFTA Es;mated CNG Cash Flow Ques;ons
Overview of the Roaring Fork Transportation Authority
Overview of the Roaring Fork Transportation Authority RFTA: Ø 2 nd Largest public transit system in Colorado aser Denver RTD Ø Believed to be the largest rural public transit system in the U.S. Ø 1 st Rural BRT System in the U.S. 2011 Informa4on: Ø 4.14 million passengers Ø 3.68 million miles of service Ø 250 employees during peak winter season Ø 100 large transit vehicles Ø $31.8 million budget Ø 70- mile corridor Aspen to Glenwood Springs Glenwood Springs to Rifle Ø 34- mile Rio Grande Rail Corridor and Trail
Overview of the Roaring Fork Transporta4on Authority Rio Grande Trail near Carbondale
Overview of the Roaring Fork Transportation Authority RFTA provides the following types of transit services: Ø Regional commuter services in the Hwy 82 & I- 70 corridors Ø Municipal transit services under contracts with the City of Aspen and the City of Glenwood Springs Ø Skier shudle services under contract with Aspen Skiing Co. Ø Senior transporta;on services through Senior Van/Traveler Ø Maroon Bells bus tours in partnership with USFS
VelociRFTA Overview: How BRT Addresses Features Needed in a Modern Transit System
VelociRFTA Overview: Implementation Process 1. Corridor Investment Study 2003 Compared Rail vs. BRT Rail $300 + Million BRT $100 Million 2. Alterna4ves Analysis 2007-2008 SAFETEA- LU Auth. Design goals Service goals Preferred Alterna;ve (BRT) Approximately $46 Million 3. Voter Support November 2008 Sales Tax for BRT Bonding Approval 4. Very Small Starts Applica4on 2008 Received FTA Approval in December 2008 Began Project Development 5. Project Development 2009-2010 Program Management Consultant Retained Advanced Planning Program Defini;on Refined Branding Plan Community Outreach Jurisdic;on Coordina;on Planning Approvals NEPA Process Issued Bonds 6. Project Construc4on Prepara4on 4th Quarter 2010 Final Design Stage Vehicle Procurement Awai;ng NTP ITS Procurement Begun Service Plan Refinement Planning Approvals NEPA Process Complete FONSI Received 7. Construc4on 2011-2012 Complete Final Design FY2011 Appropria;on FTA Construc;on Grant ROW Acquisi;on ITS Acquisi;on Construc;on Order BRT Vehicles Tes;ng of System 8. Begin Revenue Service An4cipated September 2013
VelociRFTA BRT Overview: Cost / Funding VelociRFTA is in the Federal Transit Administra;on (FTA) Very Small Starts Program for projects up to $50 million. Maximum $25m FTA share Project Financing: Est. Project Cost = $46.2m FTA share = $24.97m (54%) RFTA share = $21.23m (46%) Status of FTA Funding FY2010 $810k Awarded FY2011 - $24.16m Awarded Regional voters approved a sales tax increase and bonding capacity in 2008 for VelociRFTA BRT RFTA issued bonds in 2009 in order to have local matching funds available
VelociRFTA BRT Overview: Features of VelociRFTA Design Transit Priority Measures Transit Signal Priority (TSP) at congested intersec;ons Queue Bypass Lanes at congested intersec;ons Use of Exis;ng Bus/HOV & Exclusive Bus lanes
VelociRFTA BRT Overview: Features of VelociRFTA Design Branding Characteristics RFTA Reliable Practical Hardworking VelociRFTA Fast Fun Frequent
VelociRFTA BRT Overview: Features of VelociRFTA Design BRT Service Plan Span of Service at least 14 hours each weekday Approximately 1- hour travel ;me between Glenwood Springs and Aspen Local valley bus service to con;nue every 30 minutes BRT service levels may be modified during the off- season and according to demand
VelociRFTA BRT Project Background: Features of VelociRFTA Design Low- Floor Buses VelociRFTA Fleet of 18 Low- Floor Buses (Pursuing Compressed Natural Gas Op6on) (Concept)
VelociRFTA BRT Project Background: Features of VelociRFTA Design Information Program ITS Technology Real Time Sign Information Automated Vehicle Location Automated passenger counters Automated Annunciators Electronic Fare Collection Mobile Wi-Fi service Route Map Integration System Map Integration Schedule Integration Community Information
VelociRFTA BRT Project Background: Features of VelociRFTA Design BRT Sta4on Program Passenger Shelters Ticket vending Enclosed wai;ng and sea;ng area Ligh;ng Bicycle Storage Covered and uncovered Outside Sea;ng Landscaping Trash and Recycling Op;onal Elements Parking Restroom Facili;es
CNG Effort Due Diligence CNG Fueling Facility Field Trip Aspen Strategy Center Charre`e CNG Engine Reliability Issues: Contacted Utah Transit Authority (UTA) regarding CNG Bus Test at 6,000 feet of Eleva4on: Numerous conversa4ons with Cummins (Engine Manufacturer) Other Transit Proper4es Opera4ng Gillig CNG Buses (Idaho, California, Minnesota) Federal Transit Administra4on (FTA) Oversight CNG Capital Costs, Financing, Savings, and Cash Flow CNG Infrastructure Costs Low- Interest Bonding Lease Purchase Financing Grant Funding: Encana, SGR, Clean Fuels CNG Fuel Costs
CNG Effort Due Diligence CNG Project Risks Schedule (High) Capital Costs (Low): Financing (Low): Short- term Cash Flow (Moderate): Maintenance and Opera4onal Considera4ons (Low): Safety (Low) CNG Project Benefits Domes4c fuel Abundant Supply Stable price trend Less expensive overall than diesel currently (savings pay for commodity, electricity, compression O&M, infrastructure capital, and add to bo`om line Provides a hedge against higher diesel prices
CNG Effort Decision to go with CNG March 22 nd Board authorized RFTA to procure: 4 pilot CNG buses to be delivered in January 2013 18 BRT buses with CNG engine technology to be delivered June 2013 A CNG fueling sta;on to be opera;onal before January 2013 Facility safety modifica;ons to be installed before January 2013
RFTA CNG Effort - - Infrastructure RFTA has selected Trillium as its CNG Fueling Sta;on vendor Three proposals were received; two BAFOs were requested and evaluated Contract with Trillium will be signed in early April 2012 RFTA has selected M.W. Golden Constructors as its contractor for the GMF Safety Modifica;ons Contract with M.W. Golden Constructors will be signed in April 2012 Environmental Fact Sheet for GMF approved by FTA, February 2012 Indoor fast- fueling requires significant safety modifica;ons
RFTA CNG Effort - - Financing Total ini;al CNG effort capital cost es;mated at $8.35 Million RFTA received $6.7 Million alloca;on of Qualified Energy Conserva;on Bonds (QECB s) from Governor s Energy Office Effec;ve interest rate 2% - 3% because Feds pay 70% of the interest RFTA has retained Bond Counsel and is issuing RFP for a Bond Underwriter and a Financial Advisor RFTA may issue an addi;onal $1.65 million in sales tax revenue bonds using its own bonding authority RFTA also evalua;ng using lease- purchase agreement mechanism for the $1.97 Million cost of the four CNG pilot vehicles
CNG Project Capital Cost Summary Estimated RFTA CNG Project Revenue and Capital Costs CNG Project Element Est. Amount 1 18 - CNG BRT Buses $ 8,663,000 2 CNG Fueling Facility $ 2,500,000 3 Maintenance Facility Safety Modifications $ 2,813,620 4 4 - CNG Pilot (Replacement) Buses $ 1,973,715 5 Estimated Debt Service Reserve $ 445,000 6 Cost of Issuance $ 116,233 7 Total Estimated CNG- Related Capital Costs $ 16,511,568 8 Federal Transit Adminsitration/Local Grant Funding $ (7,800,000) 9 Encana Community Investment Grant Funding $ (365,000) 10 Balance of Capital Funding Required for CNG Project $ 8,346,568 11 Available GEO Qualified Energy Conservation Bonds (QECB's) $ 6,706,000 12 Estimated QECB Shortfall $ 1,640,568 * 4 pilot buses can be lease/purchased
Es4mated Annual Savings from CNG DGE s vs. Diesel Gallons Summary of Estimated Total Annual Operating Cost Savings CNG Vs. Diesel Fuel Low- Range 1 Current Estimated Diesel Costs for BRT and 4 Rplcmnt Buses $ 1,389,887.52 2 Current "All In" CNG Costs $ 1,140,564.10 3 Estimated Annual Debt Service for 4 Additional CNG Replacement buses $ 198,284 4 Total Estimated Annual O & M Savings $ 51,039.91
Fuel Price Forecast (Diesel Vs. CNG) 2012 2022 Average Annual Rate of Increase 1 Estimated Gallons of Diesel for 18 BRT & 4 Replacement Buses 372,624 372,624 0% 2 Estimated Diesel Fuel Price $ 3.73 $ 5.01 3% 3 Estimated Cost of Diesel Fuel $ 1,389,888 $ 1,867,893 3% 4 Estimated Diesel Gallon Equivalents (DGE's) 399,608 399,608 0% 5 A. Est. Amortized Debt Service (Base CNG Project/DGE) $ 1.11 $ 1.11 0% 6 B. Est. Price of CNG Commodity and Pipeline Costs/DGE $ 1.00 $ 1.34 3% 7 C. Est. Electricity Cost/DGE $ 0.13 $ 0.17 3% 8 D. Est. Compression O & M Costs/DGE $ 0.61 $ 0.82 3% 9 Estimated CNG Fuel Price Per DGE (Base CNG Project Elements) $ 2.85 $ 3.45 2% 10 Estimated Cost of CNG $ 1,140,564 $ 1,379,695 2% 11 Estimated Savings CNG versus Diesel Available for Other Purposes* $ 249,323 $ 488,197 7% 12 Annual Percent Increase in Savings 13 *To fund debt service on 4 CNG pilot buses and contribute to the bottom line
RFTA CNG Effort Ques4ons/Comments