HomeMy WebLinkAboutJUNE 15, 1999 MINUTESBriefing
15 June 1999
Environmental Impact Statement - Norfolk/Va. Beach Light Rail
4:00 PM
City Council Others City Staff
All except Gene Allen, Consultant, Parsons/Brinckerhoff City Manager
Mayor @ U S Conf Of Mayors Ray Ellis, Consultant, KPMG City Attorney
Harrison in @4 15 City Clerk
Branch Robert Matthias
McClanan in @4.18
Vice Mayor called to order, said there were several things on the agenda but we will be out by 6 00
PM Said Mayor Oberndorf was out of the city Welcomed Michael Townes, interim Executive
Director of TRT for the briefing on the Environmental Impact Statement - Norfolk/Virginia Beach
Light Rail
Michael Townes - Thank you Vice Mayor and Honorable Members of Council The Virginia
Beach to Norfolk light rail transit system proposal has reached a major milestone in completing the
federally required draft Environmental Impact Statement The public comment period on the draft
Environmental Impact Statement opened on Monday, June 7, 1999 with two public hearings, one in
the afternoon and one in the evening, at Holiday Inn on Newtown Road They gave out handouts
(summary and news articles) One major aspect of the draft Environment Impact Statement that is
required of us in the federal process is the statement of our vision of how this project will be funded
We are required to identify funding options We are aware of the prioritization process that is under
way and being managed by the UPO7 We are aware that our funding vision will not supersede this
regional process, however, we do have an requirement to report to the federal government in a time
frame which does not fit well within the prioritization process
Mr Townes introduced Jayne Whitney, Chief Development Officer for TRT and is the project
manager for the light rail transit project
Gene Allen, Project Manager and Principal in charge with the Parsons,
Brinckerhoff, Craven Douglas company
Ray Ellis, Project Manager in charge of the financial aspects of this
project for KPMG
Scott Trommer, Associate of KPMG
Jayne Whitney passed out the presentation prospective on what would be viewed She explained that
Gene Allen would review some physical characteristics ofthe project presented at the Public Hearing
and give some information on the environmental impact of the system itself. The second and one that
will be most important is the financial aspects of the project The financial plan is part of the draft
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Environmental Impact Statement and is a requirement of the Federal Transit Administration (FTA)
to make sure that any agency that is pursuing a project of this nature looks at all the costs, not only
the new project, but of the project they are currently operating, rather it is a bus system or a rail
system FTA wants to make sure that we are accurately documenting all the costs of the new project
as well as accurately documenting the current system to make sure that the agency can provide the
financial resources to move both projects along
Gene Allen went over the presentation that was made to the public on June 7 The line is a double
tract line, it is 18 miles long running primarily on the Norfolk Southern right-of-way east and west
from the Pavilion at the Oceanfront, downtown to the Central Business District of Norfolk There
are thirteen (13) stations, 8 having park and ride lots several of which are in Virginia Beach This
system is not only a light rail system it is also an enhanced bus system, including new north/south
feeder bus routes The system is to be operated on 10 -minute headways during rush hour, stretching
out to 15- minutes during the rest of day and then at night to 30 -minutes Plan to put in a yard and
shop, a place to park the trains and maintain them Looked at two sites near Oceana One on the old
sand pit created to build Route 44 that has been refilled with dredge material and the other part of
the Navy's land at Oceana It appears the old sand pit site would be the best location
Norfolk Southern still operates freight on the line It is planned to co -exist with that operation by
allowing them to operate in the middle of the night from 1 00 AM to 5 00 AM TRT is in
negotiations with the railroad now to start developing the cost of the sale of the railroad and an
operating agreement for that co -existence
Station sites - all stations have several major components but not all the same All have pedestian
links to local neighborhoods, many of them have bus drop offlocations, some have stop and go (drop
passengers and leave) and parking components
Cars - will have low floors cars, meaning the floor of the car is only 14" above the top of the rail
They are about 100' long - they can go around fairly sharp curves in urban environments - they travel
as much as 65 -miles an hour The whole system will be accessible to all people including those with
disabilities The cars carry about 75 passengers seated and can carry another 50 passengers standing
comfortably Expect to buy 19 rail vehicles as part of the initial fleet Have projected 12,000 riders
per day Most focused around the Central Business District of Virginia Beach at Pembroke About
1/3 of the riders will never leave Virginia Beach every day and only 1/2 in their destination points in
Virginia Beach somewhere else
The Brinckenhoff, Craven Douglas Company has gone through systems planning, a series of studies
that examined the opportunities for development of new transit within the corridor That lead to a
major investment study completed in 1996 In that study it was decided to go with a light rail system
as a chosen technology Now they are finishing up the draft Environmental Impact Statement When
all the comments are in, we will respond to all of those comments The draft Environmental Impact
Statement and responses to those comments they will create a final Environmental Impact Statement
that will be circulated and lead to a decision by the Feds, which will then lead to a financial letter of
intent, allowing us to go into final design and a full -funding grant agreement which will create access
to the federal money and then the actual construction of the system
How the system impacts on the community Development is consistent with the development in
Hampton Roads The system will encourage development around the stations and particularly
Pembroke, Lynnhaven Parkway, Oceana area, Greenwich and Newtown and Witchduck, particularly
commercial development With light rail in place, we would expect to see another 13 -million square
feet of development within the region, two-thirds being commercial
What will that bring us? New direct permanent jobs - over 4,000 of them Additional gross business
receipts, increased property values, increased property taxes, additional convention expenditures,
meaning more tax monies for the cities
There are some displacements - a few houses, 3 residential units and 50 trailers in the Colony Trailer
Park near Lake Holly These relocations will be paid for under the guidelines by the federal
government
Grate crossings - closing some, improving others by adding gates and grade separation at Princess
Anne, Independence and Rosemont No change in parking Visually, replacing a single track railroad
with a double track railroad Visually - only at the grate crossings where there will be new bridges
over the roads Air quality improves Noise and vibration - there are twenty-two (22) along the line
where the noise level will go up slightly but nowhere where the noise level will be severe Noise level
of a light rail is more or less the sound level of a idling bus going by Six areas may feel some
vibration such areas are to be given special consideration so there will really won't be a vibration
problem anywhere Fourteen (14) to thirty (30) acres of woodlands will be impacted because of the
site of Navy's land at Oceana is 15 acres of woodlands The northern site is much less The rest of
the woodlands are basically associated with the park and ride lots No endangered species will be
impacted Water resources - about 4 areas of the Wetlands along the entire 18 miles of right-of-way
will be impacted '/2 mile of the project in ten different locations is very near or at the flood line of
the area There are no historic resources to be impacted and no parklands Four properties may have
some contamination, i e , x -gas stations, etc These are to be researched
Ray Ellis explained that the presentation focused specifically on the East/West line The Federation
Transit Administration for this specific project requires demonstration that the financial feasibility of
the program is sound in respect to the entire agency - they are looking at TRT as a whole
Capital Costs of the project Reported in the year of expenditure dollars Actual checks written at
the time project built Accelerated - costs will be lower - pushed back - costs higher Based on the
engineering work performed to date for the project This project, relative to other projects, has
relatively fewer cost risks for the given scope One cost risk is that we do not have a negotiated
agreement with the Norfolk/Southern Railroad Hazardous materials or sites are also cost risks
Operating costs Partial operation in 2005 - full operation in 2006 and the total cost of operating the
line is in the range of $15 -Million Basically looking at increases largely driven by inflation
Vice Mayor Sessoms - I hate to interrupt but I do need clarification Our total cost was $524 6 -
Million but where does the cost of acquisition of right-of-way to the Naval Base and to the airport
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come in I realize that this is East/West but where are those issues being addressed
Ray Ellis In the federal process, they require that you identify a specific project and deal with
each project as a separate piece In this portion of the federal process we are dealing with the
East/West line as you see it The Naval Base portion we are working very hard to bring up to the
same level of planning that the East/West line has gotten that is to the point where we have a draft
Environmental Impact Statement level We anticipate being able to do that sometime in the first of
the next calendar year and that is the time we will have solid figures on the cost of Capital acquisition
on building that portion of the line
And if you recall our discussion in the Steering Committee - the reason we went ahead with the
contracting for the Naval Base line the way that we did was so that we could get sufficient data for
the voters by September but not complete enough data for the FTA to accept So if your concern
is, "Will the voter be able to make an informed decision on both East/West and Naval Base, we are
working darn hard to make that happen
Virginia Beach wants to be comfortable or satisfied that information is going to be readily available
when it is to be presented to the public Do not want to present this to the public piecemeal
The cost per mile for the 18 -mile East/West line would be about $30 -Million a mile The average for
all light rail projects in the country is about $40 -Million a mile This is a somewhat less complex
project than the average It is less expensive per mile than the average
The $524 -Million includes the cost of the purchase of the Norfolk/Southern railroad
Proposed plan for financing the Capital Costs of the project is 55% of the project be funded through
the so called "new starts program" of the Federal Transit Administration 55% was selected as a
reasonable number for this project based on two considerations (1) the weighted average of federal
participation in all Capital projects in the current year is 53%, including some very mature projects
and some new start projects comparable to this one (2) the FTA has agreed that our firm's client
who also has a comparable new start light rail project in Orlando, Florida - they have agreed that 55%
is a reasonable number to work with for the purposes of their financial plan We felt that if it was
appropriate for Orlando, it certainly was appropriate for Norfolk and Virginia Beach There is
another approximately 5 1/2% which will be coming from flexed transportation funds 221/2% of
state funding has been assigned - this is a precedent which appears to be evolving within the state of
Virginia 15 1/2% will be requested from local sources Each dollar of local money in the project
serves as a catalyst and unlocks about somewhere between $5 and $6 of state and federal money
Economic benefits -tax returns to the local jurisdictions generally exceed the actual financial
participation in the project
Local Share - 15 1/2% - Long term bonds Bonds paid over the life of the project Nationally -
about 1/3 of the total funding for transit is the general fund appropriation from local jurisdictions
about 2/3 of the funding for local participation is from a dedicated source of funds Sales tax has
been used, gasoline taxes are used In some cases, designation portion of property taxes have been
used payroll tax, income taxes Gasoline taxes on the South side would raise about $26 -Million
Financial analysis demonstrate that this source would be sufficient to provide for the local share of
the capital funding of the East/West line and of the Naval Base extension
It is felt that 5% increase would be sufficient to handle the Naval Base and Airport costs and to make
a contribution to the local share of the ongoing operating costs of the TRT bus operation which will
be an offset from a General Fund contribution
TRT could be a issuer of the debt - the initial indication from the state is that they would prefer not
to be the issuer of the debt and what we had contemplated is that there are a number of provisions
in federal legislation for security enhancements either using the State Intrastructure Bank or Tifia
Our contemplation is that the local governing bodies Our first choice would be the state At this
moment, we did not get a favorable indication yet on that State Intrastructure Bank or Tifia are
forms of insurance
Revenue Bonds issued against the dedicated revenue source. Would not be double barreled
Funding of Operating Costs Total Operating Cost of the Light Rail System alone
Projecting fares and other operating revenues would be approaching 30% funding of the program
based on the ridership and revenue numbers Estimate may be low
Light Rail balance of funding would be shared on a 50-50 basis between the local jurisdiction and the
state
Other capital needs for TRT that they will have over the next 20 years The FTA asks that we assure
them that we demonstrate to them that the agency has sufficient financial capacity to undertake its
other obligations in addition to the Light Rail program Estimated service requirement for the fleets -
expansion - feeder bus extension and a portion to enhance a level of service throughout the TRT
service area The cost projected increase from the1998 level is about $24 -Million
Twenty years of 3% inflation
Capital funding - ongoing operations will essentially be coming from federal and state sources
Virtually no local contribution
Operating funding is based on a combination of the fare box revenues, the operating revenues of the
system, some continuing federal support -official statement is that the federal government does not
provide operating support it does however provide for preventive maintenance
East/West LRT Capital Costs
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Construction $345 9
Vehicles 68 7
Systems 110 0
Total $524 6
East/West LRT Operating Costs FY 2004 $ 2 9
FY 2005 13 3
FY 2006 15 2
FY 2010 17 1
FY 2018 21 7
FTA New Starts - Percent Share 55 0% $288 5
CMAQ/STP Fed Share 5 6% 29 4
State New Starts Match 22 5% 118 0
CMAQ/STP State Share 1 4% 7 3
Local (Dedicated Source) 15 5% 81 3
Total 100 0% $524 6
Weighted average 53% - Think about in context of "leverage"
Norfolk, Portsmouth, Va Beach, Suffolk and Chesapeake - 5 major cities
5% tax on gasoline fund Capital cost of the East/West Line, cost of the Naval Base Route, the local
share of the operating costs of the East/West, local share of the operating costs of the Naval Base
route and also going to fund the additional cost of the bus system that will come about as a result of
the new additional feeder operation
40% - Va Beach share of the 5% gasoline tax
20% - Norfolk
Average citizen spends approximately $ 75 cents a week on gasoline ($36 00/year per automobile)
May is the projected time to have the same information for the Naval Expansion and the Airport as
the East/West line
Have to identify main dedicated funding source 5% gasoline tax the strongest option for this
dedicated funding source
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N
East-West Operating Financing Plan
Milestone Year
FY 2004
FY 2005
FY 2006
FY 2010
FY 2018
Operating
Cost
$2.9
$13.3
$15.2
$17.1
$21.7
Fares &
Oth.
Revs.
$0.7
$3.5
$3.6
$4.3
$5.8
Local
$1.1
$4.9
$5.8
$6.4
$8.0
State
$1.1
$4.9
$5.8
$6.4
$7.9
Milestone Year
FY 2004
FY 2005
FY 2006
FY 2010
FY 2018
Share of Operating Cost
Fares &
Oth.
Revs.
24.1%
26.3%
23.7%
25.1%
26.7%
Local
37.9%
36.8%
38.2%
37.4%
36.9%
State
37.9%
36.8%
38.2%
37.4%
36.4%
16
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TRT Bus and Other Modal Needs
vv‘
• Capital Needs
- New and replacement buses to:
• Accommodate LRT feeder services and expansion of the
baseline bus network
- Current peak fleet: 136
- 2005 peak fleet: 162
- 2012/2018 peak fleet: 233
• Maintain the system in a state of good repair
- A new operating base by 2010 to service the
expanded fleet
- Maintenance and replacement of other modal capital
assets
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TRT Bus and Other Modal Needs
• Operating Costs
Milestone Year
FY 1998
FY 2004
FY 2005
FY 2006
FY 2010
FY 2018
Millions of Year -
of -Exp. $
11111111111I1
$24.3
$34.8
$36.7
$38.8
$51.6
$71.1
TRT Bus and Other Modal Needs
• Feeder buses to support light rail represent 25
percent of expanded system costs
• Improved service levels and coverage for the
baseline system are 11 percent of costs
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vf/4
TRT Bus and Other Modal Needs
• Capital Funding
- Local dedicated funding
- FTA formula and discretionary funds
- State matching grants
• Operating Funding
- Fares and other operating revenues
- Local dedicated funding
- FTA preventive maintenance
- State assistance --growing at the annual rate of
operating cost
20
TRT Bus and Other Modal Needs
FTF-
Prev.
Maint.
Milestone Year
FY 1998
FY 2004
FY 2005
FY 2006
FY 2010
FY 2018
Op.Cost
Cost
$24.3
$34.8
$36.7
$38.8
$51.6
$71.1
Fares &
Oth.
Revs.
Fares &
Oth.
Revs.
$8.5
$11.1
$11.8
$12.1
$14.4
$19.2
Local
$5.9
$12.7
$13.1
$14.2
$21.1
$302
State
$5.9
$9.8
$10.4
$11.0
$14.6
$20.1
$4.0
$1.2
$1.4
$1.5
$1.5
$1.6
Milestone Year
FY 1998
FY 2004
FY 2005
FY 2006
FY 2010
FY 2018
Share of Operating Cost
Fares &
Oth.
Revs.
35.0%
31.9%
32.2%
31.2%
27.9%
27.0%
Local
24.3%
36.5%
35.7%
36.6%
40.9%
42.5%
State
24.3%
28.2%
28.3%
28.4%
28.3%
28.3%
FTA
Prev.
Maint.
16.5%
3.4%
3.8%
3.9%
2.9%
2.3%
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Briefing
VisualNideo Projection System
June 15, 1999
5:14 pm
City Council City Staff
All except Mayor City Manager
Councilman Branch City Attorney
City Clerk
Charles Hassen
City Manager - Council has been concerned about the quality of the sound system in the Chamber
for some time and had asked that it be looked into New equipment has been ordered Video
capabilities have been lacking and earlier efforts at putting a package together had been very
expensive Charlie Hassen and his group have come up with something much more compatible in
cost and will be showing it to you today
Charlie Hassen - The audience present at Council Meetings and the people at home watching on TV
had a hard time seeing presentations made under the present system We have looked at different
solutions and a lot of them were prohibitive because of the cost Recently, costs have come down
and it has made it available to us This presentation has not begun to touch the capabilities that this
system is capable of and which you will not be seeing today Graphics are in this program as you see
the City Seal Present pictures are taken from a CD Information can be taken from all kinds of
sources A big difference was in the sound also from the old to the one being presented Improved
quality is not only for you on Council but also for the audience It reduces the time to create the
35mm slides as seen because you use a digital camera and you don't have to wait for them to be
developed or take a chance that the film will get lost There is no destroyed film and there is less heat
and noise The camera can be down loaded right into the computer This particular model - you
can't feel any heat whatsoever - will be mounted on the wall and will be shinning down, out of harms
way - will be a permanent fixture It also has multi -media possibilities Can hook up two videos, two
laptops and you can go back and forth Can use map slides, text charts, renderings, site plans, you
name it - it can be runned through It is a LCD projector and it can change colors - Cost $35,000
in comparison to $300,000 We can take the direct feed from this projector right straight back into
Video Services, thereby giving a better picture to be presented to the TV audience This projector
will allow the Chamber and Conference Room to be used for so many other things This in some
cases will replace flip charts and overhead presentations We need two projectors, one in the Council
Chamber and one in the Conference Room We need a special lense - these lenses are expensive and
cost $1000 because of the distance involved, two scan converters which are just a box - sends a signal
back to Video Services - one for each room, two new wall screens Looking at putting in a
permanent and solid screen Will get something that matches the wood and make sure it looks nice
Better sound in the back and each Council Member can hear each other better The cost for both
rooms will be $35,750 including new insulation and brackets In Conference Room - on the wall
Council to determine if others to use the system
Audio equipment on order and will be installed when comes in Microphones on dias except one
to be replaced If the desire is to go ahead this can be done on a contingency reserve basis after July
1 Eventually you will have to approve that when you approve the use of the contingency funds Any
objections to that? All right,
Schedule
City Council Retreat
June 15, 1999
5:40 PM
City Council
All except. Mayor
Councilman Branch
Cit Staff
City Manager
City Attorney
City Clerk
August 27th and1/2 day of Sat. August
Council Retreat - Some alternative dates to conside' Friday,� h is a Workshop date); Monday,
..��, A„meet 1 and Tuesday. August 17th(w typical.. , T .
1
Schedule
City Council Retreat
June 15, 1999
5:40 PM
City Council City Staff
All except Mayor City Manager
Councilman Branch City Attorney
City Clerk
Council Retreat - Some alternative dates to consider. Friday, August 27th and U2 day of Sat. August
28th, Monday, August 16 and Tuesday, August 17th (which is a typical Workshop date), Monday,
August 2 and Tuesday, August 3 (that is a regular Council Meeting date - we could go to the Retreat
in the morning and the Council Meeting will be in the afternoon), other than that we will have to go
into September
Vice Mayor cannot take Monday off
Lyle is going to be doing the School Board Retreat on July 30 and 318` He will already be in Virginia
Beach then if you want to do that on the 2"d and 3rd I can put this in a memo to you and you can all
check your calendars and we can talk about it next week We have three sets of dates to work with -
the 13th and 14th are not available and Meyera could not make the 6th and 7th
After discussion, some dates in September were to be looked at
ADD ONS - 5:43
Ferrell Parkway - All letters, CIP items, consultant reports, etc - packages handed out to all Council
Members
Louis and Bill wanted to bring up the 318` Street project They wanted to set up schedule to review
the overall project with the Council and show all the changes that have come about Hopefully, will
have the site plan by June 22 An overview on the 22"d - and have a special Executive Session on the
29th to discuss all the aspects of the contract and agreements On July 6 would like to have Council
discussion with any questions or public comments at that time then on July 13 would like to put the
item before Council for a vote
Need to consider three hours for this discussion Even four hours All in agreement to have a special
meeting on the 29th at 2 00 p m
Send flowers to Lee Cahill because her husband passed away
Adjourned at 5 50 p m
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