ACEC/MA State Markets Conference · Moved MBTA onto statewide contracts and payroll system...

Draft for Discussion & Policy Purposes Only

ACEC/MA State Markets Conference

April 6, 2017

2

Draft for Discussion & Policy Purposes OnlyDraft for Discussion & Policy Purposes Only

Governor’s Special Panel On MBTA – April 2015 Findings

ACEC/MA State Markets Conference 2017

Unsustainable Operating Budget

Flawed Contracting Processes

Lack of Accountability

Chronic Capital Underinvestment

Bottlenecked Project Delivery

Ineffective Workplace Practices

Organizational Instability

Shortsighted Expansion Program

Lack of Customer Focus

3


Winter Storm NIKO (Feb 9):New Gas Heating System for 50+ Priority Rails Kept Switches Functioning


Old Electric Heating New Gas Heating

• New gas heaters blow warm air continuously keeping switches clear

• Older electric heaters take longer to heat up and allow snow and ice to accumulate

4


Winter Storm NIKO (Feb 9): Snow Fighting Equipment (Snowzillas) Running on Red and Orange Line


5


Winter Storm STELLA (March 14): MassDOT and MBTA represented at MEMA bunker during winter events


• During storms / special events, MEMA State EOC is activated with state agency liaisons and utilities

• MassDOT and MBTA are represented “Emergency Support Function (ESF) 1 - Transportation”

• During Winter Storm STELLA, National Grid power outage disabled Orange Line signals from Malden to Assembly

• ESF1 desk worked with National Grid to prioritize impact circuits and restored power in less than1 hour (from original estimate of 9 hours)

MEMA

6


The fiscal challenge: Operating expenses not controlled Costs rose 10x as quickly as ridership


0

500

1,000

1,500

$2,000M

0

500

1,000

1,500M

355 364 389 389 390 395 380 358 371 367 356 381 402 395 409 385

711 737 773 801 836 888 938 980 1,0381,138 1,177 1,220

1,293 1,329

Annual Unlinked TripsOperating

Expenses

1,4301,509

FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15

-0.9% -3.0% 6.9% 5.5% -1.6% 3.5% -5.9%2.7% 6.8% -0.1% 0.3% 1.3% -3.7% -6.0% 3.7%Unlinked Trips Growth Rate

9.7% 3.4% 3.7% 6.0% 2.8% 7.6% 5.5%3.7% 4.9% 3.6% 4.4% 6.2% 5.6% 4.6% 5.8%Opex Growth Rate

Operating Expense Annual Growth Rate FY00-FY15: 5%

Ridership Annual Unlinked TripsAnnual Growth FY00-FY15: 0.5%

Expenses Ridership

NOTE: FY14 and FY15 unlinked trip are internal MBTA figures and subject to revision.

MBTA increased operating expenses by $470M between FY08 and FY15

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With expenses growing 3x faster than dedicated revenues, operating deficit was forecast to reach $400M by FY20


1,500

2,000

$2,500M

2,021

2,135

2,250

2,3402,402

FY16B FY17P FY18P FY19P FY20P

1.6%

4.4%

CAGR (%)

1,8511,893 1,915

1,949 1,975

-$170M -$242M -$335M -$391M -$427MStructural Deficit

Includes Debt Service

Total RevenueTotal Expenses including Employee Transfer

STATUS QUO FY17:20 PRO FORMAJuly 2015

Projected Structural Deficit

Note: Structural deficit includes debt service and transferred capital employees annual expense, does not include Additional Assistance

FY18P:$335M

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FMCB Goal: Deliver a Balanced MBTA Operating Budget

Under Section 203 of Chapter 46 of the Acts of2015, the FMCB may:

“Establish 1- and 5-year operating budgets,beginning in fiscal year 2017, which are balancedprimarily through a combination of internal costcontrols and increased own-source revenues”


9


Putting MBTA on path to fiscal sustainabilityManagement Actions – FMCB first 18 months


Introduced monthly financial targets and manager accountability

Moved MBTA onto statewide contracts and payroll system

Streamlined corporate HQ/admin positions with 30% reduction

Strengthened and enforced overtime and attendance policies

Modernized cash-handling & warehouse through contracting

Restructured Carmen’s Union contract work-rules and wage rates

Launched Uber/Lyft and Taxi paratransit pilots

Restructured and refinanced debt portfolio; locked electricity rates

Rebid parking/advertising and raised system-wide fares

$100M invested in winter resiliency / $140M in capital lock-box

10


-1.0%

1.0%

3.0%

5.0%

7.0%

9.0%

10.0%

FY0

0

2.4%

FY0

1

3.7%

FY0

2

FY0

3

3.6%

FY0

4

FY0

56.2%

FY0

65.6%

FY0

7

FY0

8

5.8%

FY0

9

9.7%

FY1

0

3.4%

FY1

1

3.7%

FY1

2

6.0%

FY1

3

2.8%

FY1

4

7.6%

FY1

5

5.5%

FY1

6

-0.3%

FY1

7P

Annual operating expense growth rate

(excluding debt)

4.9%4.4% 4.6%

0.0%

Early results positive:Operating expenses growth lowest in 15 years


Note: For comparative purposes, FY17 core operating expenses do not include new Amtrak/PRIAA expenses or capital employees transferred in FY17Note: Energy costs forecast to be $8M less in FY17 than in FY16

FY00 – FY15 Average: 5%

Incremental operating expense FY08 – FY15: $471M

11


Early results positive:FY17 projected operating deficit reduced to $50M


0

100

200

300

400

$500M

Structural deficit

$119M$101M

$170M

$335M

$391M$427M

FY14 FY15 FY16 FY17E FY18E FY19E FY20E

FY17 Budget Recast (Feb 2017)$50M$86M

FY17 Status Quo Pro-Forma

$242M

Source: MBTA management in process of recasting FY18-FY20. Operating Deficit does not include additional state assistance of $155M in FY16 or $187M FY17 (forecast)

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FY2018 House 1 Budget: MBTA to receive $187M in additional state assistance ($127M operating / $60M capital)


0

50

100

150

$200M

Additional State

Assistance

FY2016

Actual

Operating

$156M

$187M

FY2018

H1 Budget

$127M

$60M

$187M

Capital

$31M

• Governor’s budget recommends MBTA receive $187M in additional state assistance in FY18

• $187M matches the total commitment in FY16 and FY17

• MBTA will receive the $187M in two segments:

• $127M in direct assistance for the operating budget

• $60M for FY18 state capital budget for the Capital Maintenance Lock Box

• MBTA management believes the $127M in operating fund assistance will be sufficient to cover any operating budget deficit in FY18

• Management plans to use a portion of those operating funds for capital projects as the MBTA’s fiscal outlook continues to improve

13


MBTA Has Under Invested in State of Good Repair (SGR)

0

200

400

600

$800M

SGR Average $441M

(FY11-FY16)

FY11

$373M

FY12

$366M

FY13

$414M

$493M

FY14

$469M

$631M

FY15

$522M

$748M

FY16

$502M

$743M

FY17

(Projected)

$675M

$775M

51% 46% 62% 47% 58% 71%% of Capital

Plan Achieved

SGR Average $441M

(FY11-FY16)

$398M $408M

SGRExpansion

MBTA Capital Spending$765M annual SGR investment required

to eliminate $7B backlog in 25yrs


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MBTA Capital Spending by Priority


FY17-FY21

($millions) FY17-FY21 CIP

Reliability $3,883.3

Modernization $1,112.5

Expansion $1,508.8

Total $6,506.6

SGR = $4,995.8M (Reliability + Modernization)

Expansion $1,509M

Modernization$1,113M Reliability

$3,883M

Reliability Modernization Expansion

15


5YR Capital Plan doubles investment in track, power, signals and vehicles

0

500

1,000

1,500

$2,000M

FY2012 - 2016

$485M

FY2017 - 2021

$1,080M

0

500

1,000

1,500

$2,000M

FY2012 - 2016

$665M

FY2017 - 2021

$1,605M

Track, power, and signals spending Revenue vehicle spending

+123%

+141%

Source: DOT and MBTA internal estimates of available sources and applicable uses; Division initial estimates of program sizes


16


Full Red Line fleet replacement positions the MBTA for long-term success


0

100

200

300

Cars

Red Line Fleet

CRRC Procurement

Initial Car

Procurement

Arrival

2019 - 2020

132 Cars

Additional Car

Procurement

Arrival

2021-2022

120 Cars

Total Red

Line Fleet

Full Fleet

Replacement

2022

14 Optional Cars

266 CarsRed Line Subway Car

17


Increase SGR Construction Contract Awards


Low contract awards over past 36 months are now impacting current spend

0

100

200

300

400

$500M

Dollar Value of Contracts ($M)

FY 2012

$154M

FY 2013

$213M

FY 2014

$74M

FY 2015

$75M

FY 2016

$110M

FY 2017(Projected)

$111M

$300M

FY 2018(Projected)

$450M

ContractsAwarded (Actual)

ContractsAwarded(Projected)

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Upcoming Construction Contract Awards


Project Engineer’s Estimate Projected Adv. Date Projected Bid Date Projected NTP

Alewife Replacement Elevators $5.4M 1/19/17 (Actual) 2/22/17 (Actual) April 2017

Bridge Repairs Contract $10.0M 2/16/17 (Actual) 3/16/17 (Actual) April 2017

Shawsheen River Bridge $2.0M 3/10/17 (Actual) April 2017 June 2017

Orange Line Test Track at Wellington Yard $5.0M 3/24/17 (Actual) April 2017 June 2017

Wellington Maintenance Facility $82.5M 3/23/17 (Actual) April 2017 June 2017

Central Square and Harvard Station Elevators $8.0M 3/24/17 (Actual) April 2017 June 2017

45 High St. IT Data Center $6.7M 3/30/17 (Actual) April 2017 June 2017

Pawtucket Layover Facility Upgrades $3.2M 3/31/17 (Actual) April 2017 June 2017

Neponset River Bridge $5.0M April 2017 May 2017 July 2017

East Street Bridge $17.2M April 2017 May 2017 July 2017

Wollaston Station Improvements & Quincy Garage Demolition $63.1M April 2017 May 2017 July 2017

South Shore Garages $73.0M April 2017 May 2017 July 2017

19


Upcoming Construction Contract Awards (2)



Parking & Paving On-Call $30.0M April 2017 May 2017 July 2017

Ruggles Station Improvements $22.0M April 2017 May 2017 July 2017

Charlestown Bus – Alford Street Seawall Rehab $40.0M April 2017 May 2017 July 2017

Gloucester Drawbridge $50.0M May 2017 June 2017 August 2017

Red Line Test Track $26.0M May 2017 June 2017 August 2017

Transit Tie Replacement On-Call $15.0M May 2017 June 2017 August 2017

Orange Line Direct Fixation – SW Corridor $15.0M May 2017 June 2017 August 2017

Green Line Grade Crossing $15.0M May 2017 June 2017 August 2017

Commuter Rail Track, Ties, and Switches On-Call $30.0M May 2017 June 2017 August 2017

Commuter Rail Culverts, Bridges, and ROW On-Call $20.0M May 2017 June 2017 August 2017

Orange Line Tunnel Repairs $40.0M June 2017 July 2017 September 2017

Facilities On-Call – Contract 2 $15.0M July 2017 August 2017 October 2017

20


Upcoming Construction Contract Awards (3)



Silver Line Gateway Phase II $22.5M August 2017 September 2017 November 2017

Trackless Trolley – Cambridge, Watertown, Belmont $35.0M October 2017 November 2017 January 2018

Fenway Portal Flood Protection $22.0M October 2017 November 2017 January 2018

Wellington Yard Zones A-B $35.0M October 2017 November 2017 January 2018

Cabot Yard Zones A-C $40.0M October 2017 November 2017 January 2018

Cabot Maintenance Facility $67.0M December 2017 January 2018 March 2018

Iron Horse Park North Side Operations Center $15.0M January 2018 February 2018 April 2018

Winchester Station Improvements $25.0M February 2018 March 2018 May 2018

North Station Terminal Signal Improvements $25.0M March 2018 April 2018 June 2018

Wellington Yard State of Good Repair $120.0M TBD TBD TBD

Cabot Yard State of Good Repair $135.0M TBD TBD TBD

Red Line / Orange Line Remaining Signal Upgrades $80.0M TBD TBD TBD

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Ongoing and Anticipated Design-Build Procurements


Project Engineer’s Estimate RFLOI RFQ Selection NTP

AFC 2.0 Installation $49.0M 11/15/16 12/22/16 August 2017 November 2017

Red Line / Orange Line Signal Upgrades $185.0M 2/24/17 April 2017 November 2017 December 2017

Bridge Bundling (6 Bridges) $100.0M May 2017 June 2017 February 2018 April 2018

Draw 1 Bridge Replacement $100.0M TBD TBD TBD TBD

Green Line Signal Upgrades $100.0M TBD TBD TBD TBD

22


Ongoing and Anticipated Consultant Procurements


Project Estimated Value Projected Adv. Date

On-Call Project Development and Design Review Services (3) $3M February 2017

On-Call Cost Estimating and Scheduling Services (3) $1M February 2017

On-Call Climate Change Resiliency GEC (3) $1M March 2017

On-Call Program Management / Construction Management GEC (3) $15M March 2017

On-Call CM Support for Resident Engineering, Inspection, & Construction Phase Services (5) $3M April 2017

On-Call Transit Oriented Development (TOD) Services (3) $2M April 2017

On-Call Garages /Parking GEC (3) $5M April 2017

On-Call Safety Department GEC (3) $3M April 2017

On-Call Stations / Facilities GEC (3) $5M May 2017

Green Line Stations Improvements PM/CM TBD May 2017

On-Call Infrastructure / ROW Transit & Commuter Rail GEC (3) $5M May 2017

On-Call Audit Services for Capital Delivery Contracts (4) $2M May 2017

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Ongoing and Anticipated Consultant Procurements (2)


Project Estimated Value Projected Adv. Date

On-Call Owner's Representative GEC (3) $3M June 2017

Longfellow Approach and MGH Station Upgrades TBD June 2017

On-Call Tunnel Inspection/Repairs Services (3) $5M June 2017

On-Call Bridges/Tunnels GEC (3) $5M September 2017

On-Call Vertical Transportation Elevator Phase II (3) $10M September 2017

Symphony Improvements 30% Design - CPS TBD September 2017

Forest Hill Station Accessibility Improvements Design and Construction Phase Services $5M October 2017

On-Call Bridge Inspection / Rating / Repairs (5) $5M October 2017

Red Line / Orange Line Connection at Downtown Crossing (Full Station Upgrade) $10M November 2017

Lynn Garage Improvements Design and Construction Phase Services TBD TBD

Alewife Garage Improvements Design and Costruction Phase Services TBD TBD

Boylston Station Improvements Design and Construction Phase Services TBD TBD

Green Line Signal Upgrades Program Management/Construction Management Services TBD TBD

ACEC/MA State Markets Conference · Moved MBTA onto statewide contracts and payroll system...

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