**Mid-Jordan LRT**

**Salt Lake City, Utah**

(November 2007)

# 

The Mid-Jordan LRT is a 10.6-mile southwestern extension of the Utah
Transit Authority's (UTA) TRAX light rail transit (LRT) system. The
project will operate largely on existing Bingham Branch Line rail
right-of-way (ROW) purchased from the Union Pacific Railroad in
September 2002. The Mid-Jordan LRT alignment would serve the growing
suburban communities of Midvale and West Jordan, as well as the planned
Kennecott Daybreak Development near the project termini at South Jordan.
The project scope includes nine stations, 3,035 park-and-ride spaces,
and 28 vehicles. Service would operate daily between 5:00 a.m. and 12:00
a.m. with 12-minute headways during weekday peak periods and 15-minute
headways during the remainder of the service interval. Mid-Jordan LRT
service would interline with UTA's existing Sandy/Salt Lake TRAX Line at
the existing Fashion Place West station, providing a direct connection
to the Salt Lake City central business district (CBD) and the University
of Utah.

+------------------------------------+---------------------------------+
| **Summary Description**            |                                 |
+------------------------------------+---------------------------------+
| **Proposed Project:**              | Light Rail Transit              |
+------------------------------------+---------------------------------+
| ** **                              | 10.6 Miles                      |
+------------------------------------+---------------------------------+
|                                    | 9 Stations                      |
+------------------------------------+---------------------------------+
| **Total Capital Cost (\$YOE):**    | \$553.69 Million (Includes      |
|                                    | \$40.0 million in finance       |
|                                    | charges)                        |
+------------------------------------+---------------------------------+
| **Section 5309 New Starts Share    | \$431.88 Million (78.0%)        |
| (\$YOE):**                         |                                 |
+------------------------------------+---------------------------------+
| **Annual Forecast Year Operating   | \$31.06 Million                 |
| Cost :**                           |                                 |
+------------------------------------+---------------------------------+
| **Ridership Forecast (2030):**     | 9,500 Average Weekday Boardings |
+------------------------------------+---------------------------------+
| ** **                              | 3,700 Daily New Riders          |
+------------------------------------+---------------------------------+
| **Opening Year Ridership Forecast  | 5,300 Average Weekday Boardings |
| (2010):**                          |                                 |
+------------------------------------+---------------------------------+
| **FY 2009 Local Financial          | # Medium-High                   |
| Commitment Rating:**               |                                 |
+------------------------------------+---------------------------------+
| **FY 2009 Project Justification    | **Medium**                      |
| Rating:**                          |                                 |
+------------------------------------+---------------------------------+
| **FY 2009 Overall Project          | **Medium-High**                 |
| Rating:**                          |                                 |
+------------------------------------+---------------------------------+

In August 2007, FTA and UTA executed a Memorandum of Understanding to
set forth their mutual expectations for Federal financial participation
in two of five projects that comprise UTA's "Transit 2015 Program." UTA
was seeking a combined \$570 million in Section 5309 New Starts funding
for the Mid-Jordan and Draper LRT extensions. In return, UTA made a
commitment to build, by 2015, the West Valley City and Airport LRT
extensions, as well as the South Front Runner (commuter rail) extension
without Federal financial assistance. The current total capital cost
estimate for the five projects in the Transit 2015 Program is \$2.85
billion.

**Project Development History and Current Status**

The proposed project is consistent with previous studies and plans
prepared by the Wasatch Front Regional Council (WFRC, the region's
metropolitan planning organization) and UTA. The Mid-Jordan Corridor was
identified in the December 2000 South Salt Lake County Transit Corridors
Analysis as a prime candidate for improved transit service. A Draft
Environmental Impact Statement was begun in late 2004, although progress
was slow as UTA focused attention on design of the Weber County to Salt
Lake City Commuter Rail project, which received a Full Funding Grant
Agreement in June 2006. FTA approved the Mid-Jordan LRT project into
preliminary engineering in May 2007, and issued an environmental Record
of Decision in September 2007. Final design is anticipated in Spring
2008.

The project reflects an adequate level of design at this stage of
development, and includes a very high contingency. The project
implementation schedule appears reasonable, although the timeline for
procuring vehicles may be optimistic.

# [Project Justification Rating: Medium]{.underline} 

The project is rated *Medium* for project justification based on a
*Medium* rating for cost effectiveness and a *Medium-Low* rating for
transit-supportive land use. The rating for the project's *Making the
Case* document was not factored into the project justification rating
for FY 2009.

####### *Make the Case Document Rating: Medium*

The Mid-Jordan project will extend rail service from a junction with the
existing Sandy light rail line to the southeastern suburbs of Salt Lake
City. Population in the corridor is expected to more than double -- to
620,000 -- by 2030. The "case" for the project rests on improved transit
connections to the Sandy line and the elimination of bus-rail transfers
for most riders to and from the Mid-Jordan corridor. The rail extension
is anticipated to improve transit travel times by 20 minutes from its
terminal because it uses an exclusive railroad right of way that both
avoids congested streets and cuts diagonally across a grid street
network. Through-routed service to/from downtown Salt Lake City
substantially reduces transit travel times from the corridor to
employment centers and college campuses elsewhere in the region -- and
from the region to a college campus in the corridor. UTA's "case" for
the project adequately describes the affected travel markets, the
impacts of the project on transit service for those markets, and the
anticipated ridership response, but is poorly organized and suffers from
a lack of clarity in presentation.

####### 

####### *Cost Effectiveness Rating: Medium*

The *Medium* cost effectiveness rating reflects the level of travel time
benefits (3,800 hours each weekday including special events) relative to
the project's annualized costs.

+------------------------------------------+---------------------------+
| **Cost Effectiveness**                   |                           |
+------------------------------------------+---------------------------+
| Cost per Hour of Transportation System   | **[New Start vs.          |
| User Benefit                             | Baseline]{.underline}**   |
|                                          |                           |
| Incremental Cost per Incremental Trip    | > \$23.84\*               |
|                                          | >                         |
|                                          | > \$23.20                 |
+------------------------------------------+---------------------------+

####### \* Indicates that measure is a component of Project Justification rating.

[]{.mark}

***Transit-Supportive Land Use Rating: Medium-Low***

The *Medium-Low* rating is based upon the average of the ratings
assigned to the subfactors below, each of which contribute one-third to
the land use rating. The rating reflects conditions as of April 2007.

**Existing Land Use: Low**

-   The corridor consists mostly of low-density residential uses
    characterized by walled subdivisions lacking pedestrian connections
    and dominated by cul-de-sacs. Stations are located in areas with low
    levels of population and employment. The population density for all
    stations combined is low (2,300 persons per square mile). Total
    employment served by the project, including the Salt Lake City CBD,
    is just over 99,200.

-   The project would serve a number of existing activity generators in
    the corridor. However, the project is intended primarily to serve
    anticipated future development and provide park-and-ride access to
    Salt Lake City, the University of Utah, and the University Medical
    Center. Significant portions of all stations have vacant land, and a
    Superfund site is located adjacent to the Bingham Junction Station.
    Existing land use is auto-oriented, with few transit supportive
    features.

-   Current levels of population, employment and other trip generators
    in station areas cannot be considered "transit supportive." Station
    areas are not pedestrian friendly and parking in the corridor is
    generally unrestricted.

**Transit-Supportive Plans and Policies: Medium**

-   The Wasatch Choice 2040 visioning process is a major regional land
    use planning effort that is intended to guide the long-range
    metropolitan transportation plan and have a significant influence on
    future development patterns. The metropolitan area and the corridor
    are high-growth areas. The Salt Lake City area Metropolitan planning
    organization has created a Regional Growth Committee to work with
    local governments and the public in addressing land use and
    transportation problems associated with rapid growth.

-   All three corridor municipalities have formulated policies and
    master plans that provide a strong foundation for transit-oriented
    development at six of the nine proposed stations. Midvale City has a
    transit-oriented development (TOD) for the redevelopment of Bingham
    Junction. West Jordan's General Plan encourages higher-density,
    mixed-use development. Large-scale TOD projects are planned for the
    Gardner Village, Redwood and Bangerter stations.

-   Both Midvale City and West Jordan have taken steps to foster the
    concentration of growth in established residential and employment
    centers. Midvale City has a transit-oriented development ordinance
    and a master plan for the redevelopment of Bingham Junction, both of
    which promote infill development. Growth is managed in West Jordan
    through application of the City's "Adequate Public Facilities"
    ordinance.

**Performance and Impacts of Policies:** **Medium**

-   An infill development project has been built in the Redwood Station
    area responding to West Jordan City's Adequate Public Facilities
    Ordinance. The first phases of the expansive transit-oriented
    Daybreak community are underway. There are major transit-supportive
    development proposals and plans for six of the nine station areas.

-   Station areas consist in large part of vacant developable land. By
    2030, both station area population densities and employment served
    by the system, including the CBD, will be in the medium-low range,
    in terms of FTA benchmarks.

-   The project can be expected to foster some clustering of anticipated
    economic and population growth in station areas and the corridor,
    although total development levels will be below the thresholds
    necessary to be clearly transit-supportive. While local plans,
    policies and development programs within the project corridor have
    transit supportive densities, there is little evidence that real
    estate market conditions throughout the region support these plans
    and policies.

####### Other Project Justification Criteria

+------------------------------------------+---------------------------+
| **Mobility Improvements Rating: Medium** |                           |
+------------------------------------------+---------------------------+
| **Transportation System User Benefit Per | **[New Start vs.          |
| Passenger Mile (Minutes)**               | Baseline]{.underline}**   |
|                                          |                           |
| **Number of Transit Dependents Using the | **1.6**                   |
| Project (Daily)**                        |                           |
|                                          | **1,349**                 |
| **Transit Dependent User Benefits per    |                           |
| Passenger Mile (Minutes)**               | **2.6**                   |
|                                          |                           |
| **Share of User Benefits Received by     | **135.6%**                |
| Transit Dependents Compared to Share of  |                           |
| Transit Dependents in the Region**       |                           |
+------------------------------------------+---------------------------+
| **Environmental Benefits Rating: High**  |                           |
+------------------------------------------+---------------------------+
| **[Criteria Pollutant                    | **[EPA                    |
| Status]{.underline}**                    | D                         |
|                                          | esignation]{.underline}** |
| Particulate Matter (PM~10~)              |                           |
|                                          | Moderate Non-attainment   |
| Sulfur Dioxide (SO~2~)                   | Area                      |
|                                          |                           |
|                                          | Primary and Secondary     |
|                                          | Non-attainment Area       |
+------------------------------------------+---------------------------+

####### 

# [Local Financial Commitment Rating: Medium-High]{.underline} 

The *Medium-High* local financial commitment rating is based on the
*Medium-High* ratings for the capital and operating finance plans and
the *High* rating for the New Starts share of project costs.

####### *Section 5309 New Starts Share of Total Project Costs Rating: High*

UTA is requesting a 78 percent New Starts share of total project costs.
Per the terms of an August 2007 MOU between FTA and UTA, FTA is
providing a no greater than 20 percent share of Federal funding for
UTA's entire \$2.85 billion Transit 2015 Program. Consequently, the
rating for this measure is *High*.

+--------------------------+-----------------------+------------------+
| **Locally Proposed       |                       |                  |
| Financial Plan**         |                       |                  |
+--------------------------+-----------------------+------------------+
| **[Source of             | **[Total Funding      | **[Percent of    |
| Funds]{.underline}**     | (\$mi                 | Tota             |
|                          | llion)]{.underline}** | l]{.underline}** |
+--------------------------+-----------------------+------------------+
| **Federal:**             | \$431.88              | 78.0 %           |
|                          |                       |                  |
| Section 5309 New Starts  |                       |                  |
+--------------------------+-----------------------+------------------+
| **Local:**               | \$86.92               | 15.7 %           |
|                          |                       |                  |
| UTA Sales Tax Revenues   | \$27.52               | 5.0 %            |
|                          |                       |                  |
| ROW purchased by UTA     | \$7.37                | 1.4 %            |
|                          |                       |                  |
| Park-and-Ride ROW        |                       |                  |
+--------------------------+-----------------------+------------------+
| **Total:**               | **\$553.69**          | 100.0 %          |
+--------------------------+-----------------------+------------------+

**NOTE**: Funding statements reflected in this table have been made by
project sponsors and are not DOT or FTA assumptions. Sum of figures may
differ from total as listed due to rounding.

####### 

####### *Capital Finance Plan Rating: Medium-High*

The capital finance plan is rated *Medium-High* based upon the weighted
average of the ratings assigned to each of the subfactors listed below. 
The agency capital condition is weighted 25 percent, the commitment of
capital funds is weighted 25 percent, and the capital cost estimate,
planning assumptions and capital funding capacity subfactor is weighted
50 percent.

**Agency Capital Condition: Medium**

-   The average age of UTA's bus fleet is 7.3 years, which is slightly
    older than the industry average, while the average age of the light
    rail vehicle fleet is 10.5 years.

-   UTA's good very bond ratings, which were issued in 2007, are as
    follows: Standard & Poor's Corporation AAA; and Moody's Investor
    Service Aa3.

Commitment of Capital Funds: High

-   One-hundred percent of non-New Starts funding is committed. The
    primary sources of funding are the existing UTA sales tax revenue
    and ROW already purchased by UTA.

### Capital Cost Estimate, Planning Assumptions, and Financial Capacity: Medium

-   Key assumptions related to capital revenues and costs are consistent
    with historical experience.

-   UTA has adequate reserves and available debt capacity to cover cost
    increases or funding shortfalls.

-   FTA identified certain risks that have a potential to negatively
    impact the overall project budget UTA can address these cost
    uncertainties in the PE phase.

### 

####### *Operating Finance Plan Rating: Medium-High*

The operating finance plan is rated *Medium-High* based upon the
weighted average of the ratings assigned to each of the subfactors
listed below.  The agency operating condition is weighted 25 percent,
the commitment of operating funds is weighted 25 percent, and the
operating cost estimates, planning assumptions and operating funding
capacity subfactor is weighted 50 percent.

**Agency Operating Condition: High**

-   UTA's current ratio of assets to liabilities as reported in its most
    recent audited financial statement is 2.5.

-   UTA is in very good condition and has experienced continued growth
    in service during recent years.

### 

Commitment of Operating Funds: High

-   Over 99 percent of operating funds is committed. The primary source
    of operating funds is the existing sales tax dedicated to UTA.

#### Operating Cost Estimates, Planning Assumptions, and Financial Capacity: Medium

### Operating cost and revenue assumptions are consistent with historical experience. 

### The operating plan shows that UTA has substantial financial capacity, with positive cash balances and sufficient cash reserves.

### 

MAP