**New Britain -- Hartford Busway**

**Hartford, Connecticut**

(November 2006)

The Connecticut Department of Transportation (ConnDOT) is proposing to
construct the New Britain-Hartford Busway, an 11-station, 9.4-mile
exclusive bus rapid transit (BRT) system operating primarily in an
existing and abandoned railroad right-of-way (ROW) on a new two-way
roadway between downtown New Britain and downtown Hartford's Union
Station. The busway would run parallel to Interstate 84

(I-84), the primary transportation link between New Britain, West
Hartford, and downtown Hartford. The project's operating plan calls for
a number of bus routes to operate on the Busway, including services that
enter and exit the facility to reach destinations well outside of the
immediate corridor without the need for a transfer. The project scope
includes the procurement of 30 new buses and construction of five small
park-and-ride lots along the alignment.

I-84 is currently, and is forecast to remain, the region's most
congested highway. In addition, the combined population of New Britain
and Hartford account for just under 50 percent of the entire
metropolitan area's zero-car households. The proposed busway project is
intended to provide faster transit travel times between major activity
centers throughout the corridor, improve mobility and accessibility for
the corridor's relatively large transit-dependent population, and
promote redevelopment opportunities in older urban centers along the
project alignment.

+------------------------------------+---------------------------------+
| **Summary Description**            |                                 |
+------------------------------------+---------------------------------+
| **Proposed Project:**              | Bus Rapid Transit               |
+------------------------------------+---------------------------------+
| ** **                              | 9.4 Miles                       |
|                                    |                                 |
|                                    | 11 Stations                     |
+------------------------------------+---------------------------------+
| **Total Capital Cost (\$YOE):**    | \$458.78 Million (includes      |
|                                    | \$11.16 million in finance      |
|                                    | charges)                        |
+------------------------------------+---------------------------------+
| **Section 5309 New Starts Share    | \$275.27 Million (60.0%)        |
| (\$YOE):**                         |                                 |
+------------------------------------+---------------------------------+
| **Annual Forecast Year Operating   | \$10.0 Million                  |
| Cost:**                            |                                 |
+------------------------------------+---------------------------------+
| **Ridership Forecast (2030):**     | 15,200 Average Weekday          |
|                                    | Boardings                       |
+------------------------------------+---------------------------------+
| ** **                              | 4,500 Daily New Riders          |
+------------------------------------+---------------------------------+
| **Opening Year Ridership Forecast  | 13,700 Average Weekday          |
| (2012):**                          | Boardings                       |
+------------------------------------+---------------------------------+
| **FY 2008 Local Financial          | # Medium                        |
| Commitment Rating:**               |                                 |
+------------------------------------+---------------------------------+
| **FY 2008 Project Justification    | **Medium**                      |
| Rating:**                          |                                 |
+------------------------------------+---------------------------------+
| **FY 2008 Overall Project          | **Medium**                      |
| Rating:**                          |                                 |
+------------------------------------+---------------------------------+

ConnDOT has demonstrated significant progress over the last year.
ConnDOT must resolve outstanding design and ROW issues, gain full
commitments of non-New Starts funding, and maintain sufficient New
Starts ratings before FTA considers a Full Funding Grant Agreement
(FFGA) for the New Britain-Hartford Busway project.

**Project Development History and Current Status**

The 1994 regional transportation plan prepared by the Capitol Region
Council of Governments identified the I-84 corridor west of Hartford as
one of the metropolitan area's high priority corridors in need of
improvement. A major investment study in the corridor was completed in
1999; it resulted in the selection of a BRT system between New Britain
and Hartford as the locally preferred alternative. FTA approved the New
Britain - Hartford Busway's entrance into preliminary engineering (PE)
in January 2000. The project received a NEPA Record of Decision (ROD) in
March 2002. In order to address changes in project scope since issuance
of the ROD, ConnDOT completed supplementary environmental work, which
FTA approved in June 2006. FTA approved final design for the project in
October 2006.

**Significant Changes Since FY 2007 Evaluation (November 2005)**

ConnDOT prepared and submitted an updated cost estimate (reflecting an
increase of \$120 million) and financial plan reflecting anticipated
sources and uses of capital and operating funds for transit. ConnDOT's
updated capital cost estimate reflects revised finance costs,
construction unit price and quantity increases, a higher contingency
percentage, new work elements, and a revised annual escalation factor.
The updated cost also reflects a revised project implementation schedule
which delays revenue operations from December 2011 to January 2012.
Minor updates were made to the project travel forecasts to exclude
tangential trips (riders who use a busway station, but do not actually
travel over a segment of the busway).

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

The project is rated *Medium* based on the *Medium* rating for cost
effectiveness and the *Medium* rating for transit-supportive land use.

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

The *Medium* cost effectiveness rating reflects the level of travel
time-benefits (3,800 weekday hours) 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    | \$22.07\*                 |
|                                          |                           |
|                                          | \$19.63                   |
+------------------------------------------+---------------------------+

####### \* Indicates that measure is a component of Cost Effectiveness rating.

The New Britain-Hartford Busway project is anticipated to result in
travel-time benefits not only to residents living within the corridor,
but to suburban commuters who take advantage of the flexibility of BRT
service. Specifically, ConnDOT's operating plan for the Busway allows
several routes to exit the facility and circulate through neighborhoods
to reach destinations far removed from the alignment. This reduces the
number of transfers required, allows more riders access to more trip
origins and destinations with a single-seat ride, and contributes to
higher ridership levels. Approximately 40 percent of travel-time
benefits accrue to suburban travel markets, with Hartford and New
Britain residents splitting the remainder of time savings. In addition,
zero-car households generate nearly 40 percent of the project's
travel-time benefits.

Based on a cost review and risk assessment conducted by FTA, several
risk factors were identified that must be mitigated in order to maintain
the current cost. These factors include both the lack of agreements with
Amtrak and a detailed assessment of contamination associated with the
Amtrak ROW; the need for more sufficient ROW plans; and the need for
detailed utility surveys and utility relocation plans. Resolution of
these issues will be the focus of ongoing FTA oversight of the project.

###### Transit-Supportive Land Use Rating: Medium

The *Medium* project rating is based on the *Medium-Low* rating assigned
to existing land use combined with *Medium* ratings for plans and
policies and their performance.

##### Existing Land Use: Medium-Low

-   The project spans four jurisdictions between the downtown areas of
    Hartford and New Britain. Intermediate stations serve residential
    neighborhoods of varying urban and suburban character, with low to
    medium densities, as well as a mix of auto-oriented commercial and
    industrial development and undeveloped land. The busway is in a
    transportation corridor and the stations are adjacent to I-84,
    additional major roadways, Amtrak ROW, and large, formerly
    industrial buildings.

-   Average population density for all station areas is 5,600 per square
    mile. A total of 64,800 employees work in areas to be served by the
    system.

-   Parking rates are modest in downtown Hartford and New Britain, while
    parking is free and generally available at other station areas.

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

-   The State of Connecticut has established Transportation Investment
    Areas, including the area to be served by this project, in which to
    focus development and investment in transportation infrastructure.
    State legislation passed over the last year requires designation of
    areas for compact, transit accessible, pedestrian-oriented mixed-use
    development and permits the use of several state sources to fund
    transit-oriented development. The State of Connecticut's 2005 Master
    Transportation Plan reinforces these principles.

-   A rigorous land use planning effort, the *New Britain-Hartford
    Station Planning Project*, was conducted for the busway and has
    produced conceptual transit-oriented station area plans, although
    progress in implementation has been slow. The City of Hartford is
    implementing infrastructure improvements to enhance pedestrian
    circulation.

-   All municipalities are in the process of adopting transit-oriented
    overlay zoning in response to the project. The Town of West Hartford
    and the City of Hartford have adopted overlay zones that support
    various aspects of transit-supportive development. An additional TOD
    Overlay District that would remove restrictions on residential
    density, height, and lot occupancy was proposed in 2003 but has not
    yet been adopted.

**Performance and Impacts of Policies: Medium**

-   Significant redevelopment is under way in downtown Hartford,
    reflecting recovery from a long period of economic decline. Major
    components have been completed of the 30-acre Adriaen\'s Landing
    site project, which includes a new Connecticut Convention Center,
    Downtown Marriott Hotel, an entertainment district, residential
    development, and the Connecticut Center for Science and Exploration.

-   Multiple development projects are either newly completed or under
    construction in downtown Hartford station areas and rehabilitation
    of existing structures to support new uses is under way at two
    additional stations.

-   The project is conceived as a linchpin for the economic revival of
    urban areas in Hartford and New Britain, as well as growth
    throughout the entire corridor.

####### Other Project Justification Criteria 

+------------------------------------------+--------------+------------+
| **Mobility Improvements Rating:          |              |            |
| Medium-High**                            |              |            |
+------------------------------------------+--------------+------------+
| **[Within ½-mile radius of boarding      | 64,800       |            |
| areas]{.underline}:**                    |              |            |
|                                          | 80,900       |            |
| Existing Employment                      |              |            |
|                                          | 4,600 (27)%  |            |
| Projected Employment (2030)              |              |            |
|                                          | []{.mark}    |            |
| Low Income Households (% of total HH)    |              |            |
|                                          | []{.mark}    |            |
| **[Average Per Station]{.underline}:**   |              |            |
|                                          | 5,900\*      |            |
| Employment                               |              |            |
|                                          | 420\*        |            |
| Low Income Households                    |              |            |
|                                          | []{.mark}    |            |
| **Transportation System User Benefit Per |              |            |
| Project Passenger Mile (Minutes)**       | **[New Start |            |
|                                          | vs.          |            |
|                                          | Baseline]{.  |            |
|                                          | underline}** |            |
|                                          |              |            |
|                                          | 3.60\*       |            |
+------------------------------------------+--------------+------------+
| **Environmental Benefits Rating: High**  |              |            |
+------------------------------------------+--------------+------------+
| **[Criteria Pollutant (Reduction in      | **[New Start |            |
| tons)]{.underline}**                     | vs.          |            |
|                                          | Baseline]{.  |            |
| > Carbon Monoxide (CO)                   | underline}** |            |
| >                                        |              |            |
| > Nitrogen Oxide (NO~x~)                 | 254          |            |
| >                                        |              |            |
| > Volatile Organic Compounds (VOC)       | 5            |            |
| >                                        |              |            |
| > Particulate Matter (PM~10~)            | 5            |            |
| >                                        |              |            |
| > Carbon Dioxide (CO~2~)                 | N/A          |            |
|                                          |              |            |
| **[Criteria Pollutant                    | 13,850       |            |
| Status]{.underline}**                    |              |            |
|                                          | **[EPA       |            |
| > 8-Hour Ozone (O3)                      | De           |            |
| >                                        | signation]{. |            |
| > Carbon Monoxide (CO)                   | underline}** |            |
|                                          |              |            |
| **Annual Energy Savings (million British | Moderate     |            |
| Thermal Units)**                         | No           |            |
|                                          | n-Attainment |            |
|                                          | Area\*       |            |
|                                          |              |            |
|                                          | Maintenance  |            |
|                                          | Area\*       |            |
|                                          |              |            |
|                                          | 179,124      |            |
+------------------------------------------+--------------+------------+
| **Operating Efficiencies Rating:         |              |            |
| Medium**                                 |              |            |
+------------------------------------------+--------------+------------+
| **System Operating Cost per**            | > **         | **[New     |
|                                          | [Baseline]{. | Start]{.un |
| **Passenger Mile (current year           | underline}** | derline}** |
| dollars)**                               | >            |            |
|                                          | > \$0.732\*  | \$0.663\*  |
+------------------------------------------+--------------+------------+

\* Indicates that measure is a component of rating for each criterion.

N/A indicates information was not available for this entry.

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

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

####### *Section 5309 New Starts Share of Total Project Costs: 60%* 

####### *Rating: Medium*

ConnDOT is requesting a 60 percent New Starts share of total project
costs, which equates to a *Medium* rating for this measure.

+-------------------------+-----------------------+--------------------+
| **Locally Proposed      |                       |                    |
| Financial Plan**        |                       |                    |
+-------------------------+-----------------------+--------------------+
| **[Source of            | **[Total Funds        | **[Percent of      |
| Funds]{.underline}**    | (\$mi                 | To                 |
|                         | llion)]{.underline}** | tal]{.underline}** |
+-------------------------+-----------------------+--------------------+
| **Federal:**            | \$275.27              | 60.0%              |
|                         |                       |                    |
| Section 5309 New Starts | \$12.98               | 2.8%               |
|                         |                       |                    |
| Section 5307 Urbanized  | \$13.06               | 2.9%               |
| Area                    |                       |                    |
|                         | \$22.06               | 4.8%               |
| Formula Funds           |                       |                    |
|                         | \$38.85               | 8.5%               |
| Section 5309 Fixed      |                       |                    |
| Guideway                | \$6.00                | 1.3%               |
|                         |                       |                    |
| Modernization Funds     |                       |                    |
|                         |                       |                    |
| Section 5309 Bus        |                       |                    |
| Discretionary           |                       |                    |
|                         |                       |                    |
| Flexible Funds (CMAQ    |                       |                    |
| and STP)                |                       |                    |
|                         |                       |                    |
| FHWA NHS Funds          |                       |                    |
+-------------------------+-----------------------+--------------------+
| **State:**              | \$38.56               | 8.4%               |
|                         |                       |                    |
| Special Transportation  | \$52.00               | 11.3%              |
| Fund (STF)              |                       |                    |
|                         |                       |                    |
| STF/Public Act 06-136   |                       |                    |
+-------------------------+-----------------------+--------------------+
| **Total:**              | **\$458.78**          | 100.0%             |
+-------------------------+-----------------------+--------------------+

**NOTE**: The financial plan reflected in this table has been developed
by the project sponsor and does not reflect a commitment by DOT or FTA.
The sum of the figures may differ from the total as listed due to
rounding.

# *Capital Finance Plan Rating: Medium* 

The capital finance plan is rated *Medium*. This reflects a *Medium*
rating each subfactor.

#### Agency Capital Condition: Medium

-   The average age of ConnDOT's Statewide bus fleet is 7.1 years; the
    average age of the Hartford Division's bus fleet is 6.6 years, which
    is younger than the industry average.

-   ConnDOT's Special Tax Obligation bond ratings, which were issued in
    December 2005, are as follows: Moody's Investors Service A1 and
    Fitch AA-.

#### Completeness of Capital Plan: Medium

-   The capital plan was reasonably complete and included cash flow
    statements specifying the sources and uses of capital funds for
    transit and highway projects Statewide, five years of historical
    data, bus fleet replacement schedules, and a limited sensitivity
    analysis.

-   The plan was missing some explanatory details. The sensitivity
    analysis examined the potential for project cost increases, but did
    not include an accompanying analysis demonstrating how ConnDOT would
    address such cost increases.

#### Commitment of Capital Funds: Medium

-   Almost 60 percent of non-New Starts funding is committed or
    budgeted. Federal funding sources include Section 5307 Formula
    funds, Section 5309 Fixed Guideway Modernization funds, Section 5309
    Bus Discretionary funds, flexible funds including CMAQ and STP, and
    FHWA National Highway System funds. State funding sources include
    revenues from the State Transportation Fund and the funds
    newly-committed in Public Act 06-136.

#### Capital Funding Capacity: Medium

-   The project's financial plan shows projected cash balances, reserve
    accounts, and/or access to credit based on the State Transportation
    Fund that would allow ConnDOT to cover cost increases or funding
    shortfalls equal to approximately 10 percent of project costs.

#### Capital Cost Estimate and Planning Assumptions: Medium

-   Most assumptions in the capital plan are generally consistent with
    historical experience, although a few are slightly optimistic.

-   The capital cost estimate of the project is considered current and
    reliable.

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

The operating finance plan is rated *Medium*, based upon the average of
the ratings of the five subfactors listed below. The operating condition
subfactor received a *High* rating; the completeness subfactor received
a *Medium* rating; the commitment of funds and operating cost estimates
and planning assumptions subfactors received *Medium-Low* ratings; and
the operating capacity subfactor received a *Low* rating.

#### Agency Operating Condition: High

-   The ratio of current assets to liabilities as reported in the most
    recent financial statements for the Special Transportation Fund is
    5.8.

-   ConnDOT is in good condition with no bus service cutbacks in recent
    years and a history of being able to draw funds as required from the
    State Transportation Fund.

#### Completeness of Operating Plan: Medium

-   The operating plan was reasonably complete and included a 20-year
    cash flow statement for the project, the Hartford Bus Division and
    for transportation Statewide, historical data, identification of key
    assumptions, and a limited sensitivity analysis. The plan was
    missing some explanatory detail including a description of how
    busway operating costs were estimated. The sensitivity analysis did
    not address how ConnDOT would cover unexpected cost increases.

#### Commitment of Operating Funds: Medium-Low

-   Less than 50 percent of operating funding is committed. Planned
    sources of funds include the State Transportation Fund and farebox
    revenues.

#### Operating Funding Capacity: Low

-   The project's financial plan shows annual deficits in the State
    Transportation Fund beginning in 2010, and a negative fund balance
    beginning in 2019. Although the Legislature is compelled to maintain
    a minimum positive fund balance for a rolling five-year horizon, the
    financial plan did not describe any means by which these deficits
    would be eliminated.

#### Operating Cost Estimates and Planning Assumptions: Medium-Low

-   Assumptions regarding the sources of operating funds tend to be
    conservative, while the assumptions regarding operating costs, uses
    of funds, and subsidy needs appear optimistic.

MAP