Ad Hoc Airport Regional Policy Committee Meeting 13 Ad Hoc ... · Rental car/CONRAC Customer service area Rental car companies $1,875,000 $2,174,000 Ready/return area Rental car companies

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Briefing for:

Ad Hoc Airport Regional Policy Committee – Meeting 13January 22, 2009

Briefing for:

Ad Hoc Airport Regional Policy Committee – Meeting 13January 22, 2009

San Diego County Regional Airport AuthorityCity of San Diego San Diego Association of GovernmentsPort of San DiegoCounty of San DiegoMetropolitan Transit SystemNorth County Transit DistrictUnited States Department of Defense

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About this Document

n This presentation has been prepared in advance of a meeting of the Ad Hoc Airport Regional Policy Committee.

n Minor changes to the information contained herein may be made prior to the meeting.

n This document contains concepts and analyses for consideration and discussion which will be used as context during the meeting. No decision regarding the implementation of these concepts has been made.

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Agenda

� Destination Lindbergh parking

� Preliminary financial analysis

� Preliminary summary report

� Conclusions and next steps

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Today’s Meeting Objectives

n Review parking requirements and plans

n Review preliminary financial analysis

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Destination Lindbergh Parking

n Parking products and requirements

n Parking phasing

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Recommended Development Plan

Passenger Terminal Public Parking Garage

Public Parking Garage

High-Speed Rail Station and HSR/Transit Parking

Consolidated Rental Car Facility

Automated People Mover

Passenger Walkway

Note: Some projects (such as the CONRAC) may be able to be accelerated due to the availability of previous planning.

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Airport Parking Products

Four major types of parking

n Close-in parking• Highly convenient• More expensive• Nearest passenger terminal• Serves “hourly” (meeter / greeter) and “daily” (park for duration of trip) demand

n Remote parking• Less convenient• Less expensive• Typically further from terminal, often requires shuttle service• May be provided by private operators

n Rental car parking• Ready/Return

• Can be close-in or remote• Must be near to service centers (fuel / wash)

• Storage – must be within reasonable distance of Ready/Return

n Employee parking

� Destination Lindbergh Parking

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Airport Parking Demand

n Local (resident) airline passenger growth is primary driver of demand

n Strategies to meet parking demand• Increase supply – additional capacity must meet specific type of

demand (meeter / greeter versus park for duration of trip)

• Encourage use of other modes

• Increase parking rates• Some patrons may choose less-expensive parking facilities (including off-

airport)• Some patrons may choose different access mode (e.g., pickup/drop-off,

taxicab)


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Airport Parking Demand

n Providing fewer spaces than demand “requires” can result in• Increased reliance on commercial vehicles (especially taxicabs

and limousines) and increased curbside congestion as more passengers opt to be dropped off or picked up

• Increased use of off-airport parking facilities and associated shuttles

• Decreased revenue for airport to fund airport improvements

• Increased circulation in lots and increased greenhouse gas emissions


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Parking Requirements Methodology

n Goals • Meet Airport customer needs and requirements• Identify and protect land for future development• Prior to implementing long-term plans, requirements will be reviewed and adjusted to

reflect changes in the parking environment, including:• Passenger activity• Passenger behavior and mode choice• Off-Airport parking supply• Economic factors

n Methodology• Based on July activity (peak month, average day)• Inputs

• Transactions• Durations• Facility occupancies• Circulation factor

• Requirements will increase at same rate as local originating passengers

n Typically, future mode changes will have minimal impact on peak period parking requirements


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Parking Requirements

30.960026.44,10024.43,800NorthRental cars (ready / return)

Varies

48.06,00048.06,00048.06,000Private parking operators

48.2

4.8

29.4

30.9

--

66.6

18.0

Acres

6,000

600

6,400

3,850

--

8,300

--

2,250

Spaces

14 million

2030 (approximate)

PAL2

--

3.2

25.3

--

15.8

30.5

23.4

7.8

5.9

Acres

--

400

5,500

--

1,950

3,800

2,900

950

750

Spaces

11 million

2020 (approximate)

PAL1

--

0.8

23.0

--

14.4

49.0

--

12.4

--

Acres

--

100

5,000

--

1,800

6,100

--

1,550

--

Spaces

10 million

ITC OPENING DAY

Rental cars (storage)

NorthHigh Speed Rail

North

South (or other location)

North

South

North

South

North

Remote

Daily (close-in)

YEAR

TYPE / LOCATION OF PARKING FACILITIES

Transit User Parking

Hourly (close-in)

Annual enplaned passengers


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Parking Locations

North

North & South

South

Close-in parking

Location

SouthPAL 2

(2030 and beyond)

North & SouthPAL 1

(2020-2030)

NorthToday and Opening Day

(through 2020)

Remoteparking

Location/Size of Parking Facilities

Terminal AreaTerminal Area

Close-inClose-in

RemoteRemote

Terminal North Ph 2

Terminal North Ph 2

Close-inClose-in

RemoteRemote

Gates SouthGates South

Runway

Runway

Terminal 2Terminal 2

New Terminal North

New Terminal North

Close-in

Close-in

Close-in

Close-in

RemoteRemote

New Gates SouthNew Gates South

Runway RemoteRemote

Note: Additional parking analysis to be conducted during the detailed planning phase.


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Preliminary Financial Analysisn Destination Lindbergh costsn Funding sourcesn Operating and maintenance expensesn Operating revenuesn Conclusion

�

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Capital Development Costs

n The entire project at ultimate buildout is estimated to cost approximately $5.2 billion to $12.4 billion, in escalated dollars

n The inflation range assumed is 2% to 8% annually

n The primary focus of the analysis is Phase 1 (Opening Day) –improvements through 2015

Low Estimate(2% Escalation)

Intermediate(4% Escalation)

High Estimate(8% Escalation)

Phase 1 (Opening Day) $615 m $665 m $830 m

Phase 2 (PAL 1) $2,173 m $2,581 m $3,924 m

Phase 3 (PAL 2) $2,380 m $3,431 m $7,617 m

Total $5,168 m $6,677 m $12,371 m

PROJECT COST SUMMARY*(Escalated Dollars)

*Project costs include hard costs, soft costs, and contingencies. Excludes off-airport mitigation.

� Preliminary Financial Analysis

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Full Program Costs

n All of the costs for Opening Day are projects related to the Northside

n Major ITC projects on Opening Day include the CONRAC, other parking structures, the rail station and associated roadways

INTERMEDIATE COST ESTIMATES(Escalated $ ‘000)

Opening Day PAL 1 PAL 2 Total

"Traditional" Airport projects $ -- $1,380,000 $1,852,000 $3,232,000

Rental Car/CONRAC 436,000 31,000 549,000 1,017,000

Parking 82,000 216,000 859,000 1,157,000

Transit/rail 65,000 13,000 -- 78,000

Roads 48,000 299,000 139,000 486,000

Tunnel/Walkway/Land and ROW Acq. 34,000 13,000 32,000 79,000

Other projects (I-5 ramp, people mover) -- 629,000 -- 629,000

Total $665,000 $2,581,000 $3,431,000 $6,677,000

Note: Excluding off-airport mitigation costs. All costs expressed in escalated dollars. Numbers may not add due to rounding.


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Potential Funding Sources

n Funding for Destination Lindbergh can potentially come from a variety of sources

Traditional Airport Non-Traditional Airport

Federal Airport Improvement Program (AIP) grants Special facility bonds (rental car)

Passenger Facility Charges (PFCs) Third party funding (rental car customer facility charges)

Airport revenue bonds Transportation Infrastructure Finance and Innovation Act (TIFIA) loan proceeds

Internally generated airport capital

Non-Airport

State and local funding State Transit Assistance funds

Tax increment financing Proposition 1B infrastructure bonds

TransNet sales tax funds FTA Discretionary and Formula (Section 5309) funds

Transportation Development Act (TDA) sales tax funds Surface Transportation (STP) funds

Local street and road funds Congestion Mitigation and Air Quality (CMAQ) funds

State Transportation Improvement Program (STIP) funds Carbon Emissions Reduction funds


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Conceptual Funding Sources� Preliminary Financial Analysis

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Funding Sources–Opening Day

n A funding scenario for ITC projects for the Opening Day phase ofconstruction is presented in the table below (based on intermediate cost estimate):

Capital costs (Escalated $ ‘000)

Rental car/CONRAC $436,000

Parking 82,000

Rail 65,000

Roads 48,000

Other (a) 34,000

Total $665,000

(a) Including property/ROW acquisition, and tunnel/walkway.(b) TIFIA loan, CFC-backed bonds, and Airport Revenue Bonds would need to be repaid from various revenue sources.

NOTE: Amounts shown exclude off-Airport mitigation costs.

Funding Sources (Escalated $ ‘000)

TIFIA loan proceeds (b) $221,000

CFCs & rental car cos. (b) 255,000

Airport revenue bond proceeds (b) 124,000

Federal Airport grants 10,000

Other (non-Airport sources) 55,000

Total $665,000


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Annual Operating and Maintenance (O&M) Expenses

n On Opening Day, the facility is projected to incur approximately$12.9 million in annual O&M expenses (2015 dollars)

• Different entities would bear the O&M cost burden • The Authority would bear about 30 percent of this cost directly

Project elements O&Mresponsibility

O&M cost - 2015

(2009 dollars) (escalated dollars)

ITC tunnel/Overhead passenger gateway Airport Authority $500,000 $580,000Parking (airport-related) Airport Authority 1,800,000 2,087,000

Roads Airport Authority 1,155,000 1,339,000Subtotal $3,455,000 4,006,000

Transit station & alignment, and related Parking Station operator $600,000 $696,000

Rental car/CONRACCustomer service area Rental car companies $1,875,000 $2,174,000

Ready/return area Rental car companies 2,850,000 3,305,000Vehicle storage Rental car companies 2,000,000 2,319,000Rental car support/QTA Rental car companies 370,000 429,000Subtotal $7,095,000 $8,227,000

Note: Assuming 2.5% annual inflation in operating costs.


2020

Annual Operating Revenues

n On Opening Day, the facility is projected to generate approximately $30.0 million in annual operating revenues (in 2015 dollars)

• Operating Revenues would be dedicated to the payment of debt service (CFC-backed bonds, airport revenue bonds, TIFIA loans), as well as topay O&M expenses

• Need to identify a specific revenue stream for TIFIA loan payments

Project elements Source ofRevenue Recipient

Revenues - 2015

(2009 dollars) (escalated dollars)

Parking (airport-related) Air travelers & meeters/greeters Airport Authority $1,626,000 $1,886,000

Rail station Concessions Station operator 250,000 283,000

Parking (transit) Transit/rail commuters Station operator 1,218,000 1,413,000

Subtotal – Station operator $1,468,000 $1,696,000

Rental car/CONRAC

Customer Facility Charge Customers (CFC) Authority (SpecialFacility Project)

$15,246,000 $15,246,000

Rental car company space rental Space rental 10,100,000 11,127,000

Subtotal – Rental car related $25,346,000 $26,373,000

Capital costs

Note: Assuming 2.5% annual inflation


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Conclusions

n There is a significant potential for the Opening Day phase of the Destination Lindbergh program to be financed in a viable manner

n Key assumptions include:• TIFIA loan availability; identification of repayment sources• Financial markets return to “normal”• Inflation does not materially exceed 4% annually• CONRAC should be sized according to CFC funding capacity

n Project holds considerable merit as a unique intermodalfacility and therefore it could become eligible for a wide arrayof “special” funding in the form of grants or low-interest loans• Such funding cannot be assured, given the availability and

competitive nature of these funding sources


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Conclusions (continued)

n Beyond Opening Day, no conclusions can currently be made regarding PAL 1 and PAL 2 funding viability

n However, the Opening Day phase of the project stands alone, and has independent utility

Our recommendation:

n During detailed planning, focus on reducing capital costs (while maintaining functionality) to enhance financial viability


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Preliminary Summary Report

n Handout at Committee Meeting

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Conclusions and Next Steps

n Project schedule

n Next steps

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Schedule

6. Intermodal ConceptDevelopment

Dec2009 Jan

9. Final Vision and Concept

8. Community Input C

7. Preliminary Vision

5. Community Input B

4. Context andOpportunities

3. Forecasting

2. Goal Setting/Community Input A

1. Vision Structure

Task FebNovOctSeptAugJulyJuneMay2008 April

Legend

Project Task

MeetingReport

Time now

� Conclusions and Next Steps

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Next Steps

n Continue to refine financial analysis

n Prepare final summary report


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Thank You!

n Questions

n Comments

n Discussion


Documents

Ad Hoc Airport Regional Policy Committee Meeting 13 Ad Hoc ... · Rental car/CONRAC Customer service area Rental car companies $1,875,000 $2,174,000 Ready/return area Rental car companies