Diridon Station
to Airport Connector
Mookie Patel, Director of Aviation
John Ristow, Director of Transportation
Ramses Madou, Division Manager, Dept. of
Transportation
Transportation & Environment Committee
Item d.5 Diridon Station to Airport Connector
Status Report
June 3, 2024
Overview and Background
2 What
o Connects two regional transportation hubs
o Automated transit vehicles on dedicated guideway
o Optional Intra-Airport Connector
Why
o Transit to the Airport is currently not competitive
o Increased transit service connecting to
o Can expand to other underserved corridors
Why Now
o Diridon Integrated Station
o Land Availability
o Airport Expansion
Mott MacDonald Restricted
Diridon Station Redesign Integration
3 Looking west from SAP on Santa Clara Street
Diridon Station Joint Policy Advisory Board:
https://santaclaravta.iqm2.com/Citizens/Board/107
4-Diridon-Station-Joint-Policy-Advisory-Board
Aim: Significantly Reduce Cost
4 Current Market
5.5 miles of guideway
Passengers/hour: 10,000
$1.95 billion construction
Total $4.9 billion, with operations and maintenance
~7–8 miles of guideway
Passengers/hour: 1,500 start (4,500 long-term)
~$500 million construction cost (target)
Private partner pays for operations (revenue risk)
Cost Goals for San José
LAX Airport APM Diridon to SJC
Note: prices in 2022 dollars
Public-Private Partnership (P3) Delivery
A P3 is a contractual agreement between a public agency and a private entity that allows the public sector to optimize project costs and schedule by transferring some risks to private sector partners in the delivery of public infrastructure projects.
This project includes a multi-phase Pre-Development Agreement (PDA). P3 delivery goals include:
5 Finding the Right
Technology Solution
Leveraging Market
Know-How
Minimize Public
Funding
Finding the Right
Project Partner
6 Pre-Development Agreement Phases
We are here City Council Decision Point
Phase 1
Feasibility
Validation
Construction
and Operating
Franchise
Phase 3
Negotiate
Implementation
Agreement
Phase 2
Engineering &
Environmental
Progress Report
7 o Technology – is progressing in line with expectations, though risks remain o Capital Costs
• Generally in line with expectations
• Public contribution slightly higher than anticipated
• Impacts from inflation, interest rates, and runway protection zone o Financial Viability
• Questions remain on operating costs and future fare revenues • Further work on-going re: ridership forecasting assumptions and scenarios o Anticipate receiving final report in early Summer
Technical Feasibility
8 Positives:
o Significant progress of Glydways system since 2022
o Conceptual design completed for a feasible alignment
o Future system expansion considerations started
Open Questions:
o Multiple milestones before service readiness
o Delays occurring typical to technology and project
development
o Greater clarity needed on the CPUC approval process
o More operational planning needed
Commercial
Structure
Positives:
• Clear, simple commercial structure
consistent with SJCP's response to RFP
Open Questions:
• City will need to make decision on Risk
Allocation tradeoffs
• Areas where tradeoff of control
versus risk transfer
• What risks is the City willing to
assume in exchange for lower capital
costs?
9 Financial
Feasibility
Positives:
• Base System conforms to the goal of total project cost • Cost estimating methodology matches industry standards Open Questions:
• Revenue – Ridership estimates critical for private operations • Post-pandemic impact on passenger air traffic and transit ridership • Revalidation of forecast assumptions for passenger air traffic growth • Completing additional scenario analysis
• To prove that the full system is financially viable
• Size of private investment versus public funds needed • More detailed information on costs estimates and value engineering 10 Benefit Cost Analysis
11 Positives:
o Report follows standard protocols for estimating benefit-cost ratio and net present value o BCA covers primary benefits and costs of projects
o Benefits: service reliability, decongestion, road safety and reduced pollution o Costs: negative externalities during construction phase Open Questions:
o More detail on baseline conditions and travel demands o Additional information on core benefits and benefit calculations Table 25. Summary of Key Economic Metrics for the Core Analysis Scenario Baseline
scenario
High
Growth
Conservative Alt. Terminal B
access point
Present Value of
Benefits
$1,780 $2,220 $1,227 $1,751
Present Value of Costs $1,063 $1,134 $1,001 $1,063
Benefit-Cost Ratio 1.7 2.0 1.2 1.6
Net Present Value $717 $1,086 $237 $687
Funding
Strategy
Phase 2:
• Published information Memo to City Council on grant strategy in early May • Applied for Innovative Finance and Asset Concession Grant Program ($2 million) • Helps projects prepare for applying for Federal TIFIA loans • Working with VTA to secure Measure A funds
• Developing scopes and budgets to split Phase 2 into two subphases Future Construction Funding Possibilities:
• Aiming to get project into Federal New Starts funding program • State cap and trade funds through TIRCP grant
• Federal TIFIA loans for construction costs 12
Project Progress & Next Steps
13 April 2023
City Council Approval
August 2023
Began Stakeholder
Meetings
September
2023
First Community
Meeting
October 2023
Pre-Development
Agreement (PDA)
Signed
January 2024
City Council – IntraTerminal option
February 2024
Concept Design &
Draft Feasibility
Validation Report
June 2024
Final Feasibility
Validation Report
Summer/Fall
2024
Phase 2 Decision City
Council
Questions?
Mookie Patel, Director of Aviation
John Ristow, Director of Transportation
Ramses Madou, Division Manager, Dept. of Transportation