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    Tram Cost-Benefit Data

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    rooseveltislander
    This document provides capital cost, life expectancy, operations and maintenance fee, parts and supplies costs, power costs, ridership and revenue data for a cost-benefit analysis of four alternatives for modernizing Roosevelt Island's tramway system. The four alternatives range in estimated capital cost from $5.6 million to $20.4 million and expected useful life from 7 to 30+ years. Annual downtime hours and replacement durations are also estimated for each alternative.

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    Tram Cost-Benefit Data

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    rooseveltislander
    1K views2 pages
    This document provides capital cost, life expectancy, operations and maintenance fee, parts and supplies costs, power costs, ridership and revenue data for a cost-benefit analysis of four alternatives for modernizing Roosevelt Island's tramway system. The four alternatives range in estimated capital cost from $5.6 million to $20.4 million and expected useful life from 7 to 30+ years. Annual downtime hours and replacement durations are also estimated for each alternative.

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    This document provides capital cost, life expectancy, operations and maintenance fee, parts and supplies costs, power costs, ridership and revenue data for a cost-benefit analysis of four alternatives for modernizing Roosevelt Island's tramway system. The four alternatives range in estimated capital cost from $5.6 million to $20.4 million and expected useful life from 7 to 30+ years. Annual downtime hours and replacement durations are also estimated for each alternative.

    Copyright:

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    Download as pdf or txt
    1K views2 pages

    Tram Cost-Benefit Data

    Uploaded by

    rooseveltislander
    This document provides capital cost, life expectancy, operations and maintenance fee, parts and supplies costs, power costs, ridership and revenue data for a cost-benefit analysis of four alternatives for modernizing Roosevelt Island's tramway system. The four alternatives range in estimated capital cost from $5.6 million to $20.4 million and expected useful life from 7 to 30+ years. Annual downtime hours and replacement durations are also estimated for each alternative.

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    of 2

    Date: October 02, 2007

    To: James Parsons, Parametrix


    From: Mike Deiparine, Parametrix
    Subject: RIOC Tramway Cost Benefit Analysis Data
    cc: Jim Fletcher, Parametrix
    Steve Shane, RIOC
    Fernando Martinez, RIOC
    Rene Testa, Columbia University

    Project Number: 354-5162-002


    Project Name: RIOC Tramway

    Data required for your Cost-Benefit Analysis, per our Sep. 19 meeting, is as follows:

    Capital Costs
    Based on the current understanding of the construction market and material fluctuations, as well as the
    degradation of the US dollar against other currencies and as validated by manufacturer feedback, I have
    added 15% to the estimated cost for each of the four Alternatives, as quoted in our March 2007 Tramway
    Modernization Preliminary Engineering report. Given the uncertainties associated with these estimates,
    we recommend getting the project to the market place as soon as possible.
    Alternative 1 - $5.6 million
    Alternative 2 - $14.25 million
    Alternative 3 - $17.25 million
    Alternative 4 - $20.4 million

    Life Expectancy
    In the event that Alternative 1 is chosen, the interim repair is likely to make the tramway functional without
    further significant capital investment for 7 years or less. In the event that any other Alternative is chosen,
    it is expected that the useful life of the system will be 30 years or greater.
    Alternative 1 – 7 years
    Alternative 2 – 30 years
    Alternative 3 – 30 years
    Alternative 4 – 30 years

    O&M Fee
    The O&M fee is based on the current contract for operations and maintenance as performed by
    Doppelmayr. From an operations perspective, Alternatives 2 and 3 are fundamentally the same system
    as today, and while the new systems will likely require less corrective maintenance in the near term, no
    reduction was made for the maintenance fee (union labor, preference to keep “ahead” of maintenance
    rather than “behind,” and the redundancy creates some minor additional maintenance). The fee for
    Alternative 4 was estimated by using the current contract as a baseline and adding to that the cost of two

    (Rev. 04/04)
    RIOC Tramway Cost Benefit Data
    October 2, 2007
    Page 2 of 2

    additional maintenance staff for the more complex system (confirmed with Armando Cordova, RIOC
    maintenance lead). This fee was then decreased to reflect a reduction in the number of Cabin Attendants
    resulting from the ability to use only one system and therefore only one cabin during off-peak hours.
    Alternative 1 - $2.3 million
    Alternative 2 - $2.3 million
    Alternative 3 - $2.3 million
    Alternative 4 - $2.4 million

    Maintenance Parts and Supplies Costs


    The recent historical parts and supplies expenditures were used as a baseline and expanded slightly to
    where they “should be” according to Armando Cordova (Operations Lead). To adjust this for Alternatives
    2-4, a relative estimate of near- to mid-term parts and supplies costs was made (in today’s dollars).
    Alternative 4 is higher than Alternatives 2 and 3 simply because it has more moving parts.
    Alternative 1 - $75,000
    Alternative 2 - $25,000
    Alternative 3 - $25,000
    Alternative 4 - $35,000

    Power Costs
    The recent historical average was used for Alternative 1 and as a baseline. Alternatives, 2 and 3 were
    assumed to be nominally the same. Alternative 4 was obtained by estimating the cabin hours now and
    cabin hours under the Dual System and applying that ratio to the current power usage. An additional
    20% was added to that result to account for additional friction, some inefficiency and a general
    contingency. In reality, the Alternative 4 savings may be greater because of the effect of peak demand
    which should be smaller for Alternative 4. All four Alternatives were given a 15% increase to reflect the
    notification to RIOC by ConEdison that power costs would increase.
    Alternative 1 - $140,000
    Alternative 2 - $140,000
    Alternative 3 - $140,000
    Alternative 4 - $105,000

    Ridership and Revenue


    Ridership and revenue data are based on the financial data provided by RIOC which included data
    covering several years. The data for the operating period September 2006 through August 2007 formed
    the baseline for our analysis. An additional 20% was added to those figures to account for the near term
    occupation of the Southtown development which will increase the Island residency by roughly 20%.
    Because of the lack of time specific ridership data and rider behavior information, these numbers make
    no revenue adjustment for lost rides during downtime.
    Alternative 1 - 1.9 million riders, $3.6 million revenue
    Alternative 2 - 1.9 million riders, $3.6 million revenue
    Alternative 3 - 1.9 million riders, $3.6 million revenue
    Alternative 4 - 1.9 million riders, $3.6 million revenue

    Annual and Replacement Down Time


    Estimates are provided for the amount of time for which the system will be out of service, on an annual
    basis, over the life of each Alternative. These are estimates only and are based, in part, on historical data
    from the existing system. The replacement downtimes are as indicated in our March 2007 Tramway
    Modernization Preliminary Engineering report. With proper production, staging and financial incentives it
    should be possible to reduce the replacement downtimes stated here. The duration of and requirements
    for those reductions are under separate investigation.
    Alternative 1 – 850 hours per year, 8 weeks replacement
    Alternative 2 – 580 hours per year, 6 months replacement
    Alternative 3 – 440 hours per year, 7 months replacement
    Alternative 4 – 25 hours per year, 7 months replacement

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