1. Restoration of the Galveston Rail Trolley City Council Workshop THE GOODMAN CORPORATION February 12, 2015 1

2. GALVESTON ISLAND RAIL TROLLEY 2

3. ABANDON RAIL TROLLEY FEDERAL TRANSIT ADMINISTRATION PAYBACK Undepreciated value of federal investment (80%) PHASEAMOUNT Original$2,500,000 Pier 21 extension$1,013,000 UTMB extension$3,330,000 TxDOT$430,000 Total$7,273,000 PAYBACK WAIVER Hurricane Ike extreme damage Loss of Section 5307 funding flexibility Keep building for Island Transit Sell vehicles Administrative costs 3

4. FACTORS SUPPORTING WAIVER Hurricane Ike system devastation Loss of Section 5307 funding flexibility (2010 census) Use FEMA funds to replace rail with rubber tire DOWNSIDE OF ABANDONING Negative reaction to future funding requests Jeopardize UTMB funding for Island Transit Lose potential of tourism role Cost to general fund of track repair/removal Jeopardize local capability track record ABANDON RAIL TROLLEY PURSUIT OF PAYBACK WAIVER ($7,273,000) VEHICLES -- sell, 80% to FTA BUILDING -- repurpose for IT demand response 4

5. ABANDON RAIL TROLLEY LOCAL COSTS (assuming waiver) ACTIVITYAMOUNT (2014$) UTMB – remove grass & street track$200,000 Street Track Alternatives Leave track as is (patch asphalt) Cover all track with asphalt Remove rails, leave slab, repave $800,000 $1,500,000 $2,000,000 Source of non-federal, local funds ??? Non-trolley 25 th Street drainage$600,000 5

6. 2015 CONDITIONS AND ADDITIONS Increased Cruise Ship Activity New Island Transit Terminal with Parking Over 500 UTMB employees downtown Over 1,000,000 Pleasure Pier visitors per year Consolidated Ashton Villa Visitor Center Paid parking downtown and Seawall Boulevard Seawall Boulevard Transit Enhancements and Service Restored and expanded UTMB campus (new hospital) New mixed income housing Downtown-UTMB Corridor Livable Centers Recommendation UTMB Customs House incubator Restored Hendley/Demack Building New Hendley Park Restored Railroad Museum Medical Arts Building residential conversion downtown Upgraded Stadium and streetscape Upgraded Galvez Hotel 6

7. CAPITAL RESOURCES CAPITAL FUNDS AVAILABLE TO RESTORE FEMA for vehicles$1,829,000 FTA for tracks & vehicles$1,960,000 FEMA for maintenance building$ 193,500 Insurance Proceeds $ 232,000 City of Galveston Match (IT cash reserve)$ 202,000 $4,416,500 7

8. STARTUP OPERATING PLAN Beach Route 44 weeks/year 7 days/week 7 hours/week day 12 hours/weekend days 5,200 annual hours UTMB Route 52 weeks/year 5 days/week 14 hours/day 5,200 annual hours 10,400 total annual operating hours 8

9. STARTUP OPERATING BUDGET 10,400 total annual operating hours $624,000 annual operating cost $225,000 fare revenue (150,000 paid boardings at $1.50 average) $60,000 UTMB increased annual compensation $0 Federal, State, General Fund $285,000 annual operating revenue $339,000 annual operating deficit Possible Revenue Sources Hotel Occupancy Tax Advertising, sponsorship, charter revenue Other local funding partners 9

10. MANAGEMENT AND PROMOTION Management Oversight Committee City of Galveston UTMB Park Board Quarterly Service Evaluation, Reporting, Revisions Promote Trolley Service Seek Advertising, Sponsorships 10

11. RAIL TROLLEY RESTORATION NEXT STEPS AND TIMETABLE VEHICLE RESTORATION AND REPAIR May 2015 -- Complete vehicle solicitation package July 2015 -- Receive letters of interest and qualifications statements. September 2015 -- Award Vehicle Restoration Contract July 2016 -- Complete Required Federal Safety Plan March 2017 -- Complete Vehicle Restoration May 2017 -- Complete Local Vehicle Testing July 2017 -- Reopen Service 11

12. RAIL TROLLEY RESTORATION NEXT STEPS AND TIMETABLE TRACK RESTORATION AND REPAIR February 2015 -- City Council Approves Restoration April 2015 -- Advertise for Bids, verify drainage May 2015 -- Award Track Contract May 2016 -- Complete Track Construction TROLLEY MAINTENANCE FACILITY REPAIR August 2015 -- Remove Police Storage From Building December 2015 -- Award Contract to Architect January 2016 -- Advertise for Bids to Construct September 2016 -- Complete Building Repairs 12

13. Restoration of the Galveston Rail Trolley City Council Workshop THE GOODMAN CORPORATION February 12, 2015 13

14. Trolley Barn Railroad Museum Interchange Track TROLLEY EVACUATION LINK Santa Fe Place 28 th Street