1. MBTA State of Good Repair Database
Transit Finance Learning Exchange
MBTA State of Good Repair Database
Jonathan R. Davis
Deputy General Manager & Chief Financial Officer
April 7, 2008

2. Background: Assessing the Authority's Transit System

3. MBTA Profile The oldest subway system in the United States – 1897
5th largest transit property
Multimodal public authority
175 communities and 4.5 million people served
1.1 million passengers per day
55% of all work trips to Boston are made on the MBTA
60% of the commuters traveling to Boston’s financial district ride the MBTA

4. 2002 – Massachusetts Taxpayers Foundation
Elimination of unlimited state subsidies under forward funding changes the way Capital projects are evaluated
Debt burden limits the ability of MBTA to fund Capital program
Reliance on debt financing and limited “paygo” capital adds to the debt burden
Capital needs of antiquated system are growing faster than revenues
Maintenance and modernization of the current system must be the top priority

5. 2003 – Capital Spending and Infrastructure Report
MBTA must operate within well defined limits to fund the capital program
State of Good Repair (SGR) study assessed the condition of MBTA’s capital assets
SGR Database provides a uniform and equitable system for identifying and prioritizing capital Needs
Assets within their useful life are in a State of Good Repair
Backlog of capital investments needed to achieve SGR estimated at $2.7 billion

6. 2007 – Transportation Finance Commission Findings
The MBTA has a capital backlog of $2.7 billion for rehabilitation (excluding expansions)
Spending $470 million per year will keep the system in its current state but will not allow a reduction in the $2.7 billion backlog
In order to eliminate this capital backlog within the next 20 years, the MBTA needs to spend $620 million or more per year
These maintenance needs do not go away; they just become more expensive

7. Capital Investment Program (CIP)
Rolling 5-year capital program
Implements the 25-year Program for Mass Transportation
Which is not financially constrained
The CIP is financially constrained
The Draft CIP includes the current fiscal year (FY 2007)
Includes $470 million per year in State of Good Repair investments

8. Capital Investment Program Statutorily Mandated Criteria
Effectiveness of the State’s transportation system
Service quality
Environment
Health and safety
Operating costs
State of Good Repair
Debt Service

9. What does the Capital Program Invest in?
Over 2,500 Revenue Vehicles
275 Stations
885 Miles of Track
476 Bridges
20 Miles of Tunnels
19 Maintenance Shops
The MBTA’s infrastructure is extensive and has major capital needs.

10. MBTA Capital Needs: Tracks
Before
After
Highland Branch

11. MBTA Capital Needs: Stations
After renovation
Boylston Station

12. MBTA Capital Needs: Tunnels
Program is a multi-phase effort (through 2009) to upgrade dewatering equipment within select tunnel pump rooms
Program includes new pumps & motors, new valves & piping, new controllers, new/upgraded power supply (AC+DC), lighting and enhanced security & alarm indications.
Blue Line work is proceeding at Prescott (80%) and Underharbor (East and West-35% and 90%)
Orange Line work is proceeding at Charles River (50%) and Follen (65%)
Green Line work at Beacon Junction is complete, and proceeding at Muddy River (95%), Comm Ave (98%), Hollis (50%) and Church (85%)
Red Line work at Harvard Ejector is complete, and proceeding at Porter (30%), Garfield (85%), Harvard Busway (80%) and Central (80%)
Before
After
New Equipment for Pump Rooms

13. MBTA Capital Needs: Power
Program is a multi-phase effort (through 2009) to upgrade dewatering equipment within select tunnel pump rooms
Program includes new pumps & motors, new valves & piping, new controllers, new/upgraded power supply (AC+DC), lighting and enhanced security & alarm indications.
Blue Line work is proceeding at Prescott (80%) and Underharbor (East and West-35% and 90%)
Orange Line work is proceeding at Charles River (50%) and Follen (65%)
Green Line work at Beacon Junction is complete, and proceeding at Muddy River (95%), Comm Ave (98%), Hollis (50%) and Church (85%)
Red Line work at Harvard Ejector is complete, and proceeding at Porter (30%), Garfield (85%), Harvard Busway (80%) and Central (80%)
Before
After
Substation DC Breakers

14. MBTA Asset 20-Year Replacement Cost - By Asset Type
Revenue
Vehicles
32%
Signals and
Power
21%
Track
18%
Shops and
Facilities 9%
Bridges 7%
Stations 6%
Other
Total 20-Year Replacement
Cost: $12.4 billion
The required infrastructure investment far surpasses the Authority's financial resources

15. Defining the Issue: Developing the State of Good Repair Model

16. State of Good Repair (SGR) Initiative
“Fix It First” strategy
Assessed current state of capital assets
System to identify and prioritize capital renewal and replacement needs
Estimated backlog ~ $2.7 billion
Annual capital spending of $620 million needed to eliminate the backlog in 20 years
SGR investment rate
Approximately 94% of FY08 – FY13 Capital Investment Program
MBTA Vehicle Miles and Capital Expenditures

17. What is the State of Good Repair?
State-of-Good Repair — Replace and Renew assets when needed
Assets are renewed at critical midlife points
Engine replacements, bridge re-deckings, roof replacements
Assets are replaced at the end of their useful lives
Buses 15 years
Rail cars 35 years
Bridges 50 years

18. State of Good Repair Defined
State of Good Repair: The ideal operating condition
A “perfect” capital replacement policy
SGR
All assets beyond their service life
All assets within their service life

19. Implementation: Designing the State of Good Repair Database

20. State of Good Repair (SGR) Database Two Project Objectives
Demonstrate ongoing funding needs and consequences
Engineering assessment of current assets
Develop long range capital planning model
Project programming under constrained funding

21. What is the SGR Database?
It is a tool to assist the MBTA in identifying and prioritizing renewal and replacement actions needed to bring and sustain existing capital assets to a state of good repair
Front-end Microsoft Access driven application
Analyzes more than 2,400 individual capital asset records

22. SGR Database Main Functions
Organize, store and facilitate various types of queries of the capital asset information
Identify asset renewal and replacement activities and cost necessary to bring and maintain the MBTA system to a state of good repair
Score and rank candidate actions subject to MBTA capital budget criteria
Create, analyze and compare capital budget and related policy (e.g., asset useful lives, renewal cycles, capital budget allocation priorities) scenarios

23. SGR Database (Model) Requirements
Focus on high-cost MBTA assets
Not a maintenance database of all assets
Requires periodic data updates
Not a static database
Staff and resources required
Support objective analysis
Uniform criteria and process
Reports consequences
Run scenarios in reasonable time frame
Less than 5 minutes

24. SGR Programming Process is Sequential (Year-by-Year)
Identify candidate projects
Actions come due
Delayed projects from prior years
Score and rank projects
Fund projects in rank order until Cost of project is greater than the funds remaining
Mark unfunded projects as candidates for next year
Carryover remaining funds to next year

25. SGR Main Menu Example

26. State of Good Repair Input Variables

27. State of Good Repair Database — Assets Table
Stores information about all key MBTA assets
Vehicles
Facilities
Systems

28. Asset Table Attributes
“Condition” Measures
Age
Life
Project “Action” Costs
Replacement/Renewal
Contingency Factors
Cash flow years
Ranking Measures
Condition measures
Operational importance
Affected ridership

29. Scoring Project Candidates
Age
Age as % of Service Life
Operational Impact
Yes/No
Selected assets are essential to system operations
Cost-Effectiveness
Cost of Action/Ridership
Reflects customer service impacts

30. Using the State of Good Repair Database as a Management Tool

31. Funding the Backlog of Infrastructure Investment
Current State of Good Repair backlog – $2.7 billion*
Chart 1 – Investing $410 million per year increases backlog to $4 billion in 2024
Chart 2 – Investing $470 million annually maintains the backlog at $2.7 billion
Chart 3 – An investment of $620 million per year is necessary to eliminate the backlog by 2024
*Analysis performed in 2006

32. The MBTA Has Used the SGR Database in Several Contexts
Internal management
Discussions with policy Makers
Planning and analyses

33. Internal Management Uses
Implications of Current Investment Patterns
Where are we headed ?
MBTA SGR Goal Setting
Where would we like to go?
Yard Stick to Measure Progress Towards SGR
Are we getting closer to our goals?

34. External Uses: Discussions with Policy Makers “SGR Database as the Bully Pulpit”
Briefing the Board of Directors and Secretary of Transportation
Informed funding discussions with the state legislature and Governor’s office
Emphasizing the need for state of good repair investments with customers and other stakeholders

35. Other Potential SGR Enhancements and Licensing
The Authority is currently upgrading and increasing the functionality of the State of Good Repair Database
Updated cost drivers
Ability to calculate the impact of State of Good Repair investments on the operating budget
MBTA has begun to look at the possibility of licensing the State of Good Repair Database
Applicability to many infrastructure intensive government agencies

36. State of Good Repair Conclusion
No transit system can meet the “ideal” system condition
We can better understand the capital investment needs of our organization
We can optimize our investments
We can make more effective and informed decisions