Benefit-Cost Analysis of PMO – Big Digs Impact Statement

Benefit-Cost Analysis of PMO – Big Digs Impact Statement ORDER NOW FOR CUSTOMIZED AND ORIGINAL ESSAY PAPERS ON Benefit-Cost Analysis of PMO – Big Digs Impact Statement Prepare a Benefit Cost Analysis for your PMO incorporating ideas from the Big Dig’s Impact Statement (attached). Recognizing the benefits of your project may be very different than the benefits of the Big Dig you should conduct research on the topic of benefit realization in project management to support your analysis. Benefit-Cost Analysis of PMO – Big Digs Impact Statement Please be innovative and use whatever resources that may be helpful to you in your particular analysis. attachment_1 Transportation Impacts of the Massachusetts Turnpike Authority and the Central Artery/Third Harbor Tunnel Project Volume I February 2006 After Before IFC Economic Impact of the Massachusetts Turnpike Authority & Related Projects Volume I: The Turnpike Authority as a Transportation Provider Prepared for: Massachusetts Turnpike Authority 10 Park Plaza, Suite 4160, Boston, MA 02116 Prepared by: Economic Development Research Group, Inc. 2 Oliver Street, 9th Floor, Boston, MA 02109 Table of Contents Table of Contents Preface ………………………………………………………………………………………………………….i Summary of Volume I Findings………………………………………………………………………..i Introduction …………………………………………………………………………………………………. 1 1.1 Analysis Methodology………………………………………………………………………………..1 1.4 Organization of the Report ………………………………………………………………………….2 Overview of Projects……………………………………………………………………………………… 3 2.1 I-93 Central Artery Projects ………………………………………………………………………..3 2.2 I-90 Turnpike Extension to Logan Airport…………………………………………………….5 2.3 New Public Safety Services for Boston Area Highways………………………………….6 2.4 I-90 Improvements West of Route 128 …………………………………………………………6 2.5 Other Services …………………………………………………………………………………………..8 Highway Projects & Facilities in Boston ………………………………………………………….. 9 3.1 Methodology for Measuring Economic Benefits ……………………………………………9 3.2 Interstate-93 Central Artery……………………………………………………………………….10 3.3 Interstate-90 / Massachusetts Turnpike Extension ………………………………………..12 3.4 Harbor Crossings: Callahan, Sumner and Ted Williams Tunnels……………………15 3.5 Storrow Drive and Charles River Crossings ………………………………………………..19 3.6 Summary of Downtown Traffic Changes…………………………………………………….20 3.7 Fast Lane Program – Boston Region…………………………………………………………..25 3.8 Emergency Response………………………………………………………………………………..25 Highway Projects and Facilities Outside of Boston ………………………………………….. 27 4.1 Traffic Levels ………………………………………………………………………………………….28 4.2 New Interchange 10A……………………………………………………………………………….29 4.3 Traveler Information Services ……………………………………………………………………29 4.4 Service Plazas………………………………………………………………………………………….30 4.5 Fast Lane Program – Western Turnpike………………………………………………………33 The MTA as an Employer and Contractor ………………………………………………………. 34 5.1 Definitions and Methodology…………………………………………………………………….34 5.2 MTA Revenue & Expense Overview………………………………………………………….35 5.3 MTA and Turnpike Employment and Payroll………………………………………………36 5.4 Vendors of Supplies and Services ………………………………………………………………Benefit-Cost Analysis of PMO – Big Digs Impact Statement 37 5.5 Effects On The Massachusetts Economy …………………………………………………….39 5.6 Tax and Other Non-toll Revenues Generated……………………………………………….41 Acknowledgements……………………………………………………………………………………… 43 Table of Contents List of Tables Table 3-1. Changes in Volumes & Times: Central Artery ……………………………………….. 11 Table 3-2. Change in Volumes & Times Between Airport and I-90/I-93 Junction………. 13 Table 3-3. Changes in Total Daily Volumes: Harbor Tunnels to Airport …………………… 17 Table 3-4. Changes in Peak Hour Volumes & Times: Harbor Tunnels to Airport ………. 18 Table 3-5. Changes in Vehicle-Miles and Vehicle-Hours of Travel ………………………….. 21 Table 3-6. Comparison of VHT Changes with Original Projections………………………….. 22 Table 3-7. Change in Value of Time and Operating Cost ………………………………………… 24 Table 3-8. Use of Transponders at Facilities of the Metropolitan Highway System……. 25 Table 3-9. Emergency Stations and Platforms Profile……………………………………………… 26 Table 4-1. Growth in Turnpike Traffic Levels : 1994 – 2003 ………………………………….. 28 Table 4-2. Visitor Information Center Customer Growth: 1994 – 2003 …………………….. 29 Table 4-3. Service Plaza Locations and Tenants ……………………………………………………. 31 Table 4-4. Service Plazas Sales Revenue: 1994 & 2003 ………………………………………….. 33 Table 5-1: MTA and Service Plazas: Direct Employment & Payroll (as of 2003) ……… 36 Table 5-2. MTA Ongoing and Turnpike Startup Expenditures …………………………………. 37 Table 5-3. Breakdown of MTA Non-Capital Expenses……………………………………………. 38 Table 5-4. Breakdown of MTA Capital Expenses…………………………………………………… 38 Table 5-5. Impacts on the Mass. Economy from MTA Vendor Purchases …………………. 39 Table 5-6. Impacts on the Mass. Economy from Respending of Worker Income………… 40 Table 5-7. Total Economic Impact of the MTA and Related Facilities………………………. 40 Table 5-8. State/Local Government Tax Impacts Generated by MTA Operations ………. 41 List of Figures Figure 2-1. Central Artery/Tunnel Projects ……………………………………………………………… 4 Figure 3-1. Extended Area Within 40 Minutes Of Logan Airport* …………………………… 15 Figure 4-1. Map of Massachusetts Turnpike Interchanges……………………………………….. 27 Figure 4-2. Map of Turnpike Visitor Information and Service Plazas ……………………….. 30 Figure 4-3. Growth in MTA Rents from Tenants at Service Centers…………………………. 32 Figure 5-1. Breakdown of MTA Revenue ……………………………………………………………… 35 Figure 5-2. Massachusetts Jobs Generated by MTA ……………………………………………….. 41 Preface PREFACE The Massachusetts Turnpike Authority was created by 1952 legislation in order to oversee the construction, operation and maintenance of an express toll highway running east-west between the New York state line and the Boston area. The original Turnpike opened in 1957, consisting of a 123-mile toll way between the New York state line and the Route 128 beltway. It was designated as I-90 in the Interstate Highway System. The Turnpike’s 12-mile “Boston Extension” continued the route from Route 128 (now also known as I-95) to downtown Boston. Benefit-Cost Analysis of PMO – Big Digs Impact Statement That extension was opened in two stages — to the Allston-Brighton toll plaza in 1964, and to I-93 downtown in 1965. A final 3-mile continuation of the Turnpike’s Boston Extension across Boston Harbor (via the Ted Williams Tunnel) to Logan Airport and Route 1A opened in 2003. In 1958, the Authority was authorized to acquire the Sumner Tunnel (constructed in 1934) from the City of Boston as well as to construct and operate a parallel Callahan Tunnel. The twin tunnels began joint operation in 1962. In 1997, the Metropolitan Highway System (MHS) law gave the Turnpike Authority a new set of responsibilities. The MHS was defined to include major highway facilities within the Route 128 belt – including the 15-mile Boston Extension of I-90 between Route 128/I-95 and Route 1A in East Boston (including the Ted Williams Tunnel and Fort Point Channel Tunnel), the Sumner and Callahan tunnels, the I-93 Central Artery project (including the Zakim Bunker Hill Bridge and Storrow Drive Connector Bridge), the Central Artery North Area (City Square tunnel) and other connecting Central Artery facilities. The law divided the Turnpike Authority into two parts: the original 123-mile Turnpike (referred to as the “Western Turnpike” and the MHS. Today, the Turnpike Authority operates the Western Turnpike and the MHS as two independent and financially self-sustaining road systems. Once completed, all facilities completed as part of the Central Artery project will officially become part of the Massachusetts Turnpike Authority’s MHS. A year earlier, in 1996, the Turnpike Authority issued a study authored by the Donahue Institute and University of Massachusetts Transportation Center that analyzed the economic impact of the agency and its highway facilities. Many changes have occurred in the nine years since that report, including extension of the I-90 Turnpike across Boston Harbor to Logan Airport, near completion of the I-93 Central Artery project (that is now operated by the MTA), and a wide variety of safety improvements made to the Turnpike and to Boston highways under the jurisdiction of the MTA. Given the nature of these changes, the Authority commissioned Economic Development Research Group, Inc. of Boston to assess the magnitude of economic impacts associated with the Turnpike and these projects. This report has two volumes. Volume I describes the economic impact of the MTA as a transportation provider. This analysis includes the economic impacts of the Turnpike The Economic Impact of the Massachusetts Turnpike Authority p-i Preface west of Boston and the impacts due to new transportation infrastructure and services in the city from Central Artery/Third Harbor Tunnel projects, known collectively as the “Big Dig,” and ensuing changes of traffic volumes, traffic patterns and travel efficiencies. In addition, Volume I considers the contribution to the Massachusetts’ economy of Turnpike Authority as a business enterprise. Volume II describes the physical transformation of Boston as a result of transportation improvements, beginning with the 10-mile extension of the Turnpike from Route 128 into Boston’s Back Bay and ending with the “Big Dig.” The original Turnpike extension was built in the early 1960s and was intertwined with air rights development of the Prudential Center, which later led to the development of Copley Place and Back Bay as a high-end shopping, hotel, dining and office district.Benefit-Cost Analysis of PMO – Big Digs Impact Statement Volume II reviews this history and discusses parallels to current conditions 40 years later, removal of the elevated Central Artery has opened up the long-suppressed development potential of Boston’s waterfront as well as the Rose Fitzgerald Kennedy Greenway above the depressed highway, and is creating demand for office and residential development with waterfront views. The facilities that are the subject of this analysis were funded by federal transportation funds, the Commonwealth of Massachusetts, as well as by users of the Turnpike and related facilities though tolls. The Turnpike Authority is the final custodian of the Central Artery/Third Harbor Tunnel projects. The Economic Impact of the Massachusetts Turnpike Authority p-ii Summary of Findings: Volume I SUMMARY OF VOLUME I FINDINGS The Massachusetts Turnpike Authority (MTA) has taken on a wide range of responsibilities over time. The MTA was created by 1952 legislation to oversee construction and operation of a 123-mile tollway (I-90) between the New York state line and the Boston area. Subsequently, the state legislature designated the MTA to take over operation of the Sumner and Callahan Tunnels under Boston Harbor, extension of I-90 between Route 128/I-95 and East Boston (including the new Ted Williams and Fort Point Channel Tunnels), the I-93 Central Artery Project (including the Leonard P. Zakim Bunker Hill Bridge and Storrow Drive Connector), the Central Artery North Area (City Square Tunnel) and other connecting Central Artery facilities. Overtime, the Turnpike Authority has also come to take on responsibilities for development of emergency response stations, tourism information facilities, fiber optic trunk lines, parks development and urban development projects on parcels and corridors that it controls. This report identifies and evaluates the ways in which the economy of Boston, its suburbs, communities throughout the state and the entire state have been affected by the various facilities and services that the MTA manages and operates. It does not address benefit/cost issues. Key findings include the following: 1. For travelers to/from downtown Boston, there have been significant changes in traffic patterns, vehicle mileage and travel times as a result of the near completion of the Central Artery/Tunnel project. • The new underground I-93 Central Artery, together with the I-90 Turnpike extension through the Ted Williams Tunnel, has dramatically improved peak period travel times through downtown Boston. For instance, the average afternoon peak hour northbound travel time on I-93 through downtown has dropped from 19.5 minutes to 2.8 minutes. Altogether, the actual reductions in travel times are consistent with projected travel time improvements forecast back in 1990 for a Supplemental Final Environmental Impact Statement. • These improvements are now providing approximately $168 million annually in time and cost savings for travelers. This includes $25 million of savings in vehicle operating cost plus a value of $143 million of time savings. Slightly over half of that time savings value ($73 million) is for work-related trips, and can be viewed as a reduction in the costs of doing business in Boston. Benefit-Cost Analysis of PMO – Big Digs Impact Statement • MTA has implemented six emergency response stations for Boston highways, which will serve to further reduce delays. • The “Fast Lane” automated vehicle identification program has also sped up toll payments for many travelers on the Turnpike Extension and Sumner or Williams tunnels to Boston. Its use has now exceeded 36.8 million payments a year on MTA facilities inside Route 128. The Economic Impact of the Massachusetts Turnpike Authority s-i Summary of Findings: Volume I 2. For Massachusetts residents living south or west of Boston, there has been a significant reduction in travel time to Logan Airport as a result of the now complete I-90 extension through the Ted Williams Tunnel to East Boston. • Average travel times from the I-90/93 interchange to Logan Airport during peak periods have decreased between 42% and 74%, depending on direction and time of day. For instance, average travel times to the airport during the afternoon peak decreased from an average of 16 minutes to 4 minutes. However, the effective time savings for many travelers has been far greater, since travel times had formerly varied widely from 10 to 25 minutes, requiring travelers to leave earlier to allow for the possibility of the longer travel time. • The opening of the Turnpike Extension to Logan Airport has added 800,000 residents to the previous total of 1.7 million who can access the airport within a 40-minute drive of their home. 3. For residents of Central and Western Massachusetts, the rebuilding and expansion of MTA service plazas and interchanges are also benefiting travelers. • The “Western Turnpike” (west of Route 128) has been serving an increasing volume of travelers – now 101 million trips a year, up 38% since 1994. • The expansion and reconstruction of all 11 service plazas has led to expanded use of those facilities. They now serve 10.6 million customers annually and generate business sales more than double (126% greater) than that occurring in 1994 (after adjusting for inflation). • The new Interchange 10A at Rt. 146 in the Millbury/Worcester area now serves over 2.7 million trips per year, and saves its users over $2 million per year in vehicle operating costs. • The upgraded tourism information centers on the Massachusetts Turnpike now serve over 616,000 customers annually, up from around 503,000 in 1994. The centers provide information on tourism attractions sites to visit, though no information is available on the exact dollar value of the additional tourist spending that they help to generate. • The “Fast Lane” automated vehicle identification program has also sped up toll payments for roughly half of travelers on the Turnpike west of Route 128. Its use now exceeds 49.6 million payments a year on that portion of the Turnpike. 4. For residents of Massachusetts, MTA operations and capital investments are supporting jobs and business activity in the state. •Benefit-Cost Analysis of PMO – Big Digs Impact Statement The MTA has developed an underground corridor across Massachusetts for interstate “fiber optic” trunk lines, used for high speed telecommunications. The MTA collects $3.5 million annually for leasing its corridor to four telecom companies. These lines are expected to become increasingly important in the future to support the growth of technology industries in Massachusetts. The Economic Impact of the Massachusetts Turnpike Authority s-ii Summary of Findings: Volume I • Operations of the MTA and its traveler service plazas directly provide 3,565 jobs. Adding in MTA vendor purchases and respending of worker income leads to a total of $514 million of business activity throughout the Massachusetts economy, including $224 million of wages supporting an estimated 6,089 jobs in Massachusetts.1 Altogether, these findings indicate that the MTA operations, facilities and project investments are having a broad range of travel and economic impacts for residents across the Commonwealth of Massachusetts. Many of these impacts are still unfolding. 1 Service plazas are made available as a convenience to travelers on the Turnpike, and the convenience factor, as well as the recent expansion of all 11 plazas, These figures represent travelers likely increases the amount that otherwise would require diversions from the highway. Also, these consumer purchases are a direct result of east-west travel on the Turnpike. The Economic Impact of the Massachusetts Turnpike Authority s-iii Introduction 1 INTRODUCTION 1.1 Analysis Methodology This report examines three types of economic and non-economic impacts related to the MTA, its facilities and projects. Each involves a different methodology and interpretation: • Breadth of Programs and Projects: Use and Benefits — Over the last eight years, a • Economic Benefit of Highway System Expansion and Improvement – Over the last • Economic Contribution of the MTA – The MTA as an organization provides income number of highway-related projects have been implemented under the jurisdiction of the MTA. These include not only new and expanded highway facilities, but also safety improvements, traveler information facilities and traveler services. The study team worked with MTA staff to compile information on the nature of these projects, their scale or size, and the extent to which they are being implemented to benefit travelers or are being used by travelers. eight years, new highway system facilities have been constructed as part of the Central Artery/Tunnel Project, which comprise an upgraded Metropoli … Get a 10 % discount on an order above $ 100 Use the following coupon code : NURSING10