OC 01 208 The Honorable Timothy Jobson. Chairman Committee on Banking, Housing, and Urban Affairs United States Senate ‘Washington, DC 20510 ear Mr, Chairman Pursuant 10 49 U.S.C. § 530%(E}5), I weite to inform you that | intend to execute a Pll Funding Grant Agreement (FFGA) with the Massachusets Bay Transportation Authority (MBIA) whereby the Federal Transit Administration (FTA) will provide $996, [2,010 in Section $309 Capital Investment Grant program (Nev Starts) funds for design and eonsiruetion lof he Cambridge to Meaford Green Line Extension project (hereafter, che “Projeet”). These ‘New Sint funds comprise 43 pereent of the total Project cost of $2.297,618,856, The balance of fuads totaling $1,301,497,856 wall come from the following sources: $996,121, 856 from CCommonsscalth of Massachusetts General Obligation Bonds and $305,376,000 from Commonsseath Operating Funds. ‘This FFGA wil be signed no earie than 30 day ftom the date of this leer ‘existing Green Line light rail service from a relocated Lechmere Station in Cambridge along two ‘branches ~ one to College Avenue in Medford and one to Union Square in Somerville ~ traveling within the existing MBTA Lowel and Fitchburg lines? commuter rail rights-of-way. The Project includes construction afsix new stations, relocation of ane existing station, purchase of 24 new Tight rail vehicles, construction of @ new vehicle maintenance feclity,eansiruction of a cle and pedestrian path in Somerville, and relocation of some existing commuter ated ridership oa the Project is 97,900 daily linked trips using inputs of current population and employment. MBTA estimates that consuction of the GLX will generate approsimately 140 design jobs (in the peak design year), approximately 700 construction jobs (inthe peak construction year), and ‘approximately 140 jobs for operation and maintenance of the Project (ongoing). ‘The scheduled revenue sevice dae for the Project is Sune 29. 2021Project Justification The Project will improve mobility by reducing transit iavet times for residents of Cambridge, Somerville and Medion! by providing a fully grade separated right-of-way to downtown Boston. aad the greater metropolitan ara, The project will povide a ane-seat anit ride to ‘approximately 342,000 johs inthe Boston cenisal business district and Green Line eorridr. The Project will serve some of the region's most densely populated communities na currently served by mul transit. Approsimately 26% ofthe 75,300 residents who live within one-half mile of ‘proposed sitions are transit dependent because they do not own or have access to an automobile ‘The Project is a requirement contained in the Massachusetts Department of Environmental Protestion’s State Implementation Plan (SIP), approved in 2008, to comply with Federal Clean Air Act standards, The cities of Cambridge, Somerville, and Medford are located in the U.S. Environmental Protection Administration's (EPA) Boston maintenance area for carbon ‘monoxide (CO). In addition, the Project fulfils a longstanding commitment to inaprove air ‘quality and increase publie transportation inthe Boston area asa mitigation measue forthe Boston Cental Arery/Mighway Tunnel project completed in 2007. Project Evaluation ‘The Project was recomunended for an FFGA in the Presidents Fiscal Year 2015 budget. FTA, evaluated the Project according to the Moving Ahead for Progress in the 21st Century Act (MAP-21) statutory enteria and it received an overall rating of "Median High’ By longstanding practice, PTA does not execute an FPGA fora project unless and until we are ssfe thatthe sponsor has the ality to complete the project within the Baseline Cost Fstimate andthe Baseline Schedule, and that the sponsor has demonstrated the necessary local financial commitment to construct, operate, and maintain the project strictly in accordance with the ienns ofthe agreement. In evaluating the readiness ofa project for an FFGA, we consi, specifically, the degree of uncertainty underlying the capital cost estimates; any remining risks inherent in those estimates; the availabilty of contingency finding to caver any unanticipated cast increases; any remaining uncertainties regarding the now-Federal sources of funding; and any need for acquisition of real estate or railroad right-oF-way. tis FTA"s detenmination thatthe Project meots al! of these eonitions In accordance with standard practice, FTA and is Project Management Oversight Contractor (PMOC) have reviewed MBTA’s technical capacity an capability, including the Project ‘Managersent Plan and sub-plans. A copy of the PMOC report is enclosed. The PMOC, FTA, ‘and MBTA completed a risk assessment and believe tat all known risks have been identified through the risk assessment workshops an thatthe Project cost estimate is reasonable ifthe MBTA diligently follows its risk and cootingeney management plans and procedures [FTA and its Financial Management Contractor have reviewed the financial plan submitted by the MBTA, and have concluded that the MBTA has the requisite financial capacity to complete this Projet and continue to operate and maintain the existing systom. A copy of the report is enclosed.FFGA Contract and Accompanying Materials inclosed isa copy of the FFGA that FTA plans to exceute with the MBTA. Please note. in partiular, Attachment 6 (Schedule of Federal Funds forthe Project) wo the proposed FEGA, ‘which sets forth the total and annual congressional appropriations that are necessary to maintain the Project's construction schedule and ensuze thatthe Peoject ean open for tevenue service on (he date planned. The Schedule of Federal Funds set forth in Attachment 6 demonstrates future {oral award of $996,121,000 in New Starts funds through Federal Fiseal Year 2022. Also enclosed is an analysis of FA's annual commitments for eurrent and anticipated FPGAS against {Ge program authorization. A similar letter has been sent to the following: the Ranking Member of the Senate Committee on ‘Banking, Housing, and Urban Affairs; the Chairman and Ranking Member of the Subcommitiee ‘on Transpertatian, Housing and Urban Development and Related Agencies of the Senate ‘Committee on Appropriations; che Chairman and Ranking Member ofthe House Commitee on ‘Transportation and Infastructre: and the Chairman and Ranking Merabor of the Subecmnmitte ‘on Transportation, Housing and Urban Development and Related Agencies of the House Committee on Appropriations. 11 can provide furher information or assistance, please do not estate to contact me dinwety at (202) 366-4040, se Sterne lO Mellie Therese W. McMillan Acting Administrator Enclosures: 1 2. PEGA Draft Approval Leter 3. PMOC FFGA Readiness Report 4. Financial Capacity Assessment 5. Section $309 Payout Schedule 66. Authorizations vs. Commitment Table for New Starts