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• Capital costs
• Operating and maintenance costs
• Power costs
• Parts and supplies costs
Life Cycle Costs Key Assumptions
• All Costs in 2007 $
• Inflation impacts future costs and
revenues equally
• Time value of money is 5% annually
• Ridership and revenue grow by 20%
• Base ridership and revenue same for
all alternatives
Annualized Life Cycle Costs
$3.6 M
Alt 3: New Similar Tram + Redundancy
$3.4 M
Alt 2: New Similar Tram
$3.5 M
Alt 1: Replace Critical Subsystems
$0 $1 M $2 M $3 M $4 M
60,000
80,000
100,000
120,000
140,000
160,000
180,000
A
pr
il
M
ay
Ju
ne
Ju
ly
A
ug
u st
Se
pt
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be
2005
r
O
ct
ob
e
2006
r
N
ov
e m
be
2007
r
D
ec
e m
be
r
Ja
nu
ar
y
Historical System Ridership
Fe
br
ua
r y
M
ar
ch
Revenue per Month
-
100,000
150,000
200,000
250,000
300,000
350,000
50,000
A
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il
M
ay
Ju
ne
Ju
ly
A
ug
us
t
Se
pt
em
be
r
2005
O
ct
ob
er
2006
N
ov
em
be
r
2007
D
ec
em
be
r
Ja
Historical System Revenue
nu
ar
y
Fe
br
ua
ry
M
ar
ch
System Ridership and Revenue
Sept. 06-Aug. 07
1.6 M Riders, $3.0 M Revenue
180,000
160,000
140,000
120,000
Riders per Month
100,000
80,000
60,000
40,000
20,000
0
O
No
Ja
Ju
Se
Fe
Ju
A
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pr
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nu
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be
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be
r
be
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r
r
r
Annual Ridership
Net Annual Revenue / Rider
Alt 4: New Dual Shuttle
$0.06
$0.00 $0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 $0.16 $0.18
Revenue
Summary of Cost-Benefit
Tram Alternatives
1 2 3 4
Capital Costs $5,600,000 $14,250,000 $17,250,000 $20,400,000
Life Expectancy of Investment (years) 7 30 30 30
Down Time for Replacement 8 weeks 6 months 7 months 7 months
Discount Rate 5.00% 5.00% 5.00% 5.00%
Annualized Capital Cost $967,791 $926,983 $1,122,137 $1,327,049