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Tram Cost-Benefit Data

Tram Cost-Benefit Data



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Published by rooseveltislander

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Published by: rooseveltislander on Nov 03, 2008
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(Rev. 04/04)
          
October 02, 2007
James Parsons, Parametrix
Mike Deiparine, Parametrix
RIOC Tramway Cost Benefit Analysis Data
Jim Fletcher, ParametrixSteve Shane, RIOCFernando Martinez, RIOCRene Testa, Columbia University
Project Number:
Project Name:
RIOC Tramway
Data required for your Cost-Benefit Analysis, per our Sep. 19 meeting, is as follows:
Capital Costs
Based on the current understanding of the construction market and material fluctuations, as well as thedegradation of the US dollar against other currencies and as validated by manufacturer feedback, I haveadded 15% to the estimated cost for each of the four Alternatives, as quoted in our March 2007 TramwayModernization Preliminary Engineering report. Given the uncertainties associated with these estimates,we recommend getting the project to the market place as soon as possible.Alternative 1 - $5.6 millionAlternative 2 - $14.25 millionAlternative 3 - $17.25 millionAlternative 4 - $20.4 million
Life Expectancy
In the event that Alternative 1 is chosen, the interim repair is likely to make the tramway functional withoutfurther significant capital investment for 7 years or less. In the event that any other Alternative is chosen,it is expected that the useful life of the system will be 30 years or greater.Alternative 1 – 7 yearsAlternative 2 – 30 yearsAlternative 3 – 30 yearsAlternative 4 – 30 years
O&M Fee
The O&M fee is based on the current contract for operations and maintenance as performed byDoppelmayr. From an operations perspective, Alternatives 2 and 3 are fundamentally the same systemas today, and while the new systems will likely require less corrective maintenance in the near term, noreduction was made for the maintenance fee (union labor, preference to keep “ahead” of maintenancerather than “behind,” and the redundancy creates some minor additional maintenance). The fee forAlternative 4 was estimated by using the current contract as a baseline and adding to that the cost of two

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