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The Tram
OHSU

Tram Q & A

 
 

General Questions


The Portland Aerial Tram has been in the news a lot lately. It's no surprise that such a complex and unique project generates so much interest. And not every news story can provide complete information about the project.

 

The Portland Aerial Tram provides patients, visitors and employees with a vital connection between Oregon Health & Science University's Marquam Hill Campus schools, labs, hospitals and clinics, and the Center for Health & Healing and other new development in the South Waterfront District.

 

The tram will be part of Portland's public transportation system, although the majority of the cost to build has been paid by OHSU and South Waterfront Central District property owners.

 
Why build a tram instead of relying on some other form of transportation?

The tram provides the rapid and reliable transportation that is necessary for OHSU's expansion into South Waterfront. The tram provides a three-minute ride every five minutes between OHSU's new hospital expansion on Marquam Hill; the clinical, research and educational facilities at the Center for Health & Healing at South Waterfront; the residential and commercial development in the South Waterfront Central District; and OHSU's eventual development at the Schnitzer Campus.

 

A study by the Portland Department of Transportation comparing transportation alternatives found the tram to be superior to shuttle buses when evaluated on travel time, transit access, neighborhood livability, maintenance considerations, long-term cost analysis and development impacts.


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Who decided to build the tram?

After years of consideration, which included a study of alternatives, discussions with the neighborhoods and a public process, the Portland City Council approved the Marquam Hill Plan, a long-term master plan for OHSU that endorsed the tram as a unique transportation system to improve access to Marquam Hill and make it possible for the institution to expand to the South Waterfront.


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Who built the tram?

The Portland Department of Transportation was responsible for construction of the tram. The Portland Development Commission, OHSU, North Macadam Investors, LLC, and River Campus Investors, LLC, were partners in the development of the South Waterfront Central District. These property owners are contributed to tram construction costs.

 

Portland Aerial Transportation, Inc. (PATI) is a private, nonprofit corporation formed by the initiative of private leaders to ensure the Portland Tram met the highest standards of architecture and urban design.


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What public benefit does the tram provide?

The tram was the catalyst for $2 billion of new investment within Portland's urban core. The South Waterfront is an underused area that is being transformed into a vibrant live-work neighborhood with high environmental standards that will include public parks and an accessible, attractive greenway along the Willamette River.

 

The tram links the developing South Waterfront and existing neighborhoods with the Terwilliger Parkway and the Marquam Trail, and also provides the Homestead neighborhood with better links to the Willamette River. In combination with the Portland Streetcar and Tri-Met, it connects 60,000 people a day.


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Are there other public benefits?

Development in the South Waterfront Central District is creating thousands of construction, OHSU and private sector jobs through building, expansion and recruitment. Expansion into the central district will allow OHSU to add 4,500 family-wage jobs for a total of 5,000 new jobs in the central district alone. Research shows that for every new OHSU job, two additional jobs are created in the community.


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How much is the public paying for the tram?
The public is paying 15 percent of the $57 million cost of the tram, or $8.5 million. OHSU and its development partners are paying the rest. None of the public’s share is coming from the city’s general fund, the source of support for police, fire and other vital services. Instead, it will be collected over time from the rising property values spurred by the redevelopment of the South Waterfront.

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Why was the cost of building the tram so much higher than originally anticipated?
Early tram estimates were not based on the tram’s actual design, and did not include project management expenses or design enhancements identified as a priority by neighborhood and city leaders. Later estimates had to be revised upward because of a spike in world steel prices, additional engineering challenges at the upper tower site and the competitive local construction market.

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How have payment commitments changed since the tram project was launched?

Each time the budget changes, OHSU, North Macadam Investors, LLC and the Portland Development Commission negotiate new funding arrangements. No funds from the general tax fund, which supports public services like schools and police, are used to support the tram.

 

Here's how payment commitments have changed:

 

 

Project Budget:

$15,500,000

$28,500,000




$40,000,000        

$57,000,000
 

OHSU

$9,000,000

$17,200,000




$30,700,000

$40,200,00
 

South Waterfront Property Owners

$4,500,000

$5,800,000




$5,800,000*

$5,800,000*
 

North Macadam Investors







$2,500,000
 

PDC (Tax Increment Funds)

$2,000,000

$3,500,000




$3,500,000

$8,500,000

 

*NMI share approximately $1.3 million.


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Were changes been made to save money?

After careful consideration, design and construction changes that reduced costs yet preserved architectural integrity were made to the tram. At the lower terminal, the canopy was lowered, providing better shelter and better views of the river from Gibbs Street. At the upper terminal, a concrete elevator and stairwell were used rather than plate steel. Minor structural changes to the tram cars led to significant cost savings without compromising exterior design.


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Is the tram safe?
Autos, bicycles, airplanes, lightning and bee stings all have a higher rate of lethality than travel on aerial trams. Concerns about the seismic history of our region have been addressed in the design of the Portland Aerial Tram. It meets the more rigorous new Swiss standards for aerial tramways and thus exceeds U.S. seismic standards. There is no danger that a power outage would leave riders stranded as occurred recently on the Roosevelt Island tram in New York City. A redundant driver system and independent generator ensure safe passage even during grid-wide power outages. Also, an advanced computer system will enable an electrical current to constantly monitor the integrity of the cables, immediately alerting maintenance crews to the smallest of anomalies.

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Who will pay the continuing operation costs?
The tram's operational and maintenance expenses will be met based on rider demand. For example, if 85 percent of tram ridership is OHSU-related, then OHSU will pay 85 percent of the annual operating costs and the city will pay the remaining 15 percent.

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Are there other transportation improvements besides the tram?
More than $14 million in neighborhood improvements west of Interstate 5 in south Portland have either been funded or are proposed for funding as part of South Waterfront development.

An example is the Corbett/Terwilliger/Lair Hill Neighborhood pedestrian bridge on Gibbs Street. Considered the pedestrian companion to the tram project, the bridge will link the neighborhood across Interstate 5 to the South Waterfront and the lower tram landing. Oregon's U.S. congressional delegation secured $5 million in federal funds to design and build this pedestrian bridge.

The tram budget also includes $750,000 for improvements along Gibbs Street, including placing utilities underground, planting street trees and installing ornamental street lighting.

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How are responsibilities divided?
OHSU, which is paying for the bulk of the tram’s construction costs, is responsible for tram operations, including running the tram and maintenance of the tram equipment and components furnished by Dopplemayr. The City, as owner of the tram and manager of its construction, is responsible for maintenance of the upper and lower stations and tram tower, which are considered the “civil elements” of the tram system. The city also provides regulatory oversight to ensure compliance with safety standards. 

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What does this division mean in practical terms?
It means the City will oversee routine and non-routine maintenance, repair and, if necessary, replacement of the civil elements and will have independent inspections conducted on the condition of the ropeway and civil elements. OHSU, for its part, will let and administer the contract with a tram operator, and provide security services at both upper and lower stations. 

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How are the tram’s operating costs going to be split?
Initially, 85 percent of the tram’s net operating costs will be allocated to OHSU and 15 percent to the City during the first two years of operation. That conforms to the current estimated breakdown between OHSU-associated riders vs. the general public. Subsequently, the allocation will be adjusted based on the actual percentage split, as determined by ridership surveys. Annual operating costs are expected to run $1.6 million. OHSU employees and patients, as well as military veterans with appropriate identification undergoing treatment at the Portland VA Medical Center, ride for free. The fare structure for others is still being negotiated.

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Who is the tram operator?
A joint City-OHSU committee, after conducting a competitive bidding process, selected Dopplemayr as the operator.

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What exactly does the tram operator do?
At a minimum, operate the tram during at least the base operating hours of 6 a.m. to 10 p.m. on weekdays excluding holidays and 9 a.m. to 5 p.m. on Saturdays excluding holidays, and to perform all routine maintenance and janitorial duties on the tramway and at the tram stations.

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Given OHSU’s dominant financial stake in the tram, is the general public as welcome on the tram as OHSU riders?
The City-OHSU agreement stipulates that the operator be required to operate the tram as a public conveyance and not for OHSU’s exclusive business. It also stipulates that the operator provide access to the general public to the upper terminal on Marquam Hill through the 9th floor corridor of the Kohler Pavilion for pedestrian traffic, and around the Kohler Pavilion to Sam Jackson Park Road for bicyclists.

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Does the agreement offer assurance the tram will be operated safely?
The operator is required to comply with the most current applicable American National Standards Institute (ANSI) standards in the operation, maintenance and testing of the tramway; develop a standard operating procedure manual, and conduct at least one rescue drill annually. It is also prohibited from creating any visual distraction to motorists in order to ensure the safety of traffic on nearby highways.  The design and quality of the tram equipment offers assurances as well. A redundant drive system and independent generator ensure that even if the rest of the electric power grid fails passengers will safely reach one of the two terminals. An advanced computer system constantly monitors the integrity of the tram cables. Finally, Dopplemayr brings extensive worldwide experience in operating passenger trams and a good safety record. 

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Who has decision-making authority over the tram?
The City and OHSU acknowledged in the agreement that the successful operation of the tram is contingent upon a close and effective working relationship between the parties, their employees, officials and agents. To that end, coordination will occur on a day-to-day basis between the city’s and OHSU’s tram project managers. In addition, a joint 7-member OHSU-City Executive Management Committee will be responsible for oversight of tram operations, policy guidance and dispute resolution.

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Bike Access for the Tram and South Waterfront

Here’s the latest on bike access for the Portland Aerial Tram and at the Center for Health and Healing at South Waterfront. You can send any additional questions you have to bike@ohsu.edu.
 
Are bikes be allowed on the Portland Aerial Tram?
Yes. The tram car is designed for roll-on, roll-off bike access. Bike commuters are encouraged to use the tram, just like they would Max or TriMet. 

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What accommodations are available in South Waterfront for bikes?
There will be 18 bike rack spaces at the Tram’s lower station.

In addition, 83 new bicycle parking spaces will be available at the OHSU Center for Health & Healing: 21 on the ground floor and 62 spaces on the first and second levels of the garage in two locked bike areas. 

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What about showers at South Waterfront?
The new wellness center will offer a special bike commuter membership similar in cost to the one now offered by the OHSU Sports and Fitness Center on Marquam Hill.

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How will bike commuters get from the upper Tram station to the road?
Cyclists will be able to exit using the walkway from the ninth floor terrace, take a staircase to the seventh floor terrace and exit onto Sam Jackson Park Road.  The staircase has a bike gutter.

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What accommodations are available on Marquam Hill for bikes?
OHSU currently has approximately 230 bike racks and 32 bike lockers, as well as six bike banks, on Marquam Hill. (To see rack locations, go to www.ohsu.edu/bike/BCG.pdf)

When construction is complete, OHSU will have 420 bike racks, 32 bike lockers and six bike banks. Forty-one new spaces will be located in the garage of the Kohler Pavilion, and the Biomedical Research Building will have 16 racks.

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What shower facilities are available on the hill?
The Biomedical Research Building has four new shower and changing rooms available. Also, check out the list of available shower areas at  www.ohsu.edu/bike/ShowerList.pdf

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Are there any statistics available on theft of bikes at OHSU?
Public Safety hasn’t had any bike thefts reported in the last year. If your bike is stolen or vandalized, report it to Public Safety at 4-7744.

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What is OHSU’s participation in South Waterfront’s goals for affordable housing?
First, we should define what is meant by “affordable housing”.  In most development situations (as is the case in South Waterfront) affordable housing is housing built by the developer with the assistance of a subsidy from the local government. This subsidy – currently at $24.75 million in the South Waterfront Development Agreement - represents the difference between the cost to the developer to develop the unit, and the price the unit would be expected to reach if it were sold or rented on the open market.  Affordable housing is typically made available once a number of market-priced units in the development have sold, and are generating the property tax income that provides the subsidies for the affordable housing units.

OHSU is not building affordable housing in South Waterfront, and has never planned to do so out of a need to focus on its mission activities there.  The City has imposed obligations on the developer related to affordable housing that are included in the South Waterfront Development Agreement, but those obligations and commitments are between the developer and PDC, the City's agent, not OHSU.

OHSU has, however, always supported affordable housing being located in South Waterfront. We have voluntarily spent OHSU money on efforts to secure federal funds for the South Waterfront to help meet a variety of public needs normally funded by the City - including affordable housing - and have been successful in that regard.

The City’s goals for affordable housing in South Waterfront are spelled out in the South Waterfront Development Agreement.  As an example, this document calls for the development of 400 affordable apartments, 274 of which are to be made available to families living at 50% and 60% of the Median Family Income for Portland.  The first building, with about 200 units for families living at these levels, should be completed in 2008.  Developers expect a total of 610 units eventually to be built with this initial subsidy, resulting in an average subsidy per unit of over $42,000.


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