P3 Legislative Perspective

1
(No Transcript)
2
Route 895 PPTA (2002)
3
Communication

• Dilbertian v. Newtonian Logic
• We know that communication is a problem, but the
  company is not going to discuss it with the
  employees. (XYZ Long Lines Division)

4

• Virginias Public-Private Transportation Act
• (PPTA)
• Northern Border Finance Workshop
• December 11, 2006

Thomas W. Pelnik III, P.E.Director, Innovative
Project Delivery Division
5
Lessons Learned

• Set clear policy goals
• Establish a business process
• Solicit proposals - know what you want
• Each agreement will establish precedents
• Require at-risk and equity participation
• Ensure process results in a contract
• DBFOM v DB long term view
• Provide adequate resources -
• Requires significant time investment of senior
  staff
• VDOT established two new divisions in 2003
• P3 is not for every project but it can be an
  important part of program

6
Conclusions / Recommendations

• Youll get what you contract for
• Direct your program
• Communicate your objectives
• Know the value of your assets
• Know the costs of your operations
• Fair procurement
• Time is money
• Each project is unique
• Its not easy

7

• Legislative Perspective of P3 Programs
• Northern Border Finance Conference
• May 14-16, 2007
• Chicago, Illinois

Thomas W. Pelnik III, P.E.Director, Innovative
Project Delivery Division
8
VDOT Past and Present

• 100 years of tradition 1906-2006 Most VDOT work
  by design-bid-build
• Interstate outsourcing by 2009
• Public-Private Partnerships will help, but cannot
  save us

9
Overview

• Public-Private Transportation Act
• Law and Policy
• Practical Issues and Lessons Learned

10
Background

• Virginia PPTA, 56-556
• Broadly stated legislative authority
• Policy
• Public need for timely development
• Traditional methods may not be adequate
• P3 may be more timely or effective
• Encourage private investment

11
Guideline Goals and Principles

• Address the needs identified by Appropriate
  State, Regional or Local Policies and Plans
• Multimodal Solutions
• NEPA
• Promote private investment, risk sharing and an
  increase in funding

12
Guideline Goals and Principles

• (contd)
• Transparency and Accountability
• Public Participation
• Limited Confidential Information
• Limited Advocacy
• Disclose Public Financial Commitments
• Encourage Competition for Private Sector
  Innovation and Investment
• Stable Investment Climate
• Limit State-Supported Debt

13
Legislative Perspective 2003

• State will not charge a fee to review solicited
  proposals
• VDOT shall solicit proposals for Route 460
• State shall disclose procurement records after
  contract is signed

14
Legislative Perspective 2004

• Clarifications to FOIA

15
Legislative Perspective 2005

• Policy
• Timely, efficient, less costly
• Address needs in TIP
• Encourage private investment
• Interim Agreements
• Multiple public entities
• Clarifications to guidelines and streamlined
  process
• Clarifications to FOIA

16
Legislative Perspective 2006

• Concessions
• Rights to use or control facility
• Concession payments to benefit users
• Leasehold property owned by govt
• FOIA
• Public posting of proposals
• Present major business points to CTB
• Review panel meetings

17
Legislative Perspective 2007

• PPP Advisory Commission
• Legislative oversight
• Review detailed proposals
• FOIA clarifications
• Public notice
• Limited exemptions from disclosure
• Review panel meetings in public except for
  discussion of confidential information

18
Summary

• Effective legislation and program administration
• Executive support
• Legislative support
• Communicate legislative work groups
• Public information and involvement
• Communicate industry collaboration
• Benefits to system
• Communicate keep leadership informed

19
Route 895 PPTA (2002)
20
VDOTs PPTA Program

• Additional Information
• VDOT Innovative Project Delivery Division
  Website
• http//www.virginiadot.org/business/ppta-default.a
  sp
• Thomas.Pelnik_at_vdot.virginia.gov
• Dusty.Holcombe_at_vdot.virginia.gov

21
PPTA Program Status

• Summary of VDOTs PPTA Portfolio
• Value of All Projects 6 Billion
• Value of Completed Projects 767 Million
• Value of Active Projects 5 Billion
• Value of Active Proposals 1.5 Billion

22
PPTA Contracts 20 April 2007
Project Contract Value in Millions Date Signed
VMS Interstate Maintenance 132 December 1996
Route 895 346 June 1998
Route 288 237 December 2000
VMS R (Renewed) 162 June 2001
Coalfields Expressway 2,500 January 2002/06
Route 28 324 September 2002
Route 199 32 October 2002
Route 58 (Phase I) 20 December 2003
Dulles Rail Phase 1 (DRPT) 2,400 2,700 2004
I- 495 HOT Lanes 1,200 April 2005
Route 895 Concession 520 June 2006
I-95/395 HOT Lanes 913 October 2006
Total Value VDOT Contracts 6,386 (not including Dulles Rail)
23
(No Transcript)