1. I-595 Express Corridor Improvements Project TRANSPO 2012 Tuesday, October 30, 2012 Kelley Hall, PE – FDOT Project Engineer

2. W HAT ARE P3 S ? Public Private Partnerships (P3s) are contractual agreements formed between a public agency and a private sector entity that allow for greater private sector participation in the delivery and financing of infrastructure projects.

3. Estimated $47 billion gap in transportation funding Accelerate high priority projects Maximize quality of facility and service provided Encourage long-term efficiency Lock in long term fixed price (cost savings) Encourage Innovation Established international P3 market and industry Federal and state actions that support P3s: –Federal: SEP-14, SEP-15, SAFETEA-LU –State: P3 law, Turnpike and Expressway Authorities, Innovative Contracting law F ACTORS D RIVING P3 S

4. Design/Build/Finance Design/Build/Finance/Operate/Maintain Operate/Maintain Concession T YPES OF P3 S

5. D ESIGN -B UILD -F INANCE -O PERATE -M AINTAIN C ONSIDERATIONS Strong Market interest Lifecycle cost and O&M performance benefits Allows repayment outside the State’s work program Appropriate risk transfer Flexibility for future transportation needs Flexibility to retain (or transfer) control of toll policy and collection Value for Money analysis will determine if cost savings from DBFOM are likely to offset additional financial cost

6. 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Projects 1 thru 6 & 8UNFUNDED Projects 7, 9, 10, & 10A CONSTRUCTION YEARS PROJECTS 1 THRU 10A CURRENT ANTICIPATED PLAN Projects 1 thru 10A PROJECTS 1 THRU 10A PUBLIC – PRIVATE PARTNERSHIP (P3) W HY WAS P3 C ONSIDERED FOR I-595? Accelerates the schedule Advances noise wall construction Provides capacity improvements a minimum of 15 years sooner than the Initial (conventional) plan Provides finance mechanism for funding shortfall Potential to deliver long-term cost savings and higher levels of service Industry Innovation

7. Innovation Possible private equity Access to global capital markets Outside engineering expertise and management practices Transfer appropriate risk Long term contract (relationships) Can provide “stability” in pricing Economy of Scale (cost savings) Public benefit delivered earlier P3 B ENEFITS

8. Loss of control or perceived loss of control – Day to Day Management – Setting toll rates, performance standards “Cherry picking” by the private sector Learning curve in negotiating & managing P3s “Real” transfer of risk (will cost real money) Long term contract (relationships) P3 C HALLENGES

9. Pick the right projects Be flexible and transparent during the process Secure government and community stakeholders’ support Be patient and start at the right time Secure outside experts with P3 experience Be clear, consistent and persistent P3 R ECOMMENDATIONS

10. True Toll Payment – The P3 Firm collects all tolls as payment Shadow Toll Payment – Payment is based on a pre-determined price per vehicle the Owner will pay the P3 firm Pure Availability Payment – Payment is based on facility being available less deductions for specific contract requirements Variation of above – A portion of all or some of the above could be done P AYMENT M ECHANISMS : M AIN C ONCEPTS

11. P AYMENTS TO C ONCESSIONAIRE

12. P ERFORMANCE B ASED C ONTRACT Unavailability Events Deduction* Rush Hour I-595 Lane Closure for 2 Hours$24,000 Midday SR-84 Lane Closure for 2 Hours$12,000 Late Night Ramp Lane Closure for 4 Hours$ 3,000 Planned Maintenance$ 0 O&M Violations Missed/Incomplete Inspection $ 2,000 (per) Unacceptable Guardrail Performance$ 9,000 (day) *Approximate Maximum Availability Payment (MAP) deductions based on $74M MAP ($64M base MAP escalated at 3% to year 2014)

13. Availability Faults and O&M Violations will also result in the assessment of Noncompliance Points. These points will be tracked through the life of the project. Noncompliance Points trigger increased monitoring – 50 points in 1 year – 75 instances in 3 years – 100 points in 3 years Persistent Noncompliance Points may result in default. P ERFORMANCE B ASED C ONTRACT

14. Concessionaire Counsel Concession Agreement DB Contract Technical and Legal Advice Financing Agreements Technical Advisor Design-Build Contractor Design Subcontractor CEIO&M Lenders Design-Build Contractor Design Management Construction/Operations Management I-595 T EAM O RGANIZATION

15. T YPICAL S ECTION

16. 1 st DBFOM P3 in Florida 1 st Availability Payment P3 in the US Reversible Toll Lanes (six lanes for the price of three) Congestion Pricing State of the Art Emergency Access and Infrastructure –Fire suppression system –Emergency access gates 35-year Operations and Maintenance (O&M) Direct Connections to Florida’s Turnpike Oversight CEI Express Bus Service Shared-use Drainage I NNOVATIONS

17. Overall Schedule: Execution of Agreement March 3, 2009 NTP 1 March 3, 2009 Advance Construction Activities June 15, 2009 NTP 2 (Take over O&M) July 31, 2009 Major Construction Feb. 26, 2010 Substantial CompletionMarch 2014 Final AcceptanceJune 2014 O & M Period Ends July 2044 62% COMPLETE TIME / 60% COMPLETE MONEY P ROJECT S CHEDULE

18. P ROJECT L IMITS To Naples University Drive Pine Island Road Nob Hill Road Hiatus Road Flamingo Road Davie Road SR 7 / 441 Broward Boulevard Sunrise Boulevard Peters Road Griffin Road To Miami To West Palm Beach To Miami SW 136 Avenue Port Everglades FLL Airport Segment C Bergeron Land Development Began February 2010 71% Complete Segment E Ranger Construction Began April 2011 34% Complete Project Limits I-595 from I-75/Sawgrass Expressway Interchange to west of the I-95 Interchange and Florida’s Turnpike from Griffin Road to Peters Road Segment D Ranger Construction Began June 2010 58% Complete Segment A/B Prince Contracting Began November 2010 52% Complete

19. I-595 P ROJECT C HALLENGES Communications Procurement vs. Implementation Team Aggressive Schedule Teamwork FDOT in Oversight Role

20. I-595 E XPRESS B EST P RACTICES Established project specific Business Plan Materials: Established a well-defined process for quality control and quality assurance Co-location: FDOT, Concessionaire, Contractor, Designer and OCEI O&M: Performance Based Program Customer service: PIO on both the Concessionaire and FDOT side Proper balance of performance and prescriptive requirements Appropriate Risk allocation Audits to verify project performance

21. R EVERSIBLE L ANE O PERATION Morning Movement - EB Access Open N

22. R EVERSIBLE L ANE O PERATION Afternoon Movement - WB Access Open N

23. SHOULDER CLOSURE GATES – SWIFTGATES BY VERSILIS, INC. LONGITUDINAL SLIDING GATE BY ENERGY ABSORPTION 42 FT WIDE OPENING REMOTE CONTROL OPENING E MERGENCY A CCESS G ATES

24. W ARNING G ATES AND A CCESS B ARRIER G ATES FOR R EVERSIBLE R AMPS VR-6 BY B&B ROADWAY HW-4 BY B&B ROADWAY

25. www.I-595.com www.I-595.com Questions?