Office of Major Project Development (OMPD) Overview November 2015

OMPD Staff Brett Johnson – Director Joe Mahoney – Tolling and Contracts Coordinator Pat Saffo – Budget & Policy Analyst Jon Chesser – Environmental Program Manager Vacant – Program Development Engineer Who we are Supported by Consultants Program Management – HDR/AECOM Finance – Ernst & Young Tolling – Atkins Legal - TBD

To assist the Regions and HPTE to more effectively and efficiently develop major projects through the promotion of consistency in the advancement, management, and oversight of major projects (from Policy Brief). In cooperation with the Regions, OMPD will: Develop continuity and consistency in procurement approaches and philosophies. Consolidate best practices and explore innovative ways of delivering the best projects. Access HPTE’s unique financing status and capabilities. Create a center of excellence for management, technical, financial, and legal resources. Develop a programmatic approach to implementing projects. Why OMPD was established

HPTE’s Interrelationship with CDOT

MOU Between CDOT and HPTE Establishes OMPD as a Resource and Center of Expertise for Completing Joint CDOT/HPTE Mission: Support HPTE in program-level activities Identify, analyze and prioritize corridors Support HPTE in financial analyses Support development and management of Major Projects Pursuant to FASTER and Loan Agreements, HPTE has Full Discretion of Use of Funds Adoption of Policy and Procedural Directives Region OMPDHPTE

Region identifies a desired project. The OMPD, together with the Region, develops the project and applies best practices (keeping financial constraints and HPTE requirements in mind). HPTE partners with local agencies, communities, and private industry to identify financing for the project. Region implements the project. Interdependence of the Regions, HPTE, and OMPD Collaborative team plans, develops, procures, and builds a project Region OMPDHPTE

More specifically, OMPD’s Mission is 1.Support policy formulation and coordination of duties relative to major projects 2.Develop Best Management Practices for Department-wide consistency in the development and management of major projects 3.Assess the feasibility and development of financial plans for major projects in conjunction with HPTE 4.Manage the project development process for identified potential major projects 5.Provide technical assistance to other CDOT and HPTE staff

Benefits of coordination Value for Money TC/HPTE Board Support Transparency Stakeholder Endorsement and Participation Industry Partners Value for Money Transparency TC/HPTE Board Support Stakeholder Endorsement and Participation Aligning interests with a common goal.

Consistent policies and procedures for: −How delivery options are evaluated −How funding is identified −Meeting FHWA requirements (Financial Plan, Project Management Plan, environmental compliance) How OMPD will help Regions be successful Solid Business and Financial Plans for stakeholders and financial industry increase level of project support Toolbox and lessons learned minimize level of effort and save time Value for investment is optimized Project implemented with adequate funding Center of excellence and resource across Regions for: −Innovative delivery methods −Financing options −Procurement Optimal delivery option for project concept and risk profile Leveraging of HPTE’s innovative financing capabilities

OMPD Environmental Program This program will support project NEPA teams by actively participating in the advancement and management of Major Projects. Work with HQ, Environmental Programs Branch (EPB) and the Regions to provide an open conduit of information throughout the decision- making process of a project. Develop environmental Best Management Practices and Lessons Learned for Major Projects. Develop environmental policies and procedures for Major Projects to support both efficiency and consistency.

How a major project is defined As defined by the Policy Brief, a major project meets one or more of the following criteria: Greater than roughly $200M in construction costs Involves public-private partnerships or other innovative financing requiring the statutory powers of the HPTE Involves toll operations, technologies, and equipment Has non-traditional or innovative contracting methods requiring or benefiting from the centralized management or expertise of the OMPD, to be determined by the Chief Engineer

Considerations for a major project Project Plan? Financing Plan? Risk Assignment? Alternative Delivery Readiness? Project Definition? Funding & Financing Plan? Risk Transfer? Procurement Process/Results? Project ContractProject Concept? Funding Gap? Risk Profile? Delivery Options? Key questions PROGRAM PLANNING PROGRAM PLANNING PROJECT DEVELOPMENT PROJECT DEVELOPMENT PROJECT PROCUREMENT PROJECT PROCUREMENT CONSTRUCTION OPERATIONS & MAINTENANCE OPERATIONS & MAINTENANCE HPTE/CDOT APPROVAL Business Case Analysis HPTE/CDOT APPROVAL Implementation & Procurement Plan HPTE/CDOT APPROVAL Alternative Delivery Contract HPTE/CDOT APPROVAL Project Construction Acceptance Project Management Plan becomes more focused Management/ Procurement Financial Technical Legal

Business Case Analysis to determine delivery approach Program Planning Project Development Business Case Analysis Project Concept Scope / Cost Schedule Environmental Schedule Operating Plan Funding Gap Analysis Available Public Funds Preliminary Traffic & Revenue Analysis Resource Planning Risk Profile Construction Funding, Financial, Commercial and Economic Stakeholder Operations Phase Delivery Options Analysis Optimize Risk Transfer Achieve Cost-Effective Use of Public Funds Guarantee Timely Completion – Accelerate Project Delivery Ensure Asset Quality Throughout Lifecycle Potential P3 Financing Strategy

Blended team during project life cycle Roles/involvement are different depending on delivery method OMPD/HPTE involvement higher on projects with a greater funding gap and that are more complicated Level of Involvement Blended Team

C-470 I-70 Mountain US 36 North I-25 I-70 East Projects at different stages in pipeline Corridor I-270 I-70W T&R was not advanced through the process New projects from Regions

Introduce OMPD to RTDs and Regions Based on best practices and Region input, develop OMPD framework and plan Identify major projects already in development and future projects for the pipeline Develop and communicate the role/responsibility and process of OMPD to stakeholders OMPD Plan Mission Critical issues for success Alternative project delivery framework Project pipeline Performance metrics Consistent project development processes Management systems Roles and responsibilities matrix Office development MOU between CDOT and HPTE: us/documents/mou-cdot-hpte pdf OMPD Policy Brief: ompd /view

Discussion and Questions Jon Chesser OMPD – Environmental Program Manager Brett Johnson OMPD – Director

ICAC Environmental Subcommittee Design-Build Survey