Presentation to Montgomery County Rapid Transit System (RTS) Steering Committee July 30, 2013 Purple Line Private Public Partnership Initiative.

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Presentation transcript:

Presentation to Montgomery County Rapid Transit System (RTS) Steering Committee July 30, 2013 Purple Line Private Public Partnership Initiative

Towards a More Comprehensive P3 Approach Agency Regulations (Summer 2013) Executive Order (Summer 2013) 2013 P3 Law (Chapter 5 of 2013) (signed on April 9 th ; effective July 1 st ) Joint Legislative and Executive Commission on Oversight of P3s (2011) 2010 P3 Law (Chapters 640 and 641 of 2010) 1

Key Details of P3 Law Creates predictable, transparent, and streamlined approach, incorporating best practices and lessons learned from other states while addressing the needs of Marylanders Allows agencies to consider unsolicited proposals Outlines key requirements for competitive processes for both unsolicited and solicited proposals Exempts P3s from state procurement (Division II of State Procurement Article) Reporting agencies are promulgating regulations for the development, solicitation, evaluation, award, and delivery of future P3 projects Requires that the Board of Public Works (BPW) review and designate any potential P3 project, ensuring that future P3 projects receive the highest level of scrutiny BEFORE the State seeks bids from potential partners Outlines key terms and provisions that should be part of a P3 Agreement 2

Maryland’s P3 Oversight Process Board of Public Works Approval of Agreement Agreement Terms Sent to Budget Committees, Comptroller, and State Treasurer for Concurrent Review and Comment Agreement Posted Online for Public Review Solicitation Process (Public notice of solicitation, proposal review, negotiations, reach acceptable agreement terms) Review and Designation by Board of Public Works Review by Budget Committees, Comptroller, and State Treasurer Presolicitation Report Posted Online for Public Review Agency Decision to Solicit for a P3 Presolicitation Report Sent to Budget Committees, Comptroller, and State Treasurer 3 45 days max, with 15-day extension possible for larger projects 30 days max

Components of MDOT P3 Regulations Outlines processes for identification and screening of P3 concepts Outlines anticipated components of a multi-phase solicitation process, including: – RFQ – RFP (draft and final) – Information availability during solicitation process – Industry review meetings Provides details regarding solicitation response cost reimbursements, as authorized in P3 Law Provides framework for evaluation, negotiation, and award of P3s 4

Executive Order to establish framework for statewide collaboration and knowledge sharing 5 Agency P3 regulations, policies, and project pipeline Further analysis and application of key concepts to P3 projects Knowledge from completed projects highlighted in statewide information repository Statewide review of key issues and recommendations for enhancements

Purple Line Light Rail: Linking the Capital Region 6 The Purple Line is a proposed 16+ mile light rail line extending from Bethesda in Montgomery County to New Carrollton in Prince George's County, enhancing connections in the Washington DC metro area.

D/B Contractor Concessionaire Operator (with Maintenance) Concession (DBFOM) Structure – Availability Payment Public Owner Creditors Equity Investors Debt Equity Users / Other revenue sources Users / Other revenue sources Revenue Availability Payments P3 Agreement Design-Build Payments Operate-Maintain Fees

Presolicitation report submission Make final decisions about P3 delivery method Purple Line Industry Forum on May 15, 2013 RFI responses received May 8, 2013 Release of Request for Information (RFI) to the P3 market Conducted initial analyses and industry outreach 8 Determining P3 Potential for Purple Line