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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. (XY&Z Long Lines Division)

Virginia’s 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 You’ll 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 It’s not easy

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 : 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, § … 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 (cont’d) 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 gov’t 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 VDOT’s PPTA Program Additional Information VDOT Innovative Project Delivery Division Website:

21 PPTA Program Status Summary of VDOT’s 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 ProjectContract Value in Millions Date Signed VMS – Interstate Maintenance$132December 1996 Route 895$ 346June 1998 Route 288$ 237December 2000 VMS – R (Renewed)$ 162June 2001 Coalfields Expressway$ 2,500January 2002/06 Route 28$ 324September 2002 Route 199$ 32October 2002 Route 58 (Phase I)$ 20December 2003 Dulles Rail Phase 1 (DRPT)$2,400 – 2, I- 495 HOT Lanes$ 1,200April 2005 Route 895 Concession$ 520June 2006 I-95/395 HOT Lanes$ 913October 2006 Total Value VDOT Contracts$ 6,386**(not including Dulles Rail) PPTA Contracts 20 April 2007

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