Honolulu Authority for Rapid Transportation’s P3 Owner’s Forum

Regional Transportation District

Eagle P3 ProjectDenver, CO

About RTD• Service area: 2,342 square miles

• Population served: 3.03 million

• RTD staff 2,863 + 1,608 private

contractor staff

• Buses, Call-n-Ride and ADA

vehicles: 1,433

• Light rail vehicles: 172

• Commuter rail Vehicles: 66

• 2017 statistics:

− Total ridership: 99 million

− Assets: $6.8 billion

− Revenue: $990 million

− Operating exp.: $581.9million

− Capital outlay: $451 million

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• University of Colorado A Line

• 22.8 miles of commuter rail between Denver Union Station and DIA

• B Line

• 6 miles of commuter rail between Denver Union Station and Westminster

• G Line

• 11.2 miles of commuter rail between Denver Union Station and Wheat Ridge

Eagle P3 Project

Eagle P3 - History

• In 2003, RTD and CDOT initiated an Environmental Impact Statement (EIS) for the I 70 Corridor

• In 2006, RTD initiated an EIS for the Gold Line Corridor

• In August 2007, approved by FTA to participate in the Penta-P program

• Provided for accelerated review process

• Reduced oversight during project development

• In September 2009, issued final RFP to pre-qualified teams.

• In July 2010, entered into a Concession Agreement with Denver Transit Partners (DTP)

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Eagle P3 Project Scope

• Overall capital cost $2.2 billion

• 36 miles of new electrified (25kV) commuter rail

• 37 major bridge structures

• 14 new stations plus Denver Union Station hub

• Commuter Rail Maintenance Facility

• 66 cars in married pair configuration (including 12 for N Metro)

• 29 at-grade crossings shared with Class 1 Railroads

Eagle P3 - Terms

• Concession Agreement – DBFOM• Design• Build• Finance • Operate• Maintain• 34 Year Agreement (2011-2044)

• Includes 5 year design/ build • 29 year maintain and operate

• RTD sets and retains fares

• RTD owns assets

• RTD pays traction power and security costs

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Eagle P3 - Funding & Financing Sources

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Total Asset Cost - $2.3 billion

• $1.1 billion in federal funds

• $1.03 billion New Starts grant

• $65 million CMAQ funding

• $450 million in private financing

• $396 million in private activity bonds

• $54 million private equity

• $460 million in local funds

• Includes sales tax revenue bonds, sales and use tax revenues, and contributions from local jurisdictions

• $280 million Transportation Infrastructure Finance Innovation Act (TIFIA) loan

Eagle P3 - Repayment

• Construction Phase

• Set amounts tied to earned value

• Maintain and Operate Phase

• Service Payments

• Funds maintenance and operations

• Concessionaire receives 100% of availability payment for meeting 95% of performance standards

• Bonus of up to 0.5% for perfect delivery

• Deduction of up to 25% for inferior delivery

Eagle P3 – Service Payments

Although there are many factors that go into the service payment calculation. There are three factors that influence whether there is a bonus or deduction.

• Rolling Stock Availability

• On Time Performance

• Station Availability

Monthly Payments – Calculation

• TABOR payment (debt & equity)• Indexed Service Availability payment:

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Start with: Base Service Availability Payment

Adjusted by: Availability Factor ¹

Equals: Availability Adjusted Base Service Payment

Less: Performance Deduction

Plus: Special Events

Equals: Amount Due

(3 x Rolling Stock Availability) + (2 x On-Time Availability) + (1 x Station Availability)²Availability Ratio =

¹Availability Factor corresponds to the Availability Ratio². Once the Availability Ratio is calculated, the Availability Factor

is found in the Availability Factor Tables in the Concession Agreement

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Eagle P3 - Risk Sharing

RTD

• ROW Acquisition

• Railroad Force Account Work

• Unidentified Environmental Conditions

• Unidentified Utilities

• Ridership

Concessionaire

• Cost Overruns

• FRA Approvals

• 3rd Party Claims

• Failure to meet Performance Standards

• Operation and Maintenance Costs

• Condition of System at end of Concession Period

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Lessons Learned

• Procurement• Maintain a competitive field

• Provide stipend• Listen to concerns over risk allocation

• Allow for innovations• Performance Specifications• Alternative Technical Concepts

• Ensure confidential communication between bidders and owner

• Follow procurement schedule

• Keep Board of Directors informed

• Public outreach

• Impact of local taxes on pricing

Lesson Learned

• Service• Joint understanding of metrics and calculations

• Data capture and reporting

• P3 Delivery• Jurisdictions do not understand the constraints of a P3

• Lock down scope and involvement early

• Lenders do not like changes

• Even simple design changes are perceived as increasing risk to a Concessionaire

• Complexities of dealing with multiple jurisdictions, railroads, airports, FTA, FRA, regulatory bodies, etc.

Lesson Learned

• P3 Funding and Financing• Make sure you get what is eligible for federal funds in writing

• Make sure owner finance and accounting staff are at the table during negotiations

• Ensure private concessionaire understands documentation needed

• Keep external auditors updated and involved

Eagle P3 – Completion Dates

• University of Colorado A Line

• Opened April 22, 2016

• B Line

• Opened July 25, 2016

• G Line

• Scheduled to be open Fall 2016 – Still TBD

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Questions?

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