Innovative Finance & Delivery in Ohio
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Transcript of Innovative Finance & Delivery in Ohio
Innovative Finance & Delivery in Ohio
Mike WawszkiewiczP3 Project Manager
ODOT needs to get creative &be innovative to begin to fill the
gap
$1.6 Billion – Over Budgeted Construction
$10 Billion – Projects in Development
Helping Meet the NeedsX
Y S Z RV I T V G S O Q J H E G XF P U B M M F T K L R L B S H J E
K A I F L P F S E L E G I S L A T I O N F ZQ R J B K I P E K I M K Z X K M R I Z S P HJ T U Y H V C H I V E X V X E L W A B B O E
U N L I C G E C F B M N V Z Q E E M Q N L X
N E W N O T K C I D G S N O R C J K D E I MP R I V A O P P Y L U P R Q C H Z A L B C GN S N I J Y K O Q G S J Z K A G Z E Z Z Y CT H V M T G I L E O R G A N I Z A T I O N OF I G C A T R C O I O P F K X H Y O M P SW P X L W N P Y P N D K E D L K E W W X OG S G V P D U D X L T K B Y U L M W K Y PQ E S A N O Q J R X L M P Y L Q W X W W SF E M S X P I M P L E M E N T A T I O NC E I R B C F J V Y Y H G L X J RC H L K I X A X H Q Z M V J O Q B L Y L H V L C P V O E M
C R J U D U G R L T AN H W N P M G Y Y
L Q JO K
Allows ODOT to deliver P3 projects
Allows ODOT to solicit, receive, consider, evaluate, and accept bids and proposals for P3 projects.
A P3 may cover any aspect of a transportation facility, from development, to construction, to operation of the facility.
Provides for flexibility in surety requirements.
Allows for multi-party agreements which may include political subdivisions.
Establishes both required and permissive elements for a public-private agreement including assessment of user fees.
P3 LegislationORC 5501.70-5501.83
Provides for consistent, transparent and efficient framework for procurement.
Identifies payment types and position in ODOT debt waterfall.
Sets forth available delivery mechanisms.
Provides process for solicited and unsolicited proposals.
Allows for payment of proposal development fee or stipend.
Identifies the Division of Innovative Delivery as the division with primary responsibility for implementation.
Posted on ODOT Division of Innovative Delivery Website:
http://www.dot.state.oh.us/Divisions/InnovativeDelivery
ODOT P3 Policy
a
DID Organization
Chief of StaffAssistant Director
Greg Murphy
Director
Jerry Wray
Deputy Director
Jim Riley
Steering Committee
Assistant Directors
Julie BroganMike Wawszkiewicz
Adam SheetsTim Biggam
Consultant Contracts
TFAC - HNTB/E&YTFAC – PFM/HMM
Turnpike – KPMG/PB/A&OPortsmouth – CH2/E&Y
BSB – HNTB/KPMG
Working Groups/IDTTs
Construction, Communication, Planning, Engineering, Finance,
Maintenance, District Representatives, Chief Legal
Availability payment transactions.P3 Capital Project Delivery Roles and Responsibilities.
P3 Policy Board - comprised of the Director and Assistant Directors; will have final authority on all P3 issues.Divisional Approval Committee (DAC) - comprised of Division and District Deputy Directors; makes recommendations on P3 policy Project Screening Working Group (PSWG) - Conducts high level screening of all projects and a detailed screening of projects which advanced beyond the high level screening. Contract Document Working Group (CDWG) - Controls the development of Model/Programmatic Contract DocumentsInnovative Delivery Transactional Team (IDTT) - Led by a Division Innovative Delivery Project Manager; comprised of CO/District staff with clearly defined responsibilities to deliver a P3 capital project
Standard Operating Procedures
P3 Policy BoardDirector & Assistant
Directors
Division Approval Committee (DAC)
Project Screening Working Group
(PSWG)Mike Wawskiewicz
Innovative Deliver Transaction Team
(IDTT)
Contract Document Working Group
(CDWG)Adam Sheets
DD of District
8
Rotating
DD of District
12
Rotating
Chief Legal
Counsel
Permanent
DD of Finance
Permanent
DD of
Construction
Permanent
DD of Planning
Permanent
DD of
Engineering
Permanent
DD of
Innovative
DeliveryChair
IDTTPortsmouth Bypass
IDTTCleveland Innerbelt
Bridge
IDTTTurnpike
IDTTBrent Spence
Bridge
Innovative Delivery Transaction Team
(IDTT)
IDTTPortsmouth Bypass
(PSB)IDTT
Cleveland Innerbelt Bridge (CIB2)
IDTTTurnpike
(TP)
IDTTBrent Spence Bridge
(BSB)IDTT Project
Manager Mike Wawszkiewicz
Technical CH2M Hill
Financial Ernst & Young
Legal TBDDistrict 9
PM Doug BuskirkDistrict 9
Maintenance
Troy Huff
Geotechnical Chris Merklin
Traffic Reynaldo Stargell
Contracts Tom Pannett
Construction Eric Kahlig
Legal Patrick Piccininni
Finance Julie Ray/Rich Winning
FHWA Sara Lowry
IDTT Project Manager
Mike Wawszkiewicz
Technical HNTB
Financial KPMG
Legal TBDDistrict 8
PMStefan Spinosa
District 8 Maintenanc
eJoe Bassil
Structures Tim Keller
Traffic Reynaldo Stargell
Contracts Tom Pannett
Construction Eric Kahlig
Legal Patrick Piccininni
Finance Julie Ray/Rich Winning
FHWA Sara Lowry
IDTT Project Manager
Mike Wawszkiewicz
Technical HNTB
Financial Ernst & Young
Legal Ice-MillerDistrict
12PMCraig Hebebrand
District 12 Maintenanc
eThomas Hyland
District 12 Design Jason Wise
Structures Tim Keller
Contracts Tom Pannett
Construction Eric Kahlig
Legal Patrick Piccininni
Finance Julie Ray/Rich Winning
FHWA Matt Sharris
IDTT Project Manager Jim Riley
Technical PB
Financial KPMG
LegalAllen & Overy/ Barnes & Thornburg
Structures Mike Wawszkiewicz
Traffic Mike Wawszkiewicz
Construction Mike Wawszkiewicz
Pavements Mike Wawszkiewicz
Legal Patrick Piccininni
Finance Julie Ray/OBM/TOS
FHWA Laurie Leffler
Implementation
ScreeningCostsO&M PotentialPriority ProjectRipe (Project Status)Sufficient time and staff
PrioritizationValue for MoneyProcurement
Turnpike - Study Completed
Innerbelt Bridge Contract Group 2 - Procurement Documents Being Developed
Portsmouth Bypass - Value for Money Analysis in Progress (completion in January 2013)
Brent Spence Bridge - Value for Money Analysis in Progress
Innovative Delivery – P3 Projects
Studied Leveraging• Do Nothing• Governance – ODOT
Control• Full Concession• Everything in Between
Evaluated best Public option vs. Public-Private option
Turnpike
Consultant Team
Current Tolling Policy Over the past 20 years, Turnpike toll rates
increased > inflationThe Turnpike still has one of the lowest toll rates among comparable roadsTolls were last increased in January 2012.
Analysis ConsideredPublic-Private Option: Toll increase cap of inflation, or increase in CPI, estimated at 2.7%Public Option: Toll increase cap of inflation based on bond covenants for at least 10 yearsFuture toll increases - follow the tolling policy in OTC’s Master Trust AgreementLocal E-ZPass Freeze – for local auto trips < 30 miles
Cleveland Innerbelt – Construction Contract Group 2 DBF
Demolition and Eastbound BridgeEfficiencies in combining Demolition and Construction ContractsShorten duration of bi-directional traffic on single bridge (2-lane EB/4-lane WB)Roadway User Cost Savings of over $25 Million
1.5 Miles of Roadway Improvements70,000+ Vehicles per DayDesign-Build-Finance (DBF)Accelerate start of construction by over 2 years with negligible cost difference
Availability Payment Model• Guaranteed fixed price for construction and O&M• Accelerate Completion By 8 Yrs
TIFIA Application Submitted
VfM Analysis – Completion in January 2013
Scioto County SR-823 “Portsmouth Bypass”
Sources of Funds Amount %
Private PartnerPrivate Activity Bonds or other Debt $235 39%TIFIA $200 33%Equity $60 10%Subtotal $495 82%
Ohio DOT (work program funds) $110 18%TOTAL $605 100%
Uses of Funds Amount %
Construction (includes contingencies) $450 74%Planning & Engineering $35 6%Other Project Costs $55 9%Net Interest & Financing Costs $65 11%TOTAL $605 100%
16 mile Greenfield
19,800 vpd
DBFOM
Combine with paving
Brent Spence Bridge (I-71/I-75 Improvements)
~$2.5B ODOT-KYTC ProjectApproximately 8 miles of roadway improvementsCurrent: 160,000 vpd (11% Trucks) 2035: 235,000 vpdFONSI Approved - July 2012Value for Money Analysis – Early 2013 Tolling Analysis – Early 2013Potential DBFOM with Tolling/Availability PaymentTIFIA LOI to be submitted in 2013
Study Area
Study area 3.21 sq. miles
Project length 7.8 Miles
5.1 miles (26,807 ft) in KY
2.7 miles (14,256 ft) in OH
Existing bridge length
1,736.5 feet
4% of project length
~$2.5B ODOT-KYTC Project
Steps To Building Our BridgeBuilding the Brent Spence Bridge Corridor
2015
Mike WawszkiewiczPhone # 614.728.4585
Jim RileyPhone # 614.387.5183
Questions?