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I-595 Express Corridor Improvements Project

I-595 Express Corridor Improvements Project. TRANSPO 2012 Tuesday, October 30, 2012 Kelley Hall, PE – FDOT Project Engineer. What are P3s?.

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I-595 Express Corridor Improvements Project

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  1. I-595 Express Corridor Improvements Project TRANSPO 2012 Tuesday, October 30, 2012 Kelley Hall, PE – FDOT Project Engineer

  2. What are P3s? Public Private Partnerships (P3s) are contractual agreements formed between a public agency and a private sector entity that allow for greater private sector participation in the delivery and financing of infrastructure projects.

  3. Factors Driving P3s • Estimated $47 billion gap in transportation funding • Accelerate high priority projects • Maximize quality of facility and service provided • Encourage long-term efficiency • Lock in long term fixed price (cost savings) • Encourage Innovation • Established international P3 market and industry • Federal and state actions that support P3s: • Federal: SEP-14, SEP-15, SAFETEA-LU • State: P3 law, Turnpike and Expressway Authorities, Innovative Contracting law

  4. Types of P3s • Design/Build/Finance • Design/Build/Finance/Operate/Maintain • Operate/Maintain Concession

  5. Design-Build-Finance-Operate-Maintain Considerations Strong Market interest Lifecycle cost and O&M performance benefits Allows repayment outside the State’s work program Appropriate risk transfer Flexibility for future transportation needs Flexibility to retain (or transfer) control of toll policy and collection Value for Money analysis will determine if cost savings from DBFOM are likely to offset additional financial cost

  6. Why was P3 Considered for I-595? CONSTRUCTION YEARS 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 PROJECTS 1 THRU 10A CURRENT ANTICIPATED PLAN Projects 1 thru 6 & 8 UNFUNDED Projects 7, 9, 10, & 10A PROJECTS 1 THRU 10A PUBLIC – PRIVATE PARTNERSHIP (P3) Projects 1 thru 10A • Accelerates the schedule • Advances noise wall construction • Provides capacity improvements a minimum of 15 years sooner than the Initial (conventional) plan • Provides finance mechanism for funding shortfall • Potential to deliver long-term cost savings and higher levels of service • Industry Innovation

  7. P3 Benefits • Innovation • Possible private equity • Access to global capital markets • Outside engineering expertise and management practices • Transfer appropriate risk • Long term contract (relationships) • Can provide “stability” in pricing • Economy of Scale (cost savings) • Public benefit delivered earlier

  8. P3 Challenges • Loss of control or perceived loss of control • Day to Day Management • Setting toll rates, performance standards • “Cherry picking” by the private sector • Learning curve in negotiating & managing P3s • “Real” transfer of risk (will cost real money) • Long term contract (relationships)

  9. P3 Recommendations • Pick the right projects • Be flexible and transparent during the process • Secure government and community stakeholders’ support • Be patient and start at the right time • Secure outside experts with P3 experience • Be clear, consistent and persistent

  10. Payment Mechanisms: Main Concepts • True Toll Payment • The P3 Firm collects all tolls as payment • Shadow Toll Payment • Payment is based on a pre-determined price per vehicle the Owner will pay the P3 firm • Pure Availability Payment • Payment is based on facility being available less deductions for specific contract requirements • Variation of above • A portion of all or some of the above could be done

  11. Payments to Concessionaire

  12. Performance Based Contract Unavailability Events Deduction* Rush Hour I-595 Lane Closure for 2 Hours $24,000 Midday SR-84 Lane Closure for 2 Hours $12,000 Late Night Ramp Lane Closure for 4 Hours $ 3,000 Planned Maintenance $ 0 O&M Violations Missed/Incomplete Inspection $ 2,000 (per) Unacceptable Guardrail Performance $ 9,000 (day) *Approximate Maximum Availability Payment (MAP) deductions based on $74M MAP ($64M base MAP escalated at 3% to year 2014)

  13. Performance Based Contract • Availability Faults and O&M Violations will also result in the assessment of Noncompliance Points. • These points will be tracked through the life of the project. • Noncompliance Points trigger increased monitoring • 50 points in 1 year • 75 instances in 3 years • 100 points in 3 years • Persistent Noncompliance Points may result in default.

  14. CEI O&M I-595 Team Organization Design Management Construction/Operations Management Concession Agreement Design-Build Contractor Design-Build Contractor Concessionaire DB Contract Lenders Financing Agreements Technical Advisor Design Subcontractor Technical and Legal Advice Counsel

  15. Typical Section

  16. Innovations • 1st DBFOM P3 in Florida • 1st Availability Payment P3 in the US • Reversible Toll Lanes (six lanes for the price of three) • Congestion Pricing • State of the Art Emergency Access and Infrastructure • Fire suppression system • Emergency access gates • 35-year Operations and Maintenance (O&M) • Direct Connections to Florida’s Turnpike • Oversight CEI • Express Bus Service • Shared-use Drainage

  17. Project Schedule Overall Schedule: • Execution of Agreement March 3, 2009 • NTP 1 March 3, 2009 • Advance Construction Activities June 15, 2009 • NTP 2 (Take over O&M) July 31, 2009 • Major Construction Feb. 26, 2010 • Substantial Completion March 2014 • Final Acceptance June 2014 • O & M Period Ends July 2044 • 62% COMPLETE TIME / 60% COMPLETE MONEY

  18. Project Limits To West Palm Beach Segment C Bergeron Land Development Began February 2010 71% Complete Sunrise Boulevard To Naples Segment E Ranger Construction Began April 2011 34% Complete Broward Boulevard Peters Road Segment A/B Prince Contracting Began November 2010 52% Complete SW 136 Avenue Flamingo Road Hiatus Road Nob Hill Road Pine Island Road University Drive SR 7 / 441 Davie Road FLL Airport Griffin Road Port Everglades Segment D Ranger Construction Began June 2010 58% Complete Project Limits To Miami To Miami I-595 from I-75/Sawgrass Expressway Interchange to west of the I-95 Interchange and Florida’s Turnpike from Griffin Road to Peters Road

  19. I-595 Project Challenges • Communications • Procurement vs. Implementation Team • Aggressive Schedule • Teamwork • FDOT in Oversight Role

  20. I-595 Express Best Practices • Established project specific Business Plan • Materials: Established a well-defined process for quality control and quality assurance • Co-location: FDOT, Concessionaire, Contractor, Designer and OCEI • O&M: Performance Based Program • Customer service: PIO on both the Concessionaire and FDOT side • Proper balance of performance and prescriptive requirements • Appropriate Risk allocation • Audits to verify project performance

  21. Reversible Lane Operation N Morning Movement - EB Access Open

  22. Reversible Lane Operation N Afternoon Movement - WB Access Open

  23. Emergency Access Gates • LONGITUDINAL SLIDING GATE BY ENERGY ABSORPTION • 42 FT WIDE OPENING • REMOTE CONTROL OPENING • SHOULDER CLOSURE GATES – • SWIFTGATES BY VERSILIS, INC.

  24. Warning Gates and Access Barrier Gates for Reversible Ramps HW-4 BY B&B ROADWAY VR-6 BY B&B ROADWAY

  25. www.I-595.comQuestions?

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