Transcript 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?
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.
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
TYPES OF P3S
• Design/Build/Finance
• Design/Build/Finance/Operate/Maintain
• Operate/Maintain Concession
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
WHY WAS P3 CONSIDERED FOR I-595?
• 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
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 10A
PUBLIC – PRIVATE
PARTNERSHIP (P3)
Projects 1 thru 6 & 8
Projects 1 thru 10A
UNFUNDED Projects 7, 9, 10, & 10A
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
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)
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
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
PAYMENTS TO CONCESSIONAIRE
I-595 Express Payment Structure
$300
Payments (Millions)
$250
SCHEDULED
CONSTRUCTION
COMPLETION
Final
Maximum Milestones Payment
$200
Availability
217
$150
124
123
95
71
$100
4
$50
50
66
20
$0
2014
2015
2016
2017
2018
Year
2019
2020
2044
PERFORMANCE BASED CONTRACT
Unavailability Events
• Rush Hour I-595 Lane Closure for 2 Hours
• Midday SR-84 Lane Closure for 2 Hours
• Late Night Ramp Lane Closure for 4 Hours
• Planned Maintenance
O&M Violations
• Missed/Incomplete Inspection
• Unacceptable Guardrail Performance
Deduction*
$24,000
$12,000
$ 3,000
$
0
$ 2,000 (per)
$ 9,000 (day)
*Approximate Maximum Availability Payment (MAP) deductions based on $74M MAP ($64M base
MAP escalated at 3% to year 2014)
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.
I-595 TEAM ORGANIZATION
Construction/Operations
Management
Design Management
Concession Agreement
Concessionaire
DB Contract
Financing Agreements
Design Subcontractor
CEI
O&M
Lenders
Technical and Legal Advice
Design-Build
Design-BuildContractor
Contractor
Technical Advisor
Counsel
TYPICAL SECTION
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
PROJECT SCHEDULE
Overall Schedule:
•
•
•
•
•
•
•
•
Execution of Agreement
NTP 1
Advance Construction Activities
NTP 2 (Take over O&M)
Major Construction
Substantial Completion
Final Acceptance
O & M Period Ends
March 3, 2009
March 3, 2009
June 15, 2009
July 31, 2009
Feb. 26, 2010
March 2014
June 2014
July 2044
• 62% COMPLETE TIME / 60% COMPLETE MONEY
PROJECT LIMITS
To West Palm Beach
Segment C
Bergeron Land Development
Sunrise Boulevard
Began February 2010
71% Complete
To
Naples
Broward Boulevard
Davie Road
University Drive
Pine Island Road
Nob Hill Road
Began November 2010
52% Complete
Hiatus Road
Segment A/B
Prince Contracting
Flamingo Road
SW 136 Avenue
Peters Road
Griffin Road
Segment E
Ranger Construction
Began April 2011
34% Complete
FLL
Airport
Segment D
Ranger Construction
To Miami
Began June 2010
Project Limits
58% Complete
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
Port
Everglades
I-595 PROJECT CHALLENGES
• Communications
• Procurement vs. Implementation
Team
• Aggressive Schedule
• Teamwork
• FDOT in Oversight Role
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
REVERSIBLE LANE OPERATION
Morning Movement - EB Access Open
N
REVERSIBLE LANE OPERATION
Afternoon Movement - WB Access Open
N
EMERGENCY ACCESS GATES
LONGITUDINAL SLIDING GATE BY ENERGY
ABSORPTION
• 42 FT WIDE OPENING
• REMOTE CONTROL OPENING
SHOULDER CLOSURE GATES –
SWIFTGATES BY VERSILIS, INC.
WARNING GATES AND ACCESS BARRIER GATES
FOR REVERSIBLE RAMPS
HW-4 BY B&B ROADWAY
VR-6 BY B&B ROADWAY
www.I-595.com
Questions?