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 Documents

Innovative 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)

IDTTCleveland Innerbelt

Bridge (CIB2)

IDTTTurnpike

(TP)

IDTTBrent Spence Bridge

(BSB)

IDTT Project Manager

Mike Wawszkiewicz

Technical CH2M Hill

Financial Ernst & Young

Legal TBD

District 9 PM

Doug Buskirk

District 9 Maintenanc

eTroy Huff

Geotechnical

Chris Merklin

TrafficReynaldo Stargell

Contracts Tom Pannett

Construction Eric Kahlig

LegalPatrick Piccininni

FinanceJulie Ray/Rich Winning

FHWA Sara Lowry

IDTT Project Manager

Mike Wawszkiewicz

Technical HNTB

Financial KPMG

Legal TBD

District 8 PM

Stefan Spinosa

District 8 Maintenanc

eJoe Bassil

Structures Tim Keller

TrafficReynaldo Stargell

Contracts Tom Pannett

Construction Eric Kahlig

LegalPatrick Piccininni

FinanceJulie Ray/Rich Winning

FHWA Sara Lowry

IDTT Project Manager

Mike Wawszkiewicz

Technical HNTB

Financial Ernst & Young

Legal Ice-Miller

District 12PM

Craig Hebebrand

District 12 Maintenanc

e

Thomas Hyland

District 12 Design

Jason Wise

Structures Tim Keller

Contracts Tom Pannett

Construction Eric Kahlig

LegalPatrick Piccininni

FinanceJulie Ray/Rich Winning

FHWA Matt Sharris

IDTT Project Manager

Jim Riley

Technical PB

Financial KPMG

LegalAllen & Overy/ Barnes & Thornburg

StructuresMike Wawszkiewicz

TrafficMike Wawszkiewicz

ConstructionMike Wawszkiewicz

PavementsMike Wawszkiewicz

LegalPatrick Piccininni

FinanceJulie Ray/OBM/TOS

FHWA Laurie Leffler

Implementation

ScreeningCosts

O&M Potential

Priority Project

Ripe (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 Contracts

Shorten 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 Improvements

70,000+ Vehicles per Day

Design-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 Project

Approximately 8 miles of roadway improvements

Current: 160,000 vpd (11% Trucks)

2035: 235,000 vpd

FONSI Approved - July 2012

Value for Money Analysis – Early 2013

Tolling Analysis – Early 2013

Potential DBFOM with Tolling/Availability Payment

TIFIA 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 BridgeSteps To Building Our BridgeBuilding the Brent Spence Bridge CorridorBuilding the Brent Spence Bridge Corridor

20152015

Mike WawszkiewiczPhone # 614.728.4585

michael.wawszkiewicz@dot.state.oh.us

Jim RileyPhone # 614.387.5183

jim.riley@dot.state.oh.us

Questions?