Route 895 PPTA (2002)

2. Route 895 PPTA (2002)

3. Communication Dilbertian [v. Newtonian] Logic: We know that communication is a problem, but the company is not going to discuss it with the employees. (XY&Z Long Lines Division)

4. Virginia’s Public-Private Transportation Act (PPTA) Northern Border Finance Workshop December 11, 2006 Thomas W. Pelnik III, P.E.Director, Innovative Project Delivery Division

5. Lessons Learned • Set clear policy goals • Establish a business process • Solicit proposals - know what you want • Each agreement will establish precedents • Require at-risk and equity participation • Ensure process results in a contract • DBFOM v DB – long term view • Provide adequate resources - • Requires significant time investment of senior staff • VDOT established two new divisions in 2003 • P3 is not for every project – but it can be an important part of program

6. Conclusions / Recommendations • You’ll get what you contract for • Direct your program • Communicate your objectives • Know the value of your assets • Know the costs of your operations • Fair procurement • Time is money • Each project is unique • It’s not easy

7. Legislative Perspective of P3 Programs Northern Border Finance Conference May 14-16, 2007 Chicago, Illinois Thomas W. Pelnik III, P.E.Director, Innovative Project Delivery Division

8. VDOT Past and Present • 100 years of tradition 1906-2006: Most VDOT work by design-bid-build • Interstate outsourcing by 2009 • Public-Private Partnerships will help, but cannot save us

9. Overview • Public-Private Transportation Act • Law and Policy • Practical Issues and Lessons Learned

10. Background Virginia PPTA, §56-556 … • Broadly stated legislative authority • Policy: • Public need for timely development • Traditional methods may not be adequate • P3 may be more timely or effective • Encourage private investment

11. Guideline Goals and Principles • Address the needs identified by Appropriate State, Regional or Local Policies and Plans • Multimodal Solutions • NEPA • Promote private investment, risk sharing and an increase in funding

12. Guideline Goals and Principles • (cont’d) • Transparency and Accountability • Public Participation • Limited Confidential Information • Limited Advocacy • Disclose Public Financial Commitments • Encourage Competition for Private Sector Innovation and Investment • Stable Investment Climate • Limit State-Supported Debt

13. Legislative Perspective 2003 • State will not charge a fee to review solicited proposals • VDOT shall solicit proposals for Route 460 • State shall disclose procurement records after contract is signed

14. Legislative Perspective 2004 • Clarifications to FOIA

15. Legislative Perspective 2005 • Policy: • Timely, efficient, less costly • Address needs in TIP • Encourage private investment • Interim Agreements • Multiple public entities • Clarifications to guidelines and streamlined process • Clarifications to FOIA

16. Legislative Perspective 2006 • Concessions • Rights to use or control facility • Concession payments to benefit users • Leasehold property owned by gov’t • FOIA • Public posting of proposals • Present major business points to CTB • Review panel meetings

17. Legislative Perspective 2007 • PPP Advisory Commission • Legislative oversight • Review detailed proposals • FOIA clarifications • Public notice • Limited exemptions from disclosure • Review panel meetings in public except for discussion of confidential information

18. Summary Effective legislation and program administration • Executive support • Legislative support • Communicate – legislative work groups • Public information and involvement • Communicate – industry collaboration • Benefits to system • Communicate – keep leadership informed

19. Route 895 PPTA (2002)

20. VDOT’s PPTA Program Additional Information VDOT Innovative Project Delivery Division Website: http://www.virginiadot.org/business/ppta-default.asp Thomas.Pelnik@vdot.virginia.gov Dusty.Holcombe@vdot.virginia.gov