Oregon Transportation Infrastructure Bank (OTIB)

1. Oregon Transportation Infrastructure Bank (OTIB) Prepared by: Matthew Harris

2. What is OTIB? • Loan program for transportation projects in Oregon • Established in 1996-97 as a pilot State Infrastructure Bank • Capitalization of $58.4 million

3. Goals of OTIB • Leveraging Transportation Funds • Accelerating Planned Projects • Improving Communities’ Ability to Meet Transportation Needs • Encouraging Economic Development • Facilitating Non-Traditional Projects

4. State agencies Cities Counties Special Districts (including LIDs, Transit, Road) Tribal Governments Private Sector Businesses Who can apply?

5. What can be funded? • Highway projects (If Federalized, Title 23) • Transit projects (Title 49) • Other infrastructure related projects

6. Funds Available • State Highway Funds - $6.5M • Comingled State/FederalHighway Funds - $2.1M • State Highway Funds subject to Title 23 Requirements - $1.6M • Transit/Federal Funds - $2.5M • Available Line of Credit from State Highway Fund - $7.9M

7. Highway Projects - Eligible Expenditures • Preliminary Engineering • Right-Of-Way Acquisition • Roadway Construction • Bridge Rehabilitation & Replacement • Construction Management • Signals • Loan Fee • Other Costs as Identified in State & Federal Law

8. Transit Projects – Eligible Expenditures • Vehicle Purchases • ADA-Related Equipment • Transit Facilities (intermodal facilities, maintenance facilities, and shelters) • Vanpools • Loan Fee • Other Costs Identified in Federal Regulations

9. Loan Process • Project Proposal • Application • Staff Review • CFO or OTC Approval • Terms & Conditions Letter • Loan Documents

10. Why OTIB? • Generally “AA” Costs of Borrowing Through Pledge of Higher User Tax Apportionment • Draw Down Construction Loans • Low Cost of Financing (1%) • Very Flexible Terms • No Prepayment Penalty • DOJ Standardized Loan Documents

11. City of McMinnville $3,209,000 20 years @ 2.26% Aa3 (15bps spread) Interest Savings: $58,108 Total Savings: $91,318 (2.18%) Yamhill County $10,366,640 20 years @ 2.26% A (44bps spread) Interest Savings:$553,628 Total Savings:$594,498 (4.32%) Case StudyNewberg-Dundee Bypass

12. Local Indirect Rates Prepared by: Rich Brock

13. Cost Terms • Indirect Costs • Direct Costs • Cost Objective • Indirect Cost Allocation Plan (ICAP) • Indirect Cost Rate

14. Local Government Invoices Review Indirect Cost Rate, Basis & Costs • Approved Rate? • Check website for current list of approved rates • Is the rate current? • What is the direct cost base? • Are they properly applying the rate? • Is the rate consistently applied? • Is there a clear identification of direct/indirect? • Are they charging indirect as direct?

15. Tools, Resources & Guidelines • Approved Indirect Cost Rates website http://transnet.odot.state.or.us/cs/fsb/Web%20Components/ICAP.aspx • FASM 14.3 • Link to LAG Manual

16. For More Information, Contact: Richard Brock Senior Financial Analyst Oregon Department of Transportation (503) 986-3927 Richard.M.Brock@odot.state.or.us Matthew Harris Senior Financial Analyst Oregon Department of Transportation (503) 986-3393 Matthew.D.Harris@odot.state.or.us