HAMPTON ROADS TRANSPORTATIONACCOUNTABILITY COMMISSION

Economic Vitality and Quality of Life Unlocking Hampton Roads

HRTAC OverviewKevin B. Page

Executive Director9/27/2017

CONGESTION/FUTURE CONNECTIVITY2040 Population

2040 Employment

2

The Stage is set for Regional Transportation Solution Consensus Building 

• For two decades the Region has identified these projects  

Unlocking

 Ham

pton

 Roads

3

MOVING THEREGIONFORWARDHRTAC/HRTFOverview

• Hampton Roads Transportation Fund created 2013 Acts of Assembly HB2313

• HRTAC  created 2014 Acts of Assembly HB1253 – Hired Executive Director August 2015

• Empowered to procure, finance, build and operate highway, bridge and tunnel projects in Hampton Roads

• Authorized to use HRTF monies and tolls for construction projects on new or existing highways, bridges and tunnels and to issue bonds using revenues to support bond debt

• Regional Collaboration ‐Works closely with the Hampton Roads Transportation Planning Organization (HRTPO) who determines Project Prioritization for the region

Unlocking

 Ham

pton

 Roads

4

19 Voting members

4 Non‐Voting Ex‐officio membersCommonwealth Transportation Board MemberVirginia Department of TransportationVirginia Department of Rail and Public TransportationVirginia Port Authority

• June 15, 2017 ‐Michael Hipple elected Chair and Linda Johnson elected Vice‐Chair• HRTAC is a political subdivision of the Commonwealth• Primarily funded with HB 2313 revenue (Hampton Roads Transportation Fund) 

approved by the 2013 General Assembly

10 Cities 4 CountiesChesapeake Isle of WightFranklin James CityHampton SouthamptonNewport News YorkNorfolkPoquoson 5 VA General Assembly MembersPortsmouth Two Members of the SenateSuffolk Three Members of the House of 

DelegatesVirginia BeachWilliamsburg

HRTACMembership

Unlocking

 Ham

pton

 Roads

5

HAMPTON ROADS TRANSPORTATION FUNDAdditional Sales Tax  

• ‐ Additional 0.7%• $131.47M Revenue FY17 – ($129.97M 

FY2015)Additional Fuels Tax 

• ‐ Regional tax on motor fuels • ‐ Additional 2.1% ‐ $25.03M Revenue FY17 –

($40.94M FY2015)• Fuel tax not floored in 2013 – Loss of 

around $20M per yearNo Floor on Gas Tax for HRTAC or NVTC/PRTCState Code requires HRTF funds to be spent Hampton Roads highway construction projects 

Unlocking

 Ham

pton

 Roads

6

Legislation:CongestionReliefHRTAC (HB 1253, 2014)• “…shall give priority to those projects that are expected to provide the greatest impact on reducing congestionfor the greatest number of citizens  residing within Planning District 23…”

Statewide Prioritization Process (HB 2, 2014)• “…Hampton Roads highway construction districts…shall ensure that congestion mitigation…is weighted highest among the factors in the prioritization process…”• 45% weighted factor in Hampton Roads 7

Unlocking

 Ham

pton

 Roads

• Allows investment and provides liability protections• Allows counties to designate a representative• Allows all localities to have representation at the meetings if Chief Elected Officer or County Designee is unable to attend. Notice must be given 48 hours before meeting if regular member is unable to attend

• Administrative and operating expenses shall be paid by HRTAC Revenues

GeneralAssembly– 2016HRTACOmnibusBillHB1111

FineTuningHRTAC

8

Unlocking

 Ham

pton

 Roads

GeneralAssemblyActions– 2016Tolling

• Language within the State budget establishes new toll policy restricting CTB, VDOT, HRTAC, and NVTA from tolling existing un‐tolled lanes without General Assembly approval except on:• HOV/HOT Lanes• New Lane capacity• New bridges • Short segments of highways between existing toll 

facilities• Legislation was adopted allowing better collection of unpaid toll bills 

from other states• HRTAC now has state guidance on tolling

9

Unlocking

 Ham

pton

 Roads

DefiningtheRolesoftheHRTPOandHRTAC

Unlocking

 Ham

pton

 Roads

10

EVOLUTION OFHRTACProjects

• HRTPO Long Range Transportation Plan identifies priority projects in the constrained plan or vision plan as under study/development/construction 

• HRTAC develops a six‐year and long range plans of finance to guide in project funding for development and construction – HRTAC feeds LRTP funding plans

• HRTAC allocates funds to specific projects, asks that the HRTPO add them to the TIP

• The CTB selects the Local Preferred Alternative, maintains Statewide Transportation Improvement Program, allocates state funding to projects in Six Year Improvement Program – awards Smart Scale funding

• VDOT assists in project readiness and construction through HRTAC/VDOT MOA and HRTAC project construction agreements

Plan

•HRTPO  (Long‐Range Transportation Plan with HRTAC Input)•Prioritizes Projects Based on Project Readiness with HRTAC Input

Program•HRTAC (Six‐Year and Long Range Plans of Finance)•CTB (Six‐Year Improvement Program)•HRTPO (Adds HRTAC Projects to Transportation Improvement Program)

Finance & Deliver•HRTAC (Regional Tax Funding/Bonding, Toll Revenues/Bonding, and Smart Scale  Grants – Contracts with VDOT or Others to Deliver Projects)•VDOT – Smart Scale Funding (Constructs Projects Contracted by HRTAC)

Unlocking

 Ham

pton

 Roads

11

Unlocking

 Ham

pton

 Roads

12

AdoptedHRTACFY2018‐FY2023–SixYearand2040OperatingandCapitalPlansofFinancefortheRegion’sHighPriorityProjects(WithTollRevenuestoHRTAC)

• On September 21, 2017, HRTAC Adopted the HRTAC FY2018‐FY2023 Funding Plan and the HRTAC 2040 Long Range Plan of Finance

• Assumptions:• HRBT advances on schedule – enters SYIP 2019 completion 2024• First bond activity FY2019 – all net toll revenues to HRTAC• Smart Scale funding for HRTAC funded projects continues• Minor adjustments were made to bring the proposed plan to reflect updated 

project estimates and obligations of both HRTAC and VDOT• June 2017 reduction in HRBT contingency by $200M• June 2017 Smart Scale awards to two HRTAC projects

• Reduction in total project costs

• Return of the funding obligation by VDOT due to the use of federal funding to support total project costs.    13

Unlocking

 Ham

pton

 Roads

ProjectCostsandExpenses&FundingSources(WithTollRevenuestoHRTAC)

HRTAC Six-Year Plan FY 2018 to FY 2023

Prior Years

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

FY 2023 Total PayGo

Debt Proceeds1

Operating/HRTF Fees $7 $2 $2 $2 $2 $3 $3 $22 $22I-64 Peninsula Widening $247 $96 $62 $51 $147 $43 $645 $400 $245I-64/I-264 Interchange Improvement $136 $77 $73 $44 $24 $8 $362 $290 $67 $2 $3I-64 Southside/High Rise Bridge $57 $44 $170 $170 $164 $0 $605 $500 $105Project Development $8 $29 $4 $1 $41 $41Mega-Project Delivery (HRBT) $164 $332 $473 $742 $795 $824 $3,330 $352 $2,978Total $455 $412 $643 $741 $1,079 $848 $826 $5,004 $1,605 $2,978 $417 $2 $3

Funding SourcesPrior Years

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

FY 2023 Total

VDOT Funds $186 $49 $46 $69 $60 $8 $417HRTPO Funds $2 $2Outside Contribution $3 $3HRTAC Share $265 $363 $597 $672 $1,020 $840 $826 $4,582Total $455 $412 $643 $741 $1,079 $848 $826 $5,004

Notes:1. Net of financing costs

HRTAC Project Costs and ExpensesHRTAC Share VDOT

FundsHRTPO Funds

OutsideContribution

14

HRTACProjectedCashFlowFY2018toFY2023(WithTollRevenuestoHRTAC)

Maintain General Reserve Balance at Minimum 10% of HRTF Revenue in Current Fiscal Year

HRTAC Six-Year Plan FY 2018 to FY 2023

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 TotalHRTF .7% local Sales Tax Funds $133 $136 $138 $141 $144 $147 $840HRTF 2.1% Fuel Tax Funds $27 $30 $33 $35 $37 $38 $200

Total HRTF Revenue $160 $165 $172 $177 $181 $185 $1,040

HRTAC Toll Revenues1 $0 $0 $0 $0 $0 $2 $2HRTF Interest Income2 $1 $2 $2 $2 $1 $1 $7HRTF Investment Income2 $2 $2 $2 $0 $0 $0 $5

HRTAC HRTF Revenue Debt Proceeds3 $164 $320 $438 $693 $710 $652 $2,978HRTAC Toll Revenue Debt Proceeds $0 $0 $0 $0 $0 $0 $0

Total Available HRTAC Funding $328 $489 $613 $871 $892 $840 $4,031

HRTAC Share - PayGo Funding $363 $585 $637 $970 $755 $730 $4,040HRTAC Share - Debt Service $12 $35 $50 $85 $96 $277

Total Annual Expenditure $363 $597 $672 $1,020 $840 $826 $4,317

Carryover Balance From Previous Year $371 $336 $228 $169 $20 $71Remaining HRTAC Funds Unobligated $336 $228 $169 $20 $71 $85

1. High Rise Bridge Phase I toll revenues starting FY 20232. Rounded income3. Net of financing costs

HRTAC Projected Cash Flow

15

Unlocking

 Ham

pton

 Roads

ADOPTEDHRTAC2040LONGRANGEPLANOFFINANCEUPDATE(withtollrevenuestoHRTAC)

16

RegionalProjects:2040LongRangePlan$8.5BYEAR PROJECT YOE COST ($M)

2018‐2022 I‐64 Peninsula – Segments 1, 2, and 3 $645

2019‐2021 I‐64/I‐264 Interchange – Phases I & II $347

2020 I‐64 Southside/High‐Rise Bridge – Phase I $600

2020 Project Development $37

2024 HRBT $3,799

2037 I‐64 Southside/High‐Rise Bridge – Phase II $1,729

2037 Bowers Hill Interchange $659

2038 US 460/58/13 Connector $396

2038 I‐64/Fort Eustis Blvd Interchange $320

Vision PlanI‐564/I‐664 Connectors (Patriots)I‐664/MMMBTVA 164/164 Connector

17

Unlocking

 Ham

pton

 Roads

SmartScale(HB2)Funding

18

Unlocking

 Ham

pton

 Roads

• Smart Scale (Formerly known as HB2) funding is a competitive prioritization process administered by the Commonwealth to advise the Commonwealth Transportation Board in its funding decisions. • $144,927,753 awarded in June 2016 to the I‐64 Peninsula Widening Project 

• $150,000,000 awarded on June 20, 2017 • $100,000,000 to the I‐64 Southside Widening/High Rise Bridge Project

• $50,000,000 to the I‐64/I‐264 Interchange Phase II Project

Unlocking

 Ham

pton

 Roads

19

HamptonRoadsCrossingStudy

AstudythatledtoUnanimousRegionalDecisionsonOctober20,2016

HRBT‐MovingForward

• March 16, 2017, HRTAC allocated $25M toward refinement of HRCS Preferred Alternative

• HRCS SEIS is complete   June 12, 2017, FHWA issued Record of Decision (ROD)

• Project’s planning‐level cost estimate $3.3B in 2016 dollars (SEIS) ‐ $3.8B YOE Includes Construction, CEI, Large Contingency 

• HRTAC, funding agent, is developing strategies to fund construction 

• VDOT, delivery agent, is evaluating delivery options and initiating preliminary engineering 20

Unlocking

 Ham

pton

 Roads

HRBT‐ NextStepsActivity Date Expected

Detail Level Screening Report July 2017

Draft Request for Qualifications and DB/DBFOM Term Sheets September 2017

Transportation P3 Steering Committee – Initial Finding of Public Interest October 2017

Statements of Qualifications due November 2017

Announcement of Shortlisted Teams January 2018

Indicative Price Proposals Due April 2018

Briefing to Transportation P3 Steering Committee on Delivery Method April 2018

Announcement of Delivery Method April 2018

Draft Request for Proposals May 2018

Final Request for Proposals September 2018

Commercial Close Early 201921

Unlocking

 Ham

pton

 Roads

Source:RITISusingINRIXdata.

HOV to HOT

I‐64/I‐264 Interchange

I‐64  Southside/ High‐Rise Bridge

Alternative A

Remaining Segments of Alternative D

HOV to HOT –Segment 2

Programmed for Construction

HRCS SEIS Alternative A and Bowers Hill

Under Study

Remaining Segments of Alternative D

US 460/58/13 Connector

Bowers Hill

Unlocking

 Ham

pton

 Roads

22

The Road Ahead

NextSteps

23

Unlocking

 Ham

pton

 Roads

• HRTAC will continue work to develop solutions and continue construction of HRTAC’s $1.6B approved/funded projects

• For HRBT ‐ HRTAC/VDOT will develop MOU to outline roles, responsibilities and Stakeholder involvement to keep the Region informed

• HRTAC will work with HRTPO and impacted jurisdictions to study the remaining projects not selected in the SEIS Alternative A• Public discussion on how to fund the projects

• HRTAC will advance the FY2018‐FY2023 Funding Plan and 2040 Long Range Plan, calibrate funding options, seek public input, advance project readiness and continue preparations for bonding/financing of projects

www.hrtac.org

Unlocking

 Ham

pton

 Roads

9/27/2017

24