I-595 Express Corridor Improvements Project
TRANSPO 2012Tuesday, 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.
• 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
FACTORS DRIVING P3S
• Design/Build/Finance
• Design/Build/Finance/Operate/Maintain
• Operate/Maintain Concession
TYPES OF P3S
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
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Projects 1 thru 6 & 8 UNFUNDED Projects 7, 9, 10, & 10A
CONSTRUCTION YEARS
PROJECTS 1 THRU 10ACURRENT ANTICIPATED PLAN
Projects 1 thru 10APROJECTS 1 THRU 10APUBLIC – PRIVATEPARTNERSHIP (P3)
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
• 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 BENEFITS
• 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 CHALLENGES
• 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
P3 RECOMMENDATIONS
• 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
PAYMENT MECHANISMS: MAIN CONCEPTS
PAYMENTS TO CONCESSIONAIRE
2014 2015 2016 2017 2018 2019 2020 2044$0
$50
$100
$150
$200
$250
$300
20
6650
124
7195
123
217
4
I-595 Express Payment Structure
Final
Maximum Milestones Payment
Availability
Year
Paym
ents
(Mill
ions
)
SCHEDULEDCONSTRUC-
TIONCOMPLETION
JULY 2014
PERFORMANCE BASED CONTRACT
Unavailability Events Deduction*
• Rush Hour I-595 Lane Closure for 2 Hours$24,000
• Midday SR-84 Lane Closure for 2 Hours$12,000
• Late Night Ramp Lane Closure for 4 Hours $ 3,000
• Planned Maintenance $ 0
O&M Violations• Missed/Incomplete Inspection $ 2,000 (per)• Unacceptable Guardrail Performance $ 9,000 (day)
*Approximate Maximum Availability Payment (MAP) deductions based on $74M MAP ($64M base MAP escalated at 3% to year 2014)
• 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.
PERFORMANCE BASED CONTRACT
Concessionaire
Counsel
Concession Agreement
DB Contract
Tech
nica
l and
Leg
al A
dvic
e
Financing Agreements
Technical Advisor
Design-Build Contractor
Design Subcontractor
CEI O&M
Lenders
Design-Build Contractor
Design Management Construction/Operations Management
I-595 TEAM ORGANIZATION
TYPICAL SECTION
• 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
INNOVATIONS
Overall Schedule:• Execution of Agreement March 3, 2009• NTP 1 March 3, 2009• Advance Construction Activities June 15, 2009• NTP 2 (Take over O&M) July 31, 2009• Major Construction Feb. 26,
2010• Substantial Completion March 2014• Final Acceptance June 2014• O & M Period Ends July 2044
• 62% COMPLETE TIME / 60% COMPLETE MONEY
PROJECT SCHEDULE
PROJECT LIMITS
ToNaples
Uni
vers
ity D
rive
Pine
Isla
nd R
oad
Nob
Hill
Roa
d
Hiat
us R
oad
Flam
ingo
Roa
d
Davi
e Ro
ad
SR 7
/ 44
1
Broward Boulevard
Sunrise Boulevard
Peters Road
Griffin Road
To Miami
To West Palm Beach
To Miami
SW 1
36 A
venu
e
Port Everglades
FLLAirport
Segment CBergeron Land Development
Began February 201071% Complete
Segment ERanger Construction
Began April 201134% Complete
Project Limits
I-595 from I-75/Sawgrass Expressway Interchange to west of the I-95 Interchangeand Florida’s Turnpike from Griffin Road to Peters Road
Segment DRanger Construction
Began June 201058% Complete
Segment A/BPrince Contracting
Began November 201052% Complete
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
SHOULDER CLOSURE GATES –SWIFTGATES BY VERSILIS, INC.
LONGITUDINAL SLIDING GATE BY ENERGY ABSORPTION• 42 FT WIDE OPENING• REMOTE CONTROL OPENING
EMERGENCY ACCESS GATES
WARNING GATES AND ACCESS BARRIER GATES FOR REVERSIBLE RAMPS
VR-6 BY B&B ROADWAYHW-4 BY B&B ROADWAY
www.I-595.comQuestions?