1. 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.

1

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)

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

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

[email protected]

[email protected]

23