Presentation Overview Eagle Project Overview Key Participants & Organizational Structure Project Status, Approvals and Schedule Questions? Public-Private.

Presentation Overview• Eagle Project Overview

• Key Participants & Organizational Structure

• Project Status, Approvals and Schedule

• Questions?

Public-Private Partnership (P3) Delivery Approach

QBS Colorado ForumOctober 4, 2011

Agenda

Damian Carey – RTD – Design/Integration Manager

• Overview of RTD Public Private Partnership (P3)

• Overview of the Eagle P3 Project

• Concessionaire Solicitation Process

Michael Lipinski – DTP – Design/Build Project Manager

• Eagle P3 Project Status

• Procurement Process

Damian CareyRegional Transportation District

Design/Integration Manager

• 122 miles of new commuter rail and light rail

• 18 miles of Bus Rapid Transit (BRT) service

• 31 new park-n-Rides; 21,000 new spaces

• Enhanced Bus Network & Transit Hubs (FastConnects)

• Redevelopment of Denver Union Station

The RTD FasTracks Plan

Public Private Partnership (P3)

What Is A Public Private Partnership (P3)?

• A contract wherein a single private entity, typically a consortium of private companies, is responsible and financially liable for performing all or a significant number of functions in connection with a project

What Are the Advantages of a Public Private Partnership (Eagle P3)?

• Accelerated project deliver (firm fixed date with penalties for delay)

• Risk transferred to private sector, away from taxpayers

• Cost ($2 billion, Lump Sum, Fixed); allow Regional Transportation District (RTD) to spread out large upfront costs over approximately 30 years

• In return, RTD will make service (availability) payments to Denver Transit Partners (DTP) over the life of the project

Public Private Partnership (Cont’d)

• First full transit P3 in the United States

• Project is part of FTA’s Public-Private-Partnership-Pilot Program (Penta P)

• DBFOM – design-build-finance-operate-maintain

• 34-year term (5 years design/build; 29 years O&M)

• Availability payment model

• Includes incentives and penalties

• RTD retains ownership of assets

• Performance requirements

• Appropriate risk sharing

Public Private Partnership (Cont’d)

• East Rail Line offers 35-minute travel time to DIA

• Gold Line offers 25-minute travel time to Ward Road

• First segment of Northwest Rail: Station at 71st/Lowell (4 miles shared with Gold Line) offers 11-minute travel time to Westminster

• Commuter Rail Maintenance Facility

• Project Capital Budget - $2.1 Billion

Eagle P3 Project Overview

East Rail Line• 22.8 miles commuter rail

– Electric Multiple Units • Connects downtown

Denver to DIA• Complete in 2016

Gold Line• 11.2 miles commuter

rail – Electrical Multiple Units

• Connects downtown Denver, Arvada and Wheat Ridge

• Complete in 2016

Northwest Rail Line – First Segment• 5.8 miles Commuter

Rail – Electric Multiple Units

• Connects downtown Denver with South Westminster

• Complete in 2016

Commuter Rail Maintenance Facility• Located on 30

acres at 48th and Fox Streets on the Gold Line and Northwest Rail

• Connected to other rail lines via Denver Union Station

• Complete in 2014

Procurement Team• Combination of RTD staff, consultants and

advisors

• High level of support and active involvement from the RTD Board and General Manager

• Team included:– Jacobs Engineering: Overall management services

and P3 expertise– Goldman Sachs/JP Morgan: Financial advisors– Freshfields: Legal advisors

Procurement Process• Approximately three years from concept to

contract

• Major steps include RFQ, draft RFP, final RFP (issued in September 2009 with subsequent addendums)

• Extensive industry review

• Numerous briefings with Board of Directors

• Best value selection (price and technical factors)

• Stipends ($2.5 million)

• Compensation Agreement ($20 million)

Other Key Procurement Aspects

• Each team proposed Alternative Technical Concepts (ATCs)

• RTD reviewed and approved or rejected ATCs

• ATCs were unique to each team and were kept confidential

• Importance of

confidentiality

Eagle P3 Financial Aspects

• Project Capital Budget: $2.1 Billion

– Private Debt and Equity: $455 million

– RTD Financial Pledge (i.e. TABOR commitment)

– Full Funding Grant Agreement from FTA: $1.03 billion

• Project Divided into Two Phases

– Phase I: Design, East Corridor, Maintenance Facility, Vehicles

– Phase II: Gold Line, Northwest Rail Segment

– Phase II was awarded upon receipt of FFGA

Eagle P3 Project Proposals• Two excellent submitted proposals

– Denver Transit Partners• Fluor/ Macquarie Capital (Fluor/ Ames/ Balfour

Beatty/ HDR)– Mountain-Air Transit Partners

• HSBC/ Siemens/ Veolia (Kiewit/ Herzog/ Stacy & Witbeck/ HNTB)

• Final Proposals received – May 14, 2010• RTD Board selection – June 15, 2010

Technical Evaluation• Technical Proposal Criteria (40 points)

– Technical Approach• Quality of solution; efficiency of O&M; safety;

integration; sustainability– Quality of Team and Approach

• Commitment to safety; quality assurance; ability to meet schedule and budget; proposed revenue commencement; experience and key personnel

– DBE/SBE Approach– Value Added Proposals

Financial Evaluation• Financial Criteria (60 points)

– Financial Proposal• Net present value of service payments made by RTD for

the entire project (Phase 1 and 2) over the term of the agreement

– Phase 1 Base Annual Service Payment• Net present value of the service payments for Phase 1

only– Quality of Financial Proposal

• Robustness, commitment and executability of proposal – Priced Options

• Additional rolling stock• Drainage improvements• Grade separation project• DIA bridge

Evaluation Organization

Evaluation Committee

Responsiveness Subcommittee

Technical Subcommittee

Technical Approach

Working Group

Quality of Team and Approach

Working Group

DBE/SBE Approach

Working Group

Value-Added Working Group

Stakeholders Group Financial Subcommittee

Financial Working Group

Options Working Group

A total of approximately 120 people participated in review and evaluation of the proposals

Keys to Evaluation Process• Subject matter experts reviewed the relevant sections of

each proposal• The results of the evaluations flowed through the

structure to the Technical Subcommittee• The Evaluation Committee received reports from:

– Responsiveness Subcommittee– ATC Subcommittee– Technical Subcommittee– Stakeholders Group– Financial Subcommittee

• The technical evaluation was completed prior to receipt of the financial proposals

• The report was provided to:– Secretary of Transportation

LaHood– FTA Administrator Rogoff– Governor Hickenlooper– RTD Board– APTA

• Copies are available on the RTD website

www.rtd-fastracks.com/ep3_25

Lessons Learned Report

22

Michael LipinskiDenver Transit Partners

Design/Build Project Manager

Denver Transit Partners Team

Operations & Maintenance Contractor

(Fluor / BBRI / ACI)

Design/Build Contractor(Fluor / BBRI)

ConcessionaireDenver Transit Partners, LLCFluor/Uberior(Lloyds)/John Laing

Design/Build Subcontractor(Fluor/Ames/BBRI)

Rolling Stock SupplierHyundai-Rotem USA

RTD

Eagle P3 Project Schedule

Began PursuitContract Award

Financial Close – Phase 1; Phase 1 Notice to Proceed

RTD East Rail Line Groundbreaking

Phase 2 Notice to Proceed –

RTD Gold Line Groundbreaking

August 2011August 2010June 15, 2010Mid-2008

Eagle P3 Project to Date

Current Progress

• 60% Systems design (traction power & catenary)

• UPRR Design in final approval process

• 65 – 100% on Civil Design

• Real property – most properties appraised

• Major construction to begin Fall 2011

• Long haul fiber relocation by early November

East Rail Line Update

DTP’s Best Value Criteria ApproachDenver Transit Partners is committed to having a fair and transparent process in the distribution and awarding of contracts for the designing, building, operating and maintaining of our project: the East Rail Line, Gold Line, an initial segment of the Northwest Rail Line and the Commuter Rail Maintenance Facility.

DTP’s Best Value Criteria Approach

DTP evaluates and awards contracts based upon Best Value Criteria, using the following for help in assessing bids:

Capacity/Work Experience Safety Record Price Schedule Commitment DBE/SBE Utilization Bonding Capacity Insurability Commitment to RTD’s Workforce Initiative

Now (WIN) Program

Doing Business With DTP

Doing Business With DTP

Step 1

• Step One: Go to www.denvertransitpartners.com • Under the Contracting Section, click on “Doing Business

with DTP”• Then, download the “Contractor-Vendor Notice of Interest

Form”

Step 2• Fill out the form completely and return to

[email protected] • Or mail the form to 1670 Broadway, Suite 2700, Denver,

CO 80202

Step 3

• You will be sent a pre-qualification package• Fill out the package as completely as possible and return

with a copy of your DBE and/or RTD SBE certification• If you are not registered in iSqFt, you will also receive an

invitation through iSqFt to get registered

Step 4• You will receive bid opportunities based on your work

codes through iSqFt

• Denver Transit Partners selects iSqFT Program

• iSqFT comprehensively and efficiently distributes packages to qualified bidders

• iSqFT will assist with distribution of all bid opportunities

• Program allows for same time release of general information

iSqFt Program

iSqFt Program

• Through iSqFT, qualified contractors and vendors can quickly access bid packages, specifications, drawings and documents

• Program allows administrator to track the following: Who’s viewed the document Who’s downloaded the document Who’s responded to the document

• Registration is easy and user friendly

For more information:

• www.rtd-fastracks.com/ep3_2

• www.facebook.com/RideRTD

• www.twitter.com/RideRTD

• www.denvertransitpartners.com

Thank You!

Questions?