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Route 895 PPTA (2002)

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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

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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

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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

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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

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Overview

• Public-Private Transportation Act – Law and Policy

– Practical Issues and Lessons Learned

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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

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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

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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

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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

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Legislative Perspective 2004

• Clarifications to FOIA

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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

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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

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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

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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

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Route 895 PPTA (2002)

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VDOT’s PPTA Program

Additional Information

VDOT Innovative Project Delivery Division Website:

http://www.virginiadot.org/business/ppta-default.asp

Thomas.Pelnik@vdot.virginia.gov

Dusty.Holcombe@vdot.virginia.gov

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