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MarylandTransportationAuthorityDRAFT

MARYLAND TRANSPORTATION AUTHORITYCAPIT AL COMMITTEE MEETINGThursday, May 1, 2008 - 9:00 amMdTA Headquarters, Point Breeze - Members Conference Room

Authority Members: Walter Woodford, Michael Whitson (via teleconference), Mary BeyerHalsey, Rev. Dr. William CalhounMdTA Attendees: Ronald L. Freeland, Geoff Kolberg, Keith Duerling, Doug Hutcheson,Laura White, Sam Triandos, Dennis Simpson, David K. Greene, Alison

Williams, Joyce Diepold, Christina Thompson, David Chapin, SandiClifford, Rufus Meyers, Randy Brown, George FishPresenters: Geoff Kolberg, Dennis Simpson, Sam Triandos, Alison WilliamsMember Woodford called the meeting to order at 9: 1OamAGENDAIntroductory Comments Geoff Kolberg 2 minGeoff asked that everyone please turn off their cell phones.APPROVAL ITEMS1. April Summary InformationMember Woodford indicated several changes in the April summary which have been attachedand are noted in Red.Note thefollowing changes:Page 4 - Item 8 -first paragraph- "design guy" should be changed to; designer and that MDEcomments should be received and presented.Page 5- Item 11 - second paragraph - "water highway is priority over road highway" shouldbe changed to; water traffic has priority over the highway traffic according to the US CoastGuard.

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Page 6 -Item 14 -first paragraph - "and recommended by" should be changed to; andrecommended by Ron Freeland,Page 7- New Items - Item 1 -first paragraph - after "begin price negotiations with theContractors. " Should be changed to; begin price negotiations and price proposals with theContractors. After negotiations are concluded the MdT A will move forward .

Member Woodford moved to approve the summary as corrected above. Member Calhounseconded the motion. All members approved the summary as corrected.2. Contract No: HT 623-000-002Approval ofK &K Settlement Geoff Kolberg

Sandi Clifford15min

Geoff presented this contract and explained that negotiations have been completed with thecontractor and the claim has been reviewed by the Attorney General Contract Litigation Unit.There were also some design elements that were not done well by the contractor and the finalconclusion was a flawed design. An agreement of $325,000.00 was reached with the Contractor.Geoff also indicated that it was a shared responsibility that the contract was not finished on timeand the contractor was not solely to blame and informed the members that no other action wouldbe taken by the Contractor.Member Woodford thanked Mr. Kolberg for his presentation and asked what would happen tothe case now. Mr. Kolberg informed the Members that the Contractor would accept thesettlement and this file would be closed. Member Calhoun asked should preclusions be addedto a contract as some incidents may occur in the tunnels or the bridges and the Authorityshould not be penalized.for situations beyond its control The AG's office confirmed there arestipulations already written like that in all contracts. The AG's office noted in cases wheremultiple disruptions occur, a meeting is called to decide whether the Authority should bearsome responsibility. Sandi Clifford, MdTA AGconfirmed that this settlement is in the bestinterest of the Authority.Member Woodford askedfor additional questions or comments. None noted. Upon a motionby Member Calhoun and seconded by Member Whitson, members unanimously concurredand approved HT 623-000-002 settlement in the amount of $325,000.000. A summary of thedetails of this contract are attached hereto and incorporated herein.3. Contract No: MA 971-000-002Cleaning, painting, bearing, joint modifications

And other miscellaneous repairsFSK, WPL, KH, FT, BHT, NB, HT, HB Geoff Kolberg 10 minGeoff briefed the members on this contract and requested permission to submit the contract forapproval to the full Authority. Geoff indicated the contract was not only for specific repairs, butfor any additional unforeseen items that come up at any of the noted facilities. Geoff indicatedthat mobilization should be looked at in terms of how complicated the contract is. He noted thatthere is some degree of mobilization costs due to the nature of this contract being an "on call".He also indicated that the delay was because Orfanos Contractors filed a protest with MD Boardof Contract Appeals as they believed that the first and second lowest bidding contractors did notmeet the MBE requirements of having qualified subcontractors. Itwas noted that there are

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certain requirements to bid that type of work. The Board of Contract appeals ruled againstOrfanos, indicating their claim was not substantial.Member Woodford thanked Geofffor the presentation and asked if there were any questionsor comments. Member Woodford indicated that most times a bid is compared with low bidderson a specific contract, and that in reality, the analysis should go a step further and comparethe low bid to past bid items of a similar nature. He also said that there should be apredetermined acceptable amount for lowest bid, and that it should be included in thecontract. Member Woodford indicated that in the future he would like to see a detailedexplanation of the differences in the bid prices and the engineers estimate if the difference issignificant. Member Woodford recommended that mobilization costs be revisited in contracts.Upon a motion by Member Halsey and seconded by Member Calhoun, all membersunanimously agreed to grant permission to seek approval on Contract No: MA 971-000-002from the Full Authority at their next meeting scheduled on May 28,2008.

NEW ITEMSNone

UPDATE ITEMS1. Update on Tydings Joint replacementContract No. KH 2049-000-002 Geoff Kolberg 10 minGeoff presented this update to the Members. Members were informed that the project is closelytied with the Hatem Bridge Preservation Project. Geoff indicated that approval has beenreceived by Ron Freeland for a letter to be issued to the Contractor regarding termination of thecontract for convenience. The contractor has been issued a letter that stated that the contract isto be terminated upon the completion of the northbound side of the bridge. The Contractor wasover on the initial contract time, partly related to his own doing and partly because of problemsnot anticipated in the original design and repair for the bridge. It is noted that it is in the bestinterest of the Authority to terminate the current contract and re-advertise for the southboundwork. A new advertisement will allow for all of the observations made on the North side, andallow the new bidder to bid based on the constraints that have been included in the newdocuments. Members are informed that there could be additional costs involved in terminatingthe contract due to all possible claims.

Member Woodford asked members if they had any questions or comments. Member Woodfordasked if there had been discussions with the contractor regarding the termination of thecontract. It was indicated that the contractor is difficult to work with and has been paid up todate on work that they have done. Attorney General Clifford indicated that the contractor hasup to ayear to submit claims in relation to the termination. She also noted that if theContractor's claim is denied, the contractor can go to the MD Board of Contract Appeals. AGClifford also noted that the termination is not a black mark against the contractor and it willnot prevent the contractor from obtainingfuture State work. Member Woodford and othermembers concurred that Termination for Convenience is neededfor this contract.

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2. Update on Hatem Bridge Preservation ProjectContract No. HB 450-000-007R Doug Hutcheson 10 minDoug Hutcheson gave an update on the current project. He noted Teri Moss of Media and NafizAlqasem, Project Manager were in attendance as well. Doug noted the project will become ahigher profile and traffic impacts would be occurring upon the start of construction.Member Woodford asked the members if they have questions or comments. MemberWoodford asked if this project is similar in nature to the Bay Bridge project. Doug indicatedthat there will be substructure repairs to the Hatem under this contract. There is also apossibility of underwater repairs which will be included in a different contract becausetypically underwater repairs wouldn't fit under the expertise of the current contractor. Dougindicated that with approvaloffunding, the contracts will be done concurrently. MemberWoodford indicated that a lot of concerns were raised by the emergency agencies as to howthey would gain access to the bridge if necessary. Member Woodford also noted that all ofthose concerns have been addressed by the current restrictions. Doug indicated that the truckrestrictions will have a substantial impact and has been well publicized Member Calhounasked Doug what the main concern of the public was. Doug indicated that the major concernwas traffic backups. Member Beyer Halsey then noted that she had met with the mayor ofHavre De Grace. She indicated that they were very complimentary of the staff, policeforceand meetings that the Authority has conducted She indicated the reality is the repairs needto be made and people will need to adjust. She also noted that the average commuter over thebridge will not mind the delays as there are always lane closures on the bridge. MemberWoodford congratulated everyone who worked on the project.3. Mega Project Cost Increases

A. 1-95 Section 100 ETLB. Hatem Bridge Preservation ProjectC. Bay Bridge Preservation Project

Geoff KolbergRonald Freeland

Geoff indicated these are the first three Mega Projects the Authority has undertaken in severalyears. Ronald Freeland, Executive Secretary said there is much to learn and improve regardingbuilding Mega Projects. The purpose of this briefing is to discuss and disclose budgetary issuesregarding the Projects. The cost increases may have an impact on the overall budget and that atoll increase may be necessary. A briefing is scheduled in May, 2008 to Chairman Porcariregarding these Mega Projects. Geoff then introduced Kurt Krauss ofPB Americas, Inc. whohas been hired to provide analysis of these projects. Mr. Krauss indicated that the total increasein budget from the original 2008 CTP is 12%.In regards to the Hatem Bridge Project, Geoff indicated that some of the additional work inregards to the sub and superstructures was a result of the additional inspections that have beendone at the Tydings and Hatem Bridges. He also indicated that based on the findings of theunderwater inspection reports for the Hatem Bridge the support for the foundation is tremieconcrete, which has lower strength than structural concrete. Member Woodford asked whenmore details would be available and Geoff indicated that they would repeat underwaterinspections and obtain more data to determine ifthere is a strength issue. Geoff also noted thatthis is a priority follow up and should be done by the end of this year.

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In regards to the Bay Bridge Preservation Project, Member Woodford asks if Pin 632 is for thepainting of the entire bridge. Geoff indicated that the painting is for only the truss elements thatare affected by the redecking. Geoff also indicated that there are some risks that are associatedwith the project such as an issue with the through truss that could cause a significant extra workrequest/ negotiation. He noted that while the contractor surveyed and indicated the need foradditional work, our crews surveyed and did not find what the contractor indicated. Geoff notedthat the contractor will survey again and that our crews will shadow them. Geoff noted that if theresurvey turns out that the contractor is 100% correct, the $40,000,000.00 will serve to covercosts.Geoff also indicated that approximately 18-24 months ago we began to take corrective actions inthe way we monitor our projects. He noted the change will help the department improve the waywe do business for the better. He discussed the use of Primavera and obtaining software thatwould be network wide so that all of the data could be viewed in real time. He also noted thatwe are updating the 2006 peer review practices and are implementing the "best practices".Member Woodford asked Members if they have any questions or comments. MemberWoodford suggested that when new documents and graphs are submitted, we take the time togo over them so that everyone understands them. He said that this would be a good ideaforAuthority material as well ..Member Woodford indicated that these Mega Projects are a big step forward ant he changesare something that was needed He noted the Mega Projects are new to the Authority andSHA. He said providing this review gave him and the Members afeeling of comfort andassurance that we are headed in the right direction. Member Woodford congratulated andrecognized everyone's effort in providing this presentation.

Member Woodford calledfor a short break. He called the meeting back to order at 11:32am

4. Financial implications of Draft CTP Sam TriandosGeoff KolbergAllison Williams 1hr

Sam indicated that this presentation should serve as a preview to coming attractions, as nextmonth the official Draft CTP will be presented for approval. She noted that the cash flows maychange because the numbers on the presented charts are preliminary. She noted that after theJune meeting, an approved draft will be submitted to the Authority and in the fall the final CTPwill be submitted to the legislature. Sam explained that the reserve level shown on the charts thatappeared in the binders is a bank of extra money that can be used in the event of emergencyprojects. Sam indicated that there is a recommended level of what we would like to build ourreserve up to which is based upon financial constraints. She noted that the bottom line is arecommendation of additional money to be added if it is financially feasible. Sam requested thata decision to be made based on our financial affordability, Member Whitson asked how Sam gotto the numbers on the reserve sheet. Sam indicated that they have a reserve amount of about$180,000,000.00 and they are trying to replenish what they have taken out over the past fewyears. The money in the bottom line is allocation to replenish the reserve levels. Member BeyerHalsey asked if the reserve levels affect the bond ratings. Mr. Freeland indicated that it has avery indirect impact in the large picture.

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Dennis began by indicating that the first three (3) pages of significant changes were all costincreases. He has bolded the Mega Projects. He also noted that the planning for the replacementof the Nice Bridge is underway but ultimately the replacement has been pushed aside for now.The 10 million will be for repairs to the bridge until it can be replaced.Allison indicated that a traffic analysis was being completed to indicate the changes in thepatterns. Member Woodford asked if we would have a handle on the revenue expectations afterthe financial planning meeting on May 8th. Mr. Freeland indicated that we will and that we aremanaging this very closely. He also noted that there has been a significant decrease in the trafficvolume of commercial vehicles and that this puts a significant decrease in the revenue. He notedthat there will be difficult decisions to be made in the coming weeks. Member Woodford asked ifwe would be reviewing the reductions at the next Capital Committee Meeting. Mr. Freelandindicated that it would be a part of the final Draft CTP and the next Capital Committee Meetingscheduled for June 5th would be an all day meeting.Member Woodford asked if there are any questions or comments. Member Woodfordstated this presentation provided a beginning for the Members to understand the MegaProjects and their costs. Member Woodford requested the team provide a more in-depthpresentation at a later date/time. Member Woodford congratulated the team on providingthis presentation.INFORMATION ITEMSl. 1-95 ETL Project Status Report - Dave Labella2. ETL ROW Purchases Report - Gloria Dolan

Woodford indicates that he believe that it indicates things are going well. He wants asummary report on the number or properties to be explored and the situation in regards to theROW cost.3. ICC Status Update - Bob MichaelWoodford asks if anyone has any questions in regards to the status reports. No questions areposed.4. Bay Bridge Preservation Status Report - Geoff Kolberg

Member Woodford asked if there were any final questions. Absent any questions, MemberWoodford reminded the Committee and attendees that the June meeting will be an all daymeeting and adjourned the meeting at 12:03pm.

: : . , . ,~

COMING A TTR4.CTIONS

CTP Draft Approval - 4Hour MeetingUS Environmental Protection Agency Self AuditAgreementFuture Request for Increase of the DelegatedAuthorityICCIETL Gantry locations versus TollingRevisions to Resolution 07-06

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OfficeDCPOAG

June 5,2008 OEC OECOAG

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July 3,2008 Long Range Capital Needsfor Bay BridgeCanton Viaduct Rehabilitation Project

York Building Products Conveyor over 1-95LRCNS JFKIH atem Bridge

OfficesDSD - Division of Strategic DevelopmentDCP- Division of Capital PlanningOEC - Offices of Engineering and ConstructionOAG - Office of the Attorney General

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OfficeDCPOECDCPDCP