November 18, 2019

Information Session

The Canadian Council for Public-Private Partnerships

Valley Line West LRT Procurement Launch

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The ProjectAn overview of the Valley Line West LRT Project

Commercial Overview An overview the information related to interfaces, integration, utilities, and permitting

Procurement ProcessDetails regarding the procurement process

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AGENDA Q&AQuestion period and closing remarks

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The Project

Brad Smid - Director, Valley Line, LRT Delivery

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The ProjectValley Line West at a glance

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The ProjectUrban Low-Floor LRT

● Smaller-scale infrastructure● Maximize openness & reduce barriers● Accessibility● Context-sensitive designs● Investment in “green” infrastructure● Enhanced urban design, particularly in

high activity zones

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Who is on the Project Team?Owner Owner’s Engineer Team

Advisors

The City has retained B. Larkin & Associates Ltd. and Owen D. Pawson Law Corporation in the role of Fairness Monitor.

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The ProjectHow did we get to today?

March 2019 Launched a DBFV Procurement and shortlisted 3 proponents in May ‘19

July 2019 Temporarily paused after 2 of our 3 proponent withdrew

August 2019 Undertook a market sounding to inform next steps

Sep/Oct 2019 Conducted a comprehensive review process to assess alternatives, select a preferred approach, and gain approvals

November 2019 Cancelled the DBFV Procurement

January 2020 Launching a new procurement for the infrastructure as a design-build-finance. There will be a separate procurement process for LRVs at a later date.

November 18, 2019

Vehicles are now being procured separately. Non-exclusive supplier requirement has been removed.The City is transferring less risk.

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The ProjectWhat has changed?

The timeline has been updated. Key dates: ○ Procurement Launch: January 2020○ Commercial Close: December 2020

The City will release additional information about risk sharing and commercial terms prior to the RFQ launch. Increased focus on transparency with bidders

The honorarium has increased from $2 to $4 million and a graduated maximum break fee of $4 million is included.

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● Total project budget = $2.67B (includes land, LRVs, and owner’s costs)

● Contract value in the range of $2B

● Fully funded

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The ProjectContract value and funding

40%

40%

20%

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Commercial Overview

Terri Lucas, Commercial Manager

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Prior to December 6th, we will release a ’project briefing’ document to provide more detailed information on the procurement process and on the commercial aspects of the contract, including:

✓ Signaling and systems interface with Valley Line SE✓ Utilities and pipelines risk and status of early works✓ Unknown existing contamination✓ Relief events✓ Testing and commissioning integration with Valley Line SE, the future

Vehicle provider and the Future Operator

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Information - Project BriefWhat information will be available to support a pursuit decision?

November 18, 2019

RFQ Respondents will have access to a Data Room after their RFQ submission is validated (i.e., prior to any shortlisting)

The Data Room will include information on:

✓ Reference design ✓ Soil testing✓ Geotechnical testing✓ Known contamination✓ Technical data✓ Summary of complete and pending enabling works

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Information - Data RoomWhat information will be available to RFQ Respondents?

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IntegrationWhat are the interfaces and how will they be managed?

West

Southeast

West West

LRVs Operator

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OMFGerry Wright Operation & Maintenance Facility Expansion

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OMFParcel A vs. Parcel B & C

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● The City has and is undertaking significant utility relocation activities. The City will continue to coordinate the relocation of as many utilities as possible along the entire corridor prior to contract award.

● To date, approximately 140 utility relocation projects have been completed or are ongoing with another approximately 130 scheduled to occur in 2020.

● The only pipeline crossings are at the OMF site.

● Utility coordination responsibility and costs will be shared above a pre-set threshold (capped liability).

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Utilities & Pipelines

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● The Environmental Impact Screening Assessment has been completed and river valley bylaw approvals are in place

● Provincial ministerial consent for TUC crossing of the ring road are in progress

● Historical Resources clearance has been obtained

● Provincial Water Act approvals may be required (west-end wetlands)

● No federal approvals required (water crossings, railway, etc.)

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Permitting and Approvals

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● Payments made on a monthly basis, based on progress (80%)

● Payments start when 10% value in the ground is achieved

● Private financing of approximately $400M

● Payment Adjustments for Trees, Transit Impacts, Lane Closures, NPEs etc.,

● Independent Certification of progress

● Substantial completion payment at Construction Completion

● Performance demonstration period of 12 months

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PaymentProgress payments with holdback

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Procurement Process

Jillian Beaton, Vice President (EY)Stephen Prendiville, Senior Vice President (EY)

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Procurement TimelineJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Mid-Jul 2020

Jan 7, 2020

FinancialClose

RFQ Launch

RFQ Shortlist/RFP release

Collaborative process

Mid-Mar 2020

Penultimate Project Agreement

Pref. Proponent Announcement

Oct. 2020

Technical submission Mid-Aug 2020

Close process (8 weeks)

Financial submission

Oct. 2020

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Procurement Process

● Similar RFQ process as in March 2019 with shorter evaluation turnaround

● Collaborative RFP process:○ Commitment to the timetable and rapid response○ Focus on transparency - we will help you understand rather than let you

figure it out:■ University week■ Provision of info to help you price (reference design + contract

budget)■ Technical CCMs and discipline based info sharing sessions

○ Limited submission requirements focusing on high value / risk items

● Technical pass/fail followed by lowest price wins

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Honorarium and Break Fee

● The City will be increasing the RFP honorarium

Honorarium - $4M per proponent

● The City will be including a graduated break fee in the RFP

Break fee - $4Mper proponent

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Next Steps

“Project brief” document no later than December 6th.

The RFQ notice will be posted to Alberta Purchasing Connection (www.purchasingconnection.ca),

Access to RFQ document will be administered through SAP Ariba.

Set up an SAP Ariba account NOW: https://www.edmonton.ca/business_economy/selling_to_the_city/sap-ariba.aspx

Procurement Contact:

Kim Bachand Sr. Buyer, SCMP, Corporate Procurement and Supply ServiceEmail: vlwprocurement@edmonton.ca | Tel: 780-944-0411

November 18, 2019

Questions?

Thank you

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