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Eagle P3 Project National Organization of Minority Engineers

June 2, 2015

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Regional Transportation District• Created in 1969

• Eight-county service area

• Service area: 2,340 sq. miles

• 2.8 million population

• 15 elected Board members

• 1 percent sales tax

– .6 base system

– .4 FasTracks

• 2,653 employees

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RTD (cont.)• 1,011 buses

• 172 light rail vehicles

• 137 routes

• 77 park-n-Rides

• 9,509 bus stops

• 48 miles of light rail

• 46 light rail stations

• 105 million annual boardings

• Six operating facilities

• Two administrative facilities

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The RTD FasTracks Plan

• 122 miles of new light rail and commuter rail

• 18 miles of Bus Rapid Transit (BRT) service

• 31 new Park-n-Rides; more than 21,000 new parking spaces

• Enhanced Bus Network & Transit Hubs (FastConnects)

• Redevelopment of Denver Union Station

• 57 new rail and/or BRT stations

• Opportunities for Transit Oriented Communities

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FasTracks Status

• West Rail Line (W Line)—Open

• Denver Union Station—Open

• East/Gold/Northwest Rail Lines (EAGLE)—Nearly 80% complete; commuter rail cars are arriving

• I-225 Rail Line—Nearly 60% complete

• U.S. 36 BRT—Phase 1 of express lanes 95% complete, Phase 2—nearly 60%

• North Metro Rail Line—Track removal continues, design 90% complete, bridge construction to begin this summer

• Southeast Rail Extension—In process for federal grant; RFP evaluation underway 5

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Eagle P3 Project• Includes East Rail Line, Gold Line, Commuter Rail Maintenance

Facility and a portion of Northwest Rail Line to Westminster• Project Funding - $2.2 billion

– $1.03 billion in federal funds– $450 million in private equity– $500 million in local funds– $280 million Transportation Infrastructure Finance Innovation Act (TIFIA) loan

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East Rail Line• 23 miles electric

commuter rail• 7 stations• 37-minute travel time

to airport• Opens in 2016

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East Rail Line

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East Rail Line Testing Photos

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Gold Line• 11.2 miles electric

commuter rail• 7 stations• 25-minute travel time to

Wheat Ridge• Opens in 2016

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Gold Line

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Northwest Rail Line• 6.2 miles electric

commuter rail • Downtown to

Westminster at the 71st/Lowell Station

• 11-minute travel time to Westminster

• Opens in 2016

• From Westminster to end of line in Longmont (green line on map) is future construction; additional funding is still needed to build out that rail corridor

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Denver’s Union Station• 8 track CRT (plus expansion)

– East (DIA)– North Metro (I-25 North)– Northwest (Westminster)– Gold (Arvada/Golden)– Amtrak

• 3 track LRT – Existing Southwest & Southeast– West (Lakewood/Golden)

• 22 bay regional bus facility― 16 regional― 4 Downtown Circulator― 2 commercial bus

• 16th Street Mall expansion

• Downtown Circulator

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Denver International Airport• New 519-room

Westin Hotel• Transit Center and

plaza for easy access to train, bus and airport concourse

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Commuter Rail Vehicles• 85 ft. long, 10.5 ft.

wide, 12.6 ft. high• 70 tons (empty!)• Top speed: 79 m.p.h.• Seats: 91• Total capacity: 232; 2

wheel chair spaces per car

• 620 horsepower per vehicle

• 25,000 volts AC on an overhead electric system

Commuter rail cars are being delivered four at a time from Philadelphia and are undergoing static testing at the CRMF; 24

vehicles currently stored at facility

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ADA Community Input on Train Cars• More than 12,000 people, including members of the Americans

with Disabilities community, provided input on design enhancements that were incorporated into the actual train cars.

• Commuter rail cars include these elements suggested by the public:– Additional ceiling handholds in the entry area for increased passenger

comfort and safety– Handgrips between headrests to allow for easier access in and out of

the seats– Addition of two types of securement mechanisms to accommodate a

wider variety of bicycles– Reconfigured luggage storage space for increased capacity– Shortened windscreens near ADA seating areas to allow better

maneuverability for wheelchairs

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Maintenance Facility• Facility is used to maintain, clean and store vehicles that will serve

four commute rail lines• Approximately 240 operators, mechanics and other staff will be

housed in the 230,000-square-foot facility.• 80 rail vehicles can be serviced and stored at the facility• A Leadership in Energy and Environmental Design (LEED) Gold

Certification was awarded to the facility in May• Sustainable features include:

– Efficient mechanics and lights for a 32% energy savings– Water-efficient plumbing fixtures for a 39% reduction in water

usage– Radiant floor heating served by an 89% efficient water boiler– Specially designed windows that prevent thermal transfer

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Maintenance Facility

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Positive Train Control & Amtrak Crash"Based on what we know right now, we feel that had such a system been installed in this section of track,

this accident would not have occurred.“– National Transportation Safety Board member Robert Sumwalt

Emergency workers look through the remains of a derailed Amtrak train in Philadelphia, Pennsylvania May 13, 2015. Photo courtesy of Reuters.

• Train was going 100 m.p.h. in a 50 m.p.h speed zone; PTC would have automatically stopped or slowed down the train

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How Does PTC Work?

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What is a Quiet Zone?• Railroads use train horns to warn at-grade

crossing users of approaching trains– Horn use is required by a 2006 Federal law

• Communities can apply to silence train horns approaching crossings, creating a quiet zone– Quiet zone requirements in the same 2006 law– Engineering measures used to provide equal or greater

warning– Train crews can still use horns in emergencies and for

railroad purposes

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Why Add a Quiet Zone?• Quiet Zones reduce train horn noise

– Residents and businesses don’t hear horns on a regular basis

– Safety is maintained through replacement warning systems (medians, exit gates, etc.)

– Mitigates noise created by new or expanded train service

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Workforce Initiative Now (WIN)• RTD developed the WIN program to accommodate the need for

workforce development in the region

• Regional collaborative partnership– Leverages existing training providers to identify, assess, train and place

community members into careers on transportation and mixed-use development projects

– Grow the local workforce– Strengthen the community

• Moving forward, construction projects of partnering agencies will help create jobs that will continue to build our workforce and communities

• RTD awarded $486,465 to jumpstart the WIN program

• In June 2015, WIN will introduce its WIN Ambassadors program, working with local businesses to identify/support program participants

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DBE/SBE/WIN • DTP has hired a total of 50 project employees through the RTD Workforce

Initiative Now (WIN) program

• DBE/SBE commitments have exceeded goals (see chart)

• DTP has paid out $260 million to disadvantaged and small design and construction firms and has contracts for remaining work that will push construction payouts over the project goals

In Millions Design DBE

Design SBE

Construction DBE

Construction SBE

Goal $17.2 $3.2 $184.3 $43.7

Committed $19.9 $7.6 $220.6 $66.5

Paid $19.2 $7.4 $186.8 $46.7

Paid % of Goal

116% 237% 120% 152%

Disadvantaged and Small Business EnterprisesThrough April 2015

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Fun Facts

• 7,000,000 hours worked• 800 bridge girders set• 15 miles of storm drain and 29 miles of underdrain• 8 miles of waterline• 53 miles of ballasted track• 241 miles of underground cable• 86 miles of overhead power lines• 224,394 square-yards of concrete placed• 57 football fields worth of asphalt paved• 14 new commuter rail stations

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Eagle P3 Project• Includes East Rail Line, Gold Line, Commuter Rail Maintenance

Facility and a portion of Northwest Rail Line to Westminster• Project Funding - $2.2 billion

– $1.03 billion in federal funds– $450 million in private equity– $500 million in local funds– $280 million Transportation Infrastructure Finance Innovation Act (TIFIA) loan

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P3 Contracting Methodologies

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How We do Business and Why

Since the late 1700’s, US Congress has actively engaged in thousands of

projects to:

improve ports and navigation;

establish the nation’s bridge, road, rail infrastructure; and,

telegraph, telephone and power systems.

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Legislative Influence

• The Highway Act Funded Billions in 1956– Legislature Influenced DOT Policies– Reflected Standard of Care Philosophies at

the time– Essentially mandated design-bid-build

delivery method for government grant contracts

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Infrastructure Needs

• Infrastructure is reaching the end of useful life– Significant investment is required for repair and

restoration • ASCE Report Card• Limited Federal Funds • DOT is currently seeking approval of the

GROW AMERICA Act to appropriate funds – State of Good Repair– New Development– Workforce Development

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Innovation

• The financial needs exceed what DOT is able to offer local agencies

• Local agencies are forced to look for innovative funding mechanisms for project delivery

• P3s are one innovative way of doing so

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P3 Benefits for the Public Sector• P3s allow an agency to procure a facility and to have

a partner service it for a defined term and a known, predictable cost

• A P3 allows an agency to procure a project with limited resources or knowledge of the technical details – just the long-term need defined

• Leverages the innovation of those that build projects for a living

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Public Private Partnerships

• P3s can be structured in infinite methods• The structure of a P3 is dependent on the

particular policies, risk reduction tactics, needs and desires of a P3– Basic P3 Types:

• Design-build• Design-build-operate-maintain• Build-operate-transfer• Design-build-finance-operate-maintain• Build-own-operate

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What Projects are Good P3 Candidates?• It depends on who you ask…• Almost any infrastructure project can be

delivered through a P3 structure– Whether it should be is another question

• Examples overseas include:– Hospitals– Prisons– Libraries

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– Airports– Courthouses– Power Stations

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Why So Many P3 Structures?• It is important to structure the contract to suit

the needs – not define the needs to suit a contract structure

• Private finance is not always beneficial to a project – it is expensive

• Not every project needs or can allow operation

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Long-Term Risk - A Key Element P3s • Appropriate risk transfer• Good risk transfer is when the risks transferred

are manageable by those who retain the risk• Long-term risk transfer allows greater flexibility

in design and construction • Risk transfer may be promoted in different

ways:– Inclusion of at-risk private finance – Operations and/or maintenance at a fixed price

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P3 Contracting Methodologies

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P3 Owner Benefits: EAGLE P3

• Risk Transfer– More predictable construction costs– More predictable operation and

maintenance costs– Increased efficiencies in cost and delivery

through innovative construction and performance incentives

• Increased Financial Flexibility– Additional funding capacity to fund

additional capital projects

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RTDs EAGLE P3 Contract

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Eagle P3 Project• First transit P3 of this magnitude in the

U.S.• Design-Build-Finance-Operate-

Maintain• RTD retains ownership of assets• Availability payment model• 34-year contract (6 years – design/build;

28 years – operate/maintain)• Concessionaire agreement includes

incentives and penalties• Appropriate risk sharing • Alternate Technical Concepts (ATCs)• Successful bid came in $305 million

below budget/estimate

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Risk Sharing

RTD Risk Concessionaire Risk• Third party change/betterments request• RTD requested changes to project

requirements • ROW acquisition• Unforeseen archaeological risks• Errors/omissions in environmental reports• RTD permits• Discriminatory legislative changes• Ridership meeting forecast• Railroad force account work

•Failure to meet the specified requirements•Design/construction delays•Cost overruns•Additional land requirements•Compliance with environmental requirements•Geological conditions/obstructions•Safety and security•FRA approvals•Accuracy of reference data •Concessionaire permits•Concessionaire or subcontractor default •Final completion•Third party claims•Security during the construction period•Failure to meet operating performance standards•Operation and maintenance costs•Condition of system at the end of concession period•Identified utilities•Compliance with railroad agreements

Shared Risk•Non-discriminatory legislative change•Force majeure•Third party design reviews – disputes•Fare evasion

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Bonding Considerations

• Standard FTA statutes require 100% bonding for construction– Circular 4220.1F

• Insurance Companies - $250+ million is generally not commercially available

• Requirements for 100% bonding could impede large scale public works projects.

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Bonding

• FTA regional administrators can reduce bonding requirements if:– Local statutory bonding requirements require

less than 100% bonding– Demonstrate adequate security– You may want to request a waiver from the FTA

• Colorado Statutory Requirements for Bonding?– Colorado Statutes require 50% bonding for the

amount payable in any given year. – RTD was involved with statute reformation

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RTD’s Concessionaire

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EAGLE DB Financial Structure

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Concessionaire

LendersEquity

Operator/Maintainer

System Integrator

Constructor #2Constructor #1

Subcontractors Subcontractors

Owner

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EAGLE O&M Financial Structure

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Concessionaire

LendersEquity

Operator/Maintainer

Owner

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What does this all mean to you?• Designing, building and managing projects has not changed

except:– More flexibility given to contractor resulting in lower costs– Better integration between designer and builder resulting in

less issues for owners to manage• Challenging roles on both owner and contractor sides• Knowledge of contracts is beneficial as roles become more

integrated for both sides

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Questions?

For more information on RTD’s Eagle P3 Project:

www.rtd-fastracks.com/ep3_2