Infra Insight Blog

Posted by guest blogger Billy Moore.

Billy Moore of Vianovo works with the Transportation Transformation Group, a consortia of public and private entities that looks at ways of improving the funding and financing of the nation’s transportation infrastructure, which is co-chaired by Nossaman Partner Geoffrey Yarema.

The House and Senate conferees have agreed on a compromise $305 billion five-year surface transportation authorization: the Fixing America's Surface Transportation (FAST) Act. The bill should be headed to the White House in the next few days. It would ...

The Regents of the University of California (the Regents) approved the commercial terms of the P3 agreement for the UC Merced 2020 Project (the Project) on Thursday, November 19, 2015 at the Regents meeting held in San Francisco, contingent on a not to exceed limit on financial proposals.

The Regents’ approval authorizes the university to move forward with the Request for Proposals (RFP) phase of the Project with the three proposing teams that were shortlisted in January.  The equity members for these teams are:

• E3 2020:  Balfour Beatty Investments, Inc., Star America E3 2020 ...

Los Angeles World Airports (LAWA) staff today briefed its Board of Airport Commissioners on its plans to deliver and finance the estimated $5 billion Landside Access Modernization Program (LAMP) at Los Angeles International Airport (LAX).  LAMP includes several elements, including an elevated 2.25-mile automated people mover (APM), a consolidated rent-a-car facility (ConRAC), parking garages, pedestrian bridges to airport terminals and roadway improvements.  The APM will have several stops between LAX’s Central Terminal Area and the new ConRAC, including a stop at a ...

Some recent events, taken together, provide evidence that policy-makers in the United States are growing more comfortable with public-private partnerships as a vehicle for project delivery, in particular with respect to the nation’s decaying infrastructure and bridging the resultant financing challenges.

Following President Obama’s Build America Investment Initiative early this summer, the U.S. Department of Transportation established the Build America Transportation Investment Center (or BATIC) that would, among other things, enable non-federal but still ...

A crucial highway improvement for the growing Phoenix region reached an important milestone November 2 when the Arizona Department of Transportation received proposals from all three short-listed teams vying to develop the Loop 202 South Mountain Freeway Project.  The three multidiscipline teams are identified in our March 2015 blog.

This $1.9 billion megaproject includes the design, construction and 30-year maintenance of the last section of the Loop 202 Freeway – a route which will stretch 22 miles from the Maricopa Freeway segment of I-10 to the Papago Freeway segment of I-10 ...

In a number of recent conversations regarding using Public-Private Partnerships (P3s) to deliver large infrastructure projects under an availability payment structure, I’ve heard a lot of angst by public owners over the cost of private finance and that AP’s may be viewed as debt by the rating agencies.  It’s true the rating agencies have indicated that AP’s can be considered debt for purposes of assessing an agency’s debt capacity but that’s only one aspect of the delivery method to consider.

S&P has issued several reports/FAQs regarding P3’s in the last couple of ...

Last month, the United States Department of Transportation (USDOT) formally unveiled its Build America Transportation Investment Center (BATIC). BATIC’s mission is to:

• Expand the use of federal transportation credit programs;

• Innovate new approaches to project development processes and funding challenges and institutionalize technology and best practice across credit programs and modal teams; and

• Deliver streamlined technical and financial assistance to accelerate project delivery

BATIC is intended to serve as a single point of contact for project sponsors to obtain ...

California has long been a transportation innovator, whether battery powered cars, high speed rail or the home of the first managed lanes facility in the United States—the SR91 Express Lanes.  The SR91 Express Lanes opened in 1995; the 10 mile project with two managed lanes in each direction connecting Orange County and Riverside County was originally developed as a P3 toll concession and acquired in 2003 by the Orange County Transportation Authority (and also featured the first fully electronic toll collection system in the world).  Additional managed lanes projects have been ...

This is the second of two posts about the recent Infrastructure Ontario 2015 Track Record Report.

As mentioned in the earlier post about Infrastructure Ontario’s 2015 Track Record Report, 98% of the infrastructure projects procured through the agency’s Alternative Financing and Procurement (AFP) program have been delivered on budget.

The report considers a project on budget if its final project cost (awarded contract amount plus utilized post contract contingency) was less than or equal to the awarded contract amount plus the budgeted post contract contingency set at ...

This is the first of two posts about the recent Infrastructure Ontario 2015 Track Record Report.

As the public-private partnership (P3) market in the United States continues to grow, U.S. agencies that are considering the use of P3s to deliver their infrastructure projects have often expressed a desire for more research related to this innovative delivery model.  Last week, Infrastructure Ontario, the agency tasked with delivering the Province of Ontario’s largest and most complex infrastructure projects, released its 2015 Track Record Report.

For the past three years ...

On September 28, 2015, the Texas Department of Transportation and Flatiron/Dragados, LLC  (Developer) entered into a comprehensive development agreement (Agreement) for the Harbor Bridge Replacement Project in Corpus Christi (the Project).  The new Corpus Christi Harbor Bridge will allow larger ships to deliver their cargo to the Port of Corpus Christi, serving as an economic catalyst for the region and the State of Texas.  The current bridge was built in the late 1950s. Plans for a replacement bridge to improve safety have been in the works for more than a decade.  The proposed $800 ...

An Amtrak Blue Ribbon Panel formed in 2014 that included Nossaman partner Linda Morgan has released a report recommending how to fix the congestion plaguing Chicago’s rail network. As the hub of the U.S. rail network, the gridlock in Chicago has ripple effects throughout the nation.

As part of its year-long investigation of the causes and potential solutions to Chicago’s gridlock, the panel met with nearly 100 stakeholders and rail experts. The panel’s report resulting from these efforts includes the following recommendations:

• Ensure real-time coordination among ...

Expected to dramatically improve mobility in one of the more highly congested regions in Southern California, the Metro Gold Line Foothill Extension Construction Authority (Authority) completed the Foothill Gold Line from Pasadena to Azusa on September 23, 2015.  After achieving this milestone, the Authority turned the project over to the Los Angeles County Metropolitan Transportation Authority (Metro) to complete testing and training and then operate the project.  Metro expects to announce a start date for passenger service within 30 days of turnover, and anticipates ...

Federal Transit Administration (FTA) grants fund billions of transit-related projects throughout the United States.  In an effort to improve the project delivery process for those projects, the FTA on September 3, 2015, announced the establishment of the Expedited Public Transportation Improvement Initiative (XPEDITE) in the Federal Register.  The FTA is soliciting participation in an online dialogue regarding XPEDITE, the goals of which are to facilitate the transit industry's implementation of the following:

• Proven technologies to improve service delivery and ...

Los Angeles County Metropolitan Transportation Authority (LA Metro) is pursuing new public-private partnership (P3) legislation, Assembly bill ABX 1-12 (Bill 12).  Bill 12, introduced and read for the first time on August 26, 2015 at the California extraordinary session on transportation, would give LA Metro greater flexibility and autonomy to procure and finance transportation infrastructure in the LA Metro region.

LA Metro currently has authority under Section 143 of the Streets & Highway Code (Section 143) to deliver transportation projects using a P3 model with the use of ...

The first freeway lighting system public-private-partnership (P3) in the U.S. closed on August 24, 2015, with the Michigan Department of Transportation (MDOT) and Freeway Lighting Partners, LLC, (FLP) reaching simultaneous commercial and financial close.  The FLP team consists of Star America Infrastructure and Aldridge Electric, Inc. as equity owners with Aldridge Electric, Inc. also acting as the design-build contractor, Parsons Brinkerhoff, Inc. as the designer, and Cofely Services, Inc. acting as operations and maintenance provider.  The innovative street lighting ...

Three months after the May 15, 2015 issuance of a Request for Qualifications (RFQ), the SH 249 Extension Project is another step closer to development.  The RFQ solicited qualifications from teams interested in entering into a design-build contract and a comprehensive maintenance agreement for the Project.  Following a two-month process, which included questions and answers from interested industry participants and an industry workshop, TxDOT received Qualification Statements from seven teams on July 17, 2015. Over the next month, the Qualification Statements were evaluated ...

At the dedication celebration for the Gold Line’s Arcadia Station last weekend, Phil Washington, the CEO of the Los Angeles County Metropolitan Transportation Authority, said he expects passenger service on the Gold Line to begin next spring. The exact date for start of service will be announced after the system is turned over to Metro for testing. Arcadia Mayor Gary Kovacic, who emceed the event, made a point of telling Mr. Washington (who recently moved to Los Angeles from Denver) that spring begins much earlier in Arcadia than in Denver, perhaps as early as December or January.

The ...

Hopes that the Congress would pass S. 1647, the Developing a Reliable and Innovative Vision for the Economy Act (DRIVE Act),  a six-year, $478 billion transportation funding reauthorization bill before the August recess have, like so many times before, come to naught.  Instead we get a three month extension of the current transportation funding and authorization law, MAP-21, that will provide $8 billion to allow current project funding and implementation to continue.

The three-month extension, H.R. 3236, the Surface Transportation and Veterans Health Care Choice Improvement ...

The long-awaited Presidio Parkway opened for the first time to Bay Area motorists on July 12th, ahead of schedule and to local and national praises.

The $1.1 billion Presidio Parkway replaces Doyle Drive – an outdated and seismically deficient viaduct – as San Francisco’s main connection to the Golden Gate Bridge.  The new 1.6-mile, six-lane roadway tucks elegantly into the natural contours of the historic Presidio of San Francisco, and enhances transit, pedestrian and bicycle access within the national park area.  The Presidio Parkway has received numerous honors ...

Drivers in the U.S. are seeing the benefits of toll roads, according to a new report published by the International Bridge, Tunnel and Turnpike Association (IBTTA).   The 2015 Report on Tolling in the United States (June 30, 2015), indicates that U.S. drivers took 5.7 billion trips last year on toll roads, reflecting a 14% increase over the last four years.  The construction of new toll roads is also on the rise and thus may be contributing to the steady increase in toll traffic.

According to the Federal Highway Administration, the number of toll road miles in the U.S. increased from about ...

Experience with innovative procurements indicates that holding one-on-one meetings with proposers is beneficial whenever selection is based on a best value evaluation of competitive proposals—whether the procurement contemplates selection based on initial proposals or whether selection will be made following discussions and receipt of revised proposals.  Some agencies are unaccustomed to holding confidential meetings with proposers and we are often asked for information about best practices for these meetings.  This blog discusses the benefits of such meetings and ...

On June 1, 2015, a California Court of Appeal held that in order for a lease-leaseback arrangement to be enforceable, the lease must be genuine, containing both a financing component and a lease term that extends beyond the construction period (Davis v. Fresno Unified School District, et al. (2015) __CalRptr.3d__ [2015 WL 3454720].)

Background

In 2012, the Fresno Unified School District (District) entered into a negotiated agreement utilizing the lease-leaseback project delivery method for the construction of improvements at a District middle school.  The District leased the ...

Identifying and allocating the risks associated with right-of-way acquisition in design-build projects was a hot topic for the standing-room only crowd at last week’s annual Education Conference of the International Right of Way Association in San Diego, California.  Nossaman litigation/eminent domain partner Artin Shaverdian hosted a panel on Design-Build Projects and Right of Way Acquisition: Benefits, Challenges and Pitfalls. Questions from the audience during the interactive session focused on the various approaches that agencies have taken to allocate ...

Houston residents enjoyed free rides on Saturday, May 23, 2015 as part of the Metropolitan Transit Authority of Harris County (METRO’s) opening of the Green (East End) and Purple (Southeast) light rail lines.  The two new lines are part of an approximately $1.22 Billion expansion of METRO’s existing light rail system which also includes a 5.3 mile extension to the Red (North) line that began service in December 2013.  With the addition of the two new lines, Houston’s light rail transit system increases from 12.5 miles to 23 miles.

Since the opening of the Red Line extension, from the ...

North Carolina, acting through the North Carolina Department of Transportation (NCDOT), reached a major milestone on May 20, 2015 when financial close was achieved on the I-77 Express Lanes Project – the first highway public-private partnership in the state.  The project, with a design and construction cost estimated at approximately $591 million, will add 26 miles of tolled, express lanes along the existing I-77 corridor in the Charlotte region.  The financing package includes $100 million of private activity bonds and a $189 million TIFIA loan from the U.S. Department of ...

On May 15, 2015, the Texas Department of Transportation (TxDOT) and Lane-Abrams Joint Venture  (DB Contractor) entered into a design-build contract (DBA) and associated comprehensive maintenance agreement (COMA) for the approximately $300 million SH 360 Project (the Project).

Pursuant to the DBA, DB Contractor will design and construct and potentially maintain approximately 9.7 miles of improvements to SH 360 consisting of two toll lanes in each direction from approximately Green Oaks Blvd/Kingswood Blvd to US 287, in addition to frontage road and intersection improvements.  ...

To help promote Infrastructure Week—which brings together thousands of stakeholders from around the country to highlight the critical importance of investing in and modernizing America’s infrastructure systems, and the essential role infrastructure plays in our economy—Nossaman is reposting this article on California’s infrastructure needs. To learn more about Infrastructure Week, which runs May 11-May 15, please visit www.infrastructureweek.org or follow Infrastructure Week on Twitter @RebuildRenew.

California is the most populous state in the Country; ...

As part of Infrastructure Week, 2015, several interested organizations banded together for an afternoon meeting on Monday, May 11, that focused on public-private partnerships as a way out of the infrastructure crunch.  Projects, big and small, stand to benefit from engaging the private sector to solve an array of infrastructure challenges.  The event was hosted by the Pew Charitable Trusts, and moderated by Cleveland City Councilman Matt Zone, who is also the 2^nd Vice President of National League of Cities (NLC).  Art Smith, President of the National Council for Public-Private ...

The Regents of the University of California, on behalf of the University of California, Merced, issued a draft Request for Proposals (RFP) for the UC Merced 2020 Project on May 7, 2015.  The draft RFP was provided to the three proposers that were shortlisted in January 2015:

• E3 2020:  Balfour Beatty Investments, Inc.

• EP2 Developers:  Edgemoor Infrastructure & Real Estate LLC, Plenary Group (Canada) Ltd., and Education Realty Trust, Inc.

• Merced Campus Collaborative:Lend Lease (US) Investments, Inc., Macquarie Capital Group Ltd., and ACC OP Development LLC

According to ...

The Texas Transportation Commission has conditionally awarded a comprehensive development agreement to Flatiron/Dragados for the longest cable stayed bridge in the United States.  The new Corpus Christi Harbor Bridge will allow larger ships to deliver their cargo to the Port of Corpus Christi, serving as an economic catalyst for the region and the State of Texas.

The conditional award, which took place at the April 30 meeting of the Texas Transportation Commission, authorizes TxDOT and Flatiron/Dragados to enter final negotiations for the design, construction, finance and ...

On March 31, 2015, Congressman John K. Delaney (D-MD) spoke at the Washington Briefing of the International Bridge, Tunnel and Turnpike Association (IBBTA) in Washington, DC. At the event, Congressman Delaney provided an update on a bipartisan bill he has sponsored known as The Infrastructure 2.0 Act to fund the federal highway program. The bill uses international corporate tax reform to provide a six-year funding source for the Highway Trust Fund. Specifically, the bill establishes a mandatory, one-time 8.75% tax on existing overseas profits accumulated by U.S. multi-national ...

Federal transportation officials are contemplating new contract rules that would make it easier for states and cities to hire local residents to work on transportation projects.  Federal rules currently prohibit the Federal Highway Administration (FHWA) and the Federal Transit Administration (FTA) from allowing contract provisions that do not directly relate to the bidder's performance of work.  Thus, local hiring provisions have not been allowed in procurements for federally funded projects.  This month, however, U.S. Transportation Secretary, Anthony Foxx, announced a ...

"Best value" procurements are sometimes criticized as involving a "black box" decision-making process.  A recent report issued by the National Cooperative Highway Research Program (NCHRP) discusses practices to increase transparency in such procurements.  The report is NCHRP’s latest installment of its Synthesis of Highway Practice, issued on March 5, 2015.  A resource for public agencies, this synthesis addresses best practices for developing transparent best value selection procedures in public procurements.  These concepts are of particular interest to public and ...

The Arizona Department of Transportation (ADOT) announced today it has shortlisted three developer teams vying for the $1.9 billion design-build-maintain contract for the Loop 202 South Mountain Freeway Project.  The three multidiscipline teams, in alphabetical order, are:

• Connect 202 Partners

  •  Fluor Enterprises Inc.
  • Granite Construction Co.
  • Ames Construction Inc.
  • Parsons Brinckerhoff Inc.
  • DBi Services LLC
  • AZTEC Engineering Group, Inc.
  • Stanley Consultants
  • Kleinfelder Group, Inc.
  • AMEC Environmental & Infrasstructure, Inc.
  • The Transtec Group
  • Gunn Communications, Inc.

The Second Annual Conference of the Mileage-Based User Fee Alliance (MBUFA) was held in Washington, DC on February 24, 2015.  The MBUFA is a non-profit organization that promotes awareness and education about mileage-based user fees as an alternative for the future funding of improvements to the U.S. transportation system.  Attendees included policy makers, public sector representatives and private sector stakeholders weighing in on the topic Sustainable Transportation Funding, Road User Fees: Is There Another Option for Achieving Financial Sustainability?   The concept of a ...

Although historically the investment profile for pension funds has focused on established brownfields assets, the Canadian Pension Plan Investment Board (CPPIB) has recently invested $525 million AUD into the greenfields NorthConnex road tunnel in Sydney, Australia in partnership with experienced road operator Transurban and the Queensland Investment Corporation (QIC). CPPIB’s investment comes hot on the heels of the Dallas Police and Fire Pension System’s (DPFPS) 2010 equity investment in Texas’ LBJ  Freeway (I‐635) managed lanes toll-road, among other ...

Florida Governor Rick Scott broke ground yesterday on the I-4 Ultimate Project, which will rebuild I-4 in metro-Orlando. The Project involves the reconstruction of 21 miles of I-4 from west of Kirkman Road in Orange County to east of State Road 434 in Seminole County and promises to bring much needed relief to one of the most congested highways in the state. Along with developing a signature corridor with aesthetic enhancements and landscaping to convey the Florida Experience, the Project will provide a choice to motorists by adding two variable priced toll express lanes in each ...

The House Transportation Committee has approved the Passenger Rail Reform and Investment Act, a bill that would reauthorize Amtrak and other rail programs.  The bill is substantially the same as the 2014 legislation and is described by the Committee as bipartisan legislation that improves the infrastructure, reduces costs, creates greater accountability and transparency, leverages private sector resources, and accelerates project delivery for Amtrak and the Nation’s passenger rail transportation system.  The 2014 bill did not receive a vote in the full House and the Senate ...

Trainsets

On January 30, the California High-Speed Rail Authority (Authority) issued a draft Request For Proposals (RFP) for Tier III trainsets and invited industry to submit comments.

The Authority is seeking a trainset manufacturer to design, build and maintain Tier III trainsets.  The trainsets will have a minimum of 450 seats and be able to carry passengers from Los Angeles to San Francisco in less than three hours.

Firms that have submitted expressions of interest accepted by the Authority will be able to comment on the draft RFP.  All comments are due by Tuesday, February 24, 2015 ...

According to a recent internal study conducted by the Florida Department of Transportation (FDOT), the design-build project delivery method provides significant cost and time savings as compared to the traditional design-bid-build delivery method. The study examined FDOT contracts from 2008 to 2012 that were valued between $30 million and $70 million, a group of contracts that included 11 design-build contracts and 47 design-bid-build contracts. Looking in particular at a $55 million, 814‑day design-build project, the study found that the use of design-build results in ...

Earlier today, President Barack Obama released his approximately $4 trillion budget proposal for Fiscal Year 2016, which begins on October 1 of this year.  While the President’s proposed budget covers everything from defense to diseases, he has included a particularly ambitious proposal for transportation.

The President’s proposed budget provides $94.7 billion in funding for the Department of Transportation (US DOT), covering infrastructure development and safety enhancement in highways and bridges, transit, railroads, and aviation.  The President is proposing a ...

This Friday, January 23, 2015, California will take the first step in investigating a road user charge pilot program as an alternative to the gas tax when the CTC convenes the Road User Charge Advisory Committee meeting.  The committee was created last year by SB 1077 which authorizes a pilot study.  California joins a handful of other states that are exploring road user charge pilot programs, including Oregon, Washington, and Minnesota.

The 15 member committee is made up of representatives of local and regional agencies, privacy advocates, auto groups and state officials.  According ...

The American Road and Transportation Builders Association (ARTBA) has announced that it will hold its annual Public-Private Partnerships in Transportation Conference on July 15-17, 2015 at the Hyatt Regency Washington in Washington, DC.  This year’s conference, entitled P3s in Transition: The Next Chapter, will again feature a P3 owners-only meeting and interactive sessions, including the continuation of the Great Debate series exploring whether unsolicited proposals add value to P3s.

ARTBA’s annual conference is the nation’s premier and longest-standing event for ...

Javier Rodriguez, P.E., Executive Director of the Miami-Dade Expressway Authority (MDX), is ready to begin his role as president of the International Bridge, Tunnel and Turnpike Association (IBTTA) for 2015.  Rodriguez was elected during IBTTA’s 82nd Annual Meeting and Exhibition in Austin, which brought together nearly 1,000 transportation leaders from more than 20 countries to discuss innovative practices, policies, technologies, funding options and business models transforming mobility for drivers worldwide.

As the executive director of MDX, Rodriguez led the ...

The Regents of the University of California (the Regents), on behalf of the University of California, Merced (UC Merced), announced today that three teams have been shortlisted to submit detailed proposals for the Request for Proposals (RFP) phase of the UC Merced 2020 project.

The three shortlisted teams and their equity members are (in alphabetical order):

• E3 2020:  Balfour Beatty Investments, Inc.

• EP2 Developers:  Edgemoor Infrastructure & Real Estate LLC, Plenary Group (Canada) Ltd., and Education Realty Trust, Inc.

• Merced Campus Collaborative:  Lend Lease (US) Investments ...

At the TRB P3 Subcommittee meeting on January 12, 2015, among the topics discussed is the growth in the U.S. P3 market of the availability payment approach and less use of toll concessions.  Availability payment contracts have the advantage of lowering financing costs, incentivizing high quality performance and keeping toll setting authority with the public owner.  However, there may be a limit to the amount of annual payments a public agency is willing to commit itself to make.  Toll concessions shift demand and revenue risk to the private sector and interest particularly among ...

On January 6, 2015, the California High-Speed Rail Authority (the Authority) achieved a significant milestone — the groundbreaking of the only high-speed rail system in the United States. Gathering at the site of the future train station in downtown Fresno, federal, state and local government officials, as well as hundreds of student, community, transportation, business and labor leaders celebrated the start of construction for the largest infrastructure project in the United States.

California Governor Edmund G. Brown Jr. commented on the importance of the high-speed ...

Guest post by Mark Romoff, President and CEO, The Canadian Council for Public-Private Partnerships

On December 9, 2014, Ontario’s Auditor General released her 2014 Annual Report, sharply criticizing Ontario’s Alternative Financing and Procurement (AFP or P3) program and suggesting a return to using the traditional method of delivering public infrastructure to achieve savings in taxpayer money.  The report expresses skepticism about the cost-saving benefits of the P3 delivery model, directly contradicting what is widely viewed by P3 players and the Canadian public ...

AASHTO is now accepting applications for the position of Director, AASHTO Project Finance Institute. The application deadline is Friday, January 2, 2015, and the full position description can be found in this AASHTO Journal entry.