Why a Public-Private Partnership might be used to deliver passenger rail
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1 INTERCITY PASSENGER RAIL Opportunities & Challenges for Colorado Why a Public-Private Partnership might be used to deliver passenger rail September 16, 2010
2 Agenda FasTracks Eagle Project Applicability to other passenger rail Page 2
3 RTD s FasTracks Plan 122 miles of new light rail and commuter rail 18 miles of Bus Rapid Transit (BRT) 31 new park-n-rides with over 21,000 new spaces Enhanced Bus Network & Transit Hubs (FastConnects) Redevelopment of Denver Union Station Page 3
4 Eagle P3 Project Delivery method is Design/ Build/ Finance/ Operate/ Maintain (DBFOM) Creates the core of a new commuter rail system Page 4
5 Design/Build Scope of Work East Corridor Gold Line Northwest Rail Electrified Section Maintenance facility and control center Electric Multiple Unit vehicles (EMUs) Electrical systems (overhead contact system, signals, communications) for Denver Union Station commuter rail tracks Page 5
6 East Corridor Colorado Boulevard Station Picture courtesy of Denver Transit Partners 40 th and Airport Station Page 6 Picture courtesy of Denver Transit Partners
7 Gold Line Pecos Station Picture courtesy of Denver Transit Partners Olde Towne Station Page 7 Picture courtesy of Denver Transit Partners
8 Rolling Stock Picture courtesy of Denver Transit Partners Picture courtesy of Denver Transit Partners Page 8
9 O&M Scope of Work Operation and maintenance of all design/ build elements Security of passengers, staff and assets will be a joint effort under RTD s direction Long-term capital maintenance and replacement of all assets Page 9 Picture courtesy of Denver Transit Partners
10 Contract Terms Concession period will be ~34 years Design/Build period plus 29 years O&M RTD retains all assets at all times All revenues generated by the project remain with RTD Fares, advertising, naming rights, commercial uses, licenses etc. Fare policy and structure and operating plan will be established by the RTD Board Fare enforcement will be a joint effort Page 10
11 DTP DTP - Alternative Payment Structure RTD will make: Design/Build Construction Payments Annually capped amounts payable based on earned value Each month all work completed will be assessed O&M Service Availability Payments Partially indexed over concession 350 term Adjustable based on performance 300 P Page 11 -
12 How is the Eagle Project applicable to other passenger rail in Colorado? Page 12 The Eagle Project had five key objectives Quality Deliver a high-quality, sustainable built project and high-quality ridership experience Affordability Build and operate within RTD s long-term financial capacity and maximize federal support Competition Demonstrate best value through open process Control Maintain oversight without being overly prescriptive and provide opportunities for small/disadvantaged businesses Schedule Deliver project within FasTracks schedule
13 Other passenger rail will have similar objectives Quality A passenger rail project must be built to a quality standard that will attract riders Facilities suitable for the journey Security built in and apparent The ridership experience must be such that riders enjoy the experience and want to come back Comfort standards suitable for the trips made Facilities to maximize comfort and beneficial usage Page 13
14 Similar objectives (cont d) Page 14 Affordability The project must be capable of being sustained financially over the long-term A stable revenue stream must be available to allow a Public-Private Partnership (P3) to be bankable Integration with zoning and other public policies e.g. parking, may enhance available revenues All sources of funding should be explored Federal grant and loan programs Local revenue streams User revenues Passengers Advertisers Other commercial uses
15 Similar objectives (cont d) Page 15 Competition Balance desire for more teams with cost of competing Three teams ideal Maximize communication while maintaining confidentiality Open communication with each team critical to both sides understanding the complex issues Allow separation of discussions to truly discuss issues Allows competitive advantage to be leveraged Transparency in process and clear evaluation criteria are essential Maintain confidentiality throughout
16 Similar objectives (cont d) Control Procurement should provide for flexibility and this should be continued during implementation Key goals not compromised Means and methods can be varied Small and disadvantaged businesses can add significant value Often local firms that will be around throughout the operation phase Adds diversity in ideas and approach Encourages participation of the community Page 16
17 Similar objectives (cont d) Schedule Establish realistic project schedule early Sets expectations in community and industry Obtain feedback on realism and achievability Better to over achieve during delivery Facilitates decision making Procurement schedule critical to bidders Establish a schedule and stick with it Retain flexibility in approach to deal with unexpected issues Time = Money recognize and manage Page 17
18 Questions?
The RTD FasTracks Plan
PROJECT DELIVERY METHODS Prepared for: PCJPB August 2013 Prepared by: Richard F. Clarke (Assistant General Manager, Capital Programs) The RTD FasTracks Plan 122 miles of new light rail and commuter rail
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