Special Public-Private Partnership
Infrastructure Oversight Commission
May 21, 2014 1:00 p.m.
MassDOT Boardroom, 3rd floor
Ten Park Plaza
Boston, MA 02116
Meeting Minutes
Members:
Commission Chairman Alan Macdonald, Valerie Mosley, John Olver, Joseph
Dorant, John Vitagliano, David Luberoff, David Saltiel
Present:
Chairman Macdonald, Commissioner Mosley, Commissioner Olver,
Commissioner Vitagliano, Commissioner Saltiel and Commissioner Luberoff
Quorum Present:
Yes
Other Participants:
Dana Levenson, Owen Kane
Others Present:
Paula Fallon
PROCEEDINGS:
I.
Call to Order by Chairman Macdonald
Chairman Macdonald called the meeting to order.
II.
PROCEDURAL ITEMS
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Mr. Levenson began the meeting with background on what MassDOT has been doing
for the last few months to get where they are today with the three presentation on the
Twinning of the Sagamore Bridge, Rest Stops and Route 3 South projects. Owen Kane
discussed the process of how RFP’s are issued. The Commission discussed their role in the RFP
process and the advice they would give to the department.
III.
DISCUSSIONS
•
Twinning of Sagamore Bridge – William Blair & Co
The first item presented was by William Blair & Co. on the Twinning of the Sagamore
Bridge. Mr. Morehouse discussed the process of the P3 that would be needed for the Twinning
of the Sagamore Bridge. The next step would be the scooping study, environmental, design and
understanding what the goals are for the Commonwealth. The Commission discussed the
different costs that are considered for the scope. After scoping is done they went into the
process preparation. This is the part of the project where they outreach to potential investors
and then send out a Request for Information (RFI) to underscore the process with the project
and soliciting input from investors. William Blair recommends a structured communications
plan to ensure a consistent message to all interested parties, with tailored timing and level of
detail with the core team, internal stakeholders and external stakeholders
The Commission asked Mr. Morehouse’s opinion of this project and how it will be
received in the industry. Mr. Morehouse believes that this project has a lot of interesting facets
to it, the private sector will look at this project as a place to where they could add value
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because it is a bridge and it may be the first PPP in the State. Administrator Frank DePaola
noted that the original design of the bridge may not be what the final design will be. Also, the
Administrator added that there needs to be studies done to ensure there is a market for the
project. MassDOT has already approached local organizations about the idea. The Commission
discussed the permitting of the projects and the timelines.
•
Rest Stops - Ernst and Young
The next item on the agenda was the presentation on the Rest Areas presented by
Ernst & Young. Mr. Tom Versakis went through the PPP procurement guiding principles;
understanding the objectives, a rigorous, initial diligence and feasibility analysis, generating
competitive tension and robust, transparent procurement. Questions that will be asked are if
the project is feasible and does it make sense.
Jon Goodsmart went through the various stages of the RFP; analysis and opportunity,
market outreach, RFQ development and evaluation, RFP and environmental analysis. Key
issues to consider are overcoming legislative prohibitions on commercial activity on state
highway and federal reauthorization potential changes and opportunities, funding capabilities
and constraints, ability of bidders to tap private activity bond financing, Indicative analysis on
general feasibility, MassDOT to consider acceptable uses and minimum technical/operating
requirements, issues pertaining to bundling of properties (both cash flow positive and negative
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properties), MassDOT to define general business arrangements / leases, ancillary development
opportunities and environmental and community stakeholder analysis.
•
Route 3 South – Piper Jaffray & Co
The next item on the agenda was a presentation from Piper Jaffray on the Route 3
South managed lanes project presented by Dave Klinjes and Dave Kiley. Mr. Klinjes went
through the three phases for the PPP approach; phase one -identify potential funding
approaches, quantify revenue potential and project scope, phase two-establish a scope and
funding approach and phase three- implementation of project funding. The route 3 managed
lanes project is designed to reduce peak hour congestion. Managed Lanes are defined as tolled
lanes running parallel to existing general purpose lanes where the toll rate will adjust based
upon demand. Toll rates will manage demand to ensure free flow conditions. After the
introduction of this concept twenty years ago in Southern California, ten states have
implemented this approach to peak hour congestion. Three of them were done as P3
concession projects. Phase One Activities will need to be pursued in parallel to achieve
accelerated implementation. The Traffic and Revenue Analysis; needs to begin immediately,
analyze both single lane and two-lane reversible strategies, throughput maximization vs
revenue maximization and the option of a phased project. The Environmental Review; NEPA
Considerations, potential categorical exclusion and accelerated environmental review under
MAP-21 and Executive Order 13604. The Engineering/Technical Review; River Street to
Washington Street, Baseline Cost Estimates and determine technical challenges. There is a
technical challenge that can help to be resolved by a similar project done in Tampa
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Hillsborough Expressway Authority. The limited right of way resulted in Innovative Elevated
Lanes idea. Most of elevated lanes built in six feet on the existing median with10 miles of a
three lane elevated roadway built at a cost of $420 million.
On motion duly made and seconded; it was unanimously
VOTED: To go further with all three projects.
On motion duly made and seconded; it was
VOTED: that the meeting be adjourned.
V.
Adjourn.
Documents
Rest Stops - Ernst and Young
Twinning of Sagamore Bridge – William Blair & Co
Route 3 South – Piper Jaffray & Co
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