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Virginia Beach Light Rail

Public Private Partnership ProposalsIAW the Virginia Public Private Education and Infrastructure Act

adopted by Virginia Beach in 2009

Update to City Council12 November 2013

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Conceptual Phase The solicitation that follows the acceptance of an unsolicited

proposal seeks other proposals that provide conceptual level detail including: The private entity’s qualifications and experience The project’s characteristics The project’s financing Project benefit and compatibility

If the City desired to solicit proposals in the absence of an unsolicited proposal, the PPEA process would begin with the above solicitation.

Additionally, the City could take the concept from an unsolicited proposal and modify the scope of the proposed project to suit its needs. This would result in requiring the firm that submitted the initial unsolicited proposal to submit an updated proposal.

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Concept proposal evaluation process: (4 Steps):

1. Determine whether or not to accept the conceptual proposal

2. Give public notice & allow submission of competing proposals

3. Accept and Post Competing Proposals

4. Review, analyze & compare all conceptual proposals

5. Select proposals for in-depth detailed submission & review

or

End the Process (terminate or convert to an RFP process)

PPEA Guidelines

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Chronology of Events Nov 6, 2012: Public referendum Nov 27, 2012: City Council Resolution to use all reasonable efforts to support

the financing and development of The TIDE light rail into Virginia Beach Apr 2, 2013: Received unsolicited PPEA proposal from Schucet/Skanska/AECOM Apr 16, 2013: Initial Meeting of Review Task Force & City Council Briefing Apr 23, 2013: Public Hearing May 10, 2013: Meeting of Review Task Force Jun 4, 2013: City Council Briefing Jun 11, 2013: City Council formally accepts the unsolicited proposal for further

review and invitation for competing proposals Jun 23, 2013: Public Notice Posted for Competing Conceptual Proposals Oct 21, 2013: Received two Competing Conceptual Proposals from Parsons

Construction Group & American Maglev Technology Oct 21, 2013: Meeting of Review Task Force Nov 12, 2013: VB Light Rail update to City Council/Accept & Post submissions

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Newtown to Rosemont Project Consortium

Developers form a Special Purpose Company: The Philip A. Shucet Company SKANSKA AECOM

Design-Build (DB) Contractor will be an Unincorporated Joint Venture: SKANSKA AECOM

Systems Integrator and Designer: JACOBS Mechanical & Electrical Contractor: TRULAND

Submittal #1

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Newtown to Rosemont Project Consortium

The Special Purpose Company (SPC) is a limited liability company which enters into a comprehensive agreement with the City for design-build-finance-maintenance

The DB Unincorporated Joint Venture (UJV) will enter into a fixed price, date certain, turnkey design build contract with the SPC

The Systems Integrator and Designer will be engaged by the DB UJV under a design agreement

The Mechanical & Electrical Contractor will be a subcontractor to the DB UJV

The Rolling Stock Contractor (RSC) will supply the rail vehicles to the SPC

The Maintenance Contractor will enter into an Interface Agreement with the SBC, DB UJV and the RSC

Submittal #1

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Newtown to Rosemont Project Characteristics Proposes to design build 5.2 miles of two track extension from

Newtown to Rosemont within the Norfolk Southern ROW Passenger Stations at Witchduck Road, Independence Boulevard, and

Rosemont Road Park & Ride lots at Witchduck and Rosemont At grade crossings at Newtown, Princess Anne, Greenwich, Euclid and

Kellam Elongated elevated crossing at Independence & Market All Right of Way to be procured by the City Requests and Interim Agreement to cover development: planning,

design, permitting, mitigation, geotechnical, and financial analysis Comprehensive Agreement to include 2 year design and construction

period followed by a 25 year maintenance period

Submittal #1

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Newtown to Rosemont Project Characteristics

Four identical rail vehicles are provided Power provided by an Overhead Catenary System (overhead wires

supported by poles located between the two tracks) The TIDE will be operated by Hampton Road Transit System maintenance transfers from HRT to the SPC at a fixed cost in

establishing a whole life cycle approach versus a local cost share of maintenance approach

Hours of operation M-Th 6 a.m. to 10 p.m., Fri-Sat 6 a.m. to midnight, and Sun 11 a.m. to 9 p.m.

As an option the train control safety system can be upgraded from ABS to ATC

Revenue Service Start appears to be 36 months following the negotiated and executed Interim Agreement and approximately 27 months following execution of the Comprehensive Agreement

Submittal #1

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City/Agency Responsibilities

Virginia Beach Review and accept the unsolicited proposal Select a preferred proposer before Sept 30, 2013 Execute the Interim Agreement by Dec 31, 2013 Execute a Comprehensive Agreement by Sep 30, 2014 Acquire needed ROW and property for PNR Execute interagency agreements (HRT & DRPT) Join as co-applicant on environmental permit

Norfolk Execute agreement allowing the SPC to maintain The TIDE

for a fixed price

Submittal #1

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City/Agency Responsibilities Hampton Roads Transit

Operate entire 12.6 miles of The TIDE to include the farebox revenue system and security

Operate and maintain the Operations Control Center Complete the VB Transit Extension Study File New Starts application for federal funding should the VBTES

select a LPA eligible for federal funding Execute agreement allowing the SPC to maintain The TIDE for the

entire 12.6 miles Transfer public subsidies for maintenance of The Tide

Virginia Department of Rail and Public Transportation Execute agreement allowing the SPC to maintain The TIDE for the

entire 12.6 miles

Submittal #1

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Project Financing

Pages 63 – 78 of the Proposal are entitled to protection from disclosure and is exempt from the posting requirements and will not be publicly disclosed prior to the execution of an interim/comprehensive agreement

Submitter released information: Proposed PPEA Project cost estimate: $235M

($45M/mile)

Submittal #1

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PARSONS Consortium Reach the Beach

Parsons Construction Group Inc. (PCG): providing design-build/construction services

Parsons Transportation Group Inc. (PTG): providing design and engineering services

Parsons Enterprises Inc.(PE) : providing financial expertise and investment capabilities

Parsons VBRC: a limited liability, special purpose vehicle established to enter into Interim and Comprehensive contracts

Submittal #2

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PARSONS: Reach the Beach Additional Core Team Members

Mass. Electric Construction Co. (MEC): Systems installation Clark Nexsen, PC: Architectural/facilities Rummel, Klepper & Kahl, LLP (RK&K): Structural/civil Troutman Sanders, LLP: Legal advisor Michael E. Wood Consultant, Inc. (MEW): Stakeholder coordination MZ Strategies, LLC (MZ Strategies): Transit oriented development Aquarius Engineering, PC: Drainage Accumark: Utilities Dovetail: Cultural Resources Get Solutions: Geotechnical KPG: Architecture Precision Measurements: Survey and Mapping JRM Engineering: Project Controls/Civil

Submittal #2

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PARSONS VBRC For design and construction: PCG enters into agreement with

Parsons VBRC For design and services: PTG enters into agreement with Parsons

VBRC Core Team Members will contract with either Parsons VBRC, PTG

or PCG Once participation goals have been established Parsons VBRC

will submit their SWaMs and DMBE certified participation plans Richard (Dick) White – Program Director Doug Reehl – Project Manager

Submittal #2

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PARSONS Project Characteristics

Three Phase Program Phase 1: (4/14 - 8/15) 30% engineering Newtown to

Rosemont (Interim Agreement) Phase 2: (1/15 – 6/18) Final design and construction of

Newtown to Rosemont and preliminary engineering for Phase 3 (Comprehensive Agreement)

Phase 3: (6/15 – 9/20) Full design and construction of Rosemont to Oceanfront (Amendment to Comprehensive Agreement)

Post construction: Operations, Maintenance, Facilities and Vehicles

Submittal #2

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PARSONS Project Characteristics Provides a one-seat ride proposal from the Oceanfront to Norfolk An initial segment and two alternative alignments

Newtown to Rosemont: 4.8 miles/3 stations/3 PNR Norfolk Southern Alignment: 7.4 miles/4 stations/2 PNR Hilltop Alignment: 8.7 miles/7 stations/3 PNR

Vehicle requirements Newtown to Rosemont: 9 existing, 5 new Rosemont to Oceanfront: 9 existing, 10 new

Operations, storage and maintenance centers Newtown to Rosemont: use existing OC & VSMF at NSU Rosemont to Oceanfront: use existing OC & VSMF as well as

construct new OC and VSMF west of Oceana

Submittal #2

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City/Agency Responsibilities Virginia Beach

Establish process for Program Management and contracting Select a preferred proposal 4/14 Select LPA 6/14 and obtain ROD 6/15 Determine operating and maintenance strategy Execute the Interim Agreement for Phase 1 by 6/14 Execute the Comprehensive Agreement for Phase 2 by 6/15 Acquire needed ROW and property for PNR Execute interagency agreements (HRT & DRPT) Collaborate with Parsons in the preparation and submission of

multiple federal, state and local permits City review of Phase 3 offer 12/16 – 3/17

Submittal #2

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City/Agency Responsibilities Hampton Roads Transit

Oversee and complete NEPA process thru receipt of ROD Lead public outreach in close coordination w/VB Submit FTA New Starts application should the VBTES and VB

select a LPA eligible for federal funding Submit application for the FTA Pilot Program for Expedited

Project Delivery Allow access to operations center; participate in safety

certification Lead vehicle commissioning and testing Operate new extension of The TIDE Assume maintenance of the new extension of The TIDE

Submittal #2

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Project Financing

Offers to complete initial phase at a fixed price Offers to prepare project IAW the FTA New Starts

Program or Pilot Program for Expedited Project Delivery so as to maintain MAP-21 funding eligibility

Submitted statement that Section 3 of their Conceptual Proposal, in its entirety, to be confidential and request that it be excluded from public inspection and release under the PPEA Guidelines.

Submittal #2

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American Maglev Technology Team The Wave

American Maglev Technology-developer Lockheed Martin – engineering of transit vehicles Vectorworks Naval Engineering LLC – vehicle assembly Grupo ACS: development, engineering, construction, operations and

maintenance Divaris Real Estate, Inc.- station management Special Purpose Vehicle (SPV) Company: develops, owns and operates The

Wave over the concession Period – unincorporated at this time Natixis Bank-investment banking, management and financial services

Submittal #3

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American Maglev Technology Project Characteristics

Pioneering project as currently no operational Maglev system in US other than AMT test facility at Powder Springs GA

Automated, driver free technology 9.5 minute departures expandable to every 2 minutes PV Solar panels on stations 5 vehicles provided with initial service First year cost per ride: $2 Requires riders to transfer between Light Rail and Maglev technologies Phased development – 3 phases

Pilot Phase: connect Convention Center Station to Dome Station (.8 mi) Phase 1: extends TIDE to the Wave’s Newtown Station and construction of The

WAVE from Newtown to Rosemont by 2nd QTR 2016 Phase 2: connects Rosemont Station to Convention Center Station in 2017

Submittal #3

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American Maglev Technology Project Characteristics

Pilot Phase: May – Oct 2014 Phase 1 Newtown to Rosemont: 4 stations/2 trains; Nov 14 – Apr 16 Phase 2 Rosemont to Convention Center: 3 stations/3 trains; Oct 15 - Feb 17 The fundamental element of the overall system is the guideway

Elevated throughout to provide a grade-separated transit system No moving or electrical parts 30 foot wide ROW corridor to provide dual tracks and emergency walkway

Fiberglass vehicles are 60 ft long, 10 ft wide, 120 pax, 4 sets bi-parting doors/side Operates using 24 computer controlled electromagnets attached to arms underneath

to provide levitation, guidance and vertical stability Propulsion elements: 2 independent inverter & linear induction motor sets This LIM technology propels the vehicle and provides regenerative braking 100% automated using a communications-based system of train control AMT Team will operate and maintain The Wave for a fixed cost concession

agreement (30-50 years)

Submittal #3

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City/Agency Responsibilities Virginia Beach

Select as the preferred proposal by Dec 31, 2013 Negotiate and enter into project contract by Mar 31, 2014 Acquire needed ROW and property for PNR Expedite permitting process

Hampton Roads Transit Enter into agreement to move the Newtown Station to the AMT ACS

preferred location Enter into a reciprocal free transfer agreement

Virginia Department of Transportation Serve as the agency for certification of the project Execute capital and operations funding agreements w/ City

Regulatory Agencies

Submittal #3

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Project Financing

Expresses in no case is it anticipated that federal funds will be required or desired

Wave will be eligible for Formulary FTA Operating Funds as well as VDRPT and regional support

Open to contracting methodology and ownership The Pilot Phase $34M will be funded from private equity and

contributed to the SPV for construction WAVE projected capital cost of $334M, all inclusive Submitted statement that Section 3 is considered by the Team to be

confidential and competition sensitive. It is requested that this information not be shared with any party other than the proposal reviewing team

Submittal #3

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Considerations

First stage length into VBLocally preferred alternative to the OceanfrontMaintaining eligibility for federal fundingAccelerated deliveryRisk transfer Innovative financingDeferred and incentive pricingOptional service offerings

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VB Transportation Extension Study

Preliminary Draft Cost Estimates to Independence: $254M ($79M/mile) to Lynnhaven: $451M ($65M/mile) to Oceanfront: $807M ($67M/mile) (using Norfolk

Southern alignment)Laskin Road Alignment

Completing draft estimate Anticipate brief to City Council in Jan 2014

NOTE: VBTES Preliminary Draft cost estimates use 2018 dollars.

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Milestone ListCY2013

Oct 21 Receipt of Concept Proposals Nov 12 Brief City Council on PPEA submissions and post notice of acceptance of all

three proposals Nov 20 Briefings from engineering and legal consultants Dec 10 Review TF meeting

CY2014 Jan Laskin Road alignment cost estimate brief to City Council Mar Receive Transit Study (DEIS) with recommendations Apr Conduct Public comment and hearings on DEIS Apr Draft Scope for detailed phase May Brief City Council; establish the Locally Preferred Alternative, finalize scope

for detailed phase Jun Issue Scope and Detailed Phase instructions Jul Finalize EIS Oct Record of Decision on FEIS Oct Received Detailed submittals Dec Brief City Council on evaluation of detailed submittals & provide staff

recommendation

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City Council Discussion