Shortlist Announced for Caltrans and Metro ARTI Project

On September 10, 2013, the California Department of Transportation (“Caltrans”) in cooperation with the Los Angeles County Metropolitan Transportation Authority (“Metro”), announced the shortlist for the Accelerated Regional Transportation Improvements (“ARTI”) Project. 

The Project, located in Los Angeles County, includes the development of one high-occupancy toll lane in each direction along Interstate 5 (“I-5”) North from the SR 14 freeway to Parker Road; the design, reconstruction, rehabilitation and maintenance of the pavement of all lanes of the same segment of I-5 North; the development of a segment of the existing SR 71 from the I-10 in Los Angeles County to the San Bernardino County line to expand it to an 8-lane freeway with three general purpose lanes and one high-occupancy vehicle lane in each direction; and the design and construction of approximately 44,800 linear feet of soundwalls at various locations along Interstate 210, SR 170, and Interstate 405.

The shortlisted teams were selected based on statements of qualifications submitted on July 19, 2013 in response to a request for qualifications issued by Caltrans in cooperation with Metro on May 31, 2013. 

The four shortlisted teams are:

Accelerate LA

HOCHTIEF, Skanska, InfraRed Capital Partners, Flatiron, Parsons Transportation Group, Cofiroute

Accelerate Los Angeles

Macquarie Capital Group Limited, Michael Baker Jr., Inc., Granite Construction Company, Roy Jorgensen Associates, Inc.

LA Accelerated Mobility Partners

Meridiam Infrastructure, Edgemoor Infrastructure & Real Estate, Walsh Investors L.L.C., Walsh Construction Company, Clark Construction Group, AECOM, Atkinson Contractors, Transfield Services Infrastructure

LA Mobility Partners

Fluor Enterprises, Balfour Beatty, Parsons Brinckerhoff, C.C. Myers, Inc., DBi Services

 

More information on the ARTI Project can be found at the project website.

Tristan Robinson co-authored this entry.
 

Caltrans and Metro Issue Request for Qualifications for the Accelerated Regional Transportation Improvements Project

The California Department of Transportation (“Caltrans”), in cooperation with the Los Angeles County Metropolitan Transportation Authority (“Metro”), issued on May 31, 2013 a Request for Qualifications (“RFQ”) for teams interested in submitting Statement of Qualifications (“SOQs”) to design, build, finance, operate and maintain the Accelerated Regional Transportation Improvements Project (the "ARTI" Project) through a public-private partnership (“P3”) agreement with Caltrans. 

The ARTI Project consists of six elements, all of which are located in Los Angeles County, including: the development of one high-occupancy toll (“HOT”) lane in each direction along Interstate 5 (“I-5”) North from SR 14 freeway to Parker Road; the design, construction, rehabilitation and maintenance of the pavement of all lanes on the SR 14 to Parker Road segment of I-5 North; the reconstruction of the existing SR 71 from Mission Boulevard in to Interstate 10 (“I-10”) to provide four general purpose lanes and one high-occupancy vehicle (“HOV”) lane in each direction, one interchange, two grade separated rail crossings, and three arterial undercrossings;  the reconstruction of the existing SR 71 from SR 60 to Rio Rancho Road to provide three general purpose lanes and one HOV lane in each direction, one interchange, one arterial undercrossing, frontage roads, and one pedestrian overcrossing; the design and construction of approximately 16,300 linear feet of soundwalls at various locations along Interstate 210 (“I-210”) freeway; and the design and construction of approximately 28,500 linear feet of soundwalls along SR 170 and Interstate 405 ("I-405") freeways. 

The RFQ and related Project documents are available from Metro’s procurement website.

Tristan Robinson co-authored this entry.

Presidio Parkway Project Named "Best Real Estate Deal of the Year" by San Francisco Business Times

Nossaman would like to congratulate the California Department of Transportation and the San Francisco County Transportation Authority for the Presidio Parkway Project's recognition as the "Best Real Estate Deal of the Year" in the category of Infrastructure/Public-Private Partnership by the San Francisco Business Times.  Winners were announced at the publication's annual awards dinner in San Francisco on March 20, 2013.

This recognition is the latest in a number of industry awards honoring the Presidio Parkway Project, which is the first transportation project to be procured under California's 2009 PPP statute, and only the fourth highway project in the United States developed using an availability payment structure.  A Nossaman team, led by Barney Allison, advised Caltrans on the $1.1 billion deal, which reached financial close on June 14, 2012.
 

Recognition for USA Infrastructure Continues to Grow on Global Stage

As the 2013 award season heats up for 2012 successes around the world, the juries are increasingly finding the US market hard to ignore. Infrastructure Journal and PPP Bulletin International, the two London-based media organizations that annually recognize top projects and industry organizations worldwide, have each announced their finalists for this year's best transportation transactions and firms. Focusing on public-private partnership projects as opposed to those mega-projects which are the subject of major design-build contracts, these organizations nevertheless both found much to honor during a standout period.

Infrastructure Journal has announced that the Virginia Department of Transportation's Downtown Tunnel/Midtown Tunnel/MLK Extension Project ("Midtown Tunnel") is one of four finalists for its Global Transport Deal of the Year, the third time in four years IJ has so recognized US projects, starting with the Texas Department of Transportation's North Tarrant Express, named the Global Transport Project of 2009 and finalist for the overall Global Infrastructure Project of that year; and the Florida Department of Transportation's I-595 Project, also a finalist for the 2009 Global Transport Project. For this year's awards, the publication reviewed more than 600 submissions and will announce the winner on April 17, 2013.

PPP Bulletin International has announced that the California Department of Transportation's Presidio Parkway Project, the Midtown Tunnel and VDOT's I-95 Express Lanes project are all among the finalists for its Best Transport Project of the Year. The publication will announce the winner on May 23, 2013.

We congratulate VDOT, Caltrans and their private partners for this well-deserved recognition.

From One End of the US to the Other, Project Finance Magazine Recognizes P3 Projects as Deals of the Year

On March 7, Project Finance Magazine held its annual “Project Finance Americas Deals of the Year” awards dinner in New York City.  The awards – which started 14 years ago – are for innovation, deal repeatability, best practice, problem solving, value for money and speed of delivery in the financing of infrastructure projects.  Two public-private partnership projects – one on the East coast and one on the West coast – received honors at this year’s dinner.     

The award for 2012 North America Toll Road Deal of the Year was given to the Midtown Tunnel project located in the Hampton Roads region of Virginia.  The $2.1 billion toll concession project, which reached financial close in April 2012, is comprised of a new two-lane tunnel adjacent to the existing Midtown Tunnel, the maintenance and safety improvements to the existing Midtown and Downtown Tunnels, and an extension of the Martin Luther King Freeway to Interstate 264.  The project sponsor was Elizabeth River Crossings Opco LLC, a consortium led by Macquarie and Skanska ID.  The awarding authority was the Virginia Department of Transportation.  Nossaman served as legal advisor to VDOT.   

The award for 2012 North America Public Private Partnership Deal of the Year was given to the Presidio Parkway project located in San Francisco, California.  The $1.1 billion project was the first transportation project in California to be delivered using the state’s recently enacted P3 statute and only the third highway project in the United States developed through an availability payment structure.  The project sponsor was Golden Link Concessionaire, LLC, a consortium led by Hochtief PPP Solutions North America and Meridiam Infrastructure North America.  The awarding authorities were the California Department of Transportation and the San Francisco County Transportation Authority.  Nossaman served as legal advisor to Caltrans.  

Attendees at the awards dinner included: Dale Bonner, formerly the Secretary of the Business, Transportation and Housing Agency for the State of California; Sean Connaughton, Secretary of Transportation for the Commonwealth of Virginia; Dusty Holcombe, Deputy Director for the Virginia Office of Public Private Partnerships; and Ryan Pedraza, Program Manager for the Virginia Office of Public Private Partnerships.

Nossaman would like to extend its congratulations to VDOT, Caltrans and the San Francisco County Transportation Authority for their achievements, and to all those who made these awards possible.   

DBIA Announces the 2013 Design-Build in Transportation Leadership Awards

The Design-Build Institute of America announced today the 2013 Design-Build in Transportation Awards, which will be presented on March 19, 2013 at the 2013 Design-Build in Transportation Conference in Orlando, Florida.

The California Department of Transportation was named 2013 Transportation Owner Agency of the Year.  Caltrans has made great strides with design-build recently through its Design-Build Demonstration Program.  Caltrans also reached financial close this year on its high profile Presidio Parkway project, which will use the design-build-finance-operate and maintain, or availability payment, delivery method.

Ananth Prasad, the Florida Secretary of Transportation, will be honored with the 2013 Transportation Owner Award.  Mr. Prasad is an advocate for alternative delivery methods, and in 2012 alone FDOT awarded over 59 design-build contracts.  Florida is also a leader in innovative financing of transportation projects, with both the Port of Miami Tunnel and the I-595 Express Lanes being delivered as availability payment projects.

Roger A. Johnson is another individual awarded the 2013 Transportation Award.  He is the Deputy Director of Los Angeles World Airports.  He is currently overseeing two design-build projects valued at over $570 million at Los Angeles International Airport.  LAWA is planning an additional $1 billion worth of design-build projects as part of its modernization of the airport.

Finally, John Bourne of HNTB will be presented with the 2013 Transportation Practitioner Award.  Mr. Bourne was formerly the Deputy Director and then Director of the Utah Department of Transportation’s I-15 reconstruction program, a $1.6 billion design-build project.  Since joining HNTB he has been active in working with departments of transportation in states such as Minnesota, Texas, and Utah.  He recently served as HNTB’s project manager on the I-15 CORE project, a $1.1 billion fixed price/best design procurement.

The announcement can be found on the DBIA website.

California Supreme Court Allows Presidio Parkway to Proceed as P3

On November 16, challenges to the legality of the Presidio Parkway public-private partnership (P3) contract ended with a one sentence order from the California Supreme Court: “The petition for review is denied.”  Professional Engineers in California Government (PECG), the union representing Caltrans engineers, had asked the Supreme Court to review the Aug. 8, 2011, decision of the California Court of Appeal in San Francisco (First District), which unanimously held that Phase 2 of the Presidio Parkway project can move forward as a P3.  As a result, the California Department of Transportation (Caltrans) and the San Francisco County Transportation Authority (SFCTA) will continue with Phase 2.  The project will replace the old and outmoded approach to the Golden Gate Bridge in San Francisco.  The Supreme Court’s action denying the petition comes a year after PECG filed the lawsuit in the trial court.

When the California Transportation Commission considered whether to approve use of a P3 for the project under Streets and Highways Code section 143, the California Legislative Analyst Office (LAO), and the California Attorney General’s office (AG) as counsel to the Commission, gave written opinions concluding that the project was not authorized.  Caltrans’ general counsel, along with Nossaman acting as P3 legal advisor to Caltrans, took a contrary position.  Section 143, adopted in 2009, broadens the types of P3 projects authorized in California.  The Commission approved the project for a P3, while noting the unresolved legal issue.

PECG sued Caltrans and the SFCTA to stop Phase 2 of the project, arguing, like the LAO and AG had earlier, that the project was not authorized by section 143.  The courts rejected PECG’s argument that, under section 143, Caltrans’ internal personnel must perform all the preliminary planning and design services, as opposed to being responsible only for seeing them done correctly.  The courts also rejected the argument that P3 efforts under California law must be confined to toll projects, holding that the legislation authorized much broader use of innovative financing, in this case an availability payment.  Finally, the courts also held that the project was properly characterized as supplemental to existing facilities, as required by section 143.

The Presidio Parkway Project is the first project to reach award under California’s new P3 statute.  The decision of the courts—and now the finality—is important beyond the Presidio Parkway Project.  This should ease the way to use P3s under section 143 for other projects, and also provide helpful precedent for design build projects authorized under parallel legislation passed at the same time.

At the beginning of 2011, Caltrans, in cooperation with SFCTA, signed a contract for the project to Golden Link Concessionaire, LLC, a consortium led by Hochtief  PPP Solutions North America and Meridiam Infrastructure North America. 

Nossaman represented SFCTA in the litigation and advised Caltrans during the P3 procurement.  Caltrans was represented in the litigation by its own department counsel.

For more about the Presidio Parkway Project and section 143, see Appeals Court Rules Presidio Parkway Can Move Forward as P3, Presidio Parkway Project Awarded, Preferred Proposer Selected for Presidio Parkway Project, Final RFP for the Presidio Parkway Project Released, Presidio Parkway Reaches Two Important Milestones, and Presidio Parkway Project RFQ Issued.

Update: Proposed Legislation Threatens Design-Build and P3s in California

Fred Kessler co-authored this post.

We are pleased to report that AB 294--the bill that was the subject of our blog yesterday--is no longer in play. 

Proposed Legislation Threatens Design-Build and P3s in California

Fred Kessler co-authored this post.

A last-minute amendment to California Assembly Bill 294, if passed, would wreak havoc on Caltrans and local agency plans to use design-build for state highway projects (Public Contract Code section 6800 et seq.) and to enter into public-private partnerships (P3s) for highway projects (Streets and Highways Code section 143).
 
The language added to the bill would preclude local agencies from hiring consultants to work on the projects, stating that all work must be done through Caltrans employees or consultants under contract with Caltrans.  Project consultants are often hired well in advance of the decision to use design-build or P3s for the project--which means that this bill would create significant inefficiency by requiring new consultants to be brought on board once that decision is made.   

Given the existing sunsets for P3 projects (January 1, 2017) and design-build projects (January 1, 2014), this bill could make public-private partnerships and design-build a hollow tool for California highway projects.
 
This appears to be an attempt by the Professional Engineers in California Government (PECG) to do an end-run around a recent California appellate court ruling regarding the Presidio Parkway P3 agreement.  Although the legislation would not affect contracts that have already been awarded, such as the Presidio Parkway agreement, the bill would impact future P3 projects under Section 143 and future design-build projects under Section 6800, possibly including some projects that are already in the procurement process.  In the Presidio Parkway case, PECG sought a determination that the agreement was invalid because engineering consultants under contract with the San Francisco County Transportation Authority performed services on the project while section 143 allegedly requires the consultants to be under Caltrans direct contract and supervision.  Caltrans and the SFCTA have pursued the project for many years under a series of cooperative agreements.
 
The bill, authored by Assemblyman Portantino, was originally short-titled "Design-sequencing contracts" and is now called "Transportation projects: procurement."  It would appear more appropriate to call it "Increased inefficiency in government."
 
The legislative session closes at the end of next week (September 9), and September 2 is the last day to amend existing bills.  It seems likely this bill will make it to the floor.  The authors of this blog urge readers to contact their legislators and ask them to oppose the bill.

Appeals Court Rules Presidio Parkway Can Move Forward as P3

On August 8, 2011, the 1st District Court of Appeal in San Francisco published a decision holding that Phase 2 of the Presidio Parkway project can move forward as a public-private partnership (P3).  The unanimous opinion approved of and affirmed the February decision by Judge Wynne Carvill of the Alameda County Superior Court to the same effect, allowing the California Department of Transportation (Caltrans) and the San Francisco County Transportation Authority (SFCTA) to proceed with Phase II as a P3. The decision was issued less than five months after the appeal had been taken, because Caltrans and SFCTA had asked the Court to expedite what would normally be a longer process in order to get the critical project moving forward promptly.

Professional Engineers in California Government (PECG), the union representing Caltrans engineers, sought to stop Phase II of the project, which is replacing the old and outmoded approach to the Golden Gate   Bridge in San Francisco.  PECG sued Caltrans and the SFCTA, arguing that the project was not authorized by Streets and Highways Code section 143, recent legislation broadening the types of P3 projects that could be performed in California.  However, the Court of Appeal rejected PECG’s argument that, under section 143, Caltrans employees or direct consultants must perform all the preliminary planning and design services, as opposed to being only responsible to see them done correctly.  The Court also rejected PECG's other arguments, that the project was not supplemental and that P3 efforts under California law must be confined to toll projects, holding that the legislation authorized much broader use of innovative financing, in this case an availability payment.

The Presidio Parkway Project is the first project to reach award under California’s new public-private partnership statute.  This decision should ease the way for other projects, and also provide helpful precedent for design build projects authorized under parallel legislation.

At the end of 2010, Caltrans, in cooperation with SFCTA, signed a contract awarding the project to Golden Link Concessionaire, LLC, a consortium led by Hochtief PPP Solutions North America and Meridiam Infrastructure North America.

PECG will have until September 16 to ask the California Supreme Court to review the Court of Appeal decision.  It is not known if PECG will seek review, however the Supreme Court grants review in only a small number of cases based on specific criteria.

Nossaman represented SFCTA in the litigation and Caltrans was represented by its own Department counsel. Nossaman has also provided assistance to Caltrans in the procurement of the project.

For more about the Presidio Parkway Project and section 143, see Presidio Parkway Project Moves Forward as Court Denies Request for Writ of Mandate and Injunction, Presidio Parkway Project AwardedPreferred Proposer Selected for Presidio Parkway Project, Final RFP for the Presidio Parkway Project Released, Presidio Parkway Reaches Two Important Milestones, and Presidio Parkway Project RFQ Issued.

Presidio Parkway Contract Awarded

The California Department of Transportation started off the New Year with a significant step in its public-private partnership program.  After an Alameda County Superior Court judge dissolved a temporary restraining order and denied a preliminary injunction sought by Professional Engineers in California Government, the California Department of Transportation, in cooperation with the San Francisco County Transportation Authority, awarded the contract for the Presidio Parkway Project to Golden Link Concessionaire, LLC, a consortium led by Hochtief PPP Solutions North America and Meridiam Infrastructure North America.  Golden Link Concessionaire, LLC proposed a maximum availability payment of $28,549,189 for the 30-year contract to design, build, finance, operate, and maintain the Presidio Parkway Project.
 
The Presidio Parkway Project in San Francisco is the first project to reach award under California's new public-private partnership statute, Streets and Highways Code section 143. For more about the Presidio Parkway Project and Section 143, see Preferred Proposer Selected for Presidio Parkway Project, Final RFP for the Presidio Parkway Project Released, Presidio Parkway Reaches Two Important Milestones, and Presidio Parkway Project RFQ Issued.

Final RFP for the Presidio Parkway Project Released

Following extensive industry review of the draft Request for Proposals, on Friday, July 9, 2010, the California Department of Transportation, in coordination with the San Francisco County Transportation Authority, issued the final Request for Proposals for the Presidio Parkway Project. According to the latest procurement schedule in the Request for Proposals, technical proposals are due on September 10, 2010, and financial proposals are due on September 24, 2010.

The Presidio Parkway Project is the first public-private partnership procurement under California's new public-private partnership law, Section 143 of the Streets and Highways Code. For more about the Presidio Parkway Project and Section 143, see Presidio Parkway Reaches Two Important Milestones and Presidio Parkway Project RFQ Issued.

Presidio Parkway Reaches Two Important Milestones

California's first public-private partnership procurement has passed two major hurdles in the last week.  First, after a long anticipated and much-debated hearing, the California Transportation Commission approved the San Francisco Presidio Parkway Project last week on an 8-3 vote.

Second, on May 25, the California Department of Transportation released the draft request for proposals to design, build, finance, operate and maintain the Presidio Parkway.  The project, sponsored by Caltrans and the San Francisco County Transportation Authority, is being closely watched because it is the first P3 project under the new Section 143 of the California Streets & Highways Code, which permits Caltrans and regional transportation agencies to work with the private sector in developing transportation facilities in the state (for more about Section 143, see 'California Passes First Significant Transportation PPP Law in 20 Years').

The CTC vote was a topic of discussion at the California Public Infrastructure Advisory Committee meeting this week, which preceded the Public Infrastructure Financing Forum held at the California Science Center in Los Angeles.

Caltrans plans to issue the final RFP on June 29, 2010.