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S T R U C T U R E S , I N S T I T U T I O N S , A N D PA RT N E R S H I P S 47 Transportation Infrastructure Finance and Innovation designbuild projects. The group discussed how the Act (TIFIA) financing and acceleration of full-funding switch from private to public funding in the Las Vegas grant agreement funds through the use of grant antic- monorail project from one phase to the next required ipation financing. the introduction of federal requirements midcourse and Marino described three benefits of TIFIA financing: the "tricky thicket" this presented to project managers. The group also addressed the importance of an expe- Low interest costs, dited review process in advancing projects. Conyngham Willingness of government to be a patient lender, pointed out that without such an expedited process, a and vicious cycle with outdated data and new hurdles Willingness of government to accept coverage results. She stressed to public managers the need to ratios as low as 1.10 times, which facilitates additional "make the process as tough as you like, make a deci- borrowing capacity for the project. sion, and live with the consequences." She asserted that it is imperative to stop continually revisiting the review and introducing new hurdles and costs. Seattle Rail Susan Sanchez SESSION 3: PRIVATIZATION AND OUTSOURCING OF TRANSPORTATION FUNCTIONS: Following Marino, Susan Sanchez provided an IMPACT ON FINANCES OF THE overview of the Sound Transit regional transit project TRANSPORTATION ORGANIZATION and the monorail project, two projects at different stages of development. Sanchez described the role of the Elizabeth Pinkston, Congressional Budget Office public in initiating these projects, the impact of (Moderator) designbuild on project costs, and various elements of Mary Richards, Massachusetts Organization of State project control that are based on the specific construct Engineers and Scientists (Discussant) of the publicprivate partnership. Shirley J. Ybarra, Ybarra Group, Ltd. Heather Dugan, Stifel Nicolaus, Hanifen Imhoff Division Greenbush Commuter Rail and Edward J. Corcoran II, Foley Hoag LLP Environmental Issues Monica Conyngham Virginia's Privatization Initiative: Outcome-Based Highway Asset Management Monica Conyngham offered insights into the environ- mental issues associated with delivery of the Greenbush Shirley J. Ybarra Commuter Rail project, the Massachusetts Bay Trans- portation Authority's (MBTA's) first designbuild project Shirley J. Ybarra provided the first case study presenta- that runs through five communities and has significant tion in this session on Virginia's privatization initiative. environmental and historic preservation issues. She described the program that was passed and signed Conyngham focused on the allocation of risks and into law in 1994 and how the state sought both described how the MBTA maintained risk through the solicited and unsolicited proposals for construction, major permitting stage. She noted the importance of operations, and maintenance. The initiative was driven, having the designbuild team at the table throughout at least in part, by the loss of approximately 15 percent the process. of the transportation department staff. The state was looking for both cost savings and project innovations. Ybarra described two projects near Richmond for Discussion which publicprivate partnerships allowed the proj- ects' accelerated completion. She also described a suc- Gordon Linton cessful partnership entered into for Interstate maintenance. The partnership, an outcome-based Gordon Linton, former administrator for the Federal agreement, did not dictate to the private partner how Transit Administration (FTA), led the discussion for this to do it but rather the required outcomes. Managing session. He noted the importance of education about 250 miles of Interstate, the partnership saved the state the environmental process, in particular for $22 million over 5 years.