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65 APPENDIX B State DOT Survey Summaries I. Summary of Survey Responses (all respondents) 1) What types of Public-Private Partnerships (PPPs) have been considered in your agency? Select all that apply: Yes No Design-build 39 10 79.6% 20.4% Build-Operate-Transfer (BOT) 8 41 16.3% 83.7% Development and long-term concession of a new toll road with transfer of 18 31 revenue risk 36.7% 63.3% Development and long-term concession of a new toll road with availability 10 39 payments or shadow tolls 20.4% 79.6% Long-term asset lease of an existing toll road with transfer of revenue risk 2 47 4.1% 95.9% Long-term asset lease of an existing toll road with availability payments or 2 47 shadow tolls 4.1% 95.9% Added toll lanes on existing facilities with transfer of revenue risk 10 39 20.4% 79.6% Added toll lanes on existing facilities with availability payments or shadow tolls 7 42 14.3% 85.7% Congestion pricing (e.g., cordon tolls) with a PPP element 11 38 22.4% 77.6% Operations and Maintenance (O&M) Fee Service Contracts 16 33 32.7% 67.3% Program and Financial Management Fee Service Contracts 3 46 6.1% 93.9% None 4 45 8.2% 91.8% Other (please specify): 11 38 22.4% 77.6% Comments related to the respondents who specified "Other": Design-build-finance warranty Design-build-own-operate New toll bridge Developer paying for interchanges We have "considered" design-build for special circumstances, but do not have legislative authority currently. The [DOT] currently does not have statutory authority to undertake any type of PPP; however, legislation has been introduced to allow such contracts. Hired Management Consultants to oversee our Local Program delivery. Used a Public Private venture to redevelop the [city] Intermodal Station (formerly the Amtrak Depot). Investigated P3's for Park & Ride lots. Hospital Bond Acceleration Program Long-term concession of existing non-tolled facility with availability payments and long-term lease of existing non-state owned toll facility with availability payments

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66 Rail Station and Parking 2) Which one statement below best characterizes your agency's overall experience with PPPs? We have not yet seriously assessed possibilities for any highway-related PPPs. 20 40.8% We have one or more projects that may be candidates for a PPP. 10 20.4% We have received one or more proposals (solicited or unsolicited) from potential 5 private partners. 10.2% We have negotiated (or are negotiating) one or more contracts to enter into a PPP. 3 6.1% We have completed at least one project that involved a PPP. 11 22.4% 3) Which one statement below best describes your agency's overall readiness to identify and implement innovative finance methods, such as public-private partnerships? The agency needs to build a basic understanding of PPPs. 7 14.3% The agency needs some additional technical expertise to establish a partnership. 13 26.5% The agency has experience with design-build, but is not yet involved in any projects 14 financed with private capital. 28.6% The agency needs minimal training or technical assistance. 15 30.6% 4) Please rate the extent to which your agency uses the following methods of financing transportation projects, other than PPPs. Please use the "Additional Comments" box to describe "other" methods. Use Use Use N/A Frequently Sometimes Rarely (do not use) 48 1 Traditional procurement -- -- 98.0% 2.0% 25 9 3 12 Public financing 51.0% 18.4% 6.1% 24.5% Federal financing tools (e.g., TIFIA, 4 19 10 16 GARVEES) 8.2% 38.8% 20.4% 32.7% 1 4 12 32 Creation of non-profit, quasi-public entities 2.0% 8.2% 24.5% 65.3% 6 15 11 17 Design-build 12.2% 30.6% 22.4% 34.7% 3 2 1 16 Others (please describe below): 6.1% 4.1% 2.0% 32.7% Comments related to the respondents who specified "Other": Use frequently None Commission issued bonds

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67 We have considered TIFIA and creation of non-profit and quasi-public entities, but have yet to use find the appropriate application. We have worked a number of PPP with communities around [state]. When businesses develop they install turn lanes and signals at their cost. Communities have also added dollars to projects that facilitate the movement of traffic. [DOT] uses pass-thru financing tolls that are privately financed and publicly repaid. [DOT] has had design-build projects--but they are developed for accelerated construction-- not as a financing mechanism. Revenue bond financing Infrastructure Bank We are in the process of trying to get PPP legislation passed. [State] has the statutory authority to utilize a Design-Build-Finance (DBF) approach to advance projects programmed in the adopted work program of the department. Enterprise funded airport The next few questions pertain to how you (or your agency) make decisions regarding PPPs. If your agency has not yet seriously assessed possibilities for any highway- related PPPs, please click "Next Page" at the bottom of the screen and skip ahead to question #7. 5) What criteria are used to decide whether a PPP approach should be used for project delivery in your agency ? Total Extremely Somewhat Not Responses Important Important Important N/A 29 16 7 2 4 Project is an urgent transportation need 32.7%* 14.3% 4.1% 8.2% Strong political, public, and institutional 30 17 8 5 -- Support 34.7% 16.3% 10.2% 30 17 8 5 Project acceleration potential -- 34.7% 16.3% 10.2% Project could generate sufficient revenues to 30 15 6 9 -- attract private investment 30.6% 12.2% 18.4% 29 18 5 1 5 Lack of traditional funding 36.7% 10.2% 2.0% 10.2% High-risk project that could be better 29 8 10 6 5 managed by private sector 16.3% 20.4% 12.2% 10.2% 30 1 5 11 13 Unsolicited proposal 2.0% 10.2% 22.4% 26.5% 14 1 13 Other (specify below): -- -- 2.0% 26.5% *Percentage indicates proportion of total surveys, including those that returned no response to Q5. All items will be important if/when PPP proposals become active [State] does not routinely use PPPs. These are the considerations that we have used in trying to get legislation passed. 6) How important have the following measures been in protecting the public' s interest in your state? If your agency has not used a particular measure, please indicate "(N/A). " Total Extremely Somewhat Not

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68 Responses Important Important Important N/A Comprehensive evaluation of benefits and 28 17 4 7 -- costs of PPP proposals 34.7%* 8.2% 14.3* Public participation and opportunities for 28 15 8 5 -- input in decision-making process 30.6% 16.3% 10.2% Providing public access to information related 28 11 10 1 6 to PPP proposals 22.4% 20.4% 2.0% 12.2% 27 19 5 3 Avoidance of conflict of interests -- 38.8% 10.2% 6.1% Terms of agreement are developed taking 28 19 4 5 -- into consideration public concerns 38.8% 8.2% 10.2% Development of construction, maintenance 28 19 2 7 and operations standards that meet or -- 38.8% 4.1% 14.3% exceed standards for non-PPP projects Continuous project monitoring and evaluation 28 16 6 6 -- based on performance measures 32.7% 12.2% 12.2% Roles, responsibilities, and risks are both 28 22 1 5 clearly defined and allocated between public -- 44.9% 2.0% 10.2% and private partners 13 2 11 Other (specify): -- -- 4.1% 22.4% *Percentage indicates proportion of total surveys, including those that returned no response to Q6. All items will be important if/when PPP proposals become active [State] does not routinely use PPPs. These are the considerations that we have used in trying to get legislation passed. 7) The following tables list some of the public concerns that could be raised throughout the decision-making and negotiation process of PPPs. In your opinion, how important are the following concerns? Please note that Questions 7a through 7d are required. 7a. Concerns related to project selection and delivery Very Somewhat Not Important Important Important Unclear/unavailability of criteria for selection of PPPs 22 22 5 44.9% 44.9% 10.2% Considerations of alternative PPP models 15 30 4 30.6% 61.2% 8.2% Consistency with 3C (i.e., continuing, comprehensive, and 26 19 4 cooperative) transportation planning process 53.1% 38.8% 8.2% Effect on overall transportation network/system 35 14 -- 71.4% 28.6% 7b. Concerns related to evaluation of PPP proposals Very Somewhat Not Important Important Important Availability and consistent application of evaluation tools, such 40 8 1 as Value for Money and benefit-cost analysis 81.6% 16.3% 2.0%

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69 Risk allocation between public and private sectors 43 6 -- 87.8% 12.2% Potential excessive rates of return to private investors 35 13 1 71.4% 26.5% 2.0% Relative roles of public and private sector 35 12 2 71.4% 24.5% 4.1% Effect of PPPs on state or local bonding capacity 21 17 11 42.9% 34.7% 22.4% 7c. Concerns related to transparency and public process Very Somewhat Not Important Important Important Lack of public input opportunities through decision-making 27 19 3 process 55.1% 38.8% 6.1% Transparency and efficacy of the PPP process, including 33 15 1 confidentiality, conflict of interests, intellectual property. 67.3% 30.6% 2.0% Lack of time for appropriate legislative branch review or no 23 17 9 legislative branch review 46.9% 34.7% 18.4% 22 20 7 Use of upfront proceeds 44.9% 40.8% 14.3% 7d. Concerns related to terms of PPP agreement Very Somewhat Not Important Important Important Extent to which terms of agreement protect the public interest 46 3 -- 93.9% 6.1% Liability, indemnification, insurance provisions 39 9 1 79.6% 18.4% 2.0% Revenue sharing formula 34 13 2 69.4% 26.5% 4.1% Clauses that limit public ability to make competing 24 22 3 improvements 49.0% 44.9% 6.1% Unanticipated event provisions 24 23 2 49.0% 46.9% 4.1% Impacts on existing revenues 31 11 7 63.3% 22.4% 14.3% Toll-setting policies (e.g., schedule of rate increases and 33 7 9 indexing factors) 67.3% 14.3% 18.4% Safety, enforcement, and national security issues 27 21 1 55.1% 42.9% 2.0% Initial construction warranties and maintenance standards 37 12 -- 75.5% 24.5% Termination, buyouts, and hand-back provisions 40 8 1 81.6% 16.3% 2.0% Environmental safeguards 35 13 1 71.4% 26.5% 2.0% Labor relations issues 15 26 8 30.6% 53.1% 16.3% Asset control and ownership, including commercial 33 13 3

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70 development rights 67.3% 26.5% 6.1% Terms related to condition of asset at end of concession 41 7 1 83.7% 14.3% 2.0% Implications of foreign control of domestic assets and work 12 24 13 24.5% 49.0% 26.5% Opportunity for local contractors/consultants to participate 33 13 3 67.3% 26.5% 6.1% Data privacy and ownership 18 25 6 36.7% 51.0% 12.2% Impact of project on alternative routes 27 19 3 55.1% 38.8% 6.1% Trade agreement implications 9 26 14 18.4% 53.1% 28.6% Length of agreement 30 17 2 61.2% 34.7% 4.1% 7e. In the box below, please list any other concerns, and how important they are to you or your agency. Competition between new border crossing and existing private toll bridge--very important. As [DOT] has not used PPPs, these are the anticipated levels of concern we would consider upon considering entering a PPP. [State]'s rural nature and low traffic volumes (relative) preclude tolling as a viable revenue option. There is not currently legislation in [state] to allow PPP other than design build. Some interest has been generated by the [Legislature] on PPPs. [DOT] needs to gain expertise in this area quickly. Our responses to this survey mostly apply to our design-build contracts--not to other kinds of PPPs. All public concerns are critical to the [DOT]. The public represents our primary customer base. [State] is a right to work state with respect to labor issues and has a [mandate] with respect to access to any and all project documentation that is very strict with respect to making any information confidential. 8) The table below contains a list of technical skills that may be used to support more effective consideration of PPPs. For each one, please indicate whether your agency currently has high, moderate, or low capability in each of these areas. High Moderate Low capability capability capability Non-standard procurement or bidding capabilities 14 19 16 28.6% 38.8% 32.7% Legislative research and analysis 24 20 5 49.0% 40.8% 10.2% Asset planning and evaluation 17 25 7 34.7% 51.0% 14.3% Performance specification 24 17 8 49.0% 34.7% 16.3% Risk assessment 12 28 9 24.5% 57.1% 18.4% Benefit-cost analyses 13 30 6 26.5% 61.2% 12.2% Financial management and analysis 24 22 3 49.0% 44.9% 6.1%

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71 Management oversight 27 21 1 55.1% 42.9% 2.0% Contract negotiation and performance-based 18 28 3 Contracting 36.7% 57.1% 6.1% Other technical skills not listed above 1 19 29 2.0% 38.8% 59.2% Economic/risk analysis skills for evaluation purposes are lacking. Engineering skills much better developed. With respect to those items marked as moderate, we are currently in the process of negotiating several P3 contracts. As we progress through these negotiations our skill sets with respect to each of these areas continues to grow. [DOT] has highly capable staff, the rural nature of the state place limitations on the viability of implementing PPPs. Transportation system use fees are not a viable source of revenue--the federal program is critical. Limited experience from which to respond. 9) The table below lists various tools that may be used to select a private partner. Please indicate the degree to which your agency uses any of these tools when considering a PPP proposal. Use Use Use N/A (Do Not Frequently Sometimes Rarely Use) Benefit-cost analyses 14 15 2 18 28.6% 30.6% 4.1% 36.7% Internal Rate of Return/Net Present Value 13 9 5 22 analyses 26.5% 18.4% 10.2% 44.9% Value-for-Money/Public Sector comparators 9 9 6 25 18.4% 18.4% 12.2% 51.0% Traffic and Revenue Studies 17 5 6 21 34.7% 10.2% 12.2% 42.9% Risk assessment 16 7 4 22 32.7% 14.3% 8.2% 44.9% Availability Payment Amount/Net Present 11 8 8 22 value 22.4% 16.3% 16.3% 44.9% Independent evaluation from legal and/or 14 10 4 21 financial consultants 28.6% 20.4% 8.2% 44.9% Other (specify below): 3 1 38 -- 7.1% 2.4% 90.5% Technical competency We do not use PPPs As [DOT] has not used PPPs, these are anticipated levels of use if PPPs are considered. Agency would use all tools if/when P3 proposals actively considered None are currently applicable in [State], as we don't currently consider PPP proposals. Not currently considering a PPP Cannot respond due to minimal use of PPPs. Have not engaged in PPPs to date To date we have used all or some form of combination of these tolls for our internal vetting purposes as well as for external reporting requirements of [mandate]. Rated all N/A because we have not evaluated a proposal.

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72 Haven't considered highway related PPPs to any extent; therefore, have not had occasion to assess this question. The next two questions pertain to information used in making decisions about PPPs. If your agency has not yet seriously assessed possibilities for any highway-related PPPs, please click "Next Page" at the bottom of the screen and skip ahead to Question #12. 10) What information on PPP proposals is available to decision makers, and who provides the information? Select all that apply: Project Consultants and sponsor legal/financial Private This (e.g., state advisors investors Media (e.g., information DOT, toll contracted by bidding on Interest newspaper, is not authority) project sponsor the project groups TV, blogs) available Terms of agreement 14 13 11 5 4 1 28.6%* 26.5% 22.4% 10.2% 8.2% 2.0% Experience/qualification of 12 12 10 3 4 1 Proposers 24.5% 24.5% 20.4% 6.1% 8.2% 2.0% Risks transferred from and 15 11 8 3 2 2 retained by public sector 30.6% 22.4% 16.3% 6.1% 4.1% 4.1% Evaluation of 14 13 4 3 3 2 benefits/disbenefits to 28.6% 26.5% 8.2% 6.1% 6.1% 4.1% public sector PPP valuation studies (e.g., benefit-cost analysis, value- for-money analysis/public 14 14 5 2 2 1 sector comparators, traffic 28.6% 28.6% 10.2% 4.1% 4.1% 2.0% and revenue studies) provided by in-house staff or consultants Project cost estimates and 14 12 9 3 3 1 Schedule 28.6% 24.5% 18.4% 6.1% 6.1% 2.0% Amount of upfront 10 9 9 2 2 5 payment/revenue sharing 20.4% 18.4% 18.4% 4.1% 4.1% 10.2% (if long-term concession) Assumptions used by private 7 9 6 1 1 5 investors to determine 14.3% 18.4% 12.2% 2.0% 2.0% 10.2% project value Technical approach 14 12 11 3 2 1 28.6% 24.5% 22.4% 6.1% 4.1% 2.0% Other (specify in "Additional 1 11 -- -- -- -- Comments" box below): 2.0% 22.4% *Percentage indicates proportion of total surveys, including those that returned no response to Q10. [DOT] develops an internal project costs and finance plan that is used as a comparator to the proposer's submission. Our responses with respect to this question are directly related to who develops each subject area. By state law, all the above information is required to be provided to the public.

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73 11) In your opinion and based on the outcomes of your PPP project(s), was there some information that you did not have, but that could have been beneficial in the decision-making process? Of 15 responses: Yes 6 40% No 9 60% If you answered "yes," please explain: Costs/value of transferred risk Private investor's internal rate of return calculations No PPP projects completed. Knowledge of future would be helpful. Best practices or case studies would be beneficial Current toll PPPs are in development stages. More detailed Traffic and Revenue at onset of proposal review Public sector financing alternatives The next two questions pertain to training or educational resources related to PPPs. The questions below list various topics related to PPPs. For each of the following topics, please indicate whether you believe staff in your agency would benefit from training or other educational resources. Questions 12a through 12g are required. 12a. Getting Started with PPPs Definitely would Probably would Not likely to benefit benefit benefit The PPP concept, basic types, features, and tradeoffs 24 14 11 among them 49.0% 28.6% 22.4% How federal and state law can influence the use of 19 15 15 PPPs 38.8% 30.6% 30.6% What skills your agency needs in house, and what it 24 13 12 can outsource 49.0% 26.5% 24.5% 12b. Risk Management: Definitely would Probably would Not likely to benefit benefit benefit Diagnosing risks to both partners at each phase of a 31 13 5 project 63.3% 26.5% 10.2% 30 13 6 Where and when risk is best managed 61.2% 26.5% 12.2% 32 12 5 Valuation of different types of risk 65.3% 24.5% 10.2% 12c. Finance Issues: Definitely would Probably would Not likely to benefit benefit benefit

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74 How to assess the economic costs and benefits of a 32 12 5 given project 65.3% 24.5% 10.2% 23 12 14 How to use debt (including private activity bonds) 46.9% 24.5% 28.6% 27 13 9 How to utilize private capital 55.1% 26.5% 18.4% 23 16 10 Opportunities for in-kind contributions 46.9% 32.7% 20.4% 30 13 6 Possible revenue sources and negotiating terms of use 61.2% 26.5% 12.2% Differences in public and private sector financial 31 13 5 considerations 63.3% 26.5% 10.2% 12d. Procurement Considerations and Techniques: Definitely would Probably would Not likely to benefit benefit benefit 24 16 9 How to write RFPs that incorporate PPP concepts 49.0% 32.7% 18.4% Anticipating and managing private sector concerns 23 19 7 with process 46.9% 38.8% 14.3% 12e. Contracting: Definitely would Probably would Not likely to benefit benefit benefit How to write a contract that encourages innovation 30 15 4 and sharing of risk and rewards 61.2% 30.6% 8.2% 28 15 6 Best practices in leveraging private resources 57.1% 30.6% 12.2% Common failures of PPP contracts, and how they are 35 11 3 addressed 71.4% 22.4% 6.1% 12f. Managing PPP Projects: Definitely would Probably would Not likely to benefit benefit benefit 31 14 4 Unique oversight challenges of PPP projects 63.3% 28.6% 8.2% Techniques for monitoring technical and financial 33 11 5 performance 67.3% 22.4% 10.2% 12g. Public Awareness and Stakeholder Consultation: Definitely would Probably would Not likely to benefit benefit benefit 20 24 5 Identifying and engaging with key stakeholders 40.8% 49.0% 10.2% Anticipating and managing common public concerns 22 22 -- about PPPs 50% 50%

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75 FHWA provides some resources via the PPP Toolkit , partner websites such as the FHWA PPP website , and other relevant sites which can be accessed through the FHWA PPP website, including www.innovativefinance.org. This question contains two parts, and pertains to PPP websites, as well as other types of resources. First, please indicate how likely you or staff in your agency would be to use or participate in each of the following types of educational activities. Then, please indicate if you or staff in your agency has used these kinds of resources within the past two years. Participated Within Likelihood that Staff Would Benefit Past 2 (Two) Years? Somewhat Very likely likely Not likely Yes No Scan of 23 agencies with significant 15 22 12 21 28 experience in PPPs (34 days, including 30.6% 44.9% 24.5% 42.9% 57.1% overnight stay) Classroom training (12 days at or near your 23 16 10 11 38 office) 46.9% 32.7% 20.4% 22.4% 77.6% Classroom training (12 days, including 11 21 17 10 39 overnight stay) 22.4% 42.9% 34.7% 20.4% 79.6% Interactive workshop (half to full day, at or 20 18 11 14 35 near your office) 40.8% 36.7% 22.4% 28.6% 71.4% Interactive workshop (half to full day, off site, 8 24 17 8 41 including overnight stay) 16.3% 49.0% 34.7% 16.3% 83.7% Peer-to-peer exchange (one day, at or near 21 15 13 14 35 your office) 42.9% 30.6% 26.5% 28.6% 71.4% Peer-to-peer exchange (one day, off site, 9 23 17 17 32 including overnight stay) 18.4% 46.9% 34.7% 34.7% 65.3% On-line training modules (self-paced) 7 19 23 2 47 14.3% 38.8% 46.9% 4.1% 95.9% Webinar (Web- and telephone-assisted 11 19 19 10 39 seminar) 22.4% 38.8% 38.8% 20.4% 79.6% Web-based repository of case studies and 14 21 14 15 34 effective practices 28.6% 42.9% 28.6% 30.6% 69.4% 14) Are there any other public transportation agencies or authorities in your state that have used a PPP model for a project? Yes 14 28.6% No 35 71.4% Do you have any other comments or thoughts you would like to share? Our current PPP experience is limited in [state], but we anticipate that the Turnpike Authority will utilize this approach a great deal. No Encountered difficulties with survey program--Q15, I entered budget as $14 M and was not recognized. Took me a while to figure out where. Same for last Q--I entered our postal code (as we don't have zip codes). Same error statement was given as field is only designed for numbers (no letters). All is good tho!

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88 Do you have any other comments or thoughts you would like to share? Our current PPP experience is limited in [state], but we anticipate that the Turnpike Authority will utilize this approach a great deal. No The small size of [DOT]'s capital program and limited applicability of road tolling in [state] have prevented us from making use of PPPs so far. Nonetheless, we are developing this agency's capacity to invite and evaluate PPP proposals. [DOT] is interested in pursuing innovative financing mechanisms that are viable considering the rural characteristics of our state. If vehicle use or road user fees are pursued as a source of revenue for the Federal program, the distribution of those funds must reflect the need to invest in rural state transportation systems that provide critical connectivity between the country's population and industry centers. No attention to definition of PPP THE RESPONSES ARE NOT INTENDED TO APPLY TO INQUIRIES ABOUT TOLL ROADS There is no enabling legislation for PPPs in [state] other than tolling authority and design-build authority. No opportunities for PPPs in [state] have proven to be viable options. Currently, [DOT] is not actively pursuing the use of PPP's for delivery of our highway program. We have expressed several times our concern with the growing federal emphasis on PPP at the expense of continued federal support. In smaller states, we do not find this helpful and are scrambling to find opportunities for using PPP when our focus is on maintenance/preservation, we aren't building new capacity, and our AADT and populations don't appear sufficient to support most PPP constructs. We are in the process of trying to obtain PPP legislation. Most of our answers are predicated on our work gather data for this and the feasibility studies along with our pilot experience on the [Project] with [firm] as our private partner.

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89 III. Summary of Responses from Canadian Provinces 1) What types of Public-Private Partnerships (PPPs) have been considered in your agency? Select all that apply: Yes No Design-build 3 2 60% 40% Build-Operate-Transfer (BOT) 3 2 60% 40% Development and long-term concession of a new toll road with transfer of 2 3 revenue risk 40% 60% Development and long-term concession of a new toll road with availability 2 3 payments or shadow tolls 40% 60% Long-term asset lease of an existing toll road with transfer of revenue risk -- 5 100% Long-term asset lease of an existing toll road with availability payments or -- 5 shadow tolls 100% Added toll lanes on existing facilities with transfer of revenue risk -- 5 100% Added toll lanes on existing facilities with availability payments or shadow tolls -- 5 100% Congestion pricing (e.g., cordon tolls) with a PPP element 1 4 20% 80% Operations and Maintenance (O&M) Fee Service Contracts 2 3 40% 60% Program and Financial Management Fee Service Contracts -- 5 100% None -- 5 100% Other (please specify): 1 4 20% 80% Comments related to the respondents who specified " Other" : Hospital 2) Which one statement below best characterizes your agency ' s overall experience with PPPs? We have not yet seriously assessed possibilities for any highway-related PPPs. 2 40% We have one or more projects that may be candidates for a PPP. 1 20% We have received one or more proposals (solicited or unsolicited) from potential -- private partners. We have negotiated (or are negotiating) one or more contracts to enter into a PPP. -- We have completed at least one project that involved a PPP. 2 40% 3) Which one statement below best describes your agenc y' s overall readiness to identify and implement innovative finance methods, such as public-private partnerships?

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90 The agency needs to build a basic understanding of PPPs. 1 20% The agency needs some additional technical expertise to establish a partnership. 2 40% The agency has experience with design-build but is not yet involved in any projects -- financed with private capital. The agency needs minimal training or technical assistance. 2 40% 4) Please rate the extent to which your agency uses the following methods of financing transportation projects, other than PPPs. Please use the "Additional Comments " box to describe "other " methods. Use Use Use N/A Frequently Sometimes Rarely (do not use) Traditional procurement 5 -- -- -- 100% Public financing 2 3 -- -- 40% 60% Federal financing tools (e.g., TIFIA, 2 3 -- -- GARVEES) 40% 60% Creation of non-profit, quasi-public 1 4 -- -- entities 20% 80% Design-build 2 3 -- -- 40% 60% Others (please describe below): 3 -- -- -- 60% No additional comments. The next few questions pertain to how you (or your agency) make decisions regarding PPPs. If your agency has not yet seriously assessed possibilities for any highway-related PPPs, please click "Next Page" at the bottom of the screen and skip ahead to Question #7. 5) What criteria are used to decide whether a PPP approach should be used for project delivery in your agency? Total Extremely Somewhat Not Responses Important Important Important N/A Project is an urgent transportation need 3 1 1 1 -- 20%* 20% 20% Strong political, public, and institutional 3 1 2 -- -- support 20% 40% Project acceleration potential 3 2 1 -- -- 40% 20% Project could generate sufficient revenues 3 1 2 -- -- to attract private investment 20% 40% Lack of traditional funding 3 1 1 1 -- 20% 20% 20%

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91 High-risk project that could be better 3 1 1 1 -- managed by private sector 20% 20% 20% Unsolicited proposal 3 1 2 -- -- 20% 40% Other (specify below): 2 2 -- -- -- 40% *Percentage indicates proportion of total surveys, including those that returned no response to Q5. No additional comments. 6) How important have the following measures been in protecting the public' s interest in your state? If your agency has not used a particular measure, please indicate "(N/A)." Total Extremely Somewhat Not Responses Important Important Important N/A Comprehensive evaluation of benefits and 3 3 -- -- -- costs of PPP proposals 60%* Public participation and opportunities for 3 1 2 -- -- input in decision-making process 20% 40% Providing public access to information 3 1 2 -- -- related to PPP proposals 20% 40% Avoidance of conflict of interests 3 3 -- -- -- 60% Terms of agreement are developed taking 3 2 1 -- -- into consideration public concerns 40% 20% Development of construction, maintenance 3 3 -- -- -- and operations standards that meet or 60% exceed standards for non-PPP projects Continuous project monitoring and 3 3 -- -- -- evaluation based on performance 60% measures Roles, responsibilities, and risks are both 3 3 -- -- -- clearly defined and allocated between 60% public and private partners Other (specify): 2 -- -- -- 2 40% * Percentage indicates proportion of total surveys, including those that returned no response to Q6. No additional comments. 7) The following tables list some of the public concerns that could be raised throughout the decision-making and negotiation process of PPPs. In your opinion, how important are the following concerns? Please note that questions 7a through 7d are required. 7a. Concerns related to project selection and delivery Very Somewhat Not Important Important Important Unclear/unavailability of criteria for selection of PPPs 1 3 1 20% 60% 20% Considerations of alternative PPP models -- 4 1

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92 80% 20% Consistency with 3C (i.e., continuing, comprehensive and 2 1 2 cooperative) transportation planning process 40% 20% 40% Effect on overall transportation network/system 3 2 -- 60% 40% 7b. Concerns related to evaluation of PPP proposals Very Somewhat Not Important Important Important Availability and consistent application of evaluation tools, such 4 1 -- as Value for Money and benefit-cost analysis 80% 20% Risk allocation between public and private sectors 5 -- -- 100% Potential excessive rates of return to private investors 4 1 -- 80% 20% Relative roles of public and private sector 2 2 1 40% 40% 20% Effect of PPPs on state or local bonding capacity 2 3 -- 40% 60% 7c. Concerns related to transparency and public process Very Somewhat Not Important Important Important Lack of public input opportunities through decision-making 1 4 -- process 20% 80% Transparency and efficacy of the PPP process, including 3 2 -- confidentiality, conflict of interests, intellectual property. 60% 40% Lack of time for appropriate legislative branch review or no 1 3 1 legislative branch review 20% 60% 20% Use of upfront proceeds 1 2 2 20% 40% 40% 7d. Concerns related to terms of PPP agreement Very Somewhat Not Important Important Important Extent to which terms of agreement protect the public interest 5 -- -- 100% Liability, indemnification, insurance provisions 5 -- -- 100% Revenue sharing formula 3 1 1 60% 20% 20% Clauses that limit public ability to make competing 2 2 1 improvements 40% 40% 20% Unanticipated event provisions 2 3 40% 60% Impacts on existing revenues 2 1 2 40% 20% 40% Toll-setting policies (e.g., schedule of rate increases and 2 -- 3

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93 indexing factors) 40% 60% Safety, enforcement and national security issues 3 1 1 60% 20% 20% Initial construction warranties and maintenance standards 5 -- -- 100% Termination, buyouts, and hand-back provisions 4 1 -- 80% 20% Environmental safeguards 4 1 -- 80% 20% Labor relations issues 2 1 2 40% 20% 40% Asset control and ownership, including commercial 3 1 1 development rights 60% 20% 20% Terms related to condition of asset at end of concession 5 -- -- 100% Implications of foreign control of domestic assets and work 2 3 40% 60% Opportunity for local contractors/consultants to participate 2 2 1 40% 40% 20% Data privacy and ownership 2 2 1 40% 40% 20% Impact of project on alternative routes 2 1 2 40% 20% 40% Trade agreement implications 5 -- -- 100% Length of agreement 4 1 -- 80% 20% 7e. In the box below, please list any other concerns, and how important they are to you or your agency. No responses. 8) The table below contains a list of technical skills that may be used to support more effective consideration of PPPs. For each one, please indicate whether your agency currently has high, moderate, or low capability in each of these areas. High capability Moderate capability Low capability Non-standard procurement or bidding capabilities 2 3 -- 40% 60% Legislative research and analysis 1 3 1 20% 60% 20% Asset planning and evaluation 2 2 1 40% 40% 20% Performance specification 2 1 2 40% 20% 40% Risk assessment 3 1 1 60% 20% 20% Benefit-cost analyses 2 2 1 40% 40% 20% Financial management and analysis 3 1 1

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94 60% 20% 20% Management oversight 4 1 -- 80% 20% Contract negotiation and performance-based 4 1 -- contracting 80% 20% Other technical skills not listed above 1 3 1 20% 60% 20% No responses. 9) The table below lists various tools that may be used to select a private partner. Please indicate the degree to which your agency uses any of these tools when considering a PPP proposal. Use Use Use N/A (do not Frequently Sometimes Rarely use) Benefit-cost analyses 2 2 1 -- 40% 40% 20% Internal Rate of Return/Net Present Value analyses 2 1 2 -- 40% 20% 40% Value-for-Money/Public Sector comparators 2 1 1 1 40% 20% 20% 20% Traffic and Revenue Studies 1 1 3 -- 20% 20% 60% Risk assessment 1 2 1 1 20% 40% 20% 20% Availability Payment Amount/Net Present Value 3 1 1 -- 60% 20% 20% Independent evaluation from legal and/or financial 1 2 1 1 consultants 20% 40% 20% 20% Other (specify below): -- -- -- -- No responses. The next two questions pertain to information used in making decisions about PPPs. If your agency has not yet seriously assessed possibilities for any highway-related PPPs, please click "Next Page " at the bottom of the screen and skip ahead to Question #12. 10) What information on PPP proposals is available to decision makers, and who provides the information? Select all that apply: Project Consultants and sponsor legal/financial Private This (e.g., state advisors investors Media (eg.,. information DOT, toll contracted by bidding on Interest newspaper, is not authority) project sponsor the project groups TV, blogs) available 2 1 1 Terms of agreement -- -- -- 40%* 20% 20% Experience/qualification of 2 1 -- -- -- -- proposers 40% 20% Risks transferred from and 2 1 -- -- -- -- retained by public sector 40% 20%

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95 Evaluation of 2 1 benefits/disbenefits to -- -- -- -- 40% 20% public sector PPP valuation studies (e.g., benefit-cost analysis, value-for- money analysis/public 2 1 sector comparators, -- -- -- -- 40% 20% traffic and revenue studies) provided by in- house staff or consultants Project cost estimates and 2 1 -- -- -- -- schedule 40% 20% Amount of upfront payment/revenue 1 1 -- -- -- -- sharing (if long-term 20% 20% concession) Assumptions used by 1 private investors to -- -- -- -- -- 20% determine project value 2 1 Technical approach -- -- -- -- 40% 20% Other (specify in 2 "Additional Comments" -- -- -- -- -- 40% box below): *Percentage indicates proportion of total surveys, including those that returned no response to Q10. 11) In your opinion and based on the outcomes of your PPP project(s), was there some information that you did not have, but that could have been beneficial in the decision-making process? Of two responses: Yes -- No 2 100% If you answered "yes," please explain: No responses. The next two questions pertain to training or educational resources related to PPPs. The questions below list various topics related to PPPs. For each of the following topics, please indicate whether you believe staff in your agency would benefit from training or other educational resources. Questions 12a through 12g are required. 12a. Getting Started with PPPs Definitely would Probably would Not likely to benefit benefit benefit The PPP concept, basic types, features and 2 -- 3

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96 tradeoffs among them 40% 60% How federal and state law can influence the use 1 4 -- of PPPs 20% 80% What skills your agency needs in house, and 2 3 -- what it can outsource 40% 60% 12b. Risk Management: Definitely would Probably would Not likely to benefit benefit benefit Diagnosing risks to both partners at each phase 2 2 1 of a project 40% 40% 20% Where and when risk is best managed 3 1 1 60% 20% 20% Valuation of different types of risk 4 1 -- 80% 20% 12c. Finance Issues: Definitely would Probably would Not likely to benefit benefit benefit How to assess the economic costs and benefits of 2 2 1 a given project 40% 40% 20% How to use debt (including private activity bonds ) 1 4 -- 20% 80% How to utilize private capital 2 3 -- 40% 60% Opportunities for in-kind contributions 1 1 3 20% 20% 60% Possible revenue sources and negotiating terms 2 3 -- of use 40% 60% Differences in public and private sector financial 4 1 -- considerations 80% 20% 12d. Procurement Considerations and Techniques: Definitely would Probably would Not likely to benefit benefit benefit How to write RFPs that incorporate PPP concepts 2 1 2 40% 20% 40% Anticipating and managing private sector 2 2 1 concerns with process 40% 40% 20% 12e. Contracting: Definitely would Probably would Not likely to benefit benefit benefit How to write a contract that encourages 3 1 1 innovation and sharing of risk and rewards 60% 20% 20% Best practices in leveraging private resources 2 3 -- 40% 60%

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97 Common failures of PPP contracts, and how they 3 1 1 are addressed 60% 20% 20% 12f. Managing PPP Projects: Definitely would Probably would Not likely to benefit benefit benefit Unique oversight challenges of PPP projects 3 1 1 60% 20% 20% Techniques for monitoring technical and financial 2 2 1 performance 40% 40% 20% 12g. Public Awareness and Stakeholder Consultation: Definitely would Probably would Not likely to benefit benefit benefit Identifying and engaging with key 1 3 1 stakeholders 20% 60% 20% Anticipating and managing common public 2 2 1 Concerns about PPPs 40% 40% 20% FHWA provides some resources via the PPP Toolkit , partner websites like the FHWA PPP website , and other relevant sites which can be accessed through the FHWA PPP website, including www.innovativefinance.org. This question contains two parts, and pertains to PPP websites, as well as other types of resources. First, please indicate how likely you or staff in your agency would be to use or participate in each of the following types of educational activities. Then, please indicate if you or staff in your agency has used these kinds of resources within the past two years. Likelihood that Staff Would Participated Within Past 2 Benefit (Two) Years? Very Somewhat Not Yes No likely likely likely Scan of 23 agencies with significant experience 1 1 3 2 3 in PPPs (34 days, including overnight stay) 20% 20% 60% 40% 60% Classroom training (12 days at or near your 2 1 2 2 3 office) 40% 20% 40% 40% 60% Classroom training (12 days, including overnight 2 1 2 2 3 stay) 40% 20% 40% 40% 60% Interactive workshop (half to full day, at or near 2 1 2 2 3 your office) 40% 20% 40% 40% 60% Interactive workshop (half to full day, off site, 1 2 2 2 3 including overnight stay) 20% 40% 40% 40% 60% Peer-to-peer exchange (one day, at or near your 3 -- 2 2 3 office) 60% 40% 40% 60% Peer-to-peer exchange (one day, off site, 2 1 2 2 3 including overnight stay) 40% 20% 40% 40% 60% On-line training modules (self-paced) 1 1 3 1 4 20% 20% 60% 20% 80% Webinar (web- and telephone-assisted seminar) -- 3 2 2 3

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98 60% 40% 40% 60% Web-based repository of case studies and -- 3 2 1 4 Effective practices 60% 40% 20% 80% 14) Are there any other public transportation agencies or authorities in your state that have used a PPP model for a project? Yes 2 40% No 3 60% Do you have any other comments or thoughts you would like to share? Encountered difficulties with survey program--Q15, I entered budget as 14 M and was not recognized. Took me a while to figure out where. Same for last Q--I entered our Postal Code (as we don't have zip codes). Same error statement was given as field is only designed for numbers (no letters). All is good tho!