Public-Sector Decision Making for Public-Private Partnerships (2009)

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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 79.6% 10 20.4% Build-Operate-Transfer (BOT) 8 16.3% 41 83.7% Development and long-term concession of a new toll road with transfer of revenue risk 18 36.7% 31 63.3% Development and long-term concession of a new toll road with availability payments or shadow tolls 10 20.4% 39 79.6% Long-term asset lease of an existing toll road with transfer of revenue risk 2 4.1% 47 95.9% Long-term asset lease of an existing toll road with availability payments or shadow tolls 2 4.1% 47 95.9% Added toll lanes on existing facilities with transfer of revenue risk 10 20.4% 39 79.6% Added toll lanes on existing facilities with availability payments or shadow tolls 7 14.3% 42 85.7% Congestion pricing (e.g., cordon tolls) with a PPP element 11 22.4% 38 77.6% Operations and Maintenance (O&M) Fee Service Contracts 16 32.7% 33 67.3% Program and Financial Management Fee Service Contracts 3 6.1% 46 93.9% None 4 8.2% 45 91.8% Other (please specify): 11 22.4% 38 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

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 private partners. 5 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 financed with private capital. 14 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 Frequently Use Sometimes Use Rarely N/A (do not use) Traditional procurement 4898.0% — — 1 2.0% Public financing 2551.0% 9 18.4% 3 6.1% 12 24.5% Federal financing tools (e.g., TIFIA, GARVEES) 4 8.2% 19 38.8% 10 20.4% 16 32.7% Creation of non-profit, quasi-public entities 12.0% 4 8.2% 12 24.5% 32 65.3% Design-build 612.2% 15 30.6% 11 22.4% 17 34.7% Others (please describe below): 36.1% 2 4.1% 1 2.0% 16 32.7% Comments related to the respondents who specified “Other”: Use frequently None Commission issued bonds

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 Responses Extremely Important Somewhat Important Not Important N/A Project is an urgent transportation need 29 16 32.7%* 7 14.3% 2 4.1% 4 8.2% Strong political, public, and institutional Support 30 17 34.7% 8 16.3% — 5 10.2% Project acceleration potential 30 17 34.7% 8 16.3% — 5 10.2% Project could generate sufficient revenues to attract private investment 30 15 30.6% 6 12.2% — 9 18.4% Lack of traditional funding 29 18 36.7% 5 10.2% 1 2.0% 5 10.2% High-risk project that could be better managed by private sector 29 8 16.3% 10 20.4% 6 12.2% 5 10.2% Unsolicited proposal 30 1 2.0% 5 10.2% 11 22.4% 13 26.5% Other (specify below): 14 1 2.0% — — 13 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

68 Responses Important Important Important N/A Comprehensive evaluation of benefits and costs of PPP proposals 28 17 34.7%* 4 8.2% — 7 14.3* Public participation and opportunities for input in decision-making process 28 15 30.6% 8 16.3% — 5 10.2% Providing public access to information related to PPP proposals 28 11 22.4% 10 20.4% 1 2.0% 6 12.2% Avoidance of conflict of interests 27 19 38.8% 5 10.2% — 3 6.1% Terms of agreement are developed taking into consideration public concerns 28 19 38.8% 4 8.2% — 5 10.2% Development of construction, maintenance and operations standards that meet or exceed standards for non-PPP projects 28 19 38.8% 2 4.1% — 7 14.3% Continuous project monitoring and evaluation based on performance measures 28 16 32.7% 6 12.2% — 6 12.2% Roles, responsibilities, and risks are both clearly defined and allocated between public and private partners 28 22 44.9% 1 2.0% — 5 10.2% Other (specify): 13 2 4.1% — — 11 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 Important Somewhat Important Not Important Unclear/unavailability of criteria for selection of PPPs 22 44.9% 22 44.9% 5 10.2% Considerations of alternative PPP models 15 30.6% 30 61.2% 4 8.2% Consistency with 3C (i.e., continuing, comprehensive, and cooperative) transportation planning process 26 53.1% 19 38.8% 4 8.2% Effect on overall transportation network/system 35 71.4% 14 28.6% — 7b. Concerns related to evaluation of PPP proposals Very Important Somewhat Important Not Important Availability and consistent application of evaluation tools, such as Value for Money and benefit-cost analysis 40 81.6% 8 16.3% 1 2.0%

69 Risk allocation between public and private sectors 43 87.8% 6 12.2% — Potential excessive rates of return to private investors 35 71.4% 13 26.5% 1 2.0% Relative roles of public and private sector 35 71.4% 12 24.5% 2 4.1% Effect of PPPs on state or local bonding capacity 21 42.9% 17 34.7% 11 22.4% 7c. Concerns related to transparency and public process Very Important Somewhat Important Not Important Lack of public input opportunities through decision-making process 27 55.1% 19 38.8% 3 6.1% Transparency and efficacy of the PPP process, including confidentiality, conflict of interests, intellectual property. 33 67.3% 15 30.6% 1 2.0% Lack of time for appropriate legislative branch review or no legislative branch review 23 46.9% 17 34.7% 9 18.4% Use of upfront proceeds 2244.9% 20 40.8% 7 14.3% 7d. Concerns related to terms of PPP agreement Very Important Somewhat Important Not Important Extent to which terms of agreement protect the public interest 46 93.9% 3 6.1% — Liability, indemnification, insurance provisions 39 79.6% 9 18.4% 1 2.0% Revenue sharing formula 34 69.4% 13 26.5% 2 4.1% Clauses that limit public ability to make competing improvements 24 49.0% 22 44.9% 3 6.1% Unanticipated event provisions 24 49.0% 23 46.9% 2 4.1% Impacts on existing revenues 31 63.3% 11 22.4% 7 14.3% Toll-setting policies (e.g., schedule of rate increases and indexing factors) 33 67.3% 7 14.3% 9 18.4% Safety, enforcement, and national security issues 27 55.1% 21 42.9% 1 2.0% Initial construction warranties and maintenance standards 37 75.5% 12 24.5% — Termination, buyouts, and hand-back provisions 40 81.6% 8 16.3% 1 2.0% Environmental safeguards 35 71.4% 13 26.5% 1 2.0% Labor relations issues 15 30.6% 26 53.1% 8 16.3% Asset control and ownership, including commercial 33 13 3

70 development rights 67.3% 26.5% 6.1% Terms related to condition of asset at end of concession 41 83.7% 7 14.3% 1 2.0% Implications of foreign control of domestic assets and work 12 24.5% 24 49.0% 13 26.5% Opportunity for local contractors/consultants to participate 33 67.3% 13 26.5% 3 6.1% Data privacy and ownership 18 36.7% 25 51.0% 6 12.2% Impact of project on alternative routes 27 55.1% 19 38.8% 3 6.1% Trade agreement implications 9 18.4% 26 53.1% 14 28.6% Length of agreement 30 61.2% 17 34.7% 2 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 capability Moderate capability Low capability Non-standard procurement or bidding capabilities 14 28.6% 19 38.8% 16 32.7% Legislative research and analysis 24 49.0% 20 40.8% 5 10.2% Asset planning and evaluation 17 34.7% 25 51.0% 7 14.3% Performance specification 24 49.0% 17 34.7% 8 16.3% Risk assessment 12 24.5% 28 57.1% 9 18.4% Benefit-cost analyses 13 26.5% 30 61.2% 6 12.2% Financial management and analysis 24 49.0% 22 44.9% 3 6.1%

71 Management oversight 27 55.1% 21 42.9% 1 2.0% Contract negotiation and performance-based Contracting 18 36.7% 28 57.1% 3 6.1% Other technical skills not listed above 1 2.0% 19 38.8% 29 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 Frequently Use Sometimes Use Rarely N/A (Do Not Use) Benefit-cost analyses 14 28.6% 15 30.6% 2 4.1% 18 36.7% Internal Rate of Return/Net Present Value analyses 13 26.5% 9 18.4% 5 10.2% 22 44.9% Value-for-Money/Public Sector comparators 9 18.4% 9 18.4% 6 12.2% 25 51.0% Traffic and Revenue Studies 17 34.7% 5 10.2% 6 12.2% 21 42.9% Risk assessment 16 32.7% 7 14.3% 4 8.2% 22 44.9% Availability Payment Amount/Net Present value 11 22.4% 8 16.3% 8 16.3% 22 44.9% Independent evaluation from legal and/or financial consultants 14 28.6% 10 20.4% 4 8.2% 21 44.9% Other (specify below): 3 7.1% — 1 2.4% 38 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.

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 sponsor (e.g., state DOT, toll authority) Consultants and legal/financial advisors contracted by project sponsor Private investors bidding on the project Interest groups Media (e.g., newspaper, TV, blogs) This information is not available Terms of agreement 14 28.6%* 13 26.5% 11 22.4% 5 10.2% 4 8.2% 1 2.0% Experience/qualification of Proposers 12 24.5% 12 24.5% 10 20.4% 3 6.1% 4 8.2% 1 2.0% Risks transferred from and retained by public sector 15 30.6% 11 22.4% 8 16.3% 3 6.1% 2 4.1% 2 4.1% Evaluation of benefits/disbenefits to public sector 14 28.6% 13 26.5% 4 8.2% 3 6.1% 3 6.1% 2 4.1% PPP valuation studies (e.g., benefit-cost analysis, value- for-money analysis/public sector comparators, traffic and revenue studies) provided by in-house staff or consultants 14 28.6% 14 28.6% 5 10.2% 2 4.1% 2 4.1% 1 2.0% Project cost estimates and Schedule 14 28.6% 12 24.5% 9 18.4% 3 6.1% 3 6.1% 1 2.0% Amount of upfront payment/revenue sharing (if long-term concession) 10 20.4% 9 18.4% 9 18.4% 2 4.1% 2 4.1% 5 10.2% Assumptions used by private investors to determine project value 7 14.3% 9 18.4% 6 12.2% 1 2.0% 1 2.0% 5 10.2% Technical approach 14 28.6% 12 24.5% 11 22.4% 3 6.1% 2 4.1% 1 2.0% Other (specify in “Additional Comments” box below): 1 2.0% — — — — 11 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.

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 benefit Probably would benefit Not likely to benefit The PPP concept, basic types, features, and tradeoffs among them 24 49.0% 14 28.6% 11 22.4% How federal and state law can influence the use of PPPs 19 38.8% 15 30.6% 15 30.6% What skills your agency needs in house, and what it can outsource 24 49.0% 13 26.5% 12 24.5% 12b. Risk Management: Definitely would benefit Probably would benefit Not likely to benefit Diagnosing risks to both partners at each phase of a project 31 63.3% 13 26.5% 5 10.2% Where and when risk is best managed 30 61.2% 13 26.5% 6 12.2% Valuation of different types of risk 32 65.3% 12 24.5% 5 10.2% 12c. Finance Issues: Definitely would benefit Probably would benefit Not likely to benefit

74 How to assess the economic costs and benefits of a given project 32 65.3% 12 24.5% 5 10.2% How to use debt (including private activity bonds) 2346.9% 12 24.5% 14 28.6% How to utilize private capital 2755.1% 13 26.5% 9 18.4% Opportunities for in-kind contributions 2346.9% 16 32.7% 10 20.4% Possible revenue sources and negotiating terms of use 3061.2% 13 26.5% 6 12.2% Differences in public and private sector financial considerations 31 63.3% 13 26.5% 5 10.2% 12d. Procurement Considerations and Techniques: Definitely would benefit Probably would benefit Not likely to benefit How to write RFPs that incorporate PPP concepts 2449.0% 16 32.7% 9 18.4% Anticipating and managing private sector concerns with process 23 46.9% 19 38.8% 7 14.3% 12e. Contracting: Definitely would benefit Probably would benefit Not likely to benefit How to write a contract that encourages innovation and sharing of risk and rewards 30 61.2% 15 30.6% 4 8.2% Best practices in leveraging private resources 2857.1% 15 30.6% 6 12.2% Common failures of PPP contracts, and how they are addressed 35 71.4% 11 22.4% 3 6.1% 12f. Managing PPP Projects: Definitely would benefit Probably would benefit Not likely to benefit Unique oversight challenges of PPP projects 3163.3% 14 28.6% 4 8.2% Techniques for monitoring technical and financial performance 33 67.3% 11 22.4% 5 10.2% 12g. Public Awareness and Stakeholder Consultation: Definitely would benefit Probably would benefit Not likely to benefit Identifying and engaging with key stakeholders 2040.8% 24 49.0% 5 10.2% Anticipating and managing common public concerns about PPPs 22 50% 22 50% —

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. Likelihood that Staff Would Benefit Participated Within Past 2 (Two) Years? Very likely Somewhat likely Not likely Yes No Scan of 2–3 agencies with significant experience in PPPs (3–4 days, including overnight stay) 15 30.6% 22 44.9% 12 24.5% 21 42.9% 28 57.1% Classroom training (1–2 days at or near your office) 23 46.9% 16 32.7% 10 20.4% 11 22.4% 38 77.6% Classroom training (1–2 days, including overnight stay) 11 22.4% 21 42.9% 17 34.7% 10 20.4% 39 79.6% Interactive workshop (half to full day, at or near your office) 20 40.8% 18 36.7% 11 22.4% 14 28.6% 35 71.4% Interactive workshop (half to full day, off site, including overnight stay) 8 16.3% 24 49.0% 17 34.7% 8 16.3% 41 83.7% Peer-to-peer exchange (one day, at or near your office) 21 42.9% 15 30.6% 13 26.5% 14 28.6% 35 71.4% Peer-to-peer exchange (one day, off site, including overnight stay) 9 18.4% 23 46.9% 17 34.7% 17 34.7% 32 65.3% On-line training modules (self-paced) 7 14.3% 19 38.8% 23 46.9% 2 4.1% 47 95.9% Webinar (Web- and telephone-assisted seminar) 11 22.4% 19 38.8% 19 38.8% 10 20.4% 39 79.6% Web-based repository of case studies and effective practices 14 28.6% 21 42.9% 14 28.6% 15 30.6% 34 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!

76 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 PPPs 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 to gather data for this and the feasibility studies along with our pilot experience on the [Project] with [firm] as our private partner. II. Summary of Responses from U.S. States 1) What types of Public-Private Partnerships (PPPs) have been considered in your agency? Select all that apply: Yes No Design-build 36 81.8% 8 18.2% Build-Operate-Transfer (BOT) 5 11.4% 39 88.6% Development and long-term concession of a new toll road with transfer of revenue risk 16 36.4% 28 63.6% Development and long-term concession of a new toll road with availability payments or shadow tolls 8 18.2% 36 81.8% Long-term asset lease of an existing toll road with transfer of revenue risk 2 4.5% 42 95.5% Long-term asset lease of an existing toll road with availability payments or shadow tolls 10 22.7% 34 77.3% Added toll lanes on existing facilities with transfer of revenue risk 7 15.9% 37 84.1% Added toll lanes on existing facilities with availability payments or shadow tolls 10 22.7% 34 77.3% Congestion pricing (e.g., cordon tolls) with a PPP element 14 31.8% 30 68.2% Operations and Maintenance (O&M) Fee Service Contracts 3 6.8% 41 93.2% Program and Financial Management Fee Service Contracts 4 9.1% 40 90.9%

77 None 10 22.7% 34 77.3% Other (please specify): 10 22.7% 34 77.3% 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. 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 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. 18 40.9% We have one or more projects that may be candidates for a PPP. 9 20.5% We have received one or more proposals (solicited or unsolicited) from potential private partners. 5 11.4% We have negotiated (or are negotiating) one or more contracts to enter into a PPP. 3 6.8% We have completed at least one project that involved a PPP. 9 20.5% 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. 6 13.6% The agency needs some additional technical expertise to establish a partnership. 11 25.0% The agency has experience with design-build but is not yet involved in any projects financed with private capital. 14 31.8% The agency needs minimal training or technical assistance. 13 29.5% 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.

78 Use Frequently Use Sometimes Use Rarely N/A (Do Not Use) Traditional procurement 43 97.7% — — 1 2.3% Public financing 25 56.8% 8 18.2% 2 4.5% 9 20.5% Federal financing tools (e.g., TIFIA, GARVEES) 4 9.1% 18 40.9% 9 20.5% 13 29.5% Creation of non-profit, quasi-public entities 1 2.3% 4 9.1% 11 25.0% 28 63.6% Design-build 6 13.6% 15 34.1% 9 20.5% 14 31.8% Others (please describe below): 3 6.8% 2 4.5% 1 2.3% 13 29.5% Comments related to the respondents who specified “Other”: Use frequently None Commission issued bonds 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 PPPs 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 Responses Extremely Important Somewhat Important Not Important N/A Project is an urgent transportation need 26 15 34.1%* 6 13.6% 1 2.3% 4 9.1% Strong political, public, and institutional support 27 16 36.4% 6 13.6% — 5 11.4% Project acceleration potential 27 15 34.1% 7 15.9% — 5 11.4% Project could generate sufficient revenues to attract private investment 27 14 31.8% 6 13.6% — 7 15.9%

79 Lack of traditional funding 26 17 38.6% 4 9.1% — 5 11.4% High-risk project that could be better managed by private sector 26 7 15.9% 9 20.5% 5 11.4% 5 11.4% Unsolicited proposal 27 1 2.3% 5 11.4% 10 22.7% 11 25.0% Other (specify below): 12 1 2.3% — — 11 25.0% *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 Responses Extremely Important Somewhat Important Not Important N/A Comprehensive evaluation of benefits and costs of PPP proposals 25 14 31.8%* 4 9.1% — 7 15.9% Public participation and opportunities for input in decision-making process 25 14 31.8% 6 13.6% — 5 11.4% Providing public access to information related to PPP proposals 25 10 22.7% 8 18.2% 1 2.3% 6 13.6% Avoidance of conflict of interests 24 16 36.4% 5 11.4% — 3 6.8% Terms of agreement are developed taking into consideration public concerns 25 17 38.6% 3 6.8% — 5 11.4% Development of construction, maintenance and operations standards that meet or exceed standards for non-PPP projects 25 16 36.4% 2 4.5% — 7 15.9% Continuous project monitoring and evaluation based on performance measures 25 13 29.5% 6 13.6% — 6 13.6% Roles, responsibilities, and risks are both clearly defined and allocated between public and private partners 25 19 43.2% 1 2.3% — 5 11.4% Other (specify): 11 2 4.5% — — 9 20.5% *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.

80 7a. Concerns related to project selection and delivery Very Important Somewhat Important Not Important Unclear/unavailability of criteria for selection of PPPs 21 47.7% 19 43.2% 4 9.1% Considerations of alternative PPP models 15 34.1% 26 59.1% 3 6.8% Consistency with 3C (i.e., continuing, comprehensive, and cooperative) transportation planning process 24 54.5% 18 40.9% 2 4.5% Effect on overall transportation network/system 32 74.7% 12 27.3% — 7b. Concerns related to evaluation of PPP proposals Very Important Somewhat Important Not Important Availability and consistent application of evaluation tools, such as Value for Money and benefit-cost analysis 36 81.8% 7 15.9% 1 2.3% Risk allocation between public and private sectors 38 86.4% 6 13.6% — Potential excessive rates of return to private investors 31 70.5% 12 27.3% 1 2.3% Relative roles of public and private sector 33 75.0% 10 22.75 1 2.3% Effect of PPPs on state or local bonding capacity 21 47.7% 15 34.1% 8 18.2% 7c. Concerns related to transparency and public process Very Important Somewhat Important Not Important Lack of public input opportunities through decision-making process 23 52.3% 15 34.1% 3 6.8% Transparency and efficacy of the PPP process, including confidentiality, conflict of interests, intellectual property. 30 68.2% 13 29.5% 1 2.3% Lack of time for appropriate legislative branch review or no legislative branch review 22 50.0% 14 31.8% 8 18.2% Use of upfront proceeds 21 47.75 18 40.9% 5 11.4% 7d. Concerns related to terms of PPP agreement Very Important Somewhat Important Not Important Extent to which terms of agreement protect the public interest 41 93.2% 3 6.8% — Liability, indemnification, insurance provisions 34 77.3% 9 20.5% 1 2.3% Revenue sharing formula 31 70.55% 12 27.3% 1 2.3%

81 Clauses that limit public ability to make competing improvements 22 50.0% 20 45.5% 2 4.5% Unanticipated event provisions 22 50.0% 20 45.5% 2 4.5% Impacts on existing revenues 29 65.9% 10 22.7% 5 11.4% Toll-setting policies (e.g., schedule of rate increases and indexing factors) 31 70.5% 7 15.9% 6 13.6% Safety, enforcement, and national security issues 24 54.5% 20 45.5% — Initial construction warranties and maintenance standards 32 72.7% 12 27.3% — Termination, buyouts, and hand-back provisions 36 81.8% 7 15.9% 1 2.3% Environmental safeguards 31 70.5% 12 27.3% 1 2.3% Labor relations issues 13 29.5% 25 56.8% 6 13.6% Asset control and ownership, including commercial development rights 30 68.2% 12 27.3% 2 4.5% Terms related to condition of asset at end of concession 36 81.8% 7 15.9% 1 2.3% Implications of foreign control of domestic assets and work 12 27.3% 22 50.0% 10 22.7% Opportunity for local contractors/consultants to participate 31 70.5% 11 25.0% 2 4.5% Data privacy and ownership 16 36.4% 23 52.3% 5 11.4% Impact of project on alternative routes 25 56.8% 18 40.9% 1 2.3% Trade agreement implications 9 20.5% 21 47.7% 14 31.8% Length of agreement 26 59.1% 16 36.4% 2 4.5% 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 PPP. [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 PPP. 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.

82 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 12 27.3% 19 43.2% 13 29.5% Legislative research and analysis 23 52.3% 17 38.6% 4 9.1% Asset planning and evaluation 15 34.1% 23 52.3% 6 13.6% Performance specification 22 50.0% 16 36.4% 6 13.6% Risk assessment 9 20.5% 27 61.4% 8 18.2% Benefit-cost analyses 11 25.0% 28 65.9% 5 11.4% Financial management and analysis 21 47.7% 21 47.7% 2 4.5% Management oversight 23 52.3% 20 45.5% 1 2.3% Contract negotiation and performance-based contracting 14 31.8% 27 61.4% 3 6.8% Other technical skills not listed above — 16 36.4% 28 63.6% 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.

83 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 Frequently Use Sometimes Use Rarely N/A (do not use) Benefit-cost analyses 12 27.3% 13 29.5% 2 4.5% 17 38.6% Internal Rate of Return/Net Present Value analyses 11 25.0% 8 18.2% 5 11.4% 20 45.5% Value-for-Money/Public Sector comparators 7 15.9% 8 18.2% 5 11.4% 24 54.5% Traffic and Revenue Studies 17 38.6% 4 9.1% 5 11.4% 18 40.9% Risk assessment 15 34.1% 5 11.4% 3 6.8% 21 47.7% Availability Payment Amount/Net Present Value 8 18.2% 8 18.2% 7 15.9% 21 47.7% Independent evaluation from legal and/or financial consultants 13 29.5% 8 18.2% 3 6.8% 20 45.5% Other (specify below): 3 6.8% 8 18.2% 1 2.3% 34 77.3% 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 Can not 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. Haven’t considered highway related PPP’s 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.

84 10) What information on PPP proposals is available to decision makers, and who provides the information? Select all that apply: Project Sponsor (e.g., state DOT, toll authority) Consultants and legal/financia l advisors contracted by project sponsor Private Investors bidding on the project Interest groups Media (e.g., newspaper, TV, blogs) This information is not available Terms of agreement 12 27.3%* 12 27.3% 10 22.7% 5 11.4% 4 9.1% 1 2.3% Experience/qualification of proposers 10 22.7% 11 25.0% 10 22.7% 3 6.8% 4 9/1% 1 2.3% Risks transferred from and retained by public sector 13 27.3% 10 22.7% 8 18.2% 3 6.8% 2 4.5% 2 4.5% Evaluation of benefits/disbenefits to public sector 12 27.3% 12 27.3% 4 9.1% 3 6.8% 3 6.8% 2 4.5% PPP valuation studies (e.g., benefit-cost analysis, value- for-money analysis/public sector comparators, traffic and revenue studies) provided by in-house staff or consultants 12 27.3% 13 29.5% 5 11.4% 2 4.5% 2 4.5% 1 2.3% Project cost estimates and schedule 12 27.3% 11 25.0% 9 20.5% 3 6.8% 3 6.8% 1 2.3% Amount of upfront payment/revenue sharing (if long-term concession) 9 20.5% 9 20.5% 9 20.5% 2 4.5% 2 4.5% 4 9.1% Assumptions used by private investors to determine project value 6 13.6% 9 20.5% 6 13.6% 1 2.3% 1 2.3% 4 9.1% Technical approach 12 27.3% 11 25.0% 11 25.0% 3 6.8% 2 4.5% 1 2.3% Other (specify in “Additional Comments” box below): 1 2.3% — — — — 9 20.5% *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.

85 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 13 responses: Yes 6 46.1% No 7 53.9% 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 benefit Probably would benefit Not likely to benefit The PPP concept, basic types, features and tradeoffs among them 22 50.0% 14 31.8% 8 18.2% How federal and state law can influence the use of PPPs 18 40.9% 15 34.1% 11 25.0% What skills your agency needs in house, and what it can outsource 22 50.0% 13 29.5% 9 20.5% 12b. Risk Management: Definitely would benefit Probably would benefit Not likely to benefit Diagnosing risks to both partners at each phase of a project 29 65.9% 11 25.0% 4 9.1% Where and when risk is best managed 27 61.4% 12 27.3% 5 11.4% Valuation of different types of risk 28 63.6% 12 27.3% 4 9.1%

86 12c. Finance Issues: Definitely would benefit Probably would benefit Not likely to benefit How to assess the economic costs and benefits of a given project 30 68.2% 10 22.7% 4 9.1% How to use debt (including private activity bonds) 22 50.0% 12 27.3% 10 22.7% How to utilize private capital 25 56.8% 13 29.5% 6 13.6% Opportunities for in-kind contributions 22 50.0% 15 34.1% 7 15.9% Possible revenue sources and negotiating terms of use 28 63.6% 13 29.5% 3 6.8% Differences in public and private sector financial considerations 27 61.4% 13 29.5% 4 9.1% 12d. Procurement Considerations and Techniques: Definitely would benefit Probably would benefit Not likely to benefit How to write RFPs that incorporate PPP concepts 22 50.0% 15 34.1% 7 15.9% Anticipating and managing private sector concerns with process 21 47.7% 17 38.6% 6 13.6% 12e. Contracting: Definitely would benefit Probably would benefit Not likely to benefit How to write a contract that encourages innovation and sharing of risk and rewards 27 61.4% 14 31.8% 3 6.8% Best practices in leveraging private resources 26 59.1% 15 34.1% 3 6.8% Common failures of PPP contracts, and how they are addressed 32 72.7% 10 22.7% 2 4.5% 12f. Managing PPP Projects: Definitely would benefit Probably would benefit Not likely to benefit Unique oversight challenges of PPP projects 28 63.6% 13 29.5% 3 6.8% Techniques for monitoring technical and financial performance 31 70.5% 9 20.5% 4 9.1%

87 12g. Public Awareness and Stakeholder Consultation: Definitely would benefit Probably would benefit Not likely to benefit Identifying and engaging with key stakeholders 1943.2% 21 47.7% 4 9.1% Anticipating and managing common public concerns about PPPs 20 45.5% 20 45.5% 4 9.1% FHWA provides some resources via the PPP Toolkit , partner websites like the FHWA PPP website , and other relevant sites that 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 Benefit Participated Within Past 2 (Two) Years? Very likely Somewhat likely Not likely Yes No Scan of 2–3 agencies with significant experience in PPPs (3–4 days, including overnight stay) 14 31.8% 21 47.7% 9 20.5% 19 43.2% 25 56.8% Classroom training (1–2 days at or near your office) 21 47.7% 15 34.1% 8 18.2% 9 20.5% 35 79.5% Classroom training (1–2 days, including overnight stay) 9 20.5% 20 45.5% 15 34.1% 8 18.2% 36 81.8% Interactive workshop (half to full day, at or near your office) 18 40.9% 17 38.6% 9 20.5% 12 27.3% 32 72.7% Interactive workshop (half to full day, off site, including overnight stay) 7 15.9% 22 50.0% 15 34.1% 6 13.6% 38 86.4% Peer-to-peer exchange (one day, at or near your office) 18 40.9% 15 34.1% 11 25.0% 12 27.3% 32 72.7% Peer-to-peer exchange (one day, off site, including overnight stay) 7 15.9% 22 50.0% 15 34.1% 15 34.1% 29 65.9% On-line training modules (self-paced) 6 13.6% 18 40.9% 20 45.5% 1 2.3% 43 97.7% Webinar (web- and telephone-assisted seminar) 11 25.0% 16 36.4% 17 38.6% 8 18.2% 36 81.8% Web-based repository of case studies and effective practices 14 31.8% 18 40.9% 12 27.3% 14 31.8% 30 68.2% 14) Are there any other public transportation agencies or authorities in your state that have used a PPP model for a project? Yes 12 27.3% No 32 72.7%

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.

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 60% 2 40% Build-Operate-Transfer (BOT) 3 60% 2 40% Development and long-term concession of a new toll road with transfer of revenue risk 2 40% 3 60% Development and long-term concession of a new toll road with availability payments or shadow tolls 2 40% 3 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 shadow tolls — 5 100% 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 20% 4 80% Operations and Maintenance (O&M) Fee Service Contracts 2 40% 3 60% Program and Financial Management Fee Service Contracts — 5 100% None — 5 100% Other (please specify): 1 20% 4 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 agency’s overall readiness to identify partnerships? and implement innovative finance methods, such as public-private

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 Frequently Use Sometimes Use Rarely N/A (do not use) Traditional procurement 5 100% — — — Public financing — — 2 40% 3 60% Federal financing tools (e.g., TIFIA, GARVEES) — — 2 40% 3 60% Creation of non-profit, quasi-public entities — — 1 20% 4 80% Design-build — — 2 40% 3 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 Responses Extremely Important Somewhat Important Not Important N/A Project is an urgent transportation need 3 1 20%* 1 20% 1 20% — Strong political, public, and institutional support 3 1 20% 2 40% — — Project acceleration potential 3 2 40% 1 20% — — Project could generate sufficient revenues to attract private investment 3 1 20% — — 2 40% Lack of traditional funding 3 1 20% 1 20% 1 20% —

91 High-risk project that could be better managed by private sector 3 1 20% 1 20% 1 20% — Unsolicited proposal 3 — — 1 20% 2 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 Responses Extremely Important Somewhat Important Not Important N/A Comprehensive evaluation of benefits and costs of PPP proposals 3 3 60%* — — — Public participation and opportunities for input in decision-making process 3 1 20% 2 40% — — Providing public access to information related to PPP proposals 3 1 20% 2 40% — — Avoidance of conflict of interests 3 3 60% — — — Terms of agreement are developed taking into consideration public concerns 3 2 40% 1 20% — — Development of construction, maintenance and operations standards that meet or exceed standards for non-PPP projects 3 3 60% — — — Continuous project monitoring and evaluation based on performance measures 3 3 60% — — — Roles, responsibilities, and risks are both clearly defined and allocated between public and private partners 3 3 60% — — — 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 Important Somewhat Important Not Important Unclear/unavailability of criteria for selection of PPPs 1 20% 3 60% 1 20% Considerations of alternative PPP models — 4 1

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

93 indexing factors) 40% 60% Safety, enforcement and national security issues 3 60% 1 20% 1 20% Initial construction warranties and maintenance standards 5 100% — — Termination, buyouts, and hand-back provisions 4 80% 1 20% — Environmental safeguards 4 80% 1 20% — Labor relations issues 2 40% 1 20% 2 40% Asset control and ownership, including commercial development rights 3 60% 1 20% 1 20% Terms related to condition of asset at end of concession 5 100% — — Implications of foreign control of domestic assets and work 2 40% 3 60% Opportunity for local contractors/consultants to participate 2 40% 2 40% 1 20% Data privacy and ownership 2 40% 2 40% 1 20% Impact of project on alternative routes 2 40% 1 20% 2 40% Trade agreement implications — 5 100% — Length of agreement 4 80% 1 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 40% — 3 60% Legislative research and analysis 1 20% 3 60% 1 20% Asset planning and evaluation 2 40% 2 40% 1 20% Performance specification 2 40% 1 20% 2 40% Risk assessment 3 60% 1 20% 1 20% Benefit-cost analyses 2 40% 2 40% 1 20% Financial management and analysis 3 1 1

94 60% 20% 20% Management oversight 4 80% 1 20% — Contract negotiation and performance-based contracting 4 80% 1 20% — Other technical skills not listed above 1 20% 3 60% 1 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 Frequently Use Sometimes Use Rarely N/A (do not use) Benefit-cost analyses 2 40% 2 40% — 1 20% Internal Rate of Return/Net Present Value analyses 2 40% 1 20% — 2 40% Value-for-Money/Public Sector comparators 2 40% 1 20% 1 20% 1 20% Traffic and Revenue Studies — 1 20% 1 20% 3 60% Risk assessment 1 20% 2 40% 1 20% 1 20% Availability Payment Amount/Net Present Value 3 60% — 1 20% 1 20% Independent evaluation from legal and/or financial consultants 1 20% 2 40% 1 20% 1 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 sponsor (e.g., state DOT, toll authority) Consultants and legal/financial advisors contracted by project sponsor Private investors bidding on the project Interest groups Media (eg.,. newspaper, TV, blogs) This information is not available Terms of agreement 240%* 1 20% 1 20% — — — Experience/qualification of proposers 2 40% 1 20% — — — — Risks transferred from and retained by public sector 2 40% 1 20% — — — —

95 Evaluation of benefits/disbenefits to public sector 2 40% 1 20% — — — — PPP valuation studies (e.g., benefit-cost analysis, value-for- money analysis/public sector comparators, traffic and revenue studies) provided by in- house staff or consultants 2 40% 1 20% — — — — Project cost estimates and schedule 2 40% 1 20% — — — — Amount of upfront payment/revenue sharing (if long-term concession) 1 20% — — — — 1 20% Assumptions used by private investors to determine project value — — — — — 1 20% Technical approach 240% 1 20% — — — — Other (specify in “Additional Comments” box below): — — — — — 2 40% *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 benefit Probably would benefit Not likely to benefit The PPP concept, basic types, features and 2 — 3

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

97 Common failures of PPP contracts, and how they are addressed 3 60% 1 20% 1 20% 12f. Managing PPP Projects: Definitely would benefit Probably would benefit Not likely to benefit Unique oversight challenges of PPP projects 3 60% 1 20% 1 20% Techniques for monitoring technical and financial performance 2 40% 2 40% 1 20% 12g. Public Awareness and Stakeholder Consultation: Definitely would benefit Probably would benefit Not likely to benefit Identifying and engaging with key stakeholders 1 20% 3 60% 1 20% Anticipating and managing common public Concerns about PPPs 2 40% 2 40% 1 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 Benefit Participated Within Past 2 (Two) Years? Very likely Somewhat likely Not likely Yes No Scan of 2–3 agencies with significant experience in PPPs (3–4 days, including overnight stay) 1 20% 1 20% 3 60% 2 40% 3 60% Classroom training (1–2 days at or near your office) 2 40% 1 20% 2 40% 2 40% 3 60% Classroom training (1–2 days, including overnight stay) 2 40% 1 20% 2 40% 2 40% 3 60% Interactive workshop (half to full day, at or near your office) 2 40% 1 20% 2 40% 2 40% 3 60% Interactive workshop (half to full day, off site, including overnight stay) 1 20% 2 40% 2 40% 2 40% 3 60% Peer-to-peer exchange (one day, at or near your office) 3 60% — 2 40% 2 40% 3 60% Peer-to-peer exchange (one day, off site, including overnight stay) 2 40% 1 20% 2 40% 2 40% 3 60% On-line training modules (self-paced) 1 20% 1 20% 3 60% 1 20% 4 80% Webinar (web- and telephone-assisted seminar) — 3 2 2 3

98 60% 40% 40% 60% Web-based repository of case studies and Effective practices — 3 60% 2 40% 1 20% 4 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!