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From page 30... ... Denver Figure 6 Sou The Eagle (RTD) . The operates concessio private pa operate‐m electrified commute The conce and will o DTP arran maintena policies, a establishe DEN Regiona rce: www.rtd‐f P3 project is project con under a conc naire. The co rtnership (P3 aintain‐finan commuter r r rail mainten ssionaire, DP perate and m ged financing nce of the pr nd keep all p d performan VER R l Transpo astracks.com an electrified tains elemen ession agreem ncessionaire ) Read the entire page →
From page 31... ... 34 This project is part of the Denver RTD's 2004 voter‐approved FasTracks plan to expand transit throughout the Denver Metro region. The $2.2 billion project includes 56 commuter rail cars which are comprised of 60 percent US‐made components; a commuter rail maintenance facility(CRMF) which will repair, clean and store the cars; and the electric commuter rail corridors. The Denver Transit Partners, (DTP) Read the entire page →
From page 32... ... 35 review. A professional campaign team spent $3.6 million to promote a ballot measure for FasTracks, which was opposed by the governor, the state DOT and the newspaper the Rocky Mountain News. In an unprecedented move, 31 district mayors, the Denver Post newspaper, the Denver Metro Chamber, environmental groups, and the business community supported the FasTracks plan. In November of 2004 voters approved FasTracks by a 58 to 42 percent vote. This legislation paved the way for the Eagle P3 project. Three Components of Eagle P3  East Corridor ‐ 22.8‐mile commuter rail line from Denver Union Station east to Denver International Airport, with five intermediate stations.  Gold Line ‐ 11.2‐mile commuter rail line, the first 3.7 miles of which are shared with the Northwest Line (segment 1) from Denver Union Station north and west to Wheat Ridge, with six intermediate stations.  Commuter Rail Maintenance Facility (CRMF) Read the entire page →
From page 33... ... 36 The line from downtown Denver to the airport will provide safe, reliable transportation service which will cut passenger vehicle transit time almost in half and reduce congestion. Through the Eagle P3 project procurement, Denver RTD used competitive bid teams to drive down construction and operating costs. To maximize flexibility, Denver RTD did not mandate specific solutions through design specifications; instead, the agency required that bidders meet performance and availability of service standards. This decision allowed bidders freedom to propose cost savings and innovative solutions while still focusing on delivering the transportation infrastructure in the FasTracks plan. Denver RTD recognized that if the agency shared design or engineering innovations, suggested by one private sector bidder, with its competitors, there was no incentive for a team to offer innovations. In fact, proposers might view sharing innovation as a threat to their competitive advantage. To alleviate this concern, RTD developed a confidential Alternative Technical Concept (ATC) process, allowing proposers to suggest changes to specific design and construction requirements, confident that the information would not be shared. Through the ATC process, RTD got a better, lower‐cost design. Additionally, RTD informed proposers in the ATC agreement that RTD would retain ownership of all concepts from successful and unsuccessful proposers ‐ meaning a great design or construction innovation from a proposer who was not selected could still be implemented without incurring design costs. Engaging the private sector through a DBFOM contract enabled Denver RTD to transfer finance, construction and operating risk to the private concessionaire. Incentives were included for the concessionaire to reward budget adherence. The DBFOM approach also maximized contractor innovation and participation. Over the life of the private financing contract, the concessionaire has a long‐term commitment and every incentive to build a quality project that will be cost effective to operate and maintain. Risk transfer is not a one sided agreement. The private sector concessionaire, DTP agreed to build a quality product because they will operate and maintain it for the long term of the contract. Denver RTD took on increased up‐front costs (which included legal and advisory fees) Read the entire page →
From page 34... ... 37 In October 2014, RTD and DTP were faced with a risk transfer from the public agency to the private sector partner. An inspection of an already constructed Jersey Cutoff Bridge near 43rd Avenue and Fox Street indicated it would not last the planned 60 years. Due to its limited structural life (estimated to be 29 years of operating and maintenance) , DTP elected to demolish and reconstruct the span to ensure it met the 60‐year life and also re‐inspected all the bridges in the project. The private concessionaire (DTP) Read the entire page →
From page 35... ... 38 Partners, and the Urban League of Metropolitan Denver, launched a Workforce Initiative Now (WIN) program to ensure employment goals were achieved. WIN partnered with existing training resources to place community members into career path positions on local transit infrastructure projects. WIN placed individuals in construction crafts, office administration, or professional services positions with integrated support services and on‐the‐job coaching to bridge skills gaps. Career guidance, job training, career development coaching, and supportive services were provided to enable metro residents to secure, retain and advance in transportation and construction jobs that pay a living wage. WIN also coordinated employer services which included recruitment and pre‐screening, customized training, community outreach, and enhanced retention through ongoing career coaching. In the first three years of operation, WIN rapidly expanded the network of partner general contractors and small businesses to meet the needs of the Eagle P3 project. As a result of this successful staffing initiative, Denver RTD has established a policy for employment and training goals for local residents which has been added to contract language for each construction project. In 2012, President Obama recognized RTD as a Transportation Innovators Champion of Change for the WIN program. As of 2014, the WIN network included 56 partners, both training organizations and employers, as well as labor union partners. WIN signed a memorandum of understanding with all partners. WIN enrolls 90 to 120 individuals annually, and the program has placed over 80 percent of its participants, with an average starting wage of $16.25 per hour. As a result of RTD's success with WIN, other transportation agencies across the country are now creating their own WIN programs. In June, Boston's transit agency, the Massachusetts Bay Transportation Authority (MBTA) Read the entire page →
From page 36... ... 39  Allow key stakeholders to participate in the evaluation process  Hold outreach events for the bidding teams to network with small and disadvantaged businesses  Be open and transparent throughout the process Innovative Funding Measures The project brought together eight funding instruments, and mixed state, federal and local funding sources to complete the project. RTD employed DPT as a concessionaire to leverage private funding sources. An innovative ATC process was adopted to encourage innovative design and construction concepts. The WIN program was launched to support this project which has received national acclaim and adoption. While not a funding program per se, it assured a supply of local well trained workers, thereby reducing relocation and overtime costs. Summary The innovation demonstrated in this case study was the public private partnership allowing the combination of multiple funding sources, and the contractual arrangements for design‐build‐finance‐ operate and maintain with professional partners. Rail projects are often controversial and take years to accomplish. This case study illustrates how leaders could develop large scale transportation projects through innovative public private partnerships. Alternative Technical Concept processes and Workforce Innovation Now concepts can be applied to any rail project. Many future rail projects such as Chicago CREATE and rail bridges crossing the Mississippi River will require public private partnerships and multiple funding sources to accomplish. Read the entire page →

From page 30...

... Denver Figure 6 Sou The Eagle (RTD) . The operates concessio private pa operate‐m electrified commute The conce and will o DTP arran maintena policies, a establishe DEN Regiona rce: www.rtd‐f P3 project is project con under a conc naire. The co rtnership (P3 aintain‐finan commuter r r rail mainten ssionaire, DP perate and m ged financing nce of the pr nd keep all p d performan VER R l Transpo astracks.com an electrified tains elemen ession agreem ncessionaire )

Read the entire page →

From page 31...

... 34 This project is part of the Denver RTD's 2004 voter‐approved FasTracks plan to expand transit throughout the Denver Metro region. The $2.2 billion project includes 56 commuter rail cars which are comprised of 60 percent US‐made components; a commuter rail maintenance facility(CRMF) which will repair, clean and store the cars; and the electric commuter rail corridors. The Denver Transit Partners, (DTP)

Read the entire page →

From page 32...

... 35 review. A professional campaign team spent $3.6 million to promote a ballot measure for FasTracks, which was opposed by the governor, the state DOT and the newspaper the Rocky Mountain News. In an unprecedented move, 31 district mayors, the Denver Post newspaper, the Denver Metro Chamber, environmental groups, and the business community supported the FasTracks plan. In November of 2004 voters approved FasTracks by a 58 to 42 percent vote. This legislation paved the way for the Eagle P3 project. Three Components of Eagle P3  East Corridor ‐ 22.8‐mile commuter rail line from Denver Union Station east to Denver International Airport, with five intermediate stations.  Gold Line ‐ 11.2‐mile commuter rail line, the first 3.7 miles of which are shared with the Northwest Line (segment 1) from Denver Union Station north and west to Wheat Ridge, with six intermediate stations.  Commuter Rail Maintenance Facility (CRMF)

Read the entire page →

From page 33...

... 36 The line from downtown Denver to the airport will provide safe, reliable transportation service which will cut passenger vehicle transit time almost in half and reduce congestion. Through the Eagle P3 project procurement, Denver RTD used competitive bid teams to drive down construction and operating costs. To maximize flexibility, Denver RTD did not mandate specific solutions through design specifications; instead, the agency required that bidders meet performance and availability of service standards. This decision allowed bidders freedom to propose cost savings and innovative solutions while still focusing on delivering the transportation infrastructure in the FasTracks plan. Denver RTD recognized that if the agency shared design or engineering innovations, suggested by one private sector bidder, with its competitors, there was no incentive for a team to offer innovations. In fact, proposers might view sharing innovation as a threat to their competitive advantage. To alleviate this concern, RTD developed a confidential Alternative Technical Concept (ATC) process, allowing proposers to suggest changes to specific design and construction requirements, confident that the information would not be shared. Through the ATC process, RTD got a better, lower‐cost design. Additionally, RTD informed proposers in the ATC agreement that RTD would retain ownership of all concepts from successful and unsuccessful proposers ‐ meaning a great design or construction innovation from a proposer who was not selected could still be implemented without incurring design costs. Engaging the private sector through a DBFOM contract enabled Denver RTD to transfer finance, construction and operating risk to the private concessionaire. Incentives were included for the concessionaire to reward budget adherence. The DBFOM approach also maximized contractor innovation and participation. Over the life of the private financing contract, the concessionaire has a long‐term commitment and every incentive to build a quality project that will be cost effective to operate and maintain. Risk transfer is not a one sided agreement. The private sector concessionaire, DTP agreed to build a quality product because they will operate and maintain it for the long term of the contract. Denver RTD took on increased up‐front costs (which included legal and advisory fees)

Read the entire page →

From page 34...

... 37 In October 2014, RTD and DTP were faced with a risk transfer from the public agency to the private sector partner. An inspection of an already constructed Jersey Cutoff Bridge near 43rd Avenue and Fox Street indicated it would not last the planned 60 years. Due to its limited structural life (estimated to be 29 years of operating and maintenance) , DTP elected to demolish and reconstruct the span to ensure it met the 60‐year life and also re‐inspected all the bridges in the project. The private concessionaire (DTP)

Read the entire page →

From page 35...

... 38 Partners, and the Urban League of Metropolitan Denver, launched a Workforce Initiative Now (WIN) program to ensure employment goals were achieved. WIN partnered with existing training resources to place community members into career path positions on local transit infrastructure projects. WIN placed individuals in construction crafts, office administration, or professional services positions with integrated support services and on‐the‐job coaching to bridge skills gaps. Career guidance, job training, career development coaching, and supportive services were provided to enable metro residents to secure, retain and advance in transportation and construction jobs that pay a living wage. WIN also coordinated employer services which included recruitment and pre‐screening, customized training, community outreach, and enhanced retention through ongoing career coaching. In the first three years of operation, WIN rapidly expanded the network of partner general contractors and small businesses to meet the needs of the Eagle P3 project. As a result of this successful staffing initiative, Denver RTD has established a policy for employment and training goals for local residents which has been added to contract language for each construction project. In 2012, President Obama recognized RTD as a Transportation Innovators Champion of Change for the WIN program. As of 2014, the WIN network included 56 partners, both training organizations and employers, as well as labor union partners. WIN signed a memorandum of understanding with all partners. WIN enrolls 90 to 120 individuals annually, and the program has placed over 80 percent of its participants, with an average starting wage of $16.25 per hour. As a result of RTD's success with WIN, other transportation agencies across the country are now creating their own WIN programs. In June, Boston's transit agency, the Massachusetts Bay Transportation Authority (MBTA)

Read the entire page →

From page 36...

... 39  Allow key stakeholders to participate in the evaluation process  Hold outreach events for the bidding teams to network with small and disadvantaged businesses  Be open and transparent throughout the process Innovative Funding Measures The project brought together eight funding instruments, and mixed state, federal and local funding sources to complete the project. RTD employed DPT as a concessionaire to leverage private funding sources. An innovative ATC process was adopted to encourage innovative design and construction concepts. The WIN program was launched to support this project which has received national acclaim and adoption. While not a funding program per se, it assured a supply of local well trained workers, thereby reducing relocation and overtime costs. Summary The innovation demonstrated in this case study was the public private partnership allowing the combination of multiple funding sources, and the contractual arrangements for design‐build‐finance‐ operate and maintain with professional partners. Rail projects are often controversial and take years to accomplish. This case study illustrates how leaders could develop large scale transportation projects through innovative public private partnerships. Alternative Technical Concept processes and Workforce Innovation Now concepts can be applied to any rail project. Many future rail projects such as Chicago CREATE and rail bridges crossing the Mississippi River will require public private partnerships and multiple funding sources to accomplish.

Read the entire page →

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