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Enhancing Communication in Virginia's Public-Private Transportation Act Initiatives

This presentation discusses the challenges of communication within Virginia's Public-Private Transportation Act (PPTA) framework as illustrated by the experiences of the Long Lines Division. Key lessons learned include the importance of clear policy goals, proper solicitation processes, and effective contract management. It emphasizes the necessity of communicating objectives, understanding asset values, and ensuring fair procurement to optimize public-private partnerships. The legislative perspective on PPP programs is explored, highlighting the need for transparency, public participation, and risk-sharing.

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Enhancing Communication in Virginia's Public-Private Transportation Act Initiatives

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Presentation Transcript

  1. Route 895 PPTA (2002)

  2. Communication Dilbertian [v. Newtonian] Logic: We know that communication is a problem, but the company is not going to discuss it with the employees. (XY&Z Long Lines Division)

  3. Virginia’s Public-Private Transportation Act (PPTA) Northern Border Finance Workshop December 11, 2006 Thomas W. Pelnik III, P.E.Director, Innovative Project Delivery Division

  4. Lessons Learned • Set clear policy goals • Establish a business process • Solicit proposals - know what you want • Each agreement will establish precedents • Require at-risk and equity participation • Ensure process results in a contract • DBFOM v DB – long term view • Provide adequate resources - • Requires significant time investment of senior staff • VDOT established two new divisions in 2003 • P3 is not for every project – but it can be an important part of program

  5. Conclusions / Recommendations • You’ll get what you contract for • Direct your program • Communicate your objectives • Know the value of your assets • Know the costs of your operations • Fair procurement • Time is money • Each project is unique • It’s not easy

  6. Legislative Perspective of P3 Programs Northern Border Finance Conference May 14-16, 2007 Chicago, Illinois Thomas W. Pelnik III, P.E.Director, Innovative Project Delivery Division

  7. VDOT Past and Present • 100 years of tradition 1906-2006: Most VDOT work by design-bid-build • Interstate outsourcing by 2009 • Public-Private Partnerships will help, but cannot save us

  8. Overview • Public-Private Transportation Act • Law and Policy • Practical Issues and Lessons Learned

  9. Background Virginia PPTA, §56-556 … • Broadly stated legislative authority • Policy: • Public need for timely development • Traditional methods may not be adequate • P3 may be more timely or effective • Encourage private investment

  10. Guideline Goals and Principles • Address the needs identified by Appropriate State, Regional or Local Policies and Plans • Multimodal Solutions • NEPA • Promote private investment, risk sharing and an increase in funding

  11. Guideline Goals and Principles • (cont’d) • Transparency and Accountability • Public Participation • Limited Confidential Information • Limited Advocacy • Disclose Public Financial Commitments • Encourage Competition for Private Sector Innovation and Investment • Stable Investment Climate • Limit State-Supported Debt

  12. Legislative Perspective 2003 • State will not charge a fee to review solicited proposals • VDOT shall solicit proposals for Route 460 • State shall disclose procurement records after contract is signed

  13. Legislative Perspective 2004 • Clarifications to FOIA

  14. Legislative Perspective 2005 • Policy: • Timely, efficient, less costly • Address needs in TIP • Encourage private investment • Interim Agreements • Multiple public entities • Clarifications to guidelines and streamlined process • Clarifications to FOIA

  15. Legislative Perspective 2006 • Concessions • Rights to use or control facility • Concession payments to benefit users • Leasehold property owned by gov’t • FOIA • Public posting of proposals • Present major business points to CTB • Review panel meetings

  16. Legislative Perspective 2007 • PPP Advisory Commission • Legislative oversight • Review detailed proposals • FOIA clarifications • Public notice • Limited exemptions from disclosure • Review panel meetings in public except for discussion of confidential information

  17. Summary Effective legislation and program administration • Executive support • Legislative support • Communicate – legislative work groups • Public information and involvement • Communicate – industry collaboration • Benefits to system • Communicate – keep leadership informed

  18. Route 895 PPTA (2002)

  19. VDOT’s PPTA Program Additional Information VDOT Innovative Project Delivery Division Website: http://www.virginiadot.org/business/ppta-default.asp Thomas.Pelnik@vdot.virginia.gov Dusty.Holcombe@vdot.virginia.gov

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