U S Department of Transportation Federal Transit Administration

U. S Department of Transportation Federal Transit Administration Purple Line Maryland Department of Transportation (MDOT) Maryland Transit Administration (MTA) Kevin Quinn MDOT MTA Administrator FTA TRANSIT CONSTRUCTION WORKSHOP - VIRTUAL OCTOBER 20 – 21, 2020

U. S Department of Transportation Federal Transit Administration FTA TRANSIT CONSTRUCTION WORKSHOP - VIRTUAL OCTOBER 20 – 21, 2020 Project Overview • The Purple Line is a 16 -mile light rail line that will extend from Bethesda in Montgomery County to New Carrollton in Prince George's County. • The Purple Line will provide a direct connection to the Metrorail Red, Green/Yellow and Orange Lines; at Bethesda, Silver Spring, College Park, and New Carrollton. • The Purple Line will also connect to MARC, Amtrak, and local bus services. 2

U. S Department of Transportation Federal Transit Administration FTA TRANSIT CONSTRUCTION WORKSHOP - VIRTUAL OCTOBER 20 – 21, 2020 Purple Line Alignment 3

U. S Department of Transportation Federal Transit Administration FTA TRANSIT CONSTRUCTION WORKSHOP - VIRTUAL OCTOBER 20 – 21, 2020 Project Financing The State’s commitment to the Purple Line extends to financial considerations. The Maryland Department of Transportation is working closely with MTA to pivot from the original financing plan and arrange for both short-term and long-term financing. • Original financing plan • Short-term funding • Long-term funding 4

U. S Department of Transportation Federal Transit Administration FTA TRANSIT CONSTRUCTION WORKSHOP - VIRTUAL OCTOBER 20 – 21, 2020 Project Financing – Original Financing Plan The P 3 Agreement is structured using an Availability Payment model, with construction financing coming from Federal, State, and local governments, as well as private debt and equity. • $933 M in Federal funds ($900 M in New Starts money and $33 M in federal formula funding • State is front-funding construction and Federal funds are reimbursing State funds • $320 M in State and local funding (plus in-kind contributions) • $313 M in Private Activity Bonds • $875 M in TIFIA loan • $138 M in private equity 5

U. S Department of Transportation Federal Transit Administration FTA TRANSIT CONSTRUCTION WORKSHOP - VIRTUAL OCTOBER 20 – 21, 2020 Project Financing – Short-term Funding All transportation revenues (i. e. , transit, toll road, port, aviation, motor vehicle) flow to the Transportation Trust Fund, a consolidated source of funding for all transportation needs. In the short-term, • The Trust Fund provides immediate funding availability to continue current construction/transition efforts while longterm funding is put into place • Continued support of FTA through FFGA reimbursements is critical • Short-term financing options are available if needed 6

U. S Department of Transportation Federal Transit Administration FTA TRANSIT CONSTRUCTION WORKSHOP - VIRTUAL OCTOBER 20 – 21, 2020 Project Financing – Long-term Funding The State’s and MDOT’s strong credit profile provides options for long-term funding. • State may utilize transit revenue bonds and a TIFIA loan to self-fund remaining construction • State may continue to utilize private debt and equity under a new P 3 • Under both the State and private financing options, TIFIA remains a critical piece of the construction funding solution 7

U. S Department of Transportation Federal Transit Administration FTA TRANSIT CONSTRUCTION WORKSHOP - VIRTUAL OCTOBER 20 – 21, 2020 Long-term – Re-solicitation for Project Completion MTA will re-solicit the P 3 to take the Purple Line through construction, test, startup and 30 years of operations and maintenance. • Re-Solicitation in accordance with P 3 Agreement • Re-Solicitation Team • Re-Solicitation Process 8

U. S Department of Transportation Federal Transit Administration FTA TRANSIT CONSTRUCTION WORKSHOP - VIRTUAL OCTOBER 20 – 21, 2020 Long-term – P 3 Agreement Re-soliciting the Purple Line in accordance with the P 3 Agreement preserves the State’s ability to pursue legal remedies. • Termination Method is disputed • Determination of Costs • Re-solicitation • Desktop Method • Re-Soliciting • Manage D-B Contractor • Operate & Maintain • Financing still under discussion • P 3 Law does not require financing 9

U. S Department of Transportation Federal Transit Administration FTA TRANSIT CONSTRUCTION WORKSHOP - VIRTUAL OCTOBER 20 – 21, 2020 Long-term – Re-solicitation Team MTA has a broad team to oversee and administer the resolicitation. Many of the team participated in the original solicitation. • MDOT Finance Staff and Financial Consultant • OAG Legal Staff and Procurement Consultant • MTA Executive & Project Staff and Program Management Consultant 10

U. S Department of Transportation Federal Transit Administration FTA TRANSIT CONSTRUCTION WORKSHOP - VIRTUAL OCTOBER 20 – 21, 2020 Long-term – Re-solicitation Process Over the next year, MTA will follow the process summarized below. • Fall, Finalize RFP vs. RFQ-RFP solicitation • Fall/Winter, Review and confirm as-currently-built documentation • Winter, Conduct industry outreach • Winter/Spring, Revise solicitation documentation • Spring/Summer, Initiate re-solicitation • • • Issue RFQ/RFP Detailed site visits Evaluate proposals based on best-value to State Board of Public Work approval of award Financial close 11

U. S Department of Transportation Federal Transit Administration FTA TRANSIT CONSTRUCTION WORKSHOP - VIRTUAL OCTOBER 20 – 21, 2020 Lessons Learned for a P 3 Delivery • • Corporate structure between the same entities Weak Prime/Sub Agreement between Concessionaire and the Design Builder Staffing requirement of Concessionaire to manage project and Design Builder Concessionaire pass through of everything Permits from any AHJ should transfer to successors and assigns Insurance & transfer of polices –No cancellations Watch the too-hard pile 12

U. S Department of Transportation Federal Transit Administration FTA TRANSIT CONSTRUCTION WORKSHOP - VIRTUAL OCTOBER 20 – 21, 2020 Questions? 13