Role of Professional Advisors to State Departments of

Role of Professional Advisors to State Departments of Transportation Presented by Timothy L. Heilmeier, P. E. HNTB Corporation Focus Georgia Conference April 27, 2007

GDOT P 3 TEAM

GDOT ADVISORY TEAM § Engineering, Planning and Developer Oversight: HNTB Corporation – Traffic and Revenue: HNTB Corporation and C&M Associates § Legal (via SAG): Nossaman Gunther Knox & Elliott § Financial – (via GISFIC): PRAG – Citigroup – (via HNTB): Jeffrey Parker & Associates – P 3 Advisor: TBD

GDOT AS A CLIENT § GDOT has established practices and procedures § Resource limited (downsizing, growing program, retirements, losses to private sector) § Outsourcing to consultants more and more § Trying to deal with unprecedented growth and sprawl § Funding challenges § Like most DOT’s, cautiously updates policy § Recent toll experience limited to SR 400 and Torras Causeway

HNTB ROLE § Similar to role HNTB plays for Tx. DOT on the Trans. Texas Corridor (TTC-35) § Advisory Services § Engineering Activities § Planning Activities § NEPA Activities § Developer Oversight § Proposal Reviews § Policy § Solicited PPI Project Development

HNTB ROLE § Procurement § Traffic and Revenue Studies § Financial Advisory Support § Project Management § Design-Build Support

GDOT CONTRACT § Contract awarded in July 2004 § Services are broad and apply to Innovative Project Delivery § Provides GDOT with technical expertise § Provides GDOT with resources to supplement GDOT staff § HNTB cannot participate on Developer P 3 teams in Georgia § HNTB serves as a conduit to best practices for DOT’s and Toll Authorities

PPI LESSONS LEARNED § Importance of proactive planning studies § Must adopt policy to reflect a changing world § Need to be able to both receive unsolicited proposals and solicit PPI’s § Innovation has come from the private sector § Competing timeframes must be sufficient to allow for competition § GDOT may elect to compensate Developer for value provided prior to financial close § Concessions unlikely without some form of revenue sharing component

PPI LESSONS LEARNED § Buy-out clauses will be part of concession agreements § No-compete clauses will not be considered § Public and political education is extremely important § Public against tolling of existing free facilities § Greater emphasis on user-fee based facilities § General public is pro-truck lanes § Managed Lane projects in Metro-Atlanta are critical by will typically not be 100% self-financing § New location facilities are PPI candidates

Timothy L. Heilmeier, P. E. Associate Vice President HNTB Corporation 3715 Northside Parkway 400 Northcreek, Suite 600 Atlanta, GA 30327 (404) 946 -5710 theilmeier@hntb. com www. hntb. com