Transit Public-Private Partnerships: Legal Issues (2014)

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300 APPENDIX D SURVEY QUESTIONS TCRP J-5, STUDY TOPIC 15-03 TRANSIT PUBLIC PRIVATE PARTNERSHIPS: LEGAL ISSUES Agency Name: ________________________________________________________________________ Name of Employee: ________________________________________________________________________ Job Title: ________________________________________________________________________ Contact telephone/ cell phone number: ___________________/ _____________________ Email address: _________________________________ How many years have you been with the agency? _____ NOTE: (a) The term public-private partnership (PPP) as used herein refers to the contractual arrangements be- tween a public entity such as a transit agency and a private partner to facilitate the construction or devel- opment of an infrastructure project. Depending on the contractual arrangements, the private partner may be responsible for the design and construction of the project, as well as its operation, maintenance, and/or financing. (b) Please provide copies via e-mail or on a disk or provide an Internet-link for any contracts or other documents identified in your responses. (c) In responding to the following questions, please feel free to attach extra pages as needed.

301 1. Within the past ten years has your agency used a PPP for the purpose of acquiring, improving, con- structing, developing, operating, maintaining and/or financing an infrastructure project or used a PPP for transit-oriented development (TOD)? YES __ NO __ If your answer is yes, please provide the following information for your agency’s PPP projects and answer the remaining questions in the survey. If your answer is “no,” it is not necessary to complete the re- mainder of the survey, but please submit your response to this question. (a) the name or other identification of the PPP and a description of the PPP Project; ________________________________________________________________________ ________________________________________________________________________ (b) the date(s) of the project, contract, or lease; _______________________________________ (c) the name of the private partner(s); ________________________________________________________________________ (d) the cost of the project; and _______________________________________ (e) whether the private partner continues to have any responsibility for the project(s) (e.g., leasing, operation, and/or maintenance). ______________________________________ 2. For your agency, what have been the advantages and disadvantages of PPPs for infrastructure pro- jects, TOD, or joint development? ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________

302 3. For each PPP project that you have identified, please state whether your agency used any one of the following methods of contracting for the delivery of the project(s). a. Design-Build YES __ NO __ b. Design-Build-Operate-Maintain YES __ NO __ c. A+B Contracting YES __ NO __ d. Construction Manager/General Contractor YES __ NO __ e. Construction Manager at Risk YES __ NO __ f. Operate-Maintain YES __ NO __ g. Operation, Maintenance, and Management YES __ NO __ h. Build-Own-Operate YES __ NO __ i. Other (please identify) ________________________________________________________________________ ________________________________________________________________________ In regard to the above answers, please provide a copy of any contracts that your agency has used. 4. For each PPP project that you have identified, if your agency used a method of contracting for a pro- ject that included financing to be arranged or provided in whole or in part by the private partner, please state whether your agency used any one of the following methods of contracting for the delivery of the pro- ject(s). a. Design-Build-Finance-Operate YES __ NO __ b. Design-Build-Finance-Operate-Maintain YES __ NO __

303 c. Design-Build-Finance-Operate-Transfer YES __ NO __ d. Build-Operate-Transfer YES __ NO __ e. Build-Transfer-Operate YES __ NO __ f. Other (please identify) ________________________________________________________________________ ________________________________________________________________________ In regard to the above answers, please provide a copy of any contracts that your agency has used. 5. In addition to any contract(s) identified in response to questions 3 and 4, was there an umbrella agree- ment, memorandum of understanding, or other separate document between or among the PPP partners that set forth their obligations in respect to the PPP and/or the project? YES __ NO __ If your answer is yes, please state the type of agreement and provide a copy. 6. (a) In evaluating a prospective project for a PPP does your agency undertake a Value for Money or other analysis of the project? YES __ NO __ (b) If your answer is yes, what factors does your agency consider before proceeding with a PPP? _________________________________________________________________________________________________ ____________________________________________________________________________________________________ _____________________________________ 7. In your agency’s experience, what are the key legal issues that should be addressed in the contract(s) for a PPP project?

304 _________________________________________________________________________________________________ ____________________________________________________________________________________________________ _____________________________________ Please provide copies of any contractual provisions or specifications that your agency has developed to deal with any legal issues or problems that your agency has encountered and had to resolve with PPPs. 8. Has your agency encountered any real property and/or land-use issues in connection with PPP pro- jects (e.g., for New Starts or other facilities, TOD, and/or joint development)? YES __ NO __ If your answer is yes, please describe the issues and how they were resolved. ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ __________________________________ 9. Have your agency and its private partner(s) in PPPs had any federal or other tax issues for PPP pro- jects (e.g., issues relating to 63-20 corporations; the preservation of the status of tax-exempt debt; qualifying an issuance of bonds as tax exempt; issues regarding private activity bonds or exempt facility bonds; certifi- cates of participation; or long-term leases or lease/purchase agreements)? YES __ NO __ (a) If your answer is yes, please describe the issue(s) and their outcome(s). _________________________________________________________________________________________________ ____________________________________________________________________________________________________ _____________________________________ (b) If your agency or a private partner has ever requested a ruling from the IRS or any taxing au- thority regarding a PPP project, please describe the request and the ruling that was obtained and provide a copy. _________________________________________________________________________________________________ ____________________________________________________________________________________________________ _____________________________________

305 10. (a) For each PPP project that you have identified, was the contractor required to provide perform- ance and payment bonds for the full amount or value of the applicable contracts under federal and/or state law? YES __ NO __ (b) If your answer is no, were any waivers or exceptions with respect to the amounts of the bonds sought and/or obtained from the FTA or otherwise? YES __ NO __ If your answer is yes, please describe the waiver(s) or exception(s) obtained. _________________________________________________________________________________________________ ____________________________________________________________________________________________________ _____________________________________ 11. (a) For each PPP project that you have identified, did your agency receive a federal grant for the PPP project? YES __ NO __ (b) If your answer is yes, please state (a) the type of grant; (b) the amount; and (c) the percentage of the project that was federally funded. _________________________________________________________________________________________________ ____________________________________________________________________________________________________ _____________________________________ 12. For each PPP project that you have identified, if your agency received a federal grant, please state (a) the percentage and amount of the local match and (b) the source or sources used to fulfill the local match for each project. _________________________________________________________________________________________________ ____________________________________________________________________________________________________ _____________________________________ 13. (a) For each PPP project that you have identified, did the private partner assume responsibility for securing the insurance cover?

306 YES __ NO __ (b) Regardless of which party was responsible for the insurance, please state (1) the kinds of risks that were insured; (2) if not already explained, your agency’s role or responsibility for the insurance; and (3) any issues or problems encountered regarding insurance for PPP projects. _________________________________________________________________________________________________ ____________________________________________________________________________________________________ _____________________________________ 14. For any PPP project that you have identified, has your agency shared revenue with the private part- ner? YES __ NO __ If your answer is yes, please describe (a) any revenue sharing arrangements for the project and/or provide a copy of any revenue sharing agreement and (b) state whether an exception was needed and ob- tained from FTA to permit your agency to share revenue with the private partner. _________________________________________________________________________________________________ ____________________________________________________________________________________________________ _____________________________________ 15. For the PPP projects that you have identified, (a) has your agency encountered any issues or prob- lems (e.g. delays in approvals, additional expense) because of the FTA grant approval process for New Starts (or other FTA funding programs) that have affected your agency’s use of PPPs? YES __ NO __ (b) Has your agency encountered any issues or problems with the process for environmental reviews that have affected your agency’s use of PPPs? YES __ NO __ If your answer is yes to part (a) and/or (b), please describe the issues or problems and whether and how they were resolved.

307 _________________________________________________________________________________________________ ____________________________________________________________________________________________________ _____________________________________ 16. For each PPP project that you have identified, has your agency agreed to an availability payment structure for the project? YES __ NO __ If your answer is yes, please explain and/or provide a copy of any relevant agreement. _________________________________________________________________________________________________ ____________________________________________________________________________________________________ _____________________________________ 17. Have the laws of your state permitted, encouraged, or restricted your agency’s use of, or a private party’s participation in, PPPs for infrastructure projects, TOD, and/or joint development? YES __ NO __ If your answer is yes, please explain. _________________________________________________________________________________________________ ____________________________________________________________________________________________________ _____________________________________ 18. For each PPP project that you have identified, please state whether the funding/financing of the PPP(s) included any of the following sources, and, if so, the amount(s) involved. a. Qualified Private Activity YES __ NO __ AMOUNT ______________ Bonds b. Non-qualified Private Activity YES __ NO __ AMOUNT ______________ Bonds c. Exempt Facility Bonds YES __ NO __ AMOUNT ______________ d. Farebox Revenue Bonds YES __ NO __ AMOUNT ______________ e. Grant Anticipation Notes YES __ NO __ AMOUNT ______________

308 f. Bonds issued by 63-20 Nonprofit Corporations YES __ NO __ AMOUNT ______________ g. Certificates of Participation YES __ NO __ AMOUNT ______________ h. Transportation Infrastructure YES __ NO __ AMOUNT ______________ Financing Innovation Act (TIFIA) i. State Infrastructure Bank YES __ NO __ AMOUNT ______________ j. Other Bank Financing YES __ NO __ AMOUNT ______________ k. Private Investment/Financing YES __ NO __ AMOUNT______________ l. Tax Increment Financing YES __ NO __ AMOUNT______________ m. Assessment District Funds YES __ NO __ AMOUNT______________ n. Development Impact Fees YES __ NO __ AMOUNT______________ o. Other sources YES __ NO __ AMOUNT ______________ (please identify): ______________________________________________________________________________ If your agency has prepared a summary of or a chart illustrating a PPP project’s funding, please pro- vide a copy. 19. For each PPP project that you have identified, have your agency and the private partner entered into a long-term lease regarding the operation and/or maintenance of the completed infrastructure project? YES __ NO __

309 If your answer is yes, please identify the project, describe the nature of the lease and its term, and provide a copy. _________________________________________________________________________________________________ ____________________________________________________________________________________________________ _____________________________________ 20. For each PPP project that you have identified, have any lease/purchase agreements been used for rolling stock and/or other equipment? YES __ NO __ If your answer is yes, please describe the nature of the agreement and the financial benefit obtained by the agency or the PPP. _________________________________________________________________________________________________ ____________________________________________________________________________________________________ _____________________________________ 21. For each PPP project that you have identified, to the extent not discussed in response to question 9, have there been any federal or other tax issues concerning long-term leases and/or lease/purchase agree- ments? YES __ NO __ If your answer is yes, what were the issues and how were they resolved? Please provide a copy of any contractual provisions developed by your agency or the PPP in respect to the issue or problem and/or any rulings by tax authorities. _________________________________________________________________________________________________ ____________________________________________________________________________________________________ _____________________________________ 22. For each PPP project that you have identified, did the PPP involve transit-oriented development and/or joint development? YES __ NO __ If your answer is yes, please state (a) the contractual amount or value of the development; (b) the private partner’s investment or other contribution; (c) the federal funding, if any, for the development; and (d) whether the TOD or joint development has been or is being used to fund other transit capital improve- ments or expenses.

310 _________________________________________________________________________________________________ ____________________________________________________________________________________________________ _____________________________________ 23. If your agency was selected to participate in one of the three pilot projects authorized by SAFETEA- LU, please provide a copy of your agency’s PPP pilot funding application and materials, along with any comments your agency has regarding the pilot program. _________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________ 24. Please describe your agency’s approach to managing and administering a PPP (e.g., a project man- ager, dedicated management team, outside specialists, project manual, periodic monitoring, the use of per- formance standards). _________________________________________________________________________________________________ ____________________________________________________________________________________________________ _____________________________________ 25. Please identify any PPP transit project in the United States or abroad of which you are aware that you believe would be important for the Report to discuss. _________________________________________________________________________________________________ ____________________________________________________________________________________________________ _____________________________________ Thank you for your cooperation and for copies of contracts and other documents provided with your responses. As noted, please provide the copies by e-mail or on a disk and/or an Internet link if they are avail- able on line. Please return your completed survey preferably via e-mail to: The Thomas Law Firm ATTN: Larry W. Thomas 1701 Pennsylvania Avenue, N.W. Suite 300 Washington, D.C. 20006 Tel. (202) 280-7769 lwthomas@cox.net