PENNSYLVANIA TRANSPORTATION AND INFRASTRUCTURE FINANCING
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1 PENNSYLVANIA TRANSPORTATION AND INFRASTRUCTURE FINANCING C O M M I S S I O N E R G E O R G E P. H A R T W I C K, I I I D A U P H I N C O U N T Y, P E N N S Y L V A N I A
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3 WHAT IS THE TWELVE YEAR PROGRAM? A menu of transportation projects planned for development. It is updated every two years. It is a multi-modal, fiscally constrained program of transportation improvements spanning a 12 year period.
4 THE FIRST FOUR YEARS (STIP)
5 THE IMPACT OF ACT 89 When fully implemented, Act 89 invests $ billion annually in additional funding for transportation projects
6 2015 FUNDING LEVELS
7 REDUCING FATALITIES 1,600!"#$%&"'()*&*+,-".(/0(1"*%(23"%*4"5( 1,400 1,200 1,
8 STRUCTURALLY DEFICIENT BRIDGES >%"?'.($:(;&*&"(;<(=%,'4".( 6789"%($:(;<(=%,'4".( 6,100 5,900 5,700 5,500 5,300 5,100 4,900 4,700 4,500 4,300 4,100 3,
9 STRUCTURALLY DEFICIENT BRIDGES 6789"%($:(=%,'4".( Count 2010 Count 2011 Count 2012 Count 2013 Count 2014 Count 2014 proj. count Jan 1st Q1 Q2 Q3 Q4
10 PAVEMENT CONDITION 45% 43% 40% Percent Poor IRI 35% 30% 25% 20% 15% 16% 23% 20%
11 PAVEMENT RECONSTRUCTION E*3"8"?&(!"B$?.&%7B-$?(<"DB,&( 2'',?4(&$(&F"(=*BG+$4( Miles Year Actual Reconstructed Need Not Met
12 PUBLIC TRANSPORTATION CAPITAL PROGRAM
13 Payments to Local Government $726,423,000 In SFY 2014/15
14 TIP VISUALIZATION TIP Visualization allows customers to find projects programmed on the Twelve Year Program.
15 BRIDGE BUNDLING!!Objective! PennDOT will bundle the replacement or rehabilitation of locally owned bridges with state-owned bridge projects.! Multiple bridges to be replaced or rehabilitated as a single project
16 BRIDGE BUNDLING!!The program is intended to save time and costs!!single engineer, single general contractor!!utilizing similar designs!!create an economy of scale in design and construction and project management
17 BRIDGE BUNDLING!!PennDOT will annually develop two lists of eligible bridges!! List developed using PennDOT NBIS Database: State, county, municipal!! Preliminary List: 60 Days for locals to agree!! Final List: 90 Days for locals to execute agreement
18 BRIDGE BUNDLING!!Local government participating in program eligible for contribution reduction up to 100%!!Local government refusing to participate will be responsible for 30% of the non-federal share of the future costs for the local bridge being replaced or rehabilitated
19 BRIDGE BUNDLING!! Pilot: Washington, Luzerne, Blair!! 41 bridges!! Refurbish deck, repair superstructure, replace, remove!! Engineering: 25% to 50% savings!! Construction: 5% to 15% savings!! Time spent: Reduce from 7 to 2 years!! County cost: $0.00
20 DAUPHIN COUNTY INFRASTRUCTURE BANK (DCIB)! The DCIB is a financing solution that supports key transportation infrastructure projects within Dauphin County! Over the years it has become apparent that: -! Municipal-sponsored projects are in need of financing options with more flexible terms. -! Infrastructure projects can stall or be delayed due to lack of administrative/project management experience. -! Access to capital would benefit developer-driven transportation improvement projects and associated economic development.
21 HOW THE PROGRAM WORKS
22 WHO IS ELIGIBLE! Eligible Projects Include: - Bridges - Parking - ADA Ramps - Highway - Paving - Stormwater - Intersections - Signalization! The DCIB awards low-interest loans that leverage other local and state funding resources! Eligible applicants include the following: -! Municipalities -! Developers (in partnership with sponsoring Municipality)
23 PROJECT DELIVERY! Project Delivery Advantages -! Turnkey Options "!Dauphin County can complete all aspects of design, construction, and project delivery on behalf of the applicant. Or "!An applicant can submit a qualified design professional for approval to complete the design. The County will deliver the project from bidding to completion. -! Ensures timely project delivery
24 ADVANTAGES! Municipal Advantages -!Low-interest loan program that can leverage other funding sources -!Streamlined approval process and financing terms -!Access to administrative and project management services! Developer Advantages: -!Overcome current challenge of double bonding for PIB -!Access to capital -!Low interest rates may be more competitive than commercial lending
25 ACT 89 WHITEPAPER!!!! On November 25, 2013, the Pennsylvania General Assembly passed and Governor Tom Corbett signed into law Act 89 of 2013 Act 89 generates $2.3 to $2.4 Billion:!! Long-term funding solution!! All levels of Local Government!! Includes funding for all aspects of transportation Challenge!! New funding landscape introduces new Challenges for county government Including: "! Understanding the Legislation "! Identifying which programs a county is eligible to access "! Planning for expenditures Solution To ensure the most efficient use of the new funding, every county should invest in: "! Transportation Asset Management (TAM) "! Capital Improvement Planning (CIP) "! Grantsmanship
26 ! ACT 89 WHITEPAPER Conclusion HRG has been helping municipalities for almost 50 years with a unique advantage over many: " We understand that without proper funding even the best designs stay on paper and are not implemented. " HRG has a separate financial services group dedicated to helping our clients compete and WIN funding for their projects. From project concept, to design, funding and construction, HRG has the experience and knowledge to take an idea and deliver a real world project. For more information please contact: Christopher Bauer, P.E. PTOE cbauer@hrg-inc.com Adrienne Vicari, P.E avicari@hrg-inc.com
27 DAUPHIN COUNTY LAND BANK OPERATIONS The Land Bank Authority " Staffed and maintained through the Dauphin County Office of Community & Economic Development " The Land Bank Authority Board consists of 7 members; 5 of the members also sit on the Redevelopment Authority Board "! Matt Tunnell, Chairman Paul Navarro, Vice-Chairman "! Frank Lynch, Treasurer Gary Lenker, Secretary "! Charles Wallace, Assistant Treasurer/Secretary Andrew Kenworthy "! Ron Buxton "! Staff communicates with the Dauphin County Tax Claims office to stay up to date with properties on the Repository list, Judicial Sale list and Upset Sale list "! Staff is also responsible for working with Municipal leaders to keep up-to-date inventory in each participating municipality Starting out "! The Land Bank created a pilot program to include a limited number of municipalities "! Targeted 12 of the County s smaller Municipalities "! All 39 municipalities (except the City of Harrisburg) have been invited to join. "! 8 municipalities have entered in a Memorandum of Understanding with the Land Bank "! Millersburg Borough, Highspire Borough, Steelton Borough, Hummelstown Borough, Middletown Borough, Lykens Borough, Susquehanna Township and Washington Township "! The MOU with Susquehanna Twp. has been fully authorized by the School District and the County "! Lacking support and understanding from approached area School Districts. "! The Land Bank has also added an element of Community Involvement "! Dauphin County Prison Project Trade
28 DAUPHIN COUNTY LAND BANK PROJECTS 3504 Centerfield Road, Susquehanna Township " LBA paid $78,500 in June 2014 " Rehabbed using Dauphin County Prison s Project Trade ($20K-$25K on materials) " Listed for $129,900 in November 2014
29 PENNDOT S P3 CNG FUELING STATION RFQ "! In July 2012, Governor Corbett signed into law the Public and Private Partnerships for Transportation Act. This law allows PennDOT and other state agencies, transportation authorities and commissions to partner with private companies to participate in delivering, maintaining and financing transportation-related projects. "! PennDOT is inviting private sector companies to submit their qualifications to develop clean-burning CNG fueling stations at public transit agencies (also available to the public) throughout PA. "! The selected private partner will design, build, finance, operate and maintain CNG filling stations at up to 37 transit facilities "! PennDOT will enter into a CNG supply contract with the selected partner as well as purchase agreements with each of the transit agencies. "! PennDOT s portion of the revenue from fuel sales will be returned to transit agencies to assist with future capital projects. "! The project was approved by the state s P3 Board on September 29 and PennDOT hosted an industry forum to educate potential, private-sector stakeholders on the scope and requirements.
30 PENNDOT S P3 CNG FUELING STATION RFQ "!Interested proposers must submit in hard copy their statements of qualifications to design, build, finance, operate and maintain CNG filing station to PennDOT Public-Private Transportation Partnership Office by 11:00 a.m. on December 23, "!P.O. Box 3545, Harrisburg, PA "!Parties can view submission requirements on the Updates, Current Advertisements page at "! Natural gas is a valuable resource that provides affordable, cleaner options for vehicles in Pennsylvania. PennDOT Secretary, Barry J. Schoch
31 DAUPHIN COUNTY, PA REGIONAL CRS INITIATIVE #! Pennsylvania is the 2nd most flood-prone state in the country with the 2nd largest number of municipalities #! Dauphin County has! 40 municipalities! 3,255 flood insurance policies! $4,587,503 in annual premiums! A history of working regionally with its municipalities #! Dauphin County is flood-prone and has a history of flooding that has resulted in serious damage and loss of life #! Dauphin County Commissioners are concerned about the impacts of recent federal legislation:! On property owners with flood insurance! On municipalities and municipal budgets! On school districts and their budgets #! Dauphin County Commissioners are committed to sound flood mitigation practices in the County
32 NATIONAL FLOOD INSURANCE REFORM MAJOR IMPACT Biggert Waters Act of 2012 (BW-12) "! Move towards actuarial rates (elevation rated) for all policies to be phased in over a time frame "! Resulted in some dramatic rate increases across the country Homeowners Flood Insurance Affordability Act of 2014 "! Repealed and modified some provisions of BW-12 "!But, many BW-12 provisions remained "!Lowered rate increases (no more that 18% annually) until full actuarial rates "!Tasked FEMA to perform an affordability study on flood insurance rates within 5 years.
33 DAUPHIN COUNTY S COMPREHENSIVE FLOOD INSURANCE REDUCTION PROGRAM County-lead and sponsored Community Rating System (CRS) program "! Provide technical capacity and support to the 40 municipalities in the County to enter the NFIP s CRS program "!2 pronged approach to program "! Baseline assessment "! Are the communities ready to enter the program? "! If yes, assist them with their application and meetings with FEMA "! If no, provide them with some technical assistance of how to get ready "! CRS application assistance "!Long term solution to reduce flood insurance rates of property owners and mitigate flooding
34 NFIP S CRS PROGRAM POINT AWARDS AND DISCOUNTS
35 DAUPHIN COUNTY S PROGRAM $! Municipal Leaders Educational Program! NFIP program, CRS program and County s assistance $! Baseline assessment- will evaluate floodplain management program to determine CRS feasibility.! Technical staff will meet with community s floodplain administrator.! Will coordinate with State NFIP Coordinating Office to determine NFIP compliance status.! CRS Impact Analysis Report for each municipality $! Assist with preparing CRS application and meeting with FEMA (for interested municipalities only) $! Conduct educational workshop to discuss the yearly municipal responsibilities for CRS program
36 BENEFITS TO THE MUNICIPALITIES AND RESIDENTS "Lower the costs of flood insurance premiums (can mitigate some of the impacts for flood insurance reform) "These savings stay in the community "Insurance savings can offset costs (taxes, rates) "!County, school district and municipal "Leverage regional approach to attain benefits at the local level "Communities can measure themselves against national standards "Public information components builds constituency "Improved floodplain management safer communities To view additional presentations please click on Officials/Commissioners/Documents/ HartwickPresentation zip
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