North Metro Rail Line Design/Build Contractor Staff Recommendation FasTracks Monitoring Committee November 5, 2013

2 Recommended Action It is recommended by the FasTracks Monitoring Committee that the RTD Board of Directors ("Board") authorize the General Manager to award the design/build contract and negotiate final terms with Graham, Balfour Beatty, Hamon Contractors (GBBH) to serve as the Contractor for the North Metro Rail Line Project. The Project consisting of the North Metro Rail Line from Denver Union Station to 124 th Avenue, which will be constructed for a lump sum amount of US $343.3 million. Acceptance of this proposal would complete the North Metro corridor to 124 th Avenue with an option to extend to 162 nd Avenue as funds become available.

3 FasTracks Guiding Principles Ensure every step contributes to the full vision Focus money available to the greatest good Spend public money wisely Maximize all funding opportunities before going to taxpayers Deliver key investments in all corridors Build As Much As We Can As Fast As We Can Until It Is All Done!

4 North Metro Rail Line 18.5 Miles Electrified Commuter Rail 8 Stations Provides additional mobility by expanding the overall system Single track with multiple passing tracks Serves Denver, Commerce City, Thornton, Northglenn, Adams County

5 North Metro Early Action Items Completed Environmental Impact Statement Developed strong partnership with local stakeholders Completed agreement with UP to purchase rail ROW Ordered six EMU vehicles to the Eagle procurement for NM opening day requirements from DUS to 72 nd Avenue Expanded commuter rail maintenance facility to accommodate ultimate North Metro needs Completed duct bank at DUS for North Metro Line Began ROW acquisition process – DUS to 72 nd Avenue Began design process – DUS to 72 nd Avenue Began utility relocation process – DUS to 72 nd Avenue Negotiated IGA’s with stakeholders

6 Unsolicited Proposal & RFP In February 2013, RTD received an unsolicited proposal from Graham Contracting for the North Metro Rail Line Project. An RTD staff evaluation team reviewed the proposal consistent with the agency’s Unsolicited Proposals Policy and determined the proposal had technical merit. On June 28, an RFP was issued for design and construction to 72 nd Avenue with options to extend further.

7 Proposals Four proposals were received on September 23, 2013: Bechtel/Herzog, A Joint Venture Graham, Balfour Beatty, Hamon Contractors North Metro Transit Solutions, a Kiewit/Stacy and Witbeck joint venture URS Energy and Construction, Inc.

8 RFP and Evaluation Schedule Release RFP RFP Review Period Proposals due Evaluation of Proposals FasTracks Monitoring Committee FasTracks Monitoring Committee Recommendation RTD Board Decision Notice to Proceed (pending Board Approval) 6/28/2013 6/28/ /12/2013 9/23/2013 9/24/ /30/ /5/ /14/ /26/ /17/2013

9 Technical Evaluation Technical Proposal Criteria (total 45 points): Technical Innovation/Creativity Technical Approach Management Approach DBE/SBE/WIN Approach

GBBH Team RTD’s understanding of Team Organization: 14

11 GBBH Technical Pros Offers construction of North Metro Line to 162 nd, three extensions, NW Rail to 88 th, extension of NM Line to Longmont by Jan BBRI solid local/RTD/D-B experience; Graham solid transit/D-B experience Firms overall experience is strong; first time partnering together, but showed cohesiveness in proposal Comprehensive understanding of scope & project issues Most technically innovative proposal – creative alternative concepts Systems work will integrate into existing systems seamlessly Provided details and technical solutions without scope reduction or sacrificing quality Same systems contractor as Eagle project The most detailed Environmental Compliance plan

12 GBBH Technical Pros Live prairie dog relocation plan Demonstrated understanding of railroad coordination, requirements, operations and safety Demonstrated understanding of ROW approach and scope Good collaboration approach that includes stakeholders and public outreach Met with stakeholders, forming good relationship and clearly understand their issues Meets key staff requirements, good references Successful DBE outreach events Commitment to 24% design and 22% construction DBE goals and 1% SBE – Commitment becomes part of the contract WIN proposal includes 19 professional and 47 craft positions

13 GBBH Technical Cons Some local resources already committed to other RTD projects JV partner Graham has not worked with RTD before Subcontracting plan lacked detail Didn’t specifically address quiet zones

14 Consensus Score of All Technical Sub-committees Bechtel/Herzog Joint Venture GBBH Graham, BBRI, Hamon NMTS (Kiewit/Stacy and Witbeck) URS Energy & Construction Technical Innovation/ Creativity Technical Approach Management Approach 4873 DBE/SBE/WIN 6895 Total Score Total Technical Score Ranges: (45 points possible) 37-45Excellent (beyond compliance, added value) 28-36Very Good (answered quite well) 19-27Good (answered all requirements) 10-18Fair (answered most requirements) 0-9Poor (didn’t answer requirements)

15 Financial Evaluation Financial Proposal Criteria (total 55 points) Design/Build Cost Proposal – Phase 1 (DUS to 72nd Avenue) Design/Build Cost Proposal – Phase 2 (72nd Avenue to End of Line) Financial Innovation/Creativity

16 Financial Evaluation Matrix Bechtel/Herzog Joint Venture GBBH (Graham, BBRI, Hamon) NMTS (Kiewit/Stacy and Witbeck) URS Energy & Construction Total Financial Score

17 RTD to issue financing for North Metro –Certificates of Participation (COPs) will be issued with the rail line assets as collateral –COPs are lease financing agreements in the form of tax exempt securities similar to bonds –COPs can be used on non-federally funded projects and projects where RTD owns the asset –Projected issuance of approximately $480 million –Separate Board approval will be required for COP issuance Recommended Financing North Metro Rail Line

18 Evaluation Matrix Following Technical, Stakeholder and Financial Review Bechtel/Herzog Joint Venture GBBH Graham, BBRI, Hamon NMTS (Kiewit/Stacy and Witbeck) URS Energy & Construction Technical Score Financial Score Total Score

19 Best & Final Offer Request Based on financial, technical and stakeholder recommendations Two teams close to top, considerable point difference between top two and bottom two teams RFP originally asked for prices on individual segments of corridor. Once proposals were received it was determined segment prices were no longer needed. –RTD requested price to 124 th without segmentation to see what cost savings could be derived Asked for Best and Final Offer from top two teams Both GBBH and NMTS proposed additional savings –GBBH offered substantially higher savings

20 Following Request for Best and Final Offer GBBH Graham, BBRI, Hamon NMTS (Kiewit/Stacy and Witbeck) Technical Score3931 Financial Score 4346 Total Score8277

21 Recommended Action It is recommended by the FasTracks Monitoring Committee that the RTD Board of Directors ("Board") authorize the General Manager to award the design/build contract and negotiate final terms with Graham, Balfour Beatty, Hamon Contractors (GBBH) to serve as the Contractor for the North Metro Rail Line Project. The Project consisting of the North Metro Rail Line from Denver Union Station to 124 th Avenue, which will be constructed for a lump sum amount of US $343.3 million. Acceptance of this proposal would complete the North Metro corridor to 124 th Avenue with an option to extend to 162 nd Avenue as funds become available.

22 Benefits of Recommended Action Demonstrates RTD’s commitment to the northern suburbs toward completion of the FasTracks program Recommendation is consistent with the independent evaluation by the stakeholders Provides a firm, fixed price commitment to complete the North Metro Line, a key piece of the FasTracks program, at a favorable capital cost Building to 124 th as a first phase serves the majority of projected ridership for the corridor Provides a firm price on Central, Southeast and Southwest extensions should RTD decide to exercise at later date Provides access for northern residents to major employment centers in downtown Denver, the Denver Tech Center and DIA

23 FasTracks Progress Map NOVEMBER 2013

24 Progress Map with Contract Award NOVEMBER 2013

25 Schedule November 14 – Public comment period; FasTracks Monitoring Committee action November 26– Public comment period; RTD Board of Directors formal action December 17 – Board resolution requesting authority to issue COPs First Quarter 2014 – Groundbreaking December 2017 – Construction complete Mid-2018 – North Metro Line opens to public

Questions? 52