HRTAC/HRTPO Overview Kevin B. Page Executive Director, HRTAC October Member Meeting HRTAC/HRTPO Overview Economic Vitality and Quality of Life Unlocking Hampton Roads Kevin B. Page Executive Director, HRTAC Bob Crum, Jr. Executive Director, HRTPO/HRPDC 10/24/2017

Moving the Region Forward HRTAC/HRTF Overview Hampton Roads Transportation Fund created 2013 Acts of Assembly HB2313 HRTAC created 2014 Acts of Assembly HB1253 – Hired Executive Director August 2015 Empowered to procure, finance, build and operate highway, bridge and tunnel projects in Hampton Roads Authorized to use HRTF monies and tolls for construction projects on new or existing highways, bridges and tunnels and to issue bonds using revenues to support bond debt Regional Collaboration - Works closely with the Hampton Roads Transportation Planning Organization (HRTPO) who determines Project Prioritization for the region Unlocking Hampton Roads 2

HRTAC Membership 19 Voting members 4 Non-Voting Ex-officio members Commonwealth Transportation Board Member Virginia Department of Transportation Virginia Department of Rail and Public Transportation Virginia Port Authority June 15, 2017 - Michael Hipple elected Chair and Linda Johnson elected Vice-Chair HRTAC is a political subdivision of the Commonwealth Primarily funded with HB 2313 revenue (Hampton Roads Transportation Fund) approved by the 2013 General Assembly 10 Cities 4 Counties Chesapeake Isle of Wight Franklin James City Hampton Southampton Newport News York Norfolk Poquoson 5 VA General Assembly Members Portsmouth Two Members of the Senate Suffolk Three Members of the House of Delegates Virginia Beach Williamsburg Unlocking Hampton Roads 3

Hampton roads transportation fund Additional Sales Tax - Additional 0.7% $131.47M Revenue FY17 – ($129.97M FY2015) Additional Fuels Tax - Regional tax on motor fuels - Additional 2.1% - $25.03M Revenue FY17 – ($40.94M FY2015) Fuel tax not floored in 2013 – Loss of around $20M per year No Floor on Gas Tax for HRTAC or NVTC/PRTC State Code requires HRTF funds to be spent Hampton Roads highway construction projects Unlocking Hampton Roads 4

Legislation: Congestion Relief HRTAC (HB 1253, 2014) “…shall give priority to those projects that are expected to provide the greatest impact on reducing congestion for the greatest number of citizens residing within Planning District 23…” Statewide Prioritization Process (HB 2, 2014) “…Hampton Roads highway construction districts…shall ensure that congestion mitigation…is weighted highest among the factors in the prioritization process…” 45% weighted factor in Hampton Roads Unlocking Hampton Roads 5

General Assembly – 2016 HRTAC Omnibus Bill HB1111 Fine Tuning HRTAC Allows investment and provides liability protections Allows counties to designate a representative Allows all localities to have representation at the meetings if Chief Elected Officer or County Designee is unable to attend. Notice must be given 48 hours before meeting if regular member is unable to attend Administrative and operating expenses shall be paid by HRTAC Revenues Unlocking Hampton Roads 6

General Assembly Actions – 2016 Tolling Language within the State budget establishes new toll policy restricting CTB, VDOT, HRTAC, and NVTA from tolling existing un-tolled lanes without General Assembly approval except on: HOV/HOT Lanes New Lane capacity New bridges Short segments of highways between existing toll facilities Legislation was adopted allowing better collection of unpaid toll bills from other states HRTAC now has state guidance on tolling Unlocking Hampton Roads 7

Congestion/Future Connectivity 2040 Population 2040 Employment The Stage is set for Regional Transportation Solution Consensus Building 8

For two decades the Region has identified these projects Unlocking Hampton Roads 9 For two decades the Region has identified these projects

Defining the Roles of the HRTPO and HRTAC Unlocking Hampton Roads 10

Evolution of HRTAC Projects Plan HRTPO (Long-Range Transportation Plan with HRTAC Input) Prioritizes Projects Based on Project Readiness with HRTAC Input Program HRTAC (Six-Year and Long Range Plans of Finance) CTB (Six-Year Improvement Program) HRTPO (Adds HRTAC Projects to Transportation Improvement Program) Finance & Deliver HRTAC (Regional Tax Funding/Bonding, Toll Revenues/Bonding, and Smart Scale Grants – Contracts with VDOT or Others to Deliver Projects) VDOT – Smart Scale Funding (Constructs Projects Contracted by HRTAC) HRTPO Long Range Transportation Plan identifies priority projects in the constrained plan or vision plan as under study/development/construction HRTAC develops a six-year and long range plans of finance to guide in project funding for development and construction – HRTAC feeds LRTP funding plans HRTAC allocates funds to specific projects, asks that the HRTPO add them to the TIP The CTB selects the Local Preferred Alternative, maintains Statewide Transportation Improvement Program, allocates state funding to projects in Six Year Improvement Program – awards Smart Scale funding VDOT assists in project readiness and construction through HRTAC/VDOT MOA and HRTAC project construction agreements Unlocking Hampton Roads 11

2040 LRTP: Regional Priority Projects ‘Sequencing Based on Project Readiness’ I-64 Peninsula Widening I-64/I-264 Interchange I I-64 Southside Widening/High-Rise Bridge - Phase 1 II Hampton Roads Crossing: Alternative A - HRBT III I-64 Southside Widening/High-Rise Bridge - Phase 2 IV I-64/Fort Eustis Blvd Interchange US Route 460/58/13 Connector Bowers Hill Interchange V A major step forward in Regional Consensus Building - February 18, 2016 12

Unlocking Hampton Roads 13

Adopted HRTAC FY2018-FY2023 – Six Year and 2040 Operating and Capital Plans of Finance for the Region’s High Priority Projects (With Toll Revenues to HRTAC) On September 21, 2017, HRTAC Adopted the HRTAC FY2018-FY2023 Funding Plan and the HRTAC 2040 Long Range Plan of Finance Assumptions: HRBT advances on schedule – enters SYIP 2019 completion 2024 First bond activity FY2019 – all net toll revenues to HRTAC Smart Scale funding for HRTAC funded projects continues Minor adjustments were made to bring the proposed plan to reflect updated project estimates and obligations of both HRTAC and VDOT June 2017 reduction in HRBT contingency by $200M June 2017 Smart Scale awards to two HRTAC projects Reduction in total project costs Return of the funding obligation by VDOT due to the use of federal funding to support total project costs. Unlocking Hampton Roads 14

Project Costs and Expenses & Funding Sources (With Toll Revenues to HRTAC) 15

HRTAC Projected Cash Flow FY 2018 to FY 2023 (With Toll Revenues to HRTAC) Unlocking Hampton Roads 16 Maintain General Reserve Balance at Minimum 10% of HRTF Revenue in Current Fiscal Year

ADOPTED HRTAC 2040 LONG RANGE PLAN OF FINANCE UPDATE (with toll revenues to HRTAC) 17

HRTAC Projects Region’s 2040 Long Range Plan $8.5B YEAR PROJECT YOE COST ($M) 2018-2022 I-64 Peninsula – Segments 1, 2, and 3 $645 2019-2021 I-64/I-264 Interchange – Phases I & II $347 2020 I-64 Southside/High-Rise Bridge – Phase I $600 Project Development $37 2024 HRBT $3,799 2037 I-64 Southside/High-Rise Bridge – Phase II $1,729 Bowers Hill Interchange $659 2038 US 460/58/13 Connector $396 I-64/Fort Eustis Blvd Interchange $320 Vision Plan I-564/I-664 Connectors (Patriots) I-664/MMMBT VA 164/164 Connector Unlocking Hampton Roads 18

Smart Scale (HB2) Funding Smart Scale (Formerly known as HB2) funding is a competitive prioritization process administered by the Commonwealth to advise the Commonwealth Transportation Board in its funding decisions. $144,927,753 awarded in June 2016 to the I-64 Peninsula Widening Project $150,000,000 awarded on June 20, 2017 $100,000,000 to the I-64 Southside Widening/High Rise Bridge Project $50,000,000 to the I-64/I-264 Interchange Phase II Project Unlocking Hampton Roads 19

Hampton Roads Crossing Study A study that led to Unanimous Regional Decisions on October 20, 2016 Unlocking Hampton Roads 20

HRBT - Moving Forward March 16, 2017, HRTAC allocated $25M toward refinement of HRCS Preferred Alternative HRCS SEIS is complete June 12, 2017, FHWA issued Record of Decision (ROD) Project’s planning-level cost estimate $3.3B in 2016 dollars (SEIS) - $3.8B YOE Includes Construction, CEI, Large Contingency HRTAC, funding agent, is developing strategies to fund construction VDOT, delivery agent, is evaluating delivery options and initiating preliminary engineering Unlocking Hampton Roads 21

HRBT - Next Steps 22 Activity Date Expected Detail Level Screening Report July 2017 Draft Request for Qualifications and DB/DBFOM Term Sheets September 2017 Transportation P3 Steering Committee – Initial Finding of Public Interest October 2017 Statements of Qualifications due November 2017 Announcement of Shortlisted Teams January 2018 Indicative Price Proposals Due April 2018 Briefing to Transportation P3 Steering Committee on Delivery Method Announcement of Delivery Method Draft Request for Proposals May 2018 Final Request for Proposals September 2018 Commercial Close Early 2019 Unlocking Hampton Roads 22

The Road Ahead 23 23

Next Steps HRTAC will continue work to develop solutions and continue construction of HRTAC’s $1.6B approved/funded projects For HRBT - HRTAC/VDOT will develop MOU to outline roles, responsibilities and Stakeholder involvement to keep the Region informed HRTAC will work with HRTPO and impacted jurisdictions to study the remaining projects not selected in the SEIS Alternative A Public discussion on how to fund the projects HRTAC will advance the FY2018-FY2023 Funding Plan and 2040 Long Range Plan, calibrate funding options, seek public input, advance project readiness and continue preparations for bonding/financing of projects Unlocking Hampton Roads 24

www.hrtac.org www.hrtpo.org Unlocking Hampton Roads 25 10/24/2017