1. How RISKY Is This??

2. How RISKY is This?? Buy a lottery ticket Only 3 will be sold Cost for a ticket $80 million Jackpot $2,000,000,000 Where is the F*@%ing RISK!!

3. The Program 1 lump sum contract 4 years 5 light rail lines 30 miles of infrastructure 100 vehicles $2,000,000,000 investment

4. Lets Talk RISK The Relationship Risk Development agreement Design/Build contract Operations & maintenance contract Financing plan

5. Development agreement Design/Build contract Operations & maintenance contract Financing plan Facility Provider Integrated Master Development Structure Lets Talk RISK The Relationship Risk

6. The Evolution RISK - Team Building Civil Engineer + Facility Provider D/B Contractor(s) Financiers + Vehicle Supplier

7. The Evolution RISK - Team Building Civil Engineer + Facility Provider Financiers + Vehicle Supplier O & M Contractor

8. Development Agreement CE & facility provider marriage Scope & definition Transparent costing Construction sequencing & schedule Utility agreements Property acquisition Risk register

9. RISK Register 154 Items  92 Facility provider  62 METRO / owner 35 Categories 30% - 15% Project value $460M - $250M

10. RISK Register Imputed risks Real (equity) risks Cost going in = Cost coming out Risk take of last resort

11. The Ultimate RISK METRO will not buy/own the project Availability payment  Debt service – year five (5) onward  Operating – year one (1) Avoid latent defect risks Long term business model  Long term lease Buy out in increments Buy out total  Private or public operation

12. The Vehicle RISK METRO takes what industry makes No specs No custom work No kidding!

13. Design / Build 3,000’ – 5,000’ segments one & done No change order No claims No litigation No liquidated damages Target cost pricing mechanism  Risk vs. Incentives

14. Would you RISK IT??