CHESAPEAKE BAY BRIDGE‐TUNNEL PARALLEL THIMBLE SHOAL TUNNEL
PROJECT OVERVIEW Prepared for: Virginia Transportation Conference Oct. 29, 2015
History of CBBT •
1956 - CBBT Commission enabled to build the fixed crossing.
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1960 - Revenue Bonds were issued to fund construction
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1960 - Construction commenced in September
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1964 – April 15, construction complete and opened to traffic
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1990 – General Assembly enabled the District to build the Parallel Crossing in 3 Phases
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1995 - Phase I (Parallel Bridges) construction began in July
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1999 - Phase I was fully completed approximately 10 % under budget
Project Overview (Phase 2) Parallel Thimble Tunnel •No Right of Way Acquisition •No Large-Scale 3rd Party Utility Relocation
Project Elements: Proposed Island Existing Crossover Proposed Thimble Shoal Channel Tunnel (SB Traffic)
Fishing Pier
#2 Island Existing Thimble Shoal Channel Tunnel (NB Traffic)
Approximate Edge of Existing Island
#1 Island
CBBT Parallel Thimble Shoal Tunnel Project Team CBBT Commission CBBT Commission Project Development Committee Fred Stant, Tommy Meehan, John Malbon, Wayne Coleman, George Clarke
CBBT District Staff Jeff Holland, Tom Anderson, Bob Johnson, Mike Crist, Kevin Abt
Project Development Strategic Advisor Moffatt & Nichol Pennoni & Assoc. Arcadis Ernst & Young Project Advisory OTP3
Design Manager Jacobs HNTB COWI Solstice Environmental, LLC Construction Manager HNTB
Project Financing
Project Counsel
Commission Counsel
Nossaman
Willcox & Savage
Design Builder To be awarded May 2016
Municipal Advisor Public Financial Management
Bond Counsel Nixon Peabody
Traffic & Revenue Advisor Steer Davies Gleave
Underwriter Bank of America/Merrill Lynch
WHY IS THIS PROJECT SO IMPORTANT? • • • • • •
Route 13 Corridor is a Corridor of Statewide Significance Lack of viable alternative route Lane closures for oversized escort loads Lane closures for ordinary maintenance work Age of existing tunnels Improvement in levels of service and safety
IMPORTANT BUSINESS POINTS TO CONSIDER • 20-25% of VB tourists utilize the Coastal Corridor o VB exit surveys
• CBBT is a political subdivision of the Commonwealth • CBBT operates as a business, direct and fair
Commonwealth of Virginia Approval EXECUTIVE BRANCH AND LEGISLATIVE SUPPORT AND APPROVAL FOR THE PROJECT Project is enthusiastically supported by: • • • •
Governor of the Commonwealth Administration Secretary of Transportation Both Houses of the General Assembly
Procurement Methodology • Two-Step Design-Build Procurement Request for Qualifications (RFQ)/Request for Proposals (RFP) Shortlisted 4 teams Technically Acceptable Low Price Stipend to be provided to unsuccessful shortlisted teams who submit compliant proposals o Design-Build Teams selected construction method when submitting Statement of Qualifications – Bored vs. ITT o o o o
CBBT Thimble Shoal Tunnel Project Development Timeline •
May 2013
Commission Accelerated Phase IIA via Design Build Delivery Model; saves 18 months in overall Project Schedule and $$ in Project Costs and Cumulative Debt Service over the life of the bonds.
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Aug. 2013
Commission Adopted Revised Toll Rate Schedule
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Nov. 2013
Unsolicited Proposal from PC2 Received Mapping of Project Site Awarded to Jacobs Geotechnical Analysis of Project Site Awarded to Jacobs
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Jan. 2014
Revised Toll Rate Schedule Implemented Strategic Advisor Award: Moffatt & Nichol
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Mar. 2014
NEPA EA Process Commenced
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Apr. 2014
PC2 Unsolicited Proposal Rejected
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May 2014
Municipal Advisor Award: Public Financial Management
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Aug. 2014
Design Manager Award: Jacobs
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Nov. 2014
Geotechnical Borings and Geotechnical Data Report Completed
CBBT Thimble Shoal Tunnel Project Development Timeline (continued) •
Dec. 2014
Draft Investment Grade Traffic & Revenue Study Completed
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Dec. 2014
Draft Environmental Assessment Signed by FHWA
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Dec. 2014
Updated LOI submitted to TIFIA Joint Program Office
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Jan. 2015
Project Counsel Award : Nossaman LLP
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Jan. 2015
Geotechnical Borings for Bored Solution and Offshore Disposal Commence
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March 2015
Geotechnical Borings for Bored Solution Complete
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March 2015
Bond Counsel Award: Nixon Peabody LLP
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May 2015
Issue Request for Qualifications for Parallel Thimble Shoal Tunnel
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May 2015
Host Non-Mandatory Design-Build Conference
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May 2015
Lead Investment Banker Award: Bank of America Merrill Lynch
CBBT Thimble Shoal Tunnel Project Development Timeline (continued) •
July 2015
Receive Statements of Qualifications
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July 2015
Issue Request for Qualifications for Construction Manager
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July 31, 2015
FONSI approval received
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August 2015
Shortlisted Four Design Build Teams: • • • •
Archer Western-Vinci Construction TunnelBuilders Bouygues TP/Traylor/Manson Dragados Team: Dragados USA and Schiavone Construction Company, LLC SKW Tunnel Builders: Skanska USA Civil SouthEast, Inc.; Kiewit Infrastructure Co.; and Weeks Marine, Inc.
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August 2015
Issued Draft Request for Proposals
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Sept. 2015
Construction Manager Award: HNTB
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Oct. 2015
Completed 2nd round of RFP Iterative Meetings with Shortlisted DB’s
Procurement Schedule Activity Final RFP Technical Proposals due
Schedule February, 2016 March, 2016
Technical proposal evaluation complete
April, 2016
Pricing / Final technical proposals due
April, 2016
Notice of intent to award
May, 2016
Financial Close
September, 2016
National Environmental Policy Act (NEPA) • • • • • •
Environmental Assessment (EA) FHWA was the lead federal agency Multiple agencies involved Purpose was to identify potentially significant impacts Draft EA completed December 2014 Finding of No Significant Impact (FONSI) approval received – July 31, 2015
National Environmental Policy Act (NEPA)
Permitting • Contractor will obtain permits and clearances • District is a partner with contractors to obtain the permits and clearances • Work to facilitate permitting was initiated during NEPA process • Navigation/Maritime coordination • Identification of possible permit conditions • Dredge material disposal • Information is being made through Draft RFP DB process
Dredged Material Disposal • Dredged Material from the Lower Chesapeake Bay is not authorized for placement at the Craney Island Dredged Material Management Area (CIDMMA) • District has worked with Corps and EPA over the last 15 months to establish concurrence to place dredged material in the Norfolk Ocean Disposal Site (NODS) • Corps posted Section 103 Public Notice on 10/25/15
Offshore Disposal
Project Site 22 NM Ocean Disposal Area CIDMMA
Atlantic Ocean Channel
Mapping • Conducted a 3D Laser Survey o From Land o From Water o Underground Utility Location
• Surveyed o Trestles o Islands o Tunnel
• Created a 3D CADD Model of the Project Area • Incorporating Bathometry from Geotechnical Investigation into CADD Model
Existing Thimble Shoal Channel Tunnel Design
Full Transverse
Cross Section/ITT Construction Method
Cross Section/Tunnel Boring Machine
Tunnel Boring Machine With its rotating cutting wheel, the tunneling machine breaks the material from the tunnel face. The material is then transferred to the belt conveyor system in the rear of the shield via a screw conveyor, while the hydraulic cylinders press forward continuously. Screw Conveyor Cutting wheel
Belt Conveyor
Excavation chamber
Excavation Techniques – EPB Machine
Permissible Laydown Area/Little Creek
Financing Tasks – Completed or Underway
Municipal Advisor selection Traffic & Revenue consultant selection TIFIA Letter of Interest submission and Update VTIB Application submission Investment Grade Traffic & Revenue Study
Stated Preference Survey Existing Conditions Analysis Regional Land Use and Socio-economic Analysis Econometric and Network Modeling Traffic & Revenue Forecast Sensitivity Analysis
Financing Tasks – Completed • Selection of Bond Counsel • Credit Rating Review • Selection of Underwriting Team • TIFIA financing activities (ongoing)
Plan of Finance • 10% toll increase commenced in January 2014 o o o o
First full year of new tolling regime yielded over 14.4% No degradation in traffic volume FY 2015 - Traffic up 3.2%; Revenues up 11.0% FY 2016 To Date – Traffic up 7.9%; Revenues up 6.6%
• SDG prepared an investment grade Traffic & Revenue Study o T&R model benefits from actual results of January 2014 toll rate increase o Forecast increases for FY2015 achieved in just 9.5 months o FY 2016 traffic increase projected @ 72,000; actual increase has already reached 100,000
• Conservative estimates for investment income, operating expenses and renewal/replacement expenses o Fifty year history of tolling and managing operations and maintenance
• Anticipate BBB Rated Revenue Bonds o CBBT Toll Revenue Bonds are currently rated “A-” by Fitch
Sources
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Funding sources consists of: o First Tier Toll Revenue Bonds o Subordinate Toll Revenue TIFIA Loan (33% of eligible costs and with a rural rate) o VTIB Loan o CBBTD General Fund transfer from FY 2014 to FY 2020
Thank you!
www.cbbt.com
