7. other social, political, environmental and economic factors both known and unknown to KABATA at this time.KABATA undertakes no responsibility to update this presentation.
8. Letter From Governor Parnell “Alaska is open for business, prepared to partner with private industry, and ready to build out the essential infrastructure that will support a strong economic foundation for the future. If you are interested in investing capital in Alaska, please do not hesitate to contact KABATA representatives…” Photo credit: Jeff Schultz of Alaskastock.com in Anchorage, Alaska Excerpt from June 13, 2011 letter
9. Mat-Su Borough Mayor “This new transportation link will connect urban Anchorage with acres of developable land and the deep draft dock at Port MacKenzie, bringing economic development and job creation. It’s time to build the bridge.” Mayor Larry DeVilbiss Matanuska-Susitna Borough
11. About the Knik Arm Bridge and Toll Authority (KABATA) Established by Legislature in 2003 under Alaska Statute 19.75 to “…develop, stimulate, and advance the economic welfare of the state and further the development of public transportation systems in the vicinity of the Upper Cook Inlet with construction of a bridge to span Knik Arm and connect the Municipality of Anchorage and the Matanuska-Susitna Borough.”
12. KABATA Board of Directors Managed by seven member board Michael L. Foster, P.E. – Chairman Commissioners of Revenue and Transportation Three public members appointed by the Governor One Senator and one Representative from the Alaska Legislature Necessary powers vested in the board Ability to enter into contracts and issue debt Includes approval of public private agreement
13. Experienced KABATA Management Andrew J. Niemiec, P.E. Executive Director Kevin P. Hemenway Chief Financial Officer Judy Dougherty, P.E. Deputy Executive Director Loran Frazier, P.E. Chief Engineer
15. The Knik Arm Crossing –Introduction and Overview
16. Knik Arm Toll BridgePartnering Opportunity Essential Greenfield infrastructure with strong political and public support Creditworthy project with dedicated revenue stream and funded project reserve fund Mature project with advanced engineering, ROW and permitting status Reasonable schedule Procurement ready
20. Anchorage Metropolitan Statistical Area: 54% of Alaskans 88,995 residents * Mat-Su in top 1% of fastest growing “counties” in U.S. 291,826 residents * Municipality of Anchorage is the largest city in Alaska Crossing Location * April 2010 Census - US Census Bureau
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23. Immediate Benefits Economic stimulus: $715 million of new infrastructure 5,000 construction-related jobs Lowers cost for freight to Interior - $326million truck freight savings first 10 years Lowers cost for Alaskan drivers - $303 million pocketbook savings first 10 years Reduces carbon emissions – 90,000 tons first year
24. Immediate Benefits(continued) Alternative to Glenn Highway for safety, security, emergency, and accidents – closed average of 2 times per month Ties together State’s transportation system across modes Connects Port of Anchorage and Port MacKenzie to better serve the State Improved access for Goose Creek Correctional Center - $30 million savings first 10 years
28. 8,940 acres of industrial zoned uplands for commercial/industrial expansion of Anchorage
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30. Knik Arm Crossing Phase I Scope Approximately 10 miles of 2-lane roadway from Pt. MacKenzie Road to A/C connector 8,200 foot 2-lane bridge with 4-lane foundation Cut-and-cover tunnel under Government Hill neighborhood 4 years to construct Total Cost Estimate ≈ $715 million
34. Knik Arm Crossing Phase II Scope Expand roadway and bridge to 4-lanes entire length from Pt. McKenzie Road to A/C connector – Concessionaire obligation New connection to Ingra-Gambell – KABATA obligation Needed about 2030 Total Cost Estimate in 2010 dollars: ≈$375 million
39. ROW and Permitting Status Rights-of-Way: FHWA authorization for ROW acquisition – August 2, 2011 Key Permits: Record of Decision Issued December 15, 2010 Developing 404 permit with Corps Applied for LOA under MMPA with NMFS
43. Availability P3 Indicative Terms Scope DBFOM in exchange for periodic availability payment Future capacity improvements in segments operated by developer May include tolling operations on behalf of Authority Term - 35 years after substantial completion Potential Financial / Credit Support: $150 million funded project reserve Potential milestone payment(s) $600 million SAFETEA-LU PABs allocation TIFIA
54. RFQ Milestones Issued July 13, 2011 Pre-SOQ Workshop Aug. 18, 2011 Questions Deadline Aug. 22, 2011 Addenda/Answers Sept. 2, 2011 SOQ Due Sept. 15, 2011 Anticipated Shortlist Oct. 17, 2011
55. Submittal Requirements Due September 15, 2011, 4:00PM AST Volume 1 not to exceed 60 pages inclusive of executive summary Volume 2 and 3 requirements described in Part B of the RFQ One original and 20 copies in loose-leaf three ring binders Refer to Section 5 of the RFQ for more details Nothing on this slide or in this presentation waives or alters the requirements of Part 5
56. RFQ Questions Questions must submitted in writing No telephone or oral questions Questions need to be in conformance with section 4.6 of the RFQ (www.knikarmbridge.com) Questions submitted to: Knik Arm Bridge and Toll Authority 550 West 7th Avenue, Suite 1850 Anchorage, Alaska 99501 Attn: Michele Casey, Administrative Manager Email: dot.knik.bridge@alaska.gov Deadline for submitting questions – Aug. 22, 2011
57. Local Contractors Local contractors provide knowledge of Local environmental considerations Local labor markets Local materials markets Local DBE firms Alaska DOT requirements
Jobs based on Insight Research report adjusted for estimated Alaska hire (Insight estimated approximately 5,600 construction related jobs)Trucking freight savings based on avoided vehicle operating cost and value of time assuming 1 driver, net of tolls paid. $326 million over first 10 years. $12 million in year 1, $18 million in year 2 and $24 million in year 3. Calculated using Wilbur Smith traffic study inputs. Almost 20 miles shorter route to FBX through Big Lake.Driver savings based on avoided vehicle operating cost, net of tolls paid for first ten years. $15 million in year 1, $22 million in year 2 and $30 million year 3. Calculated using Wilbur Smith traffic study inputs.Spreadsheets supporting calculations are available.
Glenn Highway closures based on ADN and KTUU stories, and is suspected to be lower than actual number of closures.Goose Creek savings calculated based on avoided vehicle operating cost for visitors and employees estimated at $2.3 million per year and $300,000 of savings for Department of Corrections in reduced prison operating costs (prisoner transport and lower transportation cost for prison supplies. This amounts to $30 million over 10 years with inflation, $3 million for DOC and $27 million for public and employees.Carbon emission reductions calculated based on Wilbur Smith Travel Savings to the Bridge Patrons in the First Year of Operations letter and US Department of Energy Form EIA 1605B. (approximately 19 pounds of CO2 per gallon of gasoline burned and 22 pounds per gallon of diesel fuel. Train gallons of diesel calculated separately. Figures calculated over 10 years based on traffic and toll revenue base case and certain assumptions about traffic mix.
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