RTD simulation shows the larger heavy-rail electric commuter rail cars along Grandview Avenue in Arvada. Different than light rail cars, these are proposed for use on the Gold Line and East Corridor.

One of the three teams preparing a public-private partnership proposal to design, build and operate RTD’s FasTracks commuter train corridors to Denver International Airport and Arvada/Wheat Ridge has decided to sit it out unless RTD makes “major changes” to extend its schedule.

Mile High Transit is the partnership that, according to a report from RTD Acting General Manager Phil Washington to the RTD board (see Page 7), decided in mid-October to release some of the firms that composed its team and become “inactive.”

Washington told the board that Mile High’s decision was “pending major changes to RTD’s schedule.” But RTD isn’t currently contemplating any extensions that call for the teams to submit their proposals by March 31. The project at issue is called Eagle P3, which stands for East Corridor and Gold Line Public-Private Partnership. In addition to financing, designing, building, operating and maintaining those two commuter rail lines for 40 years, the winning concessionaire will also build a commuter rail maintenance facility for them and two other RTD commuter rail FasTracks lines, as well as a small portion of the Northwest Rail corridor to south Westminster.

It is valued at a combined total of $2.3 billion in cost.

Mile High Transit included UK-based John Laing Company, which invests in privately financed infrastructure projects, transportation contractors Flatiron Corp. of Longmont and Archer-Western of Atlanta, German transportation concessionaire HOCHTIEFF, Canadian rail car builder Bombardier, and engineering consultants CH2M Hill and AECOM, among others.

Two teams remaining in the hunt are:

Denver Transit Partners:
• Fluor Enterprises, Inc.
• Macquarie Capital Group Ltd.
• Ames Construction
• Balfour Beatty Rail, Inc.
• Alternate Concepts, Inc.
• HDR Global Design Consultants

Mountain-Air Transit Partners:
• HSBC
• Siemens
• Veolia
• Kiewit
• Herzog
• Stacy and Witbeck
• HNTB Corporation
• Mass. Electric Construction Co.

Already, RTD has responded to a series of questions from the teams about its Request for Proposals, and it is also reviewing a number of suggestions from the bidders for alternative concepts designed to save money or make the projects more efficient. That is by design, as the completive proposal process allows RTD to retain the rights to these suggestions even if made by the unsuccessful bidder. A stipend of up to $2.5 million will be paid to the unsuccessful team, depending on its expenses.

“Various procurement meetings have been held and are planned over the coming weeks with the proposing teams to discuss some of the questions, alternative technical concepts and to provide an opportunity for the teams to meet third parties including the railroads, utility companies and DIA,” Washington reported to the RTD board.

Aerial view of DIA's terminal shows the proposed location for the FasTracks East Corridor station.

RTD wants to select a winning team by June 15. A 40-year concession contract would be negotiated by July 6, with early construction work starting in August. RTD is looking at splitting the project into two phases, with work on the airport line first, and then Gold Line work starting in a second phase contingent on how things go in the beginning of the project. Full notice to proceed would take place by the end of 2011, with opening of both lines by the end of 2016.

The public-private partnership idea is part of RTD’s strategy for bringing down the upfront costs of FasTracks, now $2.2 billion underwater with expenses over finances if it wants to finish on the original schedule of 2017.

The winning private team would enter into a concession contract with RTD to provide significant private financing – up to $1 billion – plus a design-build project delivery approach similar to that used by RTD and CDOT on the successful T-REX highway-transit project, and then capped off with a 40-year operating and maintenance agreement with the private partner. Under the concession, the private team would receive annual payments from RTD in exchange for providing the system and operating it to RTD schedules and standards.

At the end, all of the assets would revert to RTD.

In addition, RTD is seeking a combined $1 billion in federal transit grants for the East Corridor and Gold Line.

You can view a presentation RTD staff made to the board in August here.

A public-private partnership is aimed at helping RTD upfront by lowering the initial capital costs, exchanging that with the private partner for the annual concession payments. It’s similar to a homeowner paying a monthly mortgage over time for a house instead of paying cash to build it. It requires less money now, although more over time. It helps ease RTD’s need for more money now if it hopes to build the entire FasTracks system.