|Fund Entire Project
- GARVEE Bonds (Grant Anticipation Revenue Vehicles).
- Bond debt paid with future federal dollars.
- Can be used to fund entire project allowing for accelerated project development.
- There is a $150 million statutory limit. Increasing this would require a 2009 Legislative Action.
- State agency may have an aversion to debt.
- Long term debt should be in conjunction with a capital improvement plan.
- Current interest rates are lower than the construction interest rate.
|Build Project Segments as Funding Becomes Available
||Use other possible funding sources for the local match. Encourage:
- City or County Impact Fees.
- Developer Contributions - Fees, Right-of-Way.
- Transportation Improvement District.
- Hospitality Fees.
- Required local match could be met with these fees.
- Community/developer cooperation is needed to implement impact fees.
- Requires extensive community support.
- Use private activity bonds.
- A private entity finances the project. Tax-exempt bonding is available for the private company.
|This is a new concept in Montana.
- Better early cost estimation.
- Additive alternates.
- Alternate designs (e.g. bridge design).
- Escalation clauses.
- Use other estimation tools to increase accuracy, such as Monte Carlo Simulation.
- Involve other disciplines like construction.
- Perform early constructability reviews.
- Have a base bid and one or more alternates. The alternates are awarded based on available funding. Possible projects:
- Base=Cedar, Alt=Frontage Rd.
- Base=Bridge, Alt=Ramps
- Precast, rolled in place, etc.
- MDT and the contractor share risk. MDT already uses fuel and asphalt, but there may be something else based on when the project(s) are advertised.
- Use design/build contracting.
- Incorporate benefits of design/build.
- Incentive Contracting.
- Major detour - build a temporary structure adjacent to the existing structure or to the North of Lowe's.
- Requires that funding be programmed to meet construction schedule.
- Need to have NEPA in place, ROW complete.
- Fast track design and construction by doing more concurrently.
- Have contractor constructability reviews.
- A+B (cost plus time). Incentives/Disincentives on milestones. Lane rental.
- Close Custer structure. This would decrease construction time and decrease traffic control costs.
- It would provide access to the north for emergency response vehicles.
- A cost analysis is needed to see if the costs of the temporary structure are less than the savings issues.
- Exclude work during peak hours.
- Night work.
- Detailed contract sequencing.
- Specify non-working hours.
- There may be some areas that this is not acceptable.
- The work zone mobility rule should be in place prior to this work, so traffic control should be addressed in the plans.
- The contractor can submit alternates to the traffic control plan, but there needs to be contract language addressing that this is not eligible as a VE proposal.
|Optimize Contract Packaging
||Split into smaller projects to maximize competition and match funding.
- Cedar Street Widening.
- Frontage Road and Int. improvements.
- Custer Road and Structure Ramps.