Fargo-Moorhead Area Diversion Project April 19, 2016 Presentation - - PowerPoint PPT Presentation

▶
fargo moorhead area diversion project
SMART_READER_LITE
LIVE PREVIEW

Fargo-Moorhead Area Diversion Project April 19, 2016 Presentation - - PowerPoint PPT Presentation

Oct 25, 2022 338 likes •764 views

Fargo-Moorhead Area Diversion Project April 19, 2016 Presentation to: The International Project Finance Association Presentation Outline Red River Basin & the Diversion Authority Flood History & Project Need Federally Authorized Project

slide-1
SLIDE 1

Fargo-Moorhead Area Diversion Project

April 19, 2016 Presentation to: The International Project Finance Association

slide-2
SLIDE 2

Presentation Outline

Red River Basin & the Diversion Authority Flood History & Project Need Federally Authorized Project Project Features Project Operations Financial Overview Procurement Overview

2

slide-3
SLIDE 3

3

Moorhead, MN Fargo, ND

Red River Basin

North Dakota South Dakota Minnesota

slide-4
SLIDE 4

Who is the Diversion Authority?

  • Diversion Authority (DA)
  • Fargo, North Dakota
  • Cass County, North Dakota
  • Cass County Joint Water

Resource District (North Dakota)

  • Moorhead, Minnesota
  • Clay County, Minnesota
  • Buffalo-Red River Watershed

District (Minnesota)

4

slide-5
SLIDE 5

F lood History & Project Need

5

slide-6
SLIDE 6

Water Everywhere

Moorhead, MN & Fargo, ND Moorhead, MN & Fargo, ND

slide-7
SLIDE 7

Interstate 29

Closed April 10. Reopened April 15, 2011. Detour added = 22.8 miles

Transportation Challenges

slide-8
SLIDE 8

F lood Risk & Project Need Slide

Graphic of flood risk

8

10,000 20,000 30,000 40,000 50,000 60,000 70,000

Maximum Daily Flow Rate (cubic‐feet per second)

Red River of the North at Fargo, North Dakota

500‐Year Flood Event The 2009 flood is the largest flood on record and equates to a 50‐Year Flood Event.

Source: USGS river flow data from USGS Station 05054000

Approximate Major Flood Stage

  • Flood flow frequency and magnitude since

1900 shows transitions from dry to wet‐ cycles.

  • 16 floods have exceeded the "Major Flood

Stage" since 1900.

  • 8 of the 16 "major" floods have occurred

between 2000 and 2015. 100‐Year Flood Event

slide-9
SLIDE 9

Diversion Projects Have Proven Success

Red River Diversion Project in Winnipeg in place since 1969

– Was recently expanded from 90‐ year flood protection to 700‐year flood protection – Has operated more than 20 times since its completion – Has prevented $32 billion in flood damages

9

slide-10
SLIDE 10

FM Area Diversion Project

Federally Authorized Project Inlet north of Oxbow, ND Outlet near Georgetown, MN 1,600 ft wide Diversion Channel in ND with 150,000 acre‐feet of Upstream Staging Provides 100‐year Flood Risk Protection Extreme Events are Flood‐ Fightable

slide-11
SLIDE 11

Blue = Existing 100‐year Floodplain (USACE)

Flooding Without The Diversion (100-year)

slide-12
SLIDE 12

Blue = With Project 100‐year Floodplain (USACE)

Flooding With The Diversion (100-year)

slide-13
SLIDE 13

Flooding Without The Diversion (500-year)

Blue = Existing 500‐year Floodplain (USACE)

slide-14
SLIDE 14

Flooding With The Diversion (500-year)

Blue = With Project 500‐year Floodplain (USACE)

slide-15
SLIDE 15

F ederally Authorized Project

15

slide-16
SLIDE 16
  • July 2011 - Feasibility Report and Federal EIS Completed
  • December 2011 - USACE Chief’s Report signed
  • March 28, 2012 - Office of Management & Budget clearance
  • April 3, 2012 - Record of Decision (ROD) signed
  • April 2012 - Forwarded to Congress for Congressional

authorization for construction

  • June 2014 - Authorized for construction in WRRDA 2014
  • February 2015 - F-M Diversion named as USACE P3

Demonstration Project

  • February 2016 – Received USACE “New Start” and

appropriation

16

Path to Federal Appropriation and New Start

slide-17
SLIDE 17

Split Delivery Model

Non‐Federal Sponsors

Diversion Channel and Associated Infrastructure

USACE

Southern Embankment and Associated Infrastructure, and Mitigation

17

slide-18
SLIDE 18

Project F eatures

18

slide-19
SLIDE 19

19

Diversion Channel Cross Section (Downstream End)

Total Width = Approx 1,600 feet

slide-20
SLIDE 20

Typical County Bridge

slide-21
SLIDE 21

I-29 Bridge Rendering

slide-22
SLIDE 22

Maple River Aqueduct

22

slide-23
SLIDE 23

Conceptual Maple River Aqueduct Structure Illustration

slide-24
SLIDE 24

Project O perations

24

slide-25
SLIDE 25

Project Operations

Diversion Authority “operates” the flood control features of the Project (designed and constructed by USACE) P3 Developer receives and conveys floodwaters through the Diversion Channel, which the P3 Developer operates and maintains

25

slide-26
SLIDE 26

Red River & Wild Rice River Control Structures

26

slide-27
SLIDE 27

Diversion Inlet Control Structure

27

slide-28
SLIDE 28

Flood Operation

Agreement will “define” frequency and size events when Diversion Channel will be used Diversion Channel conveys 20,000 cubic feet per second (cfs) in a 100‐year flood

28

slide-29
SLIDE 29

F inancial O verview

29

slide-30
SLIDE 30

Financial Overview

USACE will deliver Southern Embankment and related mitigation projects

– Multiple packages; Design-Bid-Build (DBB) delivery – Funded through Federal Appropriations and local contribution

  • Federal funding of $450 million
  • Local contribution of ~$60 million

Diversion Authority to deliver Diversion Channel & Associated Infrastructure (DCAI)

– Locally-led P3 delivery – Plan of finance will include a combination of public and private financing, leveraging state and local funding sources

30

slide-31
SLIDE 31

Financial Overview

P3 Structure Overview

P3 Structure for DCAI

– Design-Build-Finance-Operate-Maintain (DBFOM) – Availability Payment (AP) structure, with limited O&M scope – Anticipated 30-50 year term

Construction Funding

– Private financing (debt & equity) secured by P3 Developer – Will incorporate milestone payments to P3 Developer, financed by public debt

31

slide-32
SLIDE 32

Financial Overview

Funding Sources

Diversion Authority may utilize multiple funding tools to fund retained scope and meet debt service and AP obligations

– State Appropriations – Sales Tax

  • City of Fargo & Cass County have separate, dedicated sales

taxes for flood prevention projects

– Assessment Backstop

  • Cass County Joint Water Resource District

32

slide-33
SLIDE 33

Procurement O verview

33

slide-34
SLIDE 34
  • Federal Appropriation and New Start
  • Received appropriation and new start Feb 9, 2016
  • Requires PPA signing by Aug 31, 2016
  • Federal Lawsuit
  • All counts against USACE dismissed
  • 2 remaining counts – require completion of MN EIS
  • Preliminary Injunction remains in place
  • MN EIS
  • Anticipate Final EIS in May 2016
  • Anticipate “Adequacy Determination” in June/July

34

Procurement Overview

Status of Enabling Actions

(September 2015 Notice of Intent)

slide-35
SLIDE 35

Procurement Overview

JPA and PPA

Limited Joint Powers Agreement – 2011

– Created Diversion Authority – Terminates on or before execution of PPA with USACE

Joint Powers Agreement – 2016

– Continuation of Diversion Authority – Adds Executive Director

  • Chief administrative officer of Diversion Authority
  • Chief purchasing agent of Diversion Authority
  • Chosen on basis of training, experience, executive and administrative qualifications
  • Diversion Authority will enter into project agreement with successful P3 Proposer

Project Partnership Agreement (PPA): Agreement between USACE and Non-Federal Sponsors (Diversion Authority, City of Fargo, City of Moorhead) P3 MOU: Sets forth rules & responsibilities of USACE with respect to P3 procurement process

35

slide-36
SLIDE 36

Procurement Overview

2016 Timeline

36

slide-37
SLIDE 37

Procurement Overview

P3 Process – Pre-RFQ

  • Diversion Authority Due Diligence
  • Research Liability, Insurance, Open Records, Financing, Permitting,

Land Acquisition, etc., related to Project

  • Establish Selection Working Group – to include DA Board Members and

DA Member Entities

  • Draft RFQ and RFP – a unique project will require innovative solutions
  • P3 Working Group
  • Host an Industry Day – June 2016
  • Allow 1-on-1 dialogue with the DA and opportunities to meet local

contractors and suppliers

  • Respond to comments/questions from P3 marketplace

37

slide-38
SLIDE 38

Procurement Overview

P3 Process – RFQ

  • Diversion Authority issues RFQ – Advertised, posted on

www.fmdiversion.com, and sent to known interested firms

  • Selection Working Group receives responses
  • Responses concentrate on technical and financial

requirements and ability to deliver Project

  • Selection Working Group reviews the responses based upon

defined evaluation criteria

  • Selection Working Group shortlists 3 – 4 Proposers to the

Diversion Authority Board

  • Diversion Authority Board reviews the shortlist, makes

Findings and Conclusions, and designates the shortlisted Proposers as eligible for the RFP Phase

38

slide-39
SLIDE 39

Procurement Overview

P3 Process – RFP

  • Diversion Authority issues RFP to shortlisted Proposers
  • Selection Working Group holds multiple, confidential dialogue

meetings with each Proposer – dialogue will be encouraged

  • Proposals must comply with Technical Requirements, as

modified by Innovative Technical Requirements (ITCs)

  • Selection Working Group receives proposals from shortlisted

Proposers

  • Selection Working Group reviews the proposals based upon

evaluation criteria

39

slide-40
SLIDE 40

Procurement Overview

P3 Process – RFP (cont.)

  • Selection Working Group recommends Preferred Proposer to

Diversion Authority Board

  • Diversion Authority Board holds a “non-veto” public hearing

disclosing the name of the Preferred Proposer

  • Diversion Authority makes findings and conclusions selecting

P3 Developer

  • Diversion Authority executes a project agreement with P3

Developer and makes stipend payments to the responsive shortlisted Proposers who were not selected

40

slide-41
SLIDE 41

More information at www.F MDiversion.com

41