Role: Financial Advisor to Los Angeles Sanitation Department
Total Dollar Value: TBD, $5-10 billion
Status: Contract completed
PFAL acted as financial advisor to the SR 37 Policy Committee and four Transportation Authorities (Solano, Marin, Napa and Sonoma) to investigate financial opportunities to improve the existing 21-mile coastal corridor to address congestion, safety, and climate change resiliency. PFAL assessed the feasibility of delivering the improvements with a P3 to expedite funding, financing and project implementation. Our work included reviewing an unsolicited proposal received by the four counties, and challenging its assumptions and requirements. We also presented case studies with lessons learned and screening of alternative delivery models such as full-toll privatization with revenue risk and availability payment options, public-private partnership tolling alternatives, and publicly financed and managed toll options. This included developing a high-level feasibility analysis, integrating technical and revenue forecasting advice, developing a preliminary Value-for-Money assessment to compare alternative delivery models, and making clear, actionable recommendations to the policy committee. We also mapped out a clear decision tree process and reviewed an unsolicited proposal for the project. PFAL was subsequently engaged to perform market outreach to private developers.
PFAL was later engaged by MTC to assess the debt capacity of the projected toll revenue, to complete a grant application for the program, and to review and comment on tolling legislation.