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DOT describes Portsmouth/Dover park‑and‑ride public‑private leases, seeks dedicated sustainment funds
Summary
DOT told the Finance Division II committee it has leased the Portsmouth and Dover park‑and‑ride facilities to a private operator under long‑term P3 contracts and is seeking statutory authority to hold contract revenue in dedicated sustainment and restricted accounts.
The New Hampshire Department of Transportation described a recent public‑private partnership (P3) arrangement for the Portsmouth and Dover park‑and‑ride facilities and asked the Finance Division II committee to authorize dedicated accounts to track and hold contract revenue that is restricted by federal purchasing rules and by the contract.
What DOT presented: DOT said it issued a long‑term (35‑year) lease to a private operator (identified in testimony as Jalbert Leasing, doing business as C & J Bus) to operate the Portsmouth and Dover park‑and‑ride facilities. DOT said the vendor will pay a base rent and a share (described in the presentation as a percentage of gross parking revenue) and will operate and maintain the facilities under contract. The vendor has already started to make improvements such as security and lighting, and instituted paid parking during peak periods to reduce long‑term abuse of the lots.
Why DOT seeks dedicated funds: In testimony DOT staff said two kinds of receipts will flow from the P3: contract‑generated rental and revenue shares, and a facility sustainment payment that the vendor deposits to cover long‑term contractual maintenance obligations. DOT said some revenues are restricted by federal requirements because portions of the facility (Portsmouth) were originally acquired or improved with federal funds; federal guidance and the P3 contract specify that certain receipts must be dedicated to transit‑supportive and facility maintenance uses.
DOT requested statutory language to create 1) a restricted revenue account for federally restricted rental receipts and 2) a facility sustainment account tied to the P3 contract so DOT can draw on those receipts only for allowed purposes. DOT also noted revenue from the Dover lease arrangement (where DOT is the primary owner) will be handled through a sustainment fund the department controls; the Portsmouth account is a three‑party arrangement (Portsmouth Development Authority, DOT and the vendor) and DOT asked for similar statutory clarity.
Committee questions and context: Committee members asked why DOT could not use pooled state funds with quarterly accounting for the restricted revenue; DOT replied that Treasury’s pooled‑cash rules could accommodate pooled funds but that DOT and Treasury had discussed mechanics and the department would provide additional documentation for committee review. Members also asked whether the contract required the vendor to pay into the sustainment fund and whether that arrangement had been part of the RFP; DOT confirmed it was a contractual requirement and that the fund acts as a contractual safeguard to protect the state’s underlying asset if the vendor defaults on maintenance obligations.
Ending: DOT asked the committee to authorize HB2 language establishing the dedicated accounts so the department can implement the contract and accept restricted receipts in accordance with federal rules and the P3 agreement. DOT agreed to provide committee staff a written explanation of why pooled funds would not be preferable and the balances and expected flows for the sustainment account.
