Public Private Partnerships Introduction and Overview

Transcription

1 Public Private Partnerships Introduction and Overview Civic Center Task Force

2 Definition Public-Private Partnerships Defined References to PPPs are wide-ranging and ambiguous, with little precision in how the term is used. Some consider a partnership simply a term used to describe relationships between any contracting parties, whereas others interpret it as an advancement on or alternative to contracting out. US DOT Report to Congress 2004: A public-private partnership is a contractual agreement formed between public and private sector partners, which allow more private sector participation than is traditional. The agreements usually involve a government agency contracting with a private company to renovate, construct, operate, maintain, and/or manage a facility or system. A public-private partnership (P3) is a contractual arrangement between a public agency (federal, state or local) and a private sector entity. Through this agreement, the skills and assets of each sector (public and private) are shared in delivering a service or facility for the use of the general public. In addition to the sharing of resources, each party shares in the risks and rewards potential in the delivery of the service and/or facility. Source: National Council for Public-Private Partnerships 2

3 Introduction 1) PUBLIC SECTOR CHAMPION: Recognized public figures should serve as the spokespersons and advocates for the project and the use of a P3. Well-informed champions can play a critical role in minimizing misperceptions about the value to the public of an effectively developed P3.. 2) STATUTORY ENVIRONMENT: There should be a statutory foundation for the implementation of each partnership. Transparency and a competitive proposal process should be delineated in this statute. However, unsolicited proposals can be a positive catalyst for initiating creative, innovative approaches to addressing specific public sector needs. 3) PUBLIC SECTOR S ORGANIZED STRUCTURE: The public sector should have a dedicated team for P3 projects or programs. This unit should be involved from conceptualization to negotiation, through final monitoring of the execution of the partnership. This unit should develop Requests For Proposals (RFPs) that include performance goals, not design specifications. Consideration of proposals should be based on best value, not lowest prices. 3

4 Introduction 4) DETAILED CONTRACT (BUSINESS PLAN): A P3 is a contractual relationship between the public and private sectors for the execution of a project or service. This contract should include a detailed description of the responsibilities, risks and benefits of both the public and private partners. Such an agreement will increase the probability of success of the partnership. Realizing that all contingencies cannot be foreseen, a good contract will include a clearly defined method of dispute resolution. 5) CLEARLY DEFINED REVENUE STREAM: While the private partner may provide a portion or all of the funding for capital improvements, there must be an identifiable revenue stream sufficient to retire this investment and provide an acceptable rate of return over the term of the partnership. The income stream can be generated by a variety and combination of sources (fees, tolls, availability payments, shadow tolls, tax increment financing, commercial use of underutilized assets or a wide range of additional options), but must be reasonably assured for the length of the partnership s investment period. 4

5 Introduction 6) STAKEHOLDER SUPPORT: More people will be affected by a partnership than just the public officials and the private sector partner. Affected employees, the portions of the public receiving the service, the press, appropriate labor unions and relevant interest groups will all have opinions, and may have misconceptions about a partnership and its value to all the public. It is important to communicate openly and candidly with these stakeholders to minimize potential resistance to establishing a partnership. 7) PICK YOUR PARTNER CAREFULLY: The best value (not always lowest price) in a partnership is critical in maintaining the long-term relationship that is central to a successful partnership. A candidate s experience in the specific area of partnerships being considered is an important factor in identifying the right partner. Equally, the financial capacity of the private partner should be considered in the final selection 5

6 City of Napa Civic Center PPP 6

7 City of Napa Civic Center PPP 7

8 Private Development Site The current uses on the site include: The City Hall building, which is a 1-story, 14,100 sf building at the eastern side of the parcel bordering School Street The Police & Fire Administration Building, which is a 2-story, 20,830 sf structure on the north side of the parcel bordering 1 st Street (The Fire Station, shown adjacent to the parcel in the upper left corner will remain operational and will not be redeveloped) The remainder of the site contains a surface parking lot with approximately 144 employee spaces The City will be reserving approximately 1.24 acres of the site for a future parking structure to provide parking for the City and the public. This leaves 1.73 acres for 8

9 Private Development Site CITY ADMINISTRATION 47,300 total sf City Manager, City Clerk, City Attorney, HR, Finance, Community Development, Public Works, Fire Prevention & Parks 42,300sf City Council Chambers & Community Meeting Space 5,000sf Expected number of FTE Employees (Administration): 160 FTE s PUBLIC SAFETY 49,600 total sf Public Safety Command & Police Control, Traffic Investigations, Crime Lab, Property, Records, Homeless Youth & Diversion 43,200sf EOC & Dispatch 6,400sf Expected number of FTE Employees (Public Safety): 110 FTE s 9

10 City of Long Beach Civic Center 10

11 Long Beach City Hall 11 stories 254,000 ft2 of office space with public counters on bottom floor 250 seat Council Chambers (shared w/ Port) Port HQ 11 stories 237,000 ft2 of office space Civic Plaza 73,000 ft2 Subterranean employee parking Main Library 92,500 ft2 of for library programming Flexible community space, special collections rooms, maker space Lincoln Park Approx. 4.9 acres Dog park, children s playground, events lawn, restrooms 11

12 Complex Financials 12

13 Complex Financials 13

14 City of Napa Civic Center PPP 14

15 City of Napa Civic Center PPP Government/public use Government/civic/public use Private use 15