PPP Considerations for a Public Owner September 2016

What Are The Desired Goals? Transfer of administrative and operational responsibilities Cost savings Access to economies of scale and industry best practices Transfer of financial responsibilities/operational losses Aligning with a partner who can fund capital projects Increased levels of service/maintenance

What Is The Level Of Support? Elected Officials, Appointees, Professional Staff, Local Businesses, Airport Tenants, General Population all have to be engaged Communicate goals in public forums and appropriate private discussions Determine lead proponents for all categories of stakeholders Identify most credible and vocal opponents and address concerns early A shared vision is important to establish across all key stakeholders

Which Business Model is the Best? Availability Payment vs. Revenue Models Goals and support largely inform the right decision The public purpose value of the asset vs. commercially reasonable private sector economic goals for the asset have to be reconciled Historic levels of service/maintenance vs. desired levels Revenue models transfer political and financial risk to the private partner and generally are much more complicated to originate

Steps to Entering a Successful PPP Prepare and do your homework within your community Consider an RFQ or RFI process prior to, or in lieu of, a full RFP Know your prospective partner and identify and discuss where their financial goals may conflict with the assets public purpose Establish a communications strategy at inception that regularly disseminates PPP activities and successes

Thank You Steve Forrer sforrer@afcoinc.com Ph: 703 288 8584 Recommended reading: The Urban Land Institute (www.uli.org): “Successful Public/Private Partnerships from Principles to Practices”