Solving Challenges Others Cannot Using Public Private Partnerships Parkland Blue Ribbon Panel Christopher D. Lloyd October 22, 2007

Presentation Overview PPP concepts Why use a PPP structure? National Experience Parkland Hospital opportunities and recommendations

McGuireWoods Consulting Subsidiary of McGuireWoods law firm (800+ attorneys) One of nation’s largest public affairs firms Pioneers in policy development related to P3 legal and regulatory structures (VA, NC, GA) Integrated services focus – bring together economic development, lobbying, PR

PPP Concepts PPPs are emerging as a nationally recognized and accepted development tool PPPs exist to provide opportunities to develop infrastructure and provide other essential governmental services outside the standard, low-bid procurement process PPPs provide an opportunity to leverage private sector expertise, third party financing and to shift project risk away from the public sector PPPs provide an opportunity to utilize modern construction techniques such as design-build and construction manager at- risk

PPP Concepts What Makes Projects Go Well Open and collaborative process between public and private sectors Atmosphere that encourages innovation and creativity Include public, press and other stakeholders Objectives (cost savings, time, limits on risk) are clear from the beginning

PPP Concepts What Makes Projects Go Bad Unnecessary closed door discussions Public sector shifts all risk, not willing to pay for it Staff objections to process Cost overruns and scope creep Public sentiment turns away from development Negotiations never end Project is overly defined or restricted

Why Use a PPP Structure? Single source of responsibility for complex projects Use the process to facilitate creativity, innovation, and competition Develop assets that complement, but may not be at the core, of an entity’s public mission

What to expect from a PPP Significant interest from private sector looking to build resume, partner on unique assets Funding for the “core” aspects will likely remain publicly derived (bonds) Opportunities to reduce cost and accelerate schedule

National Experience Movement started in transportation Virginia, Texas, Florida have long been pioneers Concepts extend to other types of infrastructure through formal and informal arrangements

Case Study - Virginia Virginia law requires government entities to use sealed low bid procurement General Assembly passes PPEA in 2002 to provide a formal process to facilitate alternative procurement practices Allows for solicited and unsolicited proposals Selection made on factors other than price

PPP for Parkland Hospital - Process Hospital district has great autonomy to lease assets with few approvals Added benefits of HB 2090/HB 2168 provide opportunities for greater participation Need to explore enactment of a formal process (Best Value Contracting) or informal process (RFI, RFQ, RFP) using existing powers Determine whether you are merely a landlord or active participant in the development Create opportunities for public input

PPP for Parkland Hospital – Questions Do you want to have an active or passive role in the development? What are your goals from the development? What financial payout do you want to see? How will improvements advance the mission of Parkland Hospital? How will improvements help the patients and employees of Parkland Hospital? How will the project contribute to the tax base?

PPP for Parkland Hospital - Recommendations Hire project management team to coordinate PPP solicitation process Define role of Parkland Hospital in project development Develop broad project goals Issue RFI to developers providing broad vision for project, copies of previous studies, ally contacts

PPP for Parkland Hospital - Recommendations Review RFI responses to develop criteria for developer competition Engage public and other stakeholders in the review process Issue RFP to establish project goals, selection criteria Execute development agreement Establish process for on-going review and oversight

THE END Business Expansion Services | Constituency Development | Economic Development | Federal Budgeting and Contracting Advice | Federal Legislative Assistance | Grassroots Contact Program | Issue Advocacy | PAC Consulting | Public Infrastructure Finance | Public- Private Partnerships | Referendum Campaigns | State Government Relations ATLANTA BUCHAREST CHICAGO SPRINGFIELD RALEIGH RICHMOND TYSONS CORNER WASHINGTON, D.C.