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FLORIDA COUNCIL OF PUBLIC/PRIVATE PARTNERSHIPS Lee A. Weintraub, Esq. Becker & Poliakoff, P.A. 3111 Stirling Road Ft. Lauderdale, FL 33311

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Presentation on theme: "FLORIDA COUNCIL OF PUBLIC/PRIVATE PARTNERSHIPS Lee A. Weintraub, Esq. Becker & Poliakoff, P.A. 3111 Stirling Road Ft. Lauderdale, FL 33311"— Presentation transcript:

1 FLORIDA COUNCIL OF PUBLIC/PRIVATE PARTNERSHIPS Lee A. Weintraub, Esq. Becker & Poliakoff, P.A. 3111 Stirling Road Ft. Lauderdale, FL 33311 954-985-4147lweintraub@becker-poliakoff.com

2 Section 287.05712 applies to any facility or project serving a public purpose It applies to counties, municipalities, school boards, any other political sub- division of the state, and any public body, corporate and politic

3 Establishes the Partnership for Public Facilities and Infrastructure Act Guidelines Task Force  Task force will recommend guidelines for the legislature to consider to create a uniform process for establishing P3’s  Including factors public entities should consider when processing requests Task force will begin meeting by August 31, 2013 to establish procedures for the conduct of its business No more than two task force meetings may be held for the purpose of taking public testimony Task force must submit final recommendations to governor and legislature by July 1, 2014

4 Local Government Guidelines Formal establishment or adoption of guidelines by public entity is not required for entity to request or receive P3 proposals  Public entity may adopt its own guidelines provided they are consistent with this statute

5 Procurement Procedures Public entity may receive unsolicited proposals or may solicit proposals through traditional procurement methods Public entity may establish a reasonable application fee for unsolicited proposals  Fee must be sufficient to pay costs of evaluating the proposal  Public entity may hire private consultants to assist in the evaluation, paid for by private entity

6 Procurement Procedures If the public entity intends to enter into a comprehensive agreement, it must publish notice in the Florida Administrative Register and newspaper of general circulation at least once a week for two weeks

7 Procurement Procedures  Notice must provide that the public entity has received a proposal and will accept other proposals for the same project  Time frame for accepting other proposals shall be determined by public entity on project by project basis Based upon complexity of the project and the public benefit to be gained by allowing a longer or shorter period of time for competing proposals Based upon complexity of the project and the public benefit to be gained by allowing a longer or shorter period of time for competing proposals Time frame must be at least 21 days, but no more than 120 days, after initial date of publication  Copy of the notice must be mailed to each local government in affected area

8 Procurement Procedures Public entity is authorized to approve project if:  Project is in public’s best interest  Facility is owned by public entity or ownership will be conveyed to public entity  Adequate safeguards in place to ensure additional costs or service disruptions are not imposed on public if material default or cancellation of agreement  Adequate safeguards in place to ensure capacity may be added if desired  Estimated cost is reasonable in relation to similar facilities

9 Project Approval Requirements Unsolicited proposal must be accompanied by following items, unless waived by public entity:  Conceptual design of facility and schedule for construction  Description of method by which private entity proposes to secure necessary property interests  Description of private entity’s general plans for financing project Includes sources of private entity’s funds and identity of any dedicated revenue source or proposed debt or equity investment on behalf of private entity

10 CONTENTS OF UNSOLICITED PROPOSAL (CON’T)  Proposed user fees, lease payments or other service payments over term of agreement Including methodology for and circumstances that would allow changes to user fees

11 Project Qualification and Process After competitive bidding period has expired, public entity ranks proposals received in order of preference  Public entity may consider professional qualifications, general business terms, innovative design techniques, cost reduction terms, and finance plans Public entity may then begin negotiating with highest ranked firm  If pubic entity is not satisfied with results of negotiations, public entity may terminate negotiations and begin negotiating with second ranked firm  Public entity may reject all proposals at any point in process

12 Notice to Affected Local Jurisdictions Public entity must furnish copy of proposal to each affected local jurisdiction Each affected local jurisdiction has 60 days from receipt of notice to submit written comments indicating whether proposed facility is incompatible with local jurisdiction’s plans If affected local jurisdiction fails to respond within 60 days, non-response is deemed acknowledgement that project is compatible

13 Interim Agreement May be entered into before or in connection with negotiation for comprehensive agreement Interim agreement does not obligate public entity to enter into comprehensive agreement Interim agreement is discretionary Parties may proceed directly to comprehensive agreement

14 Interim Agreement Interim Agreement must be limited to provisions that authorize private entity to commence activities for which it may be compensated related to the project Including project planning and development, design, environmental analysis & mitigation, survey, ascertaining availability of financing Establish process & timing for negotiation of comprehensive agreement Such other provisions the parties deem appropriate

15 Comprehensive Agreement Must provide for:  Payment and performance bonds  Public entity’s review and approval of project design Does not require private entity to complete the design before executing comprehensive agreement  Public entity’s inspection of construction activities  Public liability insurance requirements  Public entity’s monitoring of maintenance practices by private entity

16 Comprehensive Agreement  Periodic financial reporting by private entity pertaining to project  Fees, lease payments, or service payments  Rights and responsibilities of parties during course of construction and operations Including provisions for termination of agreement & rights and responsibilities upon default by private entity –Must provide for circumstances whereby defaulting private entity’s responsibilities and interests may be assumed by either entity participating in funding of project or public entity

17 Comprehensive Agreement May include:  Agreement by public entity to make grants or loans to private entity from amounts received from federal, state or local government or agencies  Notice of default and right to cure provisions

18 Comprehensive Agreement Private entity will receive revenues from fee-generating uses of facility over life of agreement  Pre-negotiated portion of same must be returned to public entity

19 Financing Private entity may enter into private source financing agreement with financing sources  Financing agreement obligations and liens on property must be paid in full before transfer of ownership or operation of facility to public entity Public entity may provide its own capital or operating budget to support project  Financing agreement may not require public entity to indemnify financing source, subject public entity’s facility to liens, or pledge security interest Any such provision in financing agreement is void as matter of law

20 Financing Public entity shall appropriate contractual payment obligation, if required by comprehensive agreement, on priority basis  Payment obligation must be appropriated before other non-contractual obligations payable from same enterprise or government fund

21 Expiration or Termination of Agreements If private entity materially defaults, compensation otherwise due to private entity would be payable to investors & lenders on job as provided in any operative agreement  Provided costs of operating and maintaining facility are paid in the normal course  Public entity’s assumption of development or operation of project does not obligate it to pay any obligation of private entity from sources other than revenues from the project unless stated otherwise in comprehensive agreement

22 Sovereign immunity is not waived This act shall take effect July 1, 2013


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