PUBLIC PRIVATE PARTNERSHIPS AND MIAMI-DADE COUNTY'S P3 TASK FORCE RECOMMENDATIONS

PRESENTER Jose A. Galan ▸ Division Director, Internal Services Department, Real Estate Development Division ▸ Current Chair of the Florida Council For Public Private Partnerships – a non-profit organization

OUTLINE OF PRESENTATION ▸ Importance of Clear Procurement Guidelines ▸ Establishing a Strong Legislative Framework ▸ Proposed Miami-Dade Model

IMPORTANCE OF CLEAR PROCUREMENT GUIDELINES CLEAR GUIDELINES ESTABLISH A PROCESS THAT WILL… ▸ Attract Robust Competition ▸ Increase Likelihood to Finish a Procurement and Get to Financial Close ▸ Yield a More Predictable Outcome ▸ Most Important - Enhance Public Confidence in the Ultimate Outcome

IMPORTANCE OF CLEAR PROCUREMENT GUIDELINES WHAT GETS P3 DEVELOPERS INTERESTED IN INVESTING ▸ Developers Are Looking for Projects Where they Can Best Manage the Four Main Categories of Risk ▸ Technical ▸ Financial ▸ Legal ▸ Political ▸ More Competition Means Better Outcomes

ESTABLISHING A STRONG LEGISLATIVE FRAMEWORK IT IS EASY TO GET LOST IN THE P3 PROCESS… ▸ Understand How Local Communities Differ from State Agencies and How That Changes the Framework ▸ Funding vs. Financing and Debt Considerations ▸ Organized Labor Considerations ▸ Stakeholder Involvement

ESTABLISHING A STRONG LEGISLATIVE FRAMEWORK ▸ Every Community Should Consider the Important Factors for that Community. ▸ Once the Recommendations for any Community are in Place, Determine What Should be Part of the Code, and What Should be Guidelines

PROPOSED MIAMI-DADE MODEL ABOUT MIAMI-DADE COUNTY ▸ Ample Project Opportunities and Programs ▸ $13 Billion Water and Sewer Program ▸ New Courthouse Facilities Being Considered ▸ Major Rail Corridors Being Considered ▸ New Terminal At Airport Being Considered

PROPOSED MIAMI-DADE MODEL P3 TASK FORCE ▸ County Commission Authorized Creation of a Temporary Task Force in 2015 to Study and Recommend P3 Guidelines ▸ Task Force Was Comprised of 15 Members ▸ Stakeholder Groups Were Represented Including Labor, Contractors, Concessions and County Staff ▸ Task Force Heard Presentations from Experts and Advocates

PROPOSED MIAMI-DADE MODEL P3 TASK FORCE – OVERVIEW ▸ Recommended a Four Phase Process ▸ 1 - Preparation and Planning ▸ 2 - Project Screening ▸ 3 - Two-Step Process ▸ 4 - Contracting

PROPOSED MIAMI-DADE MODEL PHASE 1 - PREPARATION AND PLANNING ▸ Develop Core Group of Staff with Expertise and Train Them to Understand P3 Model ▸ Need Staff Invested in the Outcome ▸ Retain Library of Experienced Professional Advisors ▸ Legal, Technical, Financial, Process ▸ Develop Basic Project Concepts - Identify Goals and Parameters

PROPOSED MIAMI-DADE MODEL PHASE 2 - PROJECT SCREENING ▸ Feasibility Study Phase ▸ County Staff Articulate Public Interest Statement ▸ Outline Environmental and Planning Studies ▸ Begin Public Outreach ▸ Prepare Report for the Mayor and the County Commission on the Possibility to Procure a Project as a P3

PROPOSED MIAMI-DADE MODEL PHASE 2 - PROJECT SCREENING, CONT. ▸ Political Buy-In ▸ County Commission Must Approve any Project Before Development of Procurement Documents or Advanced Screening ▸ County Commission Presented with Comparative Analysis that Considers Complexity, Budget Challenges, Risk Shifting, and Creative Financing Opportunities ▸ County Commission Can Provide any Special Guidance when Approving a Project Concept for Further Study

PROPOSED MIAMI-DADE MODEL PHASE 2 - PROJECT SCREENING, CONT. ▸ After Couunty Commission Approval to Conduct Further Study, a Value For Money Analysis (VfM) Must be Conducted by a Qualified Financial Advisor ▸ If VfM Demonstrates that Project Makes Sense as a P3, the County Commission will Receive a Copy of the Study, along with a Draft Request For Qualifications (RFQ) ▸ This Multiple Approval Before Starting the Project is Intended to Reduce Political Risk for Prospective Proposers

PROPOSED MIAMI-DADE MODEL PHASE 3 - TWO STEP PROCESS - RFQ ▸ Clear Guidelines for the Sponsor, Design Builder, and Operation & Maintenance Entity with Points Allocated to each Section ▸ Selection Committee Members must Demonstrate Competence in the Area of Concern. County Consultant Should Advise the Selection Committee ▸ Scoring Criteria Should be Determined on a Case by Case Basis, Depending on the Circumstance of the Project, but Should Not Change After Release of the RFQ

PROPOSED MIAMI-DADE MODEL PHASE 3 - TWO STEP PROCESS - RFQ ▸ Pass/Fail Requirements Should Be Considered By Qualified Advisors and Administrative Staff. Only Those Proposers that Pass Should be Presented to the Selection Committee ▸ Any Meeting Where Selection Committee Meets to Discuss Scores Should be Open and On the Record ▸ Shortlist a Maximum of Four Firms to Advance for a future Request For Proposals (RFP)

PROPOSED MIAMI-DADE MODEL PHASE 3 - TWO STEP PROCESS - RFP ▸ The Final RFP Should be Have Buy-In from the County Commission ▸ Timeframe for Responses to the RFP Should be Flexible Depending on the Project Circumstances and Complexity, but The County Should Specify the Anticipated Schedule When Document is Released ▸ During the RFP phase the County Should work Collaboratively with the Proposers to Refine the Comprehensive Agreement

PROPOSED MIAMI-DADE MODEL PHASE 3 - TWO STEP PROCESS – RFP ▸ County Should Spell Out Specific Goals and Deliverables of the Project. Identify the Important Elements ▸ State Clearly the Status of Any Environmental Analysis or Planning Studies and Estimated Completion Dates ▸ Provide Information on Anticipated Debt and Funding Sources ▸ Provide Rules to Submit a Conforming Bid to Receive a Stipend (or pay for work product) ▸ Allow for One-on-One Meetings with Shortlisted Proposers to Refine Scope of RFP and Comprehensive Agreements

PROPOSED MIAMI-DADE MODEL PHASE 3 - TWO STEP PROCESS – ALTERNATIVE TECHNICAL CONCEPTS ▸ Alternative Technical Concepts (ATC’s) are a Critical Element in Order to Unleash Innovation and Concepts from Other Areas ▸ Important to Define Who Carries the Risk if any ATC May Require a Change to a Planning Study or Approval from Another Entity

PROPOSED MIAMI-DADE MODEL PHASE 3 - TWO STEP PROCESS – ALTERNATIVE TECHNICAL CONCEPTS ▸ Acceptance of a Proposed ATC Should be Decision of the Mayor or His Designee ▸ Any Accepted ATC Should be Incorporated Into the Contract Documents ▸ ATC’s from Unsuccessful Proposers that Receive the Stipend Can be Incorporated Into the Winning Bid.

PHASE 3 - TWO STEP PROCESS - RANKING MIAMI-DADE MODEL PHASE 3 - TWO STEP PROCESS - RANKING ▸ Task Force Recommended that Bids Must Conform with a Minimum Specification and/or Below a Threshold Price in Order to Qualify to Receive a Stipend ▸ Bids Should be Scored on Technical and Price with the Weighting Determined Based on the Factors of a Given Project ▸ Price Should Always be Calculated Based on the Total Life Cycle Cost and Not Just Capital Expenditures

PHASE 4 - CONTRACTING MIAMI-DADE MODEL ▸ Moving Projects to a Final Vote Quickly is Important - Don’t Let the Project Linger ▸ Complete Negotiations for a Final Comprehensive Agreement with the Preferred Bidder ▸ The Agreement Should not Change Much After the Bids are Submitted ▸ Material Changes Should Not Be Requested by the County After the Bids are Submitted ▸ Stipends Should be Paid Upon Successful Completion of Negotiations with the Preferred Bidder

PUBLIC PRIVATE PARTNERSHIPS AND MIAMI-DADE COUNTY'S P3 TASK FORCE RECOMMENDATIONS QUESTIONS Jose A. Galan galanj@miamidade.gov 305.375.5057