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

2. 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

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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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)

17. 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

18. 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

19. 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

20. 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.

21. 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

22. 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

23. PUBLIC PRIVATE PARTNERSHIPS AND MIAMI-DADE COUNTY'S P3 TASK FORCE RECOMMENDATIONS
QUESTIONS
Jose A. Galan