1. PPP Considerations for a Public Owner September 2016

2. 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

3. 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

4. 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

5. 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

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