Monday, July 31, 2017

Hayward/Patel Secret Public Private Partnership

As Mayor Hayward secretly meets trying to form his public private partnership to bring minor league basketball to Pensacola I thought it may be good to see the key elements to a successful public private partnership.  I hope this helps him avoid the potential pitfalls.

7 Keys to Successful P3s
The following are to be considered “best practices” in the development of public-private partnerships (P3s). It is recognized that the methodology for implementation of P3s can vary, depending on the nature of a given project and local concerns. Given this, it is the position of the NCPPP that these are “best practices”:


1) PUBLIC SECTOR CHAMPION:
Recognized public figures should serve as the spokespersons and advocates for the project and the use of a P3. Well-informed champions can play a critical role in minimizing misperceptions about the value to the public of an effectively developed P3.
2) STATUTORY ENVIRONMENT:
There should be a statutory foundation for the implementation of each partnership. Transparency and a competitive proposal process should be delineated in this statute. However, unsolicited proposals can be a positive catalyst for initiating creative, innovative approaches to addressing specific public sector needs.
3) PUBLIC SECTOR’S ORGANIZED STRUCTURE:
The public sector should have a dedicated team for P3 projects or programs. This unit should be involved from conceptualization to negotiation, through final monitoring of the execution of the partnership. This unit should develop Requests For Proposals (RFPs) that include performance goals, not design specifications. Consideration of proposals should be based on best value, not lowest prices. Thorough, inclusive value for money (VFM) calculations provide a powerful tool for evaluating overall economic value.
4) DETAILED CONTRACT (BUSINESS PLAN):
A P3 is a contractual relationship between the public and private sectors for the execution of a project or service. This contract should include a detailed description of the responsibilities, risks and benefits of both the public and private partners. Such an agreement will increase the probability of success of the partnership. Realizing that all contingencies cannot be foreseen, a good contract will include a clearly defined method of dispute resolution.
5) CLEARLY DEFINED REVENUE STREAM:
While the private partner may provide a portion or all of the funding for capital improvements, there must be an identifiable revenue stream sufficient to retire this investment and provide an acceptable rate of return over the term of the partnership. The income stream can be generated by a variety and combination of sources (fees, tolls, availability payments, shadow tolls, tax increment financing, commercial use of underutilized assets or a wide range of additional options), but must be reasonably assured for the length of the partnership’s investment period.
6) STAKEHOLDER SUPPORT:
More people will be affected by a partnership than just the public officials and the private sector partner. Affected employees, the portions of the public receiving the service, the press, appropriate labor unions and relevant interest groups will all have opinions, and may have misconceptions about a partnership and its value to all the public. It is important to communicate openly and candidly with these stakeholders to minimize potential resistance to establishing a partnership.
7) PICK YOUR PARTNER CAREFULLY:
The “best value” (not always lowest price) in a partnership is critical in maintaining the long-term relationship that is central to a successful partnership. A candidate’s experience in the specific area of partnerships being considered is an important factor in identifying the right partner. Equally, the financial capacity of the private partner should be considered in the final selection process.

Well based on the above, is the Mayor is off on the right track??

3 comments:

Anonymous said...


There is no way of knowing if the mayor is "on the right track" because he has already broken Rule #2 (Transparency and a competitive proposal process) and portions of several other rules as well. Absolutely no one knows what the mayor is doing, and I've got a sneaking suspicion that includes the mayor himself.

A concrete plan for this venture remains illusive. Hayward and Patel seem to be making it up as they go along. The first mistake was Hayward's glory-hogging trip to New Orleans without a single county official by his side. If anything, this should be a county-wide undertaking.

Mark Clabaugh said...

The Last Time I heard Public Private Partnership...

1.) Cost Taxpayers $93,000,000 in debt service
2.) Bankrupted the CRA to the point it had to shift over 300,000 a year to the General Fund to stay afloat.
3.) Poor Contract Language made the City responsible for Studer's Property taxes at a tune of $150,000 per year. SO... Wahoos Pay 175,000 and the City cuts a check to the state for $150,000.
4.) City averages about a 400,000 subsidy to the park.
5.) We never got a Phase 1 of the Park much less the widely touted Phase 2 which included all the park elements eliminated to pay for the stadium.
6.) City pays utilities expenses for events Wahoos give away for free.
7.) City pays expenses at the park attributed to baseball operations.

The hits just keep coming on this boondoggle. SO FORGIVE ME WHEN I CHOKE ON MY BBQ WHEN I HEAR PRIVATE PUBLIC PARTNERSHIP! This park ended EXACTLY LIKE I TOLD EVERYONE IT WOULD INCLUDE YOU MAREN AND YOUR HUSBAND! Everyone was convinced St. Studer had it all under control. Now look.

The funniest thing is, you go back and watch Chucky and Dunno... they look like Prophets.

Anonymous said...

The PULSE has done a website, video , and FB page for the basketball team push. It includes a video from the mayor and has been promoted by city government and mayors FB pages to drum up support. Its possible they are doing this completely pro-bono but seems more liekly that money has changed hands --- if not public funds, then maybe private supporters who want the mayor to have a big "win" for his next campaign. Does anyone know?. Not a big deal if privaetly funded but it would certainly burn up what little remains of their journalistic "credibility".