stephen r. abernathy, aicp intercity bus program manager paula hammond, pe secretary of...
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Public-Private PartnershipsExamples & Best Practices
Stephen R. Abernathy, AICPIntercity Bus Program Manager
Paula Hammond, PESecretary of Transportation
Brian Lagerberg, MbADirector, Public Transportation Division
Public-Private Partnerships (PPP or P3s) are agreements that allow private companies to take on traditional public roles keeping the public sector ultimately accountable for a project and overall service to the public.
P3s have demonstrated to reduce upfront public costs through accelerated or more efficient project delivery by leveraging private sector financial resources.
Source: National Conference of State Legislatures
What is a Public-Private Partnership?
What is a Public-Private Partnership?
Washington State has broad, enabling legislation regarding P3s.
Since 2010,twenty-one states have enabling legislation for P3s.
Public sector remains accountable for project implementation and accountability of projects.
Public sector enabled to develop methods of financing for operations & maintenance.
Source: National Conference of State Legislatures
Why have a Public-Private Partnership?
Key Factors:
Ease of Start Up Operations
Cost Containment
Separation of Functions
Why have a Public-Private Partnership?
Typical Areas :
Administration
Operations
Maintenance
Public-Private PartnershipsFactors
Ease of Start Up Operations
Private contractors bear the initial costs
• Models for implementing service• Hiring of operations & administrative staff• Installation of infrastructure• Marketing • Equipment
Public-Private PartnershipsFactors
Cost Containment
Labor Costs are typically lower with private contractors
Savings obtained through:
• Hourly costs per employee• Benefits• Legacy Costs (retirement plans)
Cost Containment
Administrative costs are typically lower with private contractors
Savings obtained through:
• Economies of Scale• Costs per employee
• Benefits• Legacy Costs (retirement plans)
Public-Private PartnershipsFactors
Public-Private PartnershipsFactors
Cost Containment
Maintenance costs are typically lower with private contractors
Savings obtained through:
• Economies of Scale (models for purchase of goods)
• Costs per employee• Benefits• Legacy Costs (retirement plans)
Public-Private Partnerships
The Europeans Are Coming!
Oops, they’re already here!
Well, except for one…for now.
Public-Private partnerships are not
new to Europe.
Transit systems have been privately managed and
operated for over 30 years.
Public-Private PartnershipsLocal Examples of Partnerships
Current ExamplesSound Transit- Service Supervisors
Community Transit-Commuter route services
Grant Transit- OperationsWSDOT- Cascades & Travel Washington
operations
*Past ExamplesMason Transit-Operations
Clallam Transit-ADA ServicesPierce Transit-ADA Services(partial)
*Services have been brought In-House
Length – 7869 feet
(Longest floating bridge over salt water) Floating portion – 6530 feet Max water depth – 340 feet Tidal Variation – 16.5 feet
Center draw span opening – 600 feet
Program Description
Travel Washington Program Started 2007• Goal: Provide Access to Rural Residents• Program uses FTA 5311(f) Federal
funds
• Request for Proposals (RFP) for specific routes within the identified corridor for open competitive process
• Provides more flexibility to meet identified rural transportation needs
• Select best operator for each project
• Competition between providers, not projects
Program Description
• Program initiated through grass-roots effort. Statewide study identified primary routes.
• Each route is named for products produced in that region
• of the state it operates in.
• Marketing materials developed for uniform appearance and promotion.
• Each route is licensed with State, web domains are owned
• by WSDOT.
Program Description
• Local in-kind match provided by Greyhound’s unsubsidized operating costs in connecting interstate corridors.
• All operators currently private-sector under multi-year contracts.
• Key elements for service and requirements are clearly described in contracts.
• Regional access & partnering with local transits provide rural communities access to intercity transportation connections.
PartnershipsLocal partners include regional transit agencies
Bus stops at transit centers:Port AngelesWalla Walla
PascoWenatchee
SpokanePort Townsend
Major Intermodal Centers:SeattlePasco
WenatcheeSpokane
Bus Stops at: Two International Airports; Spokane & Seattle Two regional Airports; Walla Walla & Tri-Cities (Pasco)
Maritime Access: MV Coho Port Angeles-Victoria,
BC Ferry Victoria Express-Victoria BC Washington State Ferries-
Kingston Edmonds
Intermodal Access
Program Milestones
Grape Line December, 2007 Apple Line October, 2008
Dungeness Line August, 2008
Gold Line September, 2010
Program Milestones
Websites 2008
On-line inter-linked ticketing 2009(Travel Washington, Trailways, Greyhound &
Amtrak)
Google Transit 2009 (Grape Line)
Google Maps 2010 (Dungeness Line)
Program Milestones
Bus purchased in 2010 for all four routes through use
of ARRA Funds
Bus stop signs, posts and shelters
purchased with ARRA Funds.
Program Milestones
Installation along allfour routes statewide.
Private contractor installed signs & shelters.
Contractors responsible for maintenance of infrastructure.
Ridership: Monitor performance, trends.
Compliance: Policies consistent with funding source.
Marketing of Service: Approaches & plans for increasing ridership.
Community Involvement.
Customer satisfaction.
Costs.
Program Oversight
Public-Private Tools for Success
Key Tools for Public-Private Relationship
Process: Open, transparent & competitive works best.
Contract: Necessary boilerplate clauses to protect agency & program.
Scope of Work: Clearly written, detailed with no room for interpretation.
Project: Own IT! Tell the contractor what you want & how you expect them to achieve the goals.
More importantly tell them what will happen if they don’t!
Establish & formalize roles & responsibilities with contractor.
Length – 7869 feet
(Longest floating bridge over salt water) Floating portion – 6530 feet Max water depth – 340 feet Tidal Variation – 16.5 feet
Center draw span opening – 600 feet
Public-Private Tools for Success
Key Tools for Public-Private Relationship
Milestones: Establish realistic milestones and timeframe for achieving them.
Communication: Set up communication schedule, meet often, minimum quarterly and TALK with the contractor.
Partners: Seek out community partners to attract ownership and buy in. Ultimately builds support for project.
Conflict: Expect it. Don’t shy away from sticking to your goals, or from being open to new ideas!
Prepare for the Worst: Contractors will bail out. Have a back up plan and be ready to move-quickly!
Questions?
Stephen R. Abernathy, AICPIntercity Bus Program Manager
Tel: [email protected]
Resources:
National Conference of State Legislatures www.ncsl.org
National Council for Public-Private Partnerships www.ncppp.org
Institute for Public-Private Partnerships www.IP3.org