Public-Private Partnerships Examples & Best Practices

1. Public-Private PartnershipsExamples & Best Practices Stephen R. Abernathy, AICP Intercity Bus Program Manager Brian Lagerberg, MbA Director, Public Transportation Division Paula Hammond, PE Secretary of Transportation

2. What is a Public-Private Partnership? • 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

3. 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

4. Why have a Public-Private Partnership? • Key Factors: • Ease of Start Up Operations • Cost Containment • Separation of Functions

5. Why have a Public-Private Partnership? • Typical Areas : • Administration • Operations • Maintenance

6. Public-Private Partnerships Factors • 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

7. Public-Private Partnerships Factors • Cost Containment • Labor Costs are typically lower with private contractors • Savings obtained through: • Hourly costs per employee • Benefits • Legacy Costs (retirement plans)

8. Public-Private Partnerships Factors • Cost Containment • Administrative costs are typically lower with private contractors • Savings obtained through: • Economies of Scale • Costs per employee • Benefits • Legacy Costs (retirement plans)

9. Public-Private Partnerships Factors • 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)

10. Public-Private Partnerships The Europeans Are Coming! Oops, they’re already here! Public-Private partnerships are not new to Europe. Transit systems have been privately managed and operated for over 30 years. Well, except for one…for now.

11. Public-Private Partnerships Local Examples of Partnerships Current Examples Sound Transit- Service Supervisors Community Transit-Commuter route services Grant Transit- Operations WSDOT- Cascades & Travel Washington operations *Past Examples Mason Transit-Operations Clallam Transit-ADA Services Pierce Transit-ADA Services(partial) *Services have been brought In-House

12. 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 • 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

13. 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.

14. Program Description • Local in-kind match provided by Greyhound’s unsubsidized operatingcosts 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.

15. Routes & Contract Operators

16. Partnerships Local partners include regional transit agencies Bus stops at transit centers: Port Angeles Walla Walla Pasco Wenatchee Spokane Port Townsend Major Intermodal Centers: Seattle Pasco Wenatchee Spokane

17. Intermodal Access 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

18. Program Milestones • Apple Line October, 2008 • Grape Line December, 2007 • Dungeness Line August, 2008 • Gold Line September, 2010

19. 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)

20. Program Milestones Bus purchased in 2010 for all four routes through use of ARRA Funds

21. Program Milestones Bus stop signs, posts and shelters purchased with ARRA Funds. Installation along all four routes statewide. Private contractor installed signs & shelters. Contractors responsible for maintenance of infrastructure.

22. Program Oversight • Ridership: Monitor performance, trends. • Compliance: Policies consistent with funding source. • Marketing of Service: Approaches & plans for increasing ridership. • Community Involvement. • Customer satisfaction. • Costs.

23. 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.

24. 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! • 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

25. Questions? 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 Stephen R. Abernathy, AICP Intercity Bus Program Manager Tel: 360.456.6818 abernas@wsdot.wa.gov