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2013-02-28_Agenda Packet--Dossier de l'ordre du jour � � � �, A City of Saint John Common Council Special Meeting AGENDA Thursday, February 28, 2013 8:15 a.m. Council Chamber Please use Chipman Hill entrance S'il vous plai� utiliser I'entree Chipman Hill Pages 1. Call to Order 1.1 PPP Canada Update 1 - 22 Powered EY:_i.�)"'£f1 t'��� �Tt i] 1 �I �C81Wlf� PUBUC•PR�VA?E PARtNER3HIPS . . . , _ . -=` - _��r��;�'�i�i+����+�.f1,�iL.�..,. .. RARTENARIAT PUBi.tC•PR(VE CANAOA �n�� Achieving better value, timeliness and accountability through public priva�e � partners,hips PPP Canada Presentation to Saint John City Council February 28, 2013 John McBride, CEO '�, �C�B DU9UC•PRIVAIE PARTNEASHIPS � � � - - , . � ' . . . . .� �,,�,��r- r,�,�:.�d t�`��:. i.'�.s �'t .�. — , �-.K... __ _ –_ - � _ PARTENARIAT PUBLIC�RiV�CANADA ���� . n ro uc ion o ana a 2 :i .►. � � �¢ } v "' r � ��- � � � _.�. � y 1 , . . . � . � . . • A Federal Crown Corporation • Report to Parliament through the Minister of Finance • Led by an accomplished private sector Board of Directors . . - • To improve the del�very of public infrastructure by achieving better value, timeliness and accountability to taxpayers, through P3s. • To deliver more P3s by leveraging incentives , demonstrating success, and providing expertise. • To deliver better P3s by promoting P3 bes#-practices and capacity- build�ng. www.p3canada.ca 3 3 � ,����= �� ' , ,�� _ �• ' � Advancing Federal P3s - � _ _ _ . • F��qui�e �I� ��fras�ructure pro�ects w��h an asset I�fesp�an of 2� year�, and having capifial +costs of �'� 04 miflion #o b� subject ta a P3 ��r��r� . � • • Work with F�deral partn�rs to create cfarity and � consistency in decision-making �nd P� pr+ocurement . ' • pract'sces : • P3 Screening Tt�o� . • • Value for I1�ane� Methodology � ' • Procurement Framework • Deliver A�visory Services www.p3canada.ca 4 4 � ''' ����"' � 'j �!� � �� � I� •r _ � . � � r Advancing Provincial , Territorial , Munici al and p a First Nations P3s • � . • . . • A $'� .� �illipn fund to stimulate the adoption of P3 procurement by pra�inces, terr�t�ries, municipalities and itrst nat�ons • Up to 2�% of e�igible constructian cos�s suppvrted through non-repay�able con�fibutions, repayab�e contrib�tions. loans and loan guarantees . • . • Produc�s, t�o�s an�d serv�ces tha� s�ppo� � succ�essfiui P3 procurement ' � � • Pro��ct Development Fund www.p3canada.ca 5 5 �r � � ���� PUBIIC•pRIVA1E PARTNERSHIPS � ', �. � , . . � . .. � . ...,. .. - :�r. ;, � j .} . . ; n�l� - , ��.,r�uC-s��-'��:��. i . �. . ._ _ _. PARTENARiAT pUBLiG•PRIV��ikNAOA ��a� _ _ - , _ � _ - asan so s � 6 ��, �C�� PuBLIC•PRIVAiE PaRTNERSHIPS -�-- .w. � . , ; , � _...���+ssst=-�»�:tfi�'r l i`'�' ��. PARTENARIAT PUBLIC�PRIV��#NADA ��1�� • � � P3s are a long-term performance-based approach for procuring public infrastructure where the private sector assumes a majo� share of the responsibility in terms of risk and financing for the delivery and the performance of the infrastructure, from design and structural planning, to long-term maintenance. � � � � � . � � � � r • � � � � • � � � � � � � � � � � � ` � � � � , � � � , � � , f � � � � � � • � � � � , � � � � � � � f � � � � � � � � � � � � � � � � � ` � � � � � � r � � • � � � � � � � � � � � � � r ��, �C� R11BLlC•pRIVATE PARTNERSHIP� � i . . . . .+ � �:.Ii R'. r t . � ���' • ��,��� _ ��!�►4N�J�—�'� � a�--�, PAqt�MARIAY DU6liC•ARIVE`�CANADA �11� . • • . � • � � � � � ,. � Assets � . . Input terms • • Components of delivery are • • • - . . _ _ . - separated . . - . ' - . Paid for at completion " ` ' • � - � ' . . - . . . � - . . - Risks are retained � . � . - - , / r � . • • ��' �C�� DUBLIC�PRIVAiEDARTNERSHIDS ' 1. � � �� _ ' � • � 1 r� _ ! �,..-_.s�.�'�,11111��I�t.�` ! —_ PARTENARIAT Pl18LIC•PRIVE CANi�DA� _ �� � � + • • . � P3 model seeks to allocate risks where the private sector is best abie to manage / mitigate risk: � . . . . . - . . - - - . - . - . . . - - . - . . . - ` - • • - • - • • � - . - . ! • .� . " . i • • • . � • � • / r � � � ; �C� PUBL�C•PRIVATf PARTNERSHIPS � � . . . . - . , ,i a ' ? ° _� • _ �_.,• s���-�i1'",J���• � _ — at s' — _ PARTENARIAT RUBtiC�PRIVE CANADA G3na� - - - -- - � _ - - _ _ . _ . __ _ _ _ _� � i i � � � � I � i � � i � � � � i �;�' _-'' - _ •-s,- ■ ene �� s o s 10 ,►,. .., ���� ' - ��� -.�� � i ' •t7 -' � �i Rationale for P3s A procurement methodolo�y su�ted to large and camplex projects A�dress w�aknesses in tr�ditior�al procurement methodolog�es D�monstrated effec�iveness intern�tia�al�y �and arr�ongst m�ny prov�nc�s Tooi f�ar mv�dern pu�lic sector manag�ment F�acus is valu��f�r-money f�r taxpayers www.p3canada.ca 11 11 � 1�, �� _ �, �,��1 • _ �� ,f - _ �� - =��' � � +: .� - , 1 �`: Benefits of P3s � ' � � � � • ' • Payment tr�ggered by c�mpletion . � - - • P3s h�ve a pr�ven trac�t record � � Per�ormance sfandards • . • � Une cnntractor ta deal r�rith . • Tran�fer of key risks to the pr�vate sectar . - • Design, construction, lifecyc�e maintenance risks • Foreseeable payments t���� life of asset . • . • - - � Gos# certainty f�r up to 3� years www.p3canada.ca �2 12 .�, r�.� , . ��.,.� "'� _.�. , - .�_ �ene��ts of P3s � � � � _ � • Enab�es gov�rnments ta fvcus on outcomes, instead of • - : input�. � C�re ���r�p�:�r��i�� of public and private sectors - . • • � . • • Forces discip(ined planning pracess ' • - � • Encourages private sec�vr fo take a long-term approach Q � � � Greater scvpe for creafiivity ��d innc�va�ion - design, cvns#ruc#ion, aperat�ons, and maint�nance www.p3canada.ca 13 13 ��I �CB� PUBLIC•DRIVATE pARTNERSHIDS . , i � I �....ssl••=�'�rt'irr:!'t�tt'�_t.-'_.— _. � PARTENARIAT PtJBLIC•pRIY�CANADA �� Canad� ana a un 14 ,�- ,� .i , �� � 1������r ' ' ' Y� - •� �� ♦ ' 1 P3 Canada Fu nd , * To stimul�te the adoptic�� of P3 procurement by '� : • � ' Prc�uinces, T�rritories, Municipa�ities and First Nat�c�ns � � �uppart usefu� public infrastruct�re Fn 15 categ�ries • Pra�ec#s tha� build the P3 marke� • P3 viability � Readiness ' : . - • ' • � . • P3 Models ` Appli�ant Capaci�y • Maxi�um 25°la of e�igible costs ' • - • " • • • • Range �f potenfial instruments inc(uding can�r�butions, repayabl� cvntributions, loans and �aan guarante�s www.p3canada,ca 15 15 , ,� �#���� - � { ..�`�,. . ?. -- �. - , � Merit Cr�teria . • Is the project �ikely ta attract interest frorn the private sectvr and � � has a reasonable patential for �roducing value for money? . � . . . . • Har+v sign�fECant is the private sector�s involvement? ' E . _ _ . . � � • Does the project shaw potentia! to genera�e revenue �a offset - costs? � ' � ' ' • • • Does the project de€nvnstrate poten��al to e�end the P3 market ' • - infio new areas'? . � _ - _ . � • ls �he project likely tc� receive adequa�e fundfng, and does the pro�ect show pc�tential to reach the market in a timely way? , , � . � . • aoes tf�e applicant have access ta tf�e ski�ls necessary to successfully execute a P3? www.p3canada.ca 16 16 ��, �� RUBLIGPRIYATE PARTNERSHIDS ►„ - ,� . � . . . , � ; ' �� ���r!i.$)f' .?��„��i_!=r,e. � --. • ` _ , . — PARTENARIqT Ptf6ltC-PRiYE CANADA ��� . . u n � ca ion rocess � 17 '�, p�� PUBIIC•PRIVATE PARTNERSNIDS _ � � ,= ., �, . . . . � . . i •� , �• i :� � 1��isfi�t�i�4�i�,i.,s i � . _�r::f�s. _ �. PARTENqR1AT PtfBLIC-PRiY�CANADA �1� � � � � � � � � � � � � � � � � � r � . . � � • _'i:•'. .:,i.•:-.... �.�_ � � � + + � s � M * � � • � �' � ! � � • i • N ` _ ! . ! ! � i • � • Applicants Applicants PPP Canada gusin Complete Fill-Out Reviews ess Groundwork Application Applications Case � r � . • '�, �C� PUBLIC•PAIVATE DARTNERSHIPS _, � r... �. , . i '_ _ .��•.�...ust-�+ s '`. ►4�i':7�'' i i '�_� �Ij PARTENARIAT PUBLiC•PRIV�CANAOA �a�� � � � � � � � � ` . . . . . � ' • ! • ! • . � � . ; • ' � � s . � i - � • ' • • . ' • Application Business Procurement Substantial Case Completion . . . , . ��. �� �`i��i�'r+ •_ 1� ,! _�r.r� 1-,��� • '1 � , v P3 �usine�s Case Dev�e�o ment Phase p A P3 busine�s case re�uir�s unique exper�ise in its preparat�on and those pr�p�red ��i�t�.PPP Canada and t�e P3 Canada Fund must foifc�w the P3 Business �ase f�evelQpmer7t Gcride PPP Canada can prc�vide suppt�rt �hrough this phase as follows. � Adv�sing on best practices • Identifying qualified ad�isors through a pre-qualified roster • Providing advice to staff PPP G�nada m�y provide funding #ra eligible �urisdictions, up to 5�% through t}�e Project Devei�pmen� Fund {PDF) to assist screened-ir� appli�ants in undertaking and cc�mpleting a Procurem+en# Ciptions Analysis in support of the P3 compatibility of a projec� C�nly screened-in Rrojects are �;ligibl� for this financial support www.p3canada.ca 20 20 � �� .������ �"!� �� _ - .� � _ .._ \ 4• � • ' � Project De�e�opment Fund � n �DF �li ibfe Pro'e g � } g ct� 1 • � _ _ � � � ° Identification of risks and the optimai �°��k sharing strategy, � • M�rke� sounding exercises " � Value for Money ana�ysis • �unding fram PPP C�nada ensures the r�ght to utili��e and _ _ � _ shar+� such deiiverables tv support best practices • All procureme�fi processe� �vr securing expert services must be c�mpetiti�e, fair, and transparent • if a jurisdiction �eceiv�s PD�, p�P Canada will report • - e publicai�y on the suppo�t pravided t�rough its regular channels �website, annuai report etc}. www.p3canada.ca 2� 21 �� �Cg� PUBUt�PRIVATEPARTNEitSHIPS `� � . : . . :_ . . . : �T -„ y�.,,��•i�=i;,�_�=t r���i _ � � _ , ,_ . - �;...r.. - PARTENARIAT pUBUGPRIYE CANAOA �K1►1�!(� C4NTACT US 100 Queen Street, Suite 630 Ottawa, Ontario K1 P 1 J9 Canada ' Telephone: (613) 947-9480 Fax: (613) 947-2289 Toll Free : (877) 947-9480 Email: info@p3canada.ca ,�r' PPP Canada