Briefing on Public Private Partnerships
COMMITTEE ON JOINT TRANSPORTATION
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02:46 PM -- Briefing on Public-Private Partnerships
The committee returned to order.
Mr. Frank Rapaport, representing McKenna, Long, and Aldridge, LLP, testified regarding the use of public-private partnerships specific to transportation infrastructure projects. Mr. Rapaport was joined by Mr. Richard Kaufman and Mr. Lino Lipinsky, also representing McKenna, Long, and Aldridge, LLP. The federal economic stimulus was discussed. Mr Rapaport emphasized the importance of states being ready, willing, and able to use federal stimulus funds for projects. Mr. Rapaport provided copies of his testimony to the committee members (Attachment A).
Mr. Rapaport discussed FasTracks as a model public-private partnership. He discussed advantages of such partnerships, including those specific to life-cycle delivery. Mr. Rapaport stated that the proposed FASTER law will further improve Colorado's public-private partnership laws. He closed by providing seven recommendations on the effective use of public-private partnerships for transportation infastructure. Mr. Rapaport took questions from the committee members.
Representative Green asked how value is determined for such projects. Mr. Rapaport responded that cost analyses are conducted, and described the role of profit. Representative Green expressed concerns that noncompetes may be promoted. Representative Baumgardner asked clarifying questions on federal stimulus dollars and funding origination for public private partnerships.
Representative Green asked if it was normal for public-private partnerships to receive a 10 percent profit guarantee. Mr. Rapaport responded that such arrangements are abnormal.
Senator Romer thanked the witnesses for testifying and stated that public-private partnerships are an inevitable step forward. Sen. Romer also discussed challenges with equity issues.
The committee adjourned.