Type of Organization

i. Interest Groups (Please specify in question 3a)

Non-partisan, non-profit membership group that takes no money from corporations or unions. Our mission is to take on powerful special interests to protect the public.

Top benefits of PPP

1. Can leverage technological know-how not currently in the public sector.

PPP Concern 1

1. Allows public officials to avoid responsibility for increasing taxes or otherwise raising revenue for public purposes.

PPP Concern Mitigation 1

No deals over thirty years; greater transparency.

PPP Concern 2

2. Relinquishes public control over management and planning of vital government functions.

PPP Concern Mitigation 2

No deal should last for more than 30 years since even the most detailed concession agreement can not adequately anticipate future public needs, technological advances, demographic changes, or the appropriate value of a contract. Road operators should not be able to require compensation for measures that would be the normal course of transportation policy or for establishing state-of-the-art safety standards. Road operators should compensate the public for legal fees in the future enforcement of contracts.

PPP Concern 3

3. Concession or lease payments will not meet the long-term value of the tolls paid by the public.

PPP Concern Mitigation 3

It must be clearly established that the same upfront borrowing could not be done more cheaply by public entities. The public should not pay a premium for higher private borrowing costs, oversight costs for monitoring private entities, and shareholder profits.

PPP Concern 4

4. Lack of transparency and accountability, especially from concession agreements that are not public before signing.

PPP Concern Mitigation 4

All concession bids and subcontracts by private vendors should be open public record on-line from the moment they are introduced. Proposed agreements should be divulged at least six months before being put to vote. Legislatures must approve of final concession agreements, not simply empower the administration to enter an agreement. Most importantly, no agreement should last more than 30 years.

PPP Concern 5

5. Non-compete clauses

PPP Concern Mitigation 5

Should be prohibited.

Factors to consider by decision-makers

What value is the private entity actually bringing to the table that the public could not subcontract for in a shorter deal or accomplish with their own toll hikes.

Contract structures/techniques to protect public interests

Availability contracts;

Prohibition of non-compete clauses;

Sunshine laws disclosing details of concession agreements

Other perspectives

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