Operations and maintenance should either remain at status quo or improve as the result of a PPP. This includes making sure New Jersey's highways have a high level of service for traffic flow, snow removal, accident clearance, service station operations and all other functions of the highway system that the public relies on, as well as sufficient funds available for bridge maintenance, resurfacing, and other capital expenditures.18 A private firm may not necessarily operate the road with the goal of maximizing mobility or easing congestion, unless specific performance standards are established. As electronic toll collection grows more advanced, this issue will become more important.
The first step toward ensuring that operations and maintenance are upheld or improved is to evaluate the current state of maintenance and operations of the asset. The November 2006 UBS asset evaluation report calls for the State to establish the operating standards and safety requirement of the roads and a monitoring organization if it is to proceed with a PPP for any of the highways.19 The rating agency Standard & Poor's also holds that PPPs should require independent engineers and technical advisors to evaluate asset quality.20 Standard & Poor's promotes life cycle costing, which requires that sufficient cash be available for capital expenditure throughout the life of the contract. UBS also notes the level of capital expenditure necessary as an issue for consideration. The State's progress toward these goals should be known to the public.
Once the current levels of service have been documented, the State can help ensure its mobility goals are met by using carefully-drafted performance standards in a PPP. Such stringent operating and maintenance standards can also lead to a lower windfall for the State; lengthier, more complex contracts can also take longer to draft leading to higher transactions costs for the State. Nonetheless, the State should approach this aspect of the PPP with the long-term public interest in mind. Performance standards should be written in to the contract, and public oversight should be allowed and provided to ensure that the private partner is operating the road in a manner that will optimize statewide mobility, protect the environment and sufficiently maintain the road.