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Public Private Partnership (P3)

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History of Public Private Partnership in Florida

In 2013, CS/CS/HB 85 passed the legislature. This law standardized the P3 process and created a statutory framework that local governments must adhere to when procuring a P3, which is extremely prescriptive. In standardizing the P3 process, the legislation preempted local governments from following their current P3 procurement procedures and eliminated the flexibility necessary to negotiate and contract with private entities in a manner that is most appropriate for that specific project. The flexibility to negotiate the terms of P3 contracts is paramount when considering the complexities of large-scale projects that often draw on various funding sources and involve teams of developers, investors and contractors.

During the 2015 legislative session, HB 63 and CS/CS/CS/SB 824 were filed to implement a majority of the recommendations made by the P3 Task Force. Provisions favorable to cities included increasing flexibility in contracting for P3s by allowing contracting timelines to be extended in certain situations and clarifying authority to local governments to require unsolicited bids to be accompanied with a fee to cover the costs of reviewing the proposal.

In 2016, CS/SB 124 (Evers) amends the statutory framework that local governments must adhere to when engaging in public-private partnerships (P3s). The legislation provides supplemental authority to local governments, thereby allowing cities to rely on Home Rule authority to enter into P3 agreements or follow the process in Florida statutes. This crucial change encourages cities that have not undertaken a P3 project in the past to follow the state statute but allows those experienced in this procurement method to rely on their established procedures. Finally, the legislation authorizes local governments to collect a fee, as determined by local ordinance, to cover the costs associated with reviewing unsolicited proposals.

Information above courtesy of the Florida League Cities

 Florida Statutes

Florida Statute 255.065 gives rules and guidelines on Public Private Partnership procedures.  This can be viewed by clicking here.

Public Private Partnership Concept

The formation of real public-private partnerships where private businesses are truly sharing risks and profits with local governments must include a few conditions. Those are:

  1. Limited and Quantifiable Risk

  2. Mutual Skin in the Game

  3. A Realistic Chance for a Positive Return

  4. A Proportionate Share in the Gain

For more information on concepts behind P3, contact the Purchasing Division or click here.  

City of Sarasota Process

The City of Sarasota uses the procedures as outline in the Florida State Statutes 255.065.  The City Commission passed resolution 18R-2686 authorizing a $3,000.00 application fee for unsolicited public-private partnerships.  Below is the link to download the City of Sarasota P3 Application.  Once the P3 application is received by the Purchasing Division then a determination will be made as to whether the application meets the “Qualifying project” status as defined in F.S. 255.065.  The application below must be submitted with the application fee.

City of Sarasota P3 Application