Why did you decide to put a PBI Office into place – Can’t we just rely on public funding per our usual practices?
- Denver is among the fastest-growing large cities in the U.S. This creates opportunities and challenges for critical City infrastructure that is necessary for the viability, sustainability and quality of life for all Denver residents.
- To remain an attractive, affordable place to live, while maintaining the City’s high bond ratings and prudent fiscal management, Denver is committed to exploring alternate ways to meet the need for new public infrastructure and for improvement or expansion of existing facilities.
- That’s why the City and County of Denver developed a Performance-Based Infrastructure (PBI) Office that will manage a neutral, standardized and transparent process to evaluate and execute potential partnerships with the private sector to deliver public infrastructure to the City.
What is the goal of the PBI Office?
- The goal of the PBI Office is to improve the lives of Denver residents by leveraging private-sector financing and expertise to build, operate and maintain City-owned projects when that approach would deliver the best value. This also means that the City can tap into the private sector’s innovation capacity and transfer certain risks related to infrastructure development in cases when the private sector may be in a better position to manage such risks.
- A PBI Office also helps establish shared responsibilities and governance structure as project development and delivery are divided among multiple agencies. This is a best practice and has proven to be very valuable for states and local governments to create a dedicated, centralized PBI office.
When will the PBI Office open and the program go into effect?
- The PBI Office that oversees the program launched January 2019.
Who will manage the PBI Office?
- The PBI Office will be led by a permanent executive director appointed by the Mayor with oversight by a Performance Infrastructure Committee (PIC), comprised of the Mayor’s Chief Projects Officer, City Attorney, Chief Financial Officer, and Executive Director of Public Works. The interim executive director is Emily Hauber.
How will it be determined if a potential project is suitable for performance-based delivery and is placed in Denver’s PBI program pipeline?
- Agencies with projects for consideration will consult with the PBI Office and the Capital Projects Planning Division in the City’s Department of Finance.
- Projects that may be appropriate for performance-based delivery enter the screening stage, during which the PBI Office will work with the agency to evaluate whether a project is a suitable candidate for PBI delivery. The objective of the screening stage is to evaluate projects efficiently and to efficiently spend resources on projects that appear suitable for a PBI delivery and not on those that do not meet a minimum set of characteristics.
- At the end of the screening stage, the Performance Infrastructure Committee will approve projects recommended by the PBI Office for addition to the City’s PBI pipeline. (Projects not approved for performance-based delivery can be re-submitted through the City’s normal Capital Improvement Program process.)
What is the PBI Office’s role after projects are in the PBI pipeline?
- The PBI Office will manage projects in the PBI pipeline after the screening stage through subsequent phases of the PBI program. The PBI Office will provide resources and expertise to evaluate and execute the best delivery method.
- For projects in which PBI procurement is deemed the best option, the PBI office will provide expertise to structure projects, manage the procurement process and oversee implementation in coordination with City departments.
- As projects move forward, the PBI Office and project team will brief City Council on aspects of the projects and decision points.
- In the spirit of transparency, feedback will be incorporated from the community to protect and underscore the qualities that make Denver a great place for residents and visitors as outlined in the Stakeholder Guidelines document of the PBI program.
What are the potential benefits of the PBI concept for the public? For private partners? What are the potential drawbacks for both partners?
- For the public, PBI projects provide an alternate way to meet the need for new public infrastructure and for improvement or expansion of existing facilities.
- When properly structured, PBI projects leverage the private sector’s innovation capacity and transfer risk from the public to private-sector partners in cases where they are better placed to manage those risks. Therefore, to avoid any potential issues or drawbacks for both the public or private partners, the City will take a thoughtful, transparent approach to determining if and when it makes sense to work with private-sector partners, and how to structure and manage those partnerships.
- The City believes the PBI program will deliver significant, lasting benefits to Denver residents and will ensure any partnership it enters into incorporates Denver’s core values of inclusion, equity, and economic opportunities.
Has the PBI Office and program been endorsed by the Mayor and/or other elected officials?
- Yes, and the PBI Office is one of the necessary tools in the project delivery toolbox. We must leverage available resources to meet the needs and demands of our growing city. The PBI program and centralized office aligns well with the City and Mayor’s core values of transparency, inclusivity, equity and opportunities for all.
Will the PBI program be used for projects that will be developed outside of the Denver City and County limits?
- The PBI program is based on national and international best practices. All of the program guidelines and policies are available on the PBI website. Other jurisdictions of public entities may choose to use the PBI program, if appropriate, for meeting their project delivery goals and for providing the best value to their taxpayers.