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Key Stakeholders. CA Government EntitiesGovernor's OfficeState LegislatureState Agencies like Caltrans, water resources department Local Govt. Entities like Riverside Transport Regional transit agencies like Bart, CaltrainUnionsPublic employee unions like PECGConstruction Unions like Carpent
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1. Brainstorming Session Executive Workshop
Renewing California’s Infrastructure
October 26, 2007
2. Key Stakeholders CA Government Entities
Governor’s Office
State Legislature
State Agencies like Caltrans, water resources department
Local Govt. Entities like Riverside Transport
Regional transit agencies like Bart, Caltrain
Unions
Public employee unions like PECG
Construction Unions like Carpenters
Also building trades council
General Taxpayers
Electorate care about social and economic fairness
Potential Users care about the “value” for ex toll road etc
3. Key Stakeholders Large Contractors like Kiewit, Granite
EPCs like Bechtel, Fluor, etc.
International infra developers - ACS infrastructure, Cintra, Ferrovial (Spain)
Think Tanks - Keston Institute USC, CFEE
Bond Rating Organizations
Investor Community like Goldman, JP Morgan, Macquarie
Consulting Community – PWC, KPMG, E&Y
Big city mayors
Environmental Groups like environmental defense- Michael Rapogle
4. Key comments Most stakeholders are reactive rather than proactive
Anti-corporate sector bias:
Profits = rip off
Public efficiency = private efficiency
Foreign firms = evil
5. Public Policy Issues Depolitization to adminstrative entity vs. embracing politics in legislature
Government’s role in control of PPP – What entity should move them forward?
External shocks could destroy perfect policy proposal
Goal setting - Prioritizing efficiency vs. cost effectiveness vs. social equity
Which sectors should be prioritized?
What level of risk transfer will be desired or required?
6. Public Policy Issues Fragmentation of CA government creates governance problem for “Partnership CA” entity
Most quasi-independent state agencies have large boards in which appointments and/or membership is divided among legislative leaders and state elected officials
In California, it is very difficult to create uniformity of purpose (as in a joint stock corporation or a parliamentary government)
7. Public Policy Proposals Partnership BC-type advisory body to help public sector design, analyze and negotiate good PPP agreements
Fixed to AB2660 to make more effective as to the type of projects already covered
Use carbon emissions auctions to finance infrastructure spending
Avoids opposition motivated by budget substitution in general budget
Move decision to approve user fees out of the legislature to an outside authority
8. Communication Strategy Developing Strategy
Agree on what we want
What do key stakeholders think?
Link what we want to what key stakeholders want
Show people that
Costs are lower
Quality as at least as good
PPPs are not atypically prone to employing the poor/middle-class and illegal immigrants!
9. Communication Strategy Verbiage
- Don’t “privatize”; “partner with”
Don’t “sell off assets” to pay bills
Don’t use “P3”; use “Alternative Finance”
Don’t use “buy-side/sell-side” use “public party/private party”
Move focus from “build more infrastructure” to “build-operate-maintain more effectively”
Be inoffensive; maintain foresight; avoid strong opposition
10. Communication Strategy Frame issue as the need for “growth vs. cost”
Competition in selecting service provider
Transparency in project approval process
User fees necessary to reduce congestion, and to improve efficiency of transportation systems
Build support regionally and locally
Demonstrate Values of Accountability, Transparency, Discipline
11. Communication Strategy P3s are sources of:
International best practice
Innovation
A test bed of ideas and new sources for public development
A way to ensure lifecycle costing
Compare to the success of international experience