New Jersey Administrative Code
Title 17 - TREASURY - GENERAL
Chapter 49 - PUBLIC-PRIVATE PARTNERSHIPS RULES
Subchapter 6 - LOCAL GOVERNMENT UNIT PROCEDURES AND REQUIREMENTS
Section 17:49-6.2 - Project analysis

Universal Citation: NJ Admin Code 17:49-6.2

Current through Register Vol. 56, No. 14, July 15, 2024

(a) A local government unit, through a finding by the governing body through a resolution, shall determine whether to apply for approval to enter into a public-private partnership and shall document in its application to the Office of Public Finance, its analyses based upon the following threshold criteria:

1. A narrative of the project, including the role and responsibilities of the parties, and an assessment of the project's viability, including the outcome and objectives to be realized by the project;

2. An assessment of the benefits or risks to be realized by the project;

3. The total risk-adjusted cost of the project, including costs associated with procurement, financing, design, construction, operation, and maintenance (including oversight costs) over the useful life of the asset that will be built, or the length (in years) of the potential public-private partnership agreement; both for delivery as a public-private partnership and delivery under a conventional public sector approach, supported by evidence from comparable projects;

4. The maximum public contribution that a local government unit will invest in or contribute to the project under the public-private partnership;

5. A comparison of the financial and non-financial benefits of the public-private partnership, including the technical, technological, or socioeconomic merit of the project, as contrasted with other options including a public sector option or not proceeding with a project;

6. A list of risks, liabilities, and responsibilities to be transferred to the private entity and those to be retained by the local government unit as well as an analysis of the financial capacity of the private entity and local government unit, including an analysis of how the project's execution shall impact the financial status of the local government unit;

7. An analysis that delivery as a public-private partnership will optimize schedule, cost (on a risk-adjusted and useful life basis) and quality outcomes for the project, relative to a public sector option; and

8. Whether the project has a high, medium, or low level of project delivery risk and how the public is protected from these risks.

(b) A local government unit's governing body shall make the following findings to establish that a project is in the best interest of the public and shall provide supporting documents, including information on the financial strength and bonding capacity of the local government unit, to support the findings that:

1. There is a public need for the project and the project is consistent with existing long-term plans;

2. There are specific significant benefits to the project;

3. The project, including risk-adjusted costs associated with procurement, financing, design, construction, operation, and maintenance, including oversight costs, over the useful life of the asset that will be built, or the length, in years, of the potential public-private partnership agreement, will cost less than the public sector option, or if it costs more, there are demonstrable factors that warrant the additional expense;

4. There exists sufficient public sector financial and technical capability as well as market interest for the project to be delivered efficiently as a public-private partnership;

5. There are specific significant benefits to using the public-private partnership instead of other options including No-Build;

6. The private development will result in timely and efficient development and operation; and

7. The risks, liabilities, and responsibilities transferred to the private entity provide sufficient benefits to warrant not using other means of procurement.

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