P3 Models to Maximize Public Value: Examples from Easton, MA

The Town of Easton, Massachusetts is opening its first public sewer system by using two very different public private partnership (P3) models to achieve their needs. The first two wastewater treatment facilities have resulted from unique and innovative financial and delivery models: 1. Ames Shovel Works Wastewater Treatment Facility: 50,000 GPD membrane facility with 3 groundwater recharge fields; publicly construction on private property, paid for (after grants) from 56% public funds and 44% private funds, private sector partner influenced faAade design, site layout, and construction coordination (truly where the "partnership" was tested). It is a public WWTF with the primary user being a private development. This P3 process requires Easements, Licenses, development agreement, MassDEP permits to be assigned, and many other "upfront documents." This facility is operational. The Town learned many things which were applied to the next P32. Queset Commons Treatment Facility: 150,000 GPD membrane facility with 3 groundwater recharge fields; privately constructed on private property with investment from the Town. Town's capital costs for 50,000 GPD (1/3 of the facility capacity) is relatively fixed, the Town has 3rd party oversight abilities (beyond the standard building permit process) to ensure their investment "value" is not diminished. This P3 model required only a Development Agreement, there was no real town influence on easement, licenses, permits, etc. This facility is under construction with a phased start-up over time. The Town also learned many lessons that will strengthen their negotiating on future P3s. This presentation will highlight and contrast::The necessary level of design development for private construction versus public bid construction. The different processes necessary to manage the risk for a public WWTF versus a private WWTF. Very different cash flows and timelines for public versus private construction Many areas of overlap that future public & private owners should consider when looking at P3s.The conclusion will focus on how the different P3 Partners define "value" and how to bring those definitions together for a win-win partnership. Learning Objectives: Structure P3s that meet their community's needs. Negotiate with private partners to achieve win-win P3sAnticipate and mitigate risks when entering a P3 for infrastructure development.