Executive Policy 10.204 Executive Policy 10.204

Public Private Partnerships

Executive Policy Chapter 8, Business and Finance
Executive Policy EP 10.204, Public Private Partnerships
Effective Date:  October 2014
Prior Dates Amended:  August 2014
Responsible Office: Office of the Vice President for Administration
Governing Board of Regents Policy: RP 8.201, Contracts and Official Documents
Review Date:  August 2019

To establish a systemwide process for use in the implementation of Board of Regents approved public private partnerships for the development of University real property and facilities

No policy specific or unique definitions apply.

A. INTRODUCTION

    The University seeks to initiate public/private partnerships for the development of University real property and facilities.  This policy is intended to guide the formation and implementation of such partnerships.

B. RESPONSIBILITIES

    1. The UH President, Vice Presidents and campus Chancellors are responsible for ensuring compliance with the processes described in this Executive Policy.

    2. The Vice President for Administration in association with the Associate Vice President for Capital Improvements shall be responsible for providing consultative assistance regarding the implementation of this policy as may be requested.

C. PROCESS

    1. Evaluation Committee

        a. The composition of the Evaluation Committee shall be proposed by the Chancellor of the affected unit and approved by President.

        b. The Evaluation Committee may include members who are not employed by the University.  The non-University members may include representatives of the affected community and subject matter experts.

        c. All members of the Evaluation Committee must disclose conflicts of interest to the President who shall determine if the conflicts that are disclosed warrant exclusion from the Committee.

        d. Support to the Evaluation Committee shall include the following;

            (1) University staff support shall include the Vice President for Administration and the Associate Vice President for Capital Improvements.

        Consultants may be retained to assist the Evaluation Committee in its deliberations.

    2. Real Estate Development Expertise

        a. For each project, the University shall procure the services of consultants that possess the necessary real estate development expertise to assist in the following critical steps for the Partner Selection process:

            (1) Preparation of solicitation documents;

            (2) Evaluation of the Statements of Qualifications and Proposals submitted by interested development teams;

            (3) Assistance in the negotiation of real estate development documents; and

            (4) Management of the development project from commencement to completion.

        b. The real estate development consultant(s) shall be selected in accordance with University procurement procedures.

        c. The consultant(s) should have expertise in the following areas:

            (1) Locating prospective properties for real estate development

            (2) Structuring and negotiating land acquisition and master ground lease agreements.

            (3) Analyzing the real estate market and preparing market studies.

            (4) Overseeing applicable land entitlement processes.

            (5) Conceptualizing the development  products for different real estate markets.

            (6) Developing all project development costs, project schedules and preparing development and operating pro forma budgets.

            (7) Structuring public/private partnerships and joint ventures.

            (8) Assisting in obtaining equity, construction and permanent financing.

            (9) Administering and coordinating the applicable real estate development process.

            (10) Assisting in the contracting and managing of the construction process.

            (11) Planning for strategic disposition of projects and real property.

    3. Partner Selection Process

        These procedures are designated to ensure the selection of the most responsible and capable private sector business entities with which to partner, and are structured so that interested private parties can compete without expending excessive resources in preparing proposals.  These procedures shall be compliant with applicable law.  The solicitation consists of two steps:

        Step 1: Statement of Qualifications (SOQ)

        Interested parties shall be requested to submit a Statement of Qualifications (SOQ) describing their overall concept for development and their approach to operation and management of the Projects(s), corporate organization and capabilities, past performance with regard to projects of a similar nature and statements describing financial capability/capacity.

        The Evaluation Committee will review, evaluate and rank all SOQs received.  Subsequently, the highest ranked Respondents will be placed on a Short List and be invited to submit a proposal in the second step in this solicitation process.

        Step 2: Invitation to Submit Proposals (ISP)

        Respondents on the Short List will have the opportunity to submit a proposal on how they would implement and manage the development plan for the Project.  Respondents will have an opportunity to demonstrate their creativity, flexibility, and ability to provide reasonable assumptions that will yield a feasible project.  The Evaluation Committee will review the proposals received in response to the ISP.  Upon completion of its evaluation, the Evaluation Committee will recommend to the President the respondent which, in its opinion, submitted the highest evaluated proposal taking into consideration the evaluation criteria set forth in the ISP.  In the event that more than one respondent receives the highest evaluation score, the Evaluation Committee shall submit all such proposals to the President for his/her consideration consistent with the evaluation criteria in the RFP.  The President has the authority to make the final selection, and designate the selected respondent to participate in a period of exclusive negotiations.
 
    4. Post-Selection Process

        a. Appointment of Executive Committee

            The President shall appoint an Executive Committee with responsibility for reviewing and approving all major decisions relating to the project, which will include the Chancellor of the affected campus.

        b. Designation of a Single Point of Contact

            The President shall appoint the Chancellor or another member of the Executive Committee to serve as single point of contact (SPOC) with the authority to negotiate with the selected respondent for the purpose of consummating a Real Estate Development Agreement.  The SPOC will utilize the services of a real estate development consultant and an attorney as required.

        c. With the guidance of the Executive Committee, SPOC will enter into exclusive negotiations with the selected respondent.  During this period the selected respondent will work with the University to finalize a Real Estate Development Agreement that will establish requirements for the scope of work of the project, fee schedule, and acceptable time frames for completion of this work.

        d. The proposed Real Estate Development Agreement negotiated with the selected respondent will be submitted to the Board of Regents for approval and authorization to execute on behalf of the University.

There is no policy specific delegation of authority.

Office of the Vice President for Administration
Telephone: (808) 956-6405
Email:  vpadmin@hawaii.edu

    A. Link to superseded Executive Policies in old format https://www.hawaii.edu/policy/archives/ep/

    B. Link to Administrative Procedures in old format https://www.hawaii.edu/policy/archives/apm/sysap.php

No Exhibits and Appendices found

    President