HomeMy WebLinkAbout2018-06Resolution 2018-06
Resolution Adopting the Purchasing Policy to Implement the Public -Private
Education Facilities and Infrastructure Act of 2002 and the Public -Private
Transportation Act of 1995
WHEREAS, the Town Council of the Town of Pulaski, Virginia desires to utilize the
legislative provisions of various laws to assist the Town in creating productive
relationships with the private sector to assist with various Town projects; and,
WHEREAS, the Public Private Educational Facilities and Infrastructure Act of 2002
(PPEA) and the Public -Private Transportation Act of 1995 (PPTA) allows public and
private institutions to create partnerships for "qualifying projects" as defined in the
legislation; and,
WHEREAS, a purchasing policy for both solicited and unsolicited bids for said
"qualifying projects" has been issued to assist public-private partnerships in conforming
to the provisions of both Acts; and,
WHEREAS, adoption of an approved purchasing policy by the Town is necessary to
implement both Acts with respect to the Town's future participation with a private entity
in "qualifying projects" under these Acts;
NOW, THEREFORE be it RESOLVED by the Town Council of the Town of Pulaski,
Virginia, sitting in regular session this 6t" day of February 2018 that the Town does
hereby adopt the "Purchasing Policy Implementing Public -Private Education Facilities
and Infrastructure Act of 2002 and the Public -Private Transportation Act of 1995" as set
forth in Attachment A -Resolution 2018-06, attached hereto and expressly made part of
this document as if set forth herein.
This resolution is effective upon adopted and is hereby adopted this 61" day of February
2018 by the duly recorded vote of the Town Council of the Town of Pulaski, Virginia as
follows:
James A. Radcliffe -Aye
Gregory C. East -Absent
David L. Clark -Aye
ATTEST:
_,�
David N. Quesenberry
Clerk of Council
Joseph K. Goodman -Aye
H.M. Kidd -Aye
Lane R. Penn -Aye
THE N OF PULAS GINIA
BY-
Ro6—eh N. Glen
Mayor
0
Attachment A -Resolution 2018-06
TOWN OF PULASKI, VIRGINIA
PURCHASING POLICY IMPLEMENTING PUBLIC-PRIVATE
EDUCATION FACILITIES AND INFRASTRUCTURE ACT OF 2002 AND
PUBLIC-PRIVATE TRANSPORTATION ACT OF 1995
I. Introduction
A. The Public -Private Education Facilities and Infrastructure act of 2002, Va. Code
Sections 56-575.1, et seq., (the "PPEA") and the Public -Private Transportation Act of
1995, Va. Code Section 56-556, et seq., (the "PPTA") (together, the "Acts") grant the
Town of Pulaski, Virginia (the "Town"), a responsible public entity as defined in the
Acts, the authority to create public- private partnerships for the development of a wide
range of projects for public use if the Town determines there is a public need for the
project and that private involvement may provide the project to the public in a timely or
cost-effective fashion. Individually negotiated comprehensive agreements between an
operator, as defined in the Acts, and the Town will define the respective rights and
obligations of the Town and the private operator. Although guidance with regard to the
application of the PPEA and PPTA is provided herein, it will be incumbent upon the
Town and all private entities to comply with the provisions of the PPEA or PPTA as
applicable.
B. In order for a project to come under the PPEA or the PPTA, it must meet the
definition of a "qualifying project" as defined in the applicable Acts. The Acts contain
broad definitions of qualifying projects that include, but are not limited to public
buildings and facilities and transportation facilities of all types. For example:
An education facility, including, but not limited to, a school building (including
any stadium or other facility primarily used for school purposes), any functionally -
related and subordinate facility and land to a school building, and any depreciable
property provided for use in a school facility that is operated as part of the
public school system or as an institution of higher education;
2. A building or facility for principal use by any public entity;
3. Improvements, together with equipment, necessary to enhance public safety
and security of buildings to be principally used by a public entity;
4. Utility and telecommunications and other communications infrastructure;
5. A recreational facility; or
6. A transportation facility such as a road, mass transit facility, parking facility or
other commercial facility used for the transportation of persons or goods.
C. The Acts establish requirements that the Town must adhere to when reviewing and
approving proposals received pursuant to the PPEA or the PPTA. In addition, the Acts
specify the criteria that must be used to select a proposal and the contents of the
comprehensive agreement detailing the relationship between the Town and the private
entity. Any proposal received or solicited by the Town pursuant to either the PPEA or the
PPTA will be reviewed in accordance with the provisions of the applicable Act and these
regulations as they may apply.
D. The Town Council of the Town of Pulaski, Virginia (the "Town") adopted this policy
effective February 6, 2 018 to implement the PPEA and the PPTA. Therefore, in
accordance with Board directives, the Town Manager will follow this policy to receive
and evaluate any proposal submitted to the Town under the provisions of the PPEA or the
PPTA. The procedures and regulations provided in this policy may be amended only by
an act of the Council.
E. The Town Manager is authorized to designate a working group to be responsible for
evaluating proposals and negotiating the comprehensive agreement.
F. The individual designated by the Town Manager to serve as the point of contact for
implementation of procedures, to receive proposals submitted under the PPEA or the
PPTA and to respond to inquiries regarding the PPEA or the PPTA or this adopted policy
shall be the Purchasing Manager.
H. General Provisions
A. Proposal Submission
A proposal under either Act may be either solicited by the Town or delivered by a private
entity on an unsolicited basis. Proposers may be required to follow a two-part proposal
submission process consisting of a conceptual phase and a detailed phase, as described herein.
1. The Acts allow private entities to include innovative financing methods, including
the imposition of user fees or service payments, in a proposal. Such financing
arrangements may include the issuance of debt instruments, equity or other
securities or obligations. Proposals may include, if applicable, the portion of the
tax-exempt private activity bond limitation amount to be allocated annually to
the Commonwealth of Virginia pursuant to the Economic Growth and Tax Relief
Reconciliation Act of 2002 for the development of education facilities using
public- private partnerships.
2. Proposals should be prepared simply and economically, providing a concise
description of the proposer's capabilities to complete the proposed qualifying project
and the benefits to be derived from the project by the Town. Project benefits to be
considered are those occurring during the construction, renovation, expansion or
improvement phase and during the life cycle of the project. Proposals also should
include a comprehensive scope of work and a financial plan for the project,
containing enough detail to allow an analysis by the Town of the
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financial feasibility of the proposed project. Initial proposal submittals should
include not less than ten (10) originals. The Town may, at any time, require the
proposer to provide additional information, additional copies of prior submissions,
and/or clarification to any submission.
B. Affected Local Jurisdictions
The term "affected local jurisdiction" means any county, city or town in which all or a
portion of a qualifying project is located. Any private entity requesting approval from or
submitting a conceptual or detailed proposal to the Town must provide any other affected
jurisdiction with a copy of the private entity's request or proposal by certified mail,
express delivery or hand delivery within five (5) business days of submission of the
proposal to the Town. Evidence of the delivery of the proposal to any other affected local
jurisdiction shall be provided within five (5) business days of such delivery. Any affected
jurisdiction shall have sixty (60) days from the receipt of the request or proposal to submit
written comments to the Town and to indicate whether the proposed qualifying project is
compatible with the (i) jurisdiction's comprehensive plan, (ii) jurisdiction's infrastructure
development plans, and (iii) capital improvements budget or other government spending
plan. Comments received within the sixty (60) day period shall be given consideration by
the Town, and no negative inference shall be drawn from the absence of comment by an
affected jurisdiction. The Town may begin or continue its evaluation of any such proposal
during the sixty (60) day period for the receipt of comments from other affected local
jurisdictions.
C. Proposal Review Fee
For unsolicited proposals and unsolicited competing proposals, the Town will require an
initial processing fee of Five Thousand Dollars ($5,000.00) with an additional proposal
fee of Ten Thousand Dollars ($10,000.00) to be charged should the project proceed
beyond the initial review. The initial processing fee shall be submitted with the initial
proposal or competing proposal. The Town will refund any portion of fees paid in excess
of its direct costs which include, but are not limited to, all staff costs, outside consultants,
financial advisors, engineers and attorney's fees associated with evaluating the proposal.
In the event either the initial processing fee of Five Thousand Dollars ($5,000.00) or the
additional proposal fee of Ten Thousand Dollars ($10,000.00) is insufficient to cover all
of the direct costs incurred by the Town, the proposer shall pay such additional direct
costs incurred by the Town in reviewing the proposal.
D. Freedom of Information Act
1. Generally, proposal documents submitted by private entities are subject to the
Virginia Freedom of Information act ("FOIA"). In accordance with Section 2.2-
3705 of FOIA, such documents are releasable, if requested, except to the extent that
they relate to (i) confidential proprietary information submitted to the Town under a
promise of confidentiality or (ii) memoranda, working papers or other records
related to proposals if making public such records would adversely affect the
financial interest of the Town or the private entity or the bargaining position of
either party.
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2. Subsection 56-575.4 G of the PPEA imposes an obligation on the Town and any
affected jurisdiction to protect confidential proprietary information submitted by a
private entity or operator. When the private entity requests that the Town not
disclose information, the private entity must (i) invoke the exclusion in writing
when the data or materials are submitted to the Town or before such submission, (ii)
identify the specific data and particular materials for which protection from
disclosure is sought, and (iii) state why the exclusion from disclosure is necessary.
A private entity may request and receive a determination from the Town as to the
anticipated scope of protection prior to submitting the proposal. The Town is
authorized and obligated to protect only confidential proprietary information, and
thus will not protect any portion of a proposal from disclosure if the entire proposal
has been designated confidential by the proposer without reasonably differentiating
between the proprietary and non-proprietary information contained therein.
3. Upon receipt of a request that designated portions of a proposal be protected from
disclosure as confidential and proprietary, the Town shall determine whether such
protection is appropriate under applicable law and, if appropriate, the scope of such
appropriate protection, and shall communicate its determination to the proposer. If
the determination regarding protection or the scope thereof differs from the
proposer's request, then the Town will accord the proposer a reasonable opportunity
to clarify and justify its request. Upon a final determination by the Town to accord
less protection than requested by the proposer, the proposer would be accorded an
opportunity to withdraw its proposal. A proposal so withdrawn should be treated in
the same manner as a proposal not accepted for publication and conceptual -phase
consideration as provided below.
E. Use of Public Funds
Virginia constitutional and statutory requirements and Town regulations and policies as
they apply to appropriation and expenditure of public funds apply to any comprehensive
agreement entered into under the Acts. Accordingly, the processes and procedural
requirements associated with the expenditure or obligation of public funds shall be
incorporated into planning for any PPEA or PPTA project or projects.
F. Applicability of Other Laws
Nothing in the PPEA or PPTA shall affect the duty of the Town to comply with all other
applicable laws not in conflict with the PPEA or the PPTA. The applicability of the
Virginia Public Procurement Act (the "VPPA") is as set forth in the PPEA and the PPTA.
III. Solicited Proposals
A. The Town may invite bids or proposals from private entities to acquire, design,
construct, improve, renovate, expand, equip, maintain or operate qualifying projects.
The Town may use a two-part process consisting of an initial conceptual phase and
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a detailed phase. The Town will set forth in the solicitation the format and supporting
information that is required to be submitted, consistent with the provisions of the
applicable Act.
B. The solicitation will specify, but not necessarily be limited to, information and
documents that must accompany each proposal and the factors that will be used in
evaluating the submitted proposals. The solicitation will be posted in such public areas as
are normally used for posting of the Town's notices, including the Town's website. The
solicitation will also contain or incorporate by reference other applicable terms and
conditions, including any unique capabilities or qualifications that will be required of
the private entities submitting proposals. Informational meetings and/or pre -proposal
conferences may be held as deemed appropriate by the Town.
IV. Unsolicited Proposals
A. The PPEA and the PPTA permit the Town to receive and evaluate unsolicited proposals
from private entities to acquire, design, construct, improve, renovate, expand, equip,
maintain, or operate a qualifying project.
B. The Town may publicize its needs and may encourage or notify interested parties to
submit proposals subject to the terms and conditions of the PPEA. When such proposals
are received without issuance of a solicitation, the proposal shall be treated as an
unsolicited proposal.
C. Decision to Accept and Consider Unsolicited Proposal; Notice
1. Upon receipt of any unsolicited proposal or group of proposals and payment of the
required fee by the proposer or proposers, the Town will determine whether to
accept the unsolicited proposal for publication and conceptual -phase consideration.
If the Town determines not to accept the proposal and not proceed to publication
and conceptual -phase consideration, it should return the proposal, together with all
fees and accompanying documentation, to the proposer.
2. If the Town chooses to accept an unsolicited proposal for conceptual -phase
consideration, it shall post a notice in a public area regularly used by the Town for
posting of public notices for a period of not less than forty-five (45) days. The
Town shall also publish the same notice in one or more newspapers or periodicals
of general circulation in the Town and the Virginia Business Opportunities to notify
any parties that may be interested in submitting competing unsolicited proposals.
Interested parties shall have at least forty-five (45) days from the date the notice is
first published by the Town to submit competing unsolicited proposals. The notice
shall state that the Town (i) has received and accepted an unsolicited proposal under
the PPEA or PPTA, (ii) intends to evaluate the proposal, (iii) may negotiate a
comprehensive agreement with the proposer based on the proposal, and (iv) will
accept for simultaneous consideration any competing proposals that comply with
the procedures adopted by the Town and the PPEA or PPTA. The notice also shall
summarize the proposed qualifying project or projects,
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and identify their proposed locations.
D. Initial Review at the Conceptual Stage
Only proposals complying with the requirements of the PPEA or PPTA that
contain sufficient information for a meaningful evaluation and that are provided in
an appropriate format will be considered by the Town for further review at the
conceptual stage.
2. The Town will determine at this initial stage of review whether it will proceed
using:
(a) Standard "competitive sealed bidding" procurement procedures consistent
with the VPPA; or
(b) Procedures developed by the Town that are consistent with procurement of
other than professional services through 'competitive negotiation" as the
term is defined in Section 2.2-4301 of the Code of Virginia. The Town may
proceed using competitive negotiation procedures only if it makes a written
determination that doing so is likely to be advantageous to the Town and the
public based upon either (i) the probable scope, complexity or urgency of need,
or (ii) the risk sharing, added value, increase in funding or economic benefit
from the project which would otherwise not be available.
3. After reviewing the original proposal and any competing unsolicited proposals
submitted during the notice period, the Town may determine;
(a) not to proceed further with any proposal, or
(b) to proceed to the detailed phase of review with the original proposal, or
(c) to proceed to the detailed phase with a competing proposal, or
(d) to proceed to the detailed phase with multiple proposals.
V. Unsolicited Proposal Preparation and Submission
A. Format for Submissions at the Conceptual Stage
The Town will require that unsolicited proposals at the conceptual stage contain the
following information in the following format plus such other information as the Town
may reasonably request to complete its review or to comply with the requirements of the
PPEA or PPTA:
B. Qualifications and Experience
Identify the legal structure of the entity or consortium of entities making the
proposal. Identify the organizational structure for the project, the management
approach and how each entity in the structure fits into the overall team.
2. Describe the experience of the entity or consortium of entities making the proposal,
the key principals and project managers involve in the proposed project,
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including experience with projects of comparable size and complexity, including
prior experience bringing similar projects to completion on budget and in
compliance with design, land use, service and other standards. Describe the
length of time in business, business experience, public sector experience and
other engagements of the entity or consortium of entities. Include the identity of
any entities that will provide design, construction and completion guarantees and
warranties and a description of such guarantees and warranties.
3. Provide the names, prior experience, addresses, telephone numbers and e-mail
addresses of persons within the entity or consortium of entities who will be
directly involved in the project or who may be contacted for further information.
4. Provide a current or most recently audited financial statement of the entity or
entities and each partner with an equity interest of ten percent (10%) or greater,
and/or each entity or partner that has performed work of aggregate value exceeding
Two Hundred and Fifty Thousand Dollars ($250,000.00) in the Town of Pulaski in
the past ten (10) years.
5. Identify any persons known to the proposer who would be obligated to disqualify
themselves from participation in any transaction arising from or in connection to
the project pursuant to The Virginia State and Local Government Conflict of
Interest Act, Chapter 31 (Section 2.2-3100 et seq.) of Title 2.2.
6. For each entity, major subcontractor, key principal, and/or project manager that
will be utilized or involved in the project, provide a statement, listing the prior
projects and clients of each for the past five (5) years and contact information for
same (name, address, telephone number, e-mail address). If an entity has worked
on more than ten (10) projects during this period, it may limit its prior project
list to ten (10), but shall first include all projects similar in scope and size to the
proposed project and, second, it shall include as many of its most recent projects
as possible. Each shall be required to submit all performance evaluation reports or
other documents, which are in its possession evaluating performance during the
preceding five (5) years in terms of cost, quality, schedule maintenance, safety and
other matters relevant to the successful project development, operation and
completion.
C. Project Characteristics
1. Provide a description of the project, including the conceptual design.
Describe the proposed project in sufficient detail so that type and intent of the
project, the location, and the communities that may be affected are clearly
identified.
2. Identify and fully describe any work to be performed by the Town or any other
public entity.
3. Include a list of all federal, state and local permits and approvals required for the
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project and a schedule for obtaining such permits and approvals.
4. Identify any anticipated adverse social, economic, environmental and transportation
impacts of the project measured against the jurisdictions comprehensive land use
plan and applicable ordinances and design standards. Specify the strategies or
actions to mitigate known impacts of the project.
5. Identify the projected positive social, economic, environmental and transportation
impacts of the project measured against the jurisdictions' comprehensive land use
plan and applicable ordinances and design standards.
6. Identify the proposed schedule for the work on the project, including sufficient time
for the Town's review and the estimated time for completion.
7. Proposed allocation of risk and liability, and assurances for timely completion of
the project.
8. State assumptions related to ownership, legal liability, law enforcement and operation
of the project and the existence of any restrictions on the Town's use of the project.
9. Provide information relative to phased openings of the proposed project.
D. Project Financing
1. Provide a preliminary estimate and estimating methodology of the cost of the work
by phase, segment, or both.
2. Submit a plan for the development, financing and operation of the project showing
the anticipated schedule on which funds will be required. Describe the anticipated
costs of and proposed sources and uses for such funds, including any anticipated
debt service costs. The operational plan should include appropriate staffing levels
and associated costs based upon the Town's adopted operational standards.
3. Include a list and discussion of assumptions underlying all major elements of the
plan.
4. Identify the proposed risk factors and methods for dealing with these factors.
Describe methods and remedies associated with any financial default.
5. Identify any local, state or federal resources that the proposer contemplates
requesting for the project along with an anticipated schedule of resource
requirements. Describe the total commitment, if any, expected from governmental
sources and the timing of any anticipated commitment, both one-time and on-
going.
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6. Identify the need, if any, for the Town to provide either its general obligation or
moral obligation backing. The underlying assumptions should address this need and/
or state that the credit would be via a "Service Agreement", for example. Any debt
issuance should be expected to receive an investment grade rating from a nationally
recognized statistical rating agency. If the natural rating is not investment grade, the
Town may require the use of credit enhancements.
7. Outline what impact, if any, a drop in interest rates would have on the ultimate annual
project cost. Indicate if there is a method to refinance for cost savings or does the
firm only receive benefit ofthis potential.
8. Outline the financial penalties, if any, that would result should the Town wish to
terminate a project early or restructure the cash flows for some reason of its own
choosing. The firm should be specific on this point.
9. Provide a breakout of the fees to any underwriting firm(s) and the type of
obligation the firm(s) is (are) using with a financing component. Be specific as to
tax-exempt, taxable, floating rate, fixed rate, etc.
E. Project Benefit and Compatibility
1. Identify who will benefit from the project, how they will benefit and how the
project will benefit the Town and the overall community.
2. Identify any anticipated public support or opposition, as well as any anticipated
government support or opposition (including that in any affected jurisdiction), for
the project.
3. Explain the strategy and plans, including the anticipated timeline that will be carried
out to involve and inform the general public, business community, and governmental
agencies in areas affected by the project.
4. Describe any anticipated significant benefits to the community and the Town,
including anticipated benefits to the economic, social, environmental, transportation,
etc., condition of the Town and whether the project is critical to attracting or
maintaining competitive industries and businesses to the Town.
5. Describe compatibility with the Town's and/or affected jurisdiction's local
comprehensive plan (including related environmental, land use and facility
standards ordinances, where applicable), infrastructure development plans,
transportation plans, the capital improvements plan and capital budget or other
government spending plan.
6. Any additional information as the Town may request
F. Format for Submissions at the Detailed Stage
D
If the Town decides to proceed to the detailed phase of review with one or more
proposals, the following information should be provided by the private entity unless
waived by the Town:
1. A topographical map (1:2,000 or other appropriate scale) depicting the location of
the proposal project. A list of public utility facilities, if any, that will be crossed
by the qualifying project and a statement of the plans of the proposer to
accommodate such crossings.
2. Information relating to the current plans for development of facilities to be used by a
public entity that are similar to the qualifying project being proposed by the private
entity, if any, of each affected jurisdiction.
3. A statement and strategy setting out the plans for securing all necessary property
and/or easements. The statement must include the names and addresses, if known,
of the current owners of the subject property as well as a list of any property the
proposer intends to request the Town or affected jurisdiction to condemn.
4. A detailed listing of all entities, along with their relevant experience and abilities,
that will provide specific design, construction and completion guarantees and
warranties, and a brief description of such guarantees and warranties along with a
record of any prior defaults for performance.
5. A total life -cycle cost, including maintenance, specifying methodology and
assumptions of the project or projects including major building systems (e.g.,
electrical, mechanical, etc.), and the proposed project start date. Include anticipated
commitment of all parties; equity, debt, and other financing mechanisms; and a
schedule of project revenues and project costs. The life -cycle cost analysis should
include, but not be limited to, a detailed analysis of the projected return, rate of
return, or both, expected useful life of facility and estimated annual operating
expenses using Town adopted service levels and standards.
6. A detailed discussion of assumptions about user fees or rates, lease payments and
other service payments, and the methodology and circumstances for changes, and
usage of the projects over the useful life of the projects.
7. Identification of any known government support or opposition, or general public
support or opposition for the project. Government or public support should be
demonstrated through resolution of official bodies, minutes of meetings, letters, or
other official communications.
8. Demonstration of consistency with appropriate Town and/or affected jurisdiction's
comprehensive plans (including related environmental, land use and facility standards
ordinances, where applicable), infrastructure development plans, transportation plans,
the capital improvement plan and capital budget, or indication of the steps required for
acceptance into such plans.
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9. Explanation of how the proposed project would impact the Town's or affected
jurisdiction's development plans.
10. Identification of any known conflicts of interest or other factors that may impact the
Town's consideration of the proposal, including the identification of any persons
known to the proposer who would be obligated to disqualify themselves from
participation in any transaction arising from or in connection to the project pursuant
to The Virginia State and Local Government Conflict of Interest Act, Chapter 31
(Section 2.2-3100 et seq.) of Title 2.2
11. Additional material and information as the Town may reasonably request.
VI. Proposal Evaluation and Selection Criteria
In evaluating any request or proposal, the Town may rely upon internal staff reports or
the advice of outside advisors or consultants. Some or all of the following items, along
with the specified information required under V. above, shall be considered in the
evaluation and selection of PPEA and PPTA proposals. The Town, however, reserves and
retains the right to reject any request or proposal at any time for any reason whatsoever.
A. Qualifications and Experience
Factors to be considered in either phase of the Town's review to determine whether the
proposer possesses the requisite qualifications and experience may include, but are not
necessarily limited to, the following:
1 Experience with similar projects;
2 Demonstration of ability to perform work;
3 Leadership structure;
4 Project manager's experience;
5 Management approach;
6 Financial condition; and
7 Project ownership.
B. Project Characteristics
Factors to be considered in determining the project characteristics may include, along with
the specified information required under V. above, but are not necessarily limited to, the
following:
1. Project definition;
2. Proposed project schedule;
3. Operation ofthe project;
4. Technology and technical feasibility;
5. Conformity to state, County or affected jurisdiction laws, regulations, and standards,
6. Environmental impacts;
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7. Condemnation impacts;
8. State and local permits; and
9. Maintenance of the project.
C. Project Financing
Factors to be considered in determining whether the proposed project financing allows
adequate access to the necessary capital to finance the project may include, along with
the specified information required under V. above, but are not necessarily limited to, the
following:
1. Cost and cost benefit to the Town;
2. Financing and the impact on the debt or debt burden of the Town;
3. Financial plan including default implications;
4. Estimated cost; including debt source, operating costs, etc.; and
5. Life -cycle cost analysis.
D. Project Benefit and Compatibility
Factors to be considered in determining the proposed project's compatibility with the
Town's, affected jurisdiction's or regional comprehensive or development plans may
include, along with the specified information required under V. above, but are not
necessarily limited to, the following:
1. Community benefits;
2. Community support or opposition, or both;
3. Public involvement strategy;
4. Compatibility with existing and planned facilities;
5. Compatibility with Town, regional, and state economic development efforts; and
6. Compatibility with Town's and any affected jurisdiction's land use plan,
transportation plan, and capital improvements plan.
VII. Contract
A. Prior to acquiring, designing, constructing, improving, renovating, expanding, equipping,
maintaining, or operating the qualifying project, the selected proposer shall enter into a
written contract with the Town. Each contract shall define the rights and obligations of
the Town and the selected proposer with regard to the project.
B. The terms of the contract shall be tailored to address the specifics of the project and
shall include, but not be limited to, the following:
1. The delivery of maintenance, performance and payment bonds or letters of credit in
connection with any acquisition, design, construction, improvement, renovation,
expansion, equipping, maintenance, or operation of the qualifying project;
2. The review and approval of plans and specifications for the qualifying project by the
Town;
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3. The rights of the Town to inspect and/or terms under which the Town would receive
certified third -party inspections of the qualifying project to ensure compliance with the
contract;
4. The maintenance of a policy or policies of liability insurance or self-insurance
reasonably sufficient to insure coverage of the project and the tort liability to the public
and employees and to enable the continued operation ofthe qualifying project;
5. The monitoring of the practices of the operator by the Town to ensure proper
maintenance, safety, use and management of the qualifying project;
6. The terms under which the operator will reimburse the Town for services provided;
7. The policy and procedures that will govern the rights and responsibilities of the Town and
the operator in the event that the contract is terminated or there is a material default by the
proposer, including the conditions governing assumption of the duties and responsibilities of
the proposer by the Town, and the transfer or purchase of property or other interests of the
proposer by the Town;
8. The terms under which the proposer will file appropriate financial statements on a
periodic basis;
9. The mechanism by which user fees, lease payments, or service payments, if any, may be
established from time to time upon agreement of the parties. Any payments or fees
shall be the same for persons using the facility under like conditions and that will not
materially discourage use of the qualifying project;
(a) A copy of any service contract shall be filed with the Town.
(b) A schedule of the current user fees or lease payments shall be made available by the
operator to any member of the public upon request.
(c) Classifications according to reasonable categories for assessment of user fees may
be made.
10. The terms and conditions under which the Town will contribute financial resources, if
any, for the qualifying project; and
11. Other requirements of the PPEA or PPTA or provisions that the Town determines
serve the public purpose of the PPEA or PPTA.
C. The contract and any amendments thereto shall be approved and entered into in writing by
the Town Council of the Town of Pulaski, Virginia.
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