Public Private Partnerships (P3S) Must Be Done Smart And Responsibly And Have Good Value For The Taxpayer


Resolution 13-07.41L


WHEREAS, state and local governments and agencies, though the practice of procuring public works transportation contracts from private consulting firms may select delivery methods that involve private sector investment as a substitute to government issued bonds or other available public funding for construction delivery methods such as Design-Build, Innovative Financing or Public-Private Partnerships (P3s); and

WHEREAS, state and local governments and agencies, facing funding shortfalls for transportation infrastructure projects due to the diminished state funding, the financial markets decline, reduced fuel use and excise taxes, or stable tax revenues are at times persuaded by investment firms to utilize these alternative delivery methods that are provided flexibilities from the State Public Contract Code; and

WHEREAS, there exists a need to develop the proper accountability and selection criteria in order to protect precious public funds from excessive profit margins, higher interest costs and more expensive maintenance and operation costs that linked to these contractual agreements. Without proper safeguards the practice of awarding Public-Private Partnerships (P3s) may lead to higher costs to the taxpayers, while benefiting mostly influential investors at the expense of the public's interest and the unionized workforce of government employees who provide public oversight and ensure conformity to applicable standards and laws.

THEREFORE, BE IT RESOLVED that the California Democratic Party urges our elected Democratic State representatives to encourage the use of public financing as the primary source of funding for infrastructure instead of Public-Private Partnerships and use competitive bidding procurement on all state infrastructure roadway construction contracts; and

BE IT FURTHER RESOLVED that the California Democratic Party urges State and local governments and agencies to include public oversight, to provide transparency, monitoring and financial accountability on all contracts procured by all government agencies in California; and provide opportunities and a preference to California based workers and businesses in order to keep jobs local and in California.


Authored by John Vassiliades and Supported by AD65, Senator Norma Torres, California Young Democrats, DPOC



Adopted by the California Democratic Party
At its July 2013 Executive Board Meeting
Hilton Hotel, Costa Mesa
July 21, 2013





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