New Jersey Administrative Code › Title 17 - TREASURY - GENERAL › Chapter 49 - PUBLIC-PRIVATE PARTNERSHIPS RULES › Subchapter 7 - SCHOOL DISTRICT PROCEDURES AND REQUIREMENTS › Section 17:49-7.2 - Project analysis

Current through Register Vol. 56, No. 14, July 15, 2024
(a) In
				addition to a formal letter of project approval obtained from the Commissioner
				of Education, a school district, via a determination by the board of education,
				and where relevant, a municipal governing body, shall determine and document,
				for submission of an application to the Office of Public Finance, for approval
				to enter into a public-private partnership, 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, or, for a charter school, the cost of using an existing facility,
				including rehabilitation of an existing building, in accordance with N.J.S. A.
				18A:36B-10, supported by evidence from comparable projects. Except for a
				charter school, the analysis must include, at a minimum, a comparison of the
				present value of the future cost of leasing the completed project from the
				private entity over the lease term to the cost of self-financing the project
				using available capital reserve fund balances, and/or financing at the
				anticipated rate of debt issuance and debt service aid. The analysis must also
				include assumptions about the cost of early termination of the lease in
				accordance with the provisions at
				N.J.A.C.
				6A:26-10.10;
4. A comparison of the financial and
				non-financial benefits of the public-private partnership, including the
				technical, technological, or socioeconomic merit of a project, compared to
				other options, including a public sector option, or not proceeding with a
				project;
5. A list of risks,
				liabilities, and responsibilities to be transferred to the private entity and
				those to be retained by the school district as well as an analysis of the
				financial capacity of the private entity and school district, including an
				analysis of how the project's execution shall impact the financial status of
				the school district;
6. 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
7. Whether the project has a high, medium, or
				low level of project delivery risk and how the public is protected from these
				risks.