The City of Seattle faces the constant challenge of how to support worthwhile projects within an ever-tightening budget picture. Resources from the federal government and the State of Washington continue to decline. Public-private partnerships (PPPs) offer one way the City can work in concert with the private sector to achieve public objectives.

The City of Seattle’s process for review of PPPs grew from a set of recommendations made by the Public-Private Partnership Task Force. The Task Force was a group of Seattle citizens first convened in 1998 by Mayor Schell and then Council President Sue Donaldson, to propose a set of standards for PPPs between the City of Seattle and private entities (including non-profit organizations). The Task Force spent ten months deliberating and hearing from City department heads and staff, citizens, community groups, and private developers. In September 1999, the Task Force presented its recommendations to the Mayor and City Council, in a report titled Shaping Public-Private Partnerships in Seattle.

In November 1999, the Council passed Resolution #30072, which turned the Task Force’s recommendations into the process to be followed by the City when participating in certain PPPs. The City began the new process in January 2000, for a one-year trial period. At the end of the trial period, the Mayor will ask members of the Task Force to evaluate the process’ success and recommend any changes.

Partnerships Subject to the Process

"Targeted Partnerships" subject to the PPP process must be:

• directed toward the development of physical space
• between the City and a private entity, including non-profit organizations
• partnerships which involve $5 million or more in City investment (Investment applies both to cash and to such things of value as City property and credit.)
• partnerships in which both the City and its partner have a financial interest
• partnerships in which the City is seeking benefits for the public that would not otherwise be provided by the private entity

Public-private partnerships which don’t meet the above requirements can be subject to the PPP process at the direction of the Mayor or City Council.

PPP Process Components

The PPP Process has two main components:

1. PPP Protocol

The Partnership Protocol ("Protocol") is a two-part document to be completed for each targeted partnership by the sponsoring City department, with the assistance of the City Budget Office.

The Protocol includes a cover sheet which asks for basic information about the project (overview, profile of partners, proposed timetable, financial transaction summary). Following the cover sheet is a series of questions covering five major areas: project’s relationship to City priorities, anticipated public benefit, assessment of related impacts, state and local laws, and citizen engagement.

2. Project Panel

The Project Panel assists City departments, the Council, and the public in evaluating the public benefits of a project. The Panel consists of a pool of 15 members – 5 selected by the Mayor; 5 by the Council; and 5 by those 10 panelists. For each targeted partnership, the pool of panelists self-selects a minimum of five members to review and comment on a specific project.

Panelists are skilled in such areas as real estate, public finance, neighborhood planning, public engagement, and other special expertise as warranted by the nature of the project. City employees are not eligible to serve on the panel. Panelists are eligible to serve up to two 2-year terms.

Opportunities for public participation:

Citizens have several opportunities to participate in the PPP Review process. As with other City boards and commissions, panel meetings are open to the public. Citizens also have the opportunity to comment at the project’s public hearing. Documents related to the process can be found on the City of Seattle website, including minutes from PPP Panel meetings, the Protocol, and other materials related to specific projects.