Brandon Davis Discusses Lessons Learned on Airport P3s, Best Practices for P3 Enabling Legislation
Brandon Davis was featured prominently in the latest issue of Public Works Financing (PWF), where he was interviewed on topics including airport P3s, enabling legislation for P3s and the infrastructure landscape in Los Angeles.
When asked for his perspective on the Los Angeles infrastructure market, and lessons learned from his work in the region, he said, “I’ve lived in LA long enough to know that this city can do big things, and do them successfully. People love it here and Angelenos are proud of their city. When something needs to get done they want to be part of the solution too – just look at Measure M and R. Those were completely unprecedented local transportation funding measures. They happened in LA because the people of LA wanted better transportation infrastructure and did something about it.” He added, “One lesson from the big projects I’ve been involved in in LA, is the importance of leadership – and by that I mean political leadership – in getting things done. LA is a big, diverse city with lots of people and local governments or stakeholders. That makes it even more important for elected leaders to step up and directly coordinate their big projects. When they do, LA can do big things.”
Commenting on P3 contracts, and specific clauses or concession terms that he recommends sponsors focus on, Brandon emphasized, “One area more public sponsors should, and frankly are, thinking hard about very early on is the best mechanism for dispute resolution…There is always some alignment and some misalignment between sponsors and concessionaires here. Public sponsors want to protect the public interest and concessionaires are incentivized to consider their long‐term claims, but both want a fair process and, most importantly, timely dispute resolution. DRBs (Dispute Resolution Boards) get most of the way there but sponsors have also chosen the Project Neutral approach to speed things up. At the end of the day, however, no form of alternative dispute resolution can keep a project out of litigation when an issue or claim is big enough and the gap between the parties is wide enough.”
Regarding take aways from his work on state level enabling legislation for P3s, and what programs, clauses or institutions he thinks states should incorporate in their enabling legislation from the start, Bradon said, “There is no magic bullet. And legislation is important, but it isn’t everything. Sectors and regions in the United States have tended to be pretty cyclical when it comes to adopting this or that type of transportation P3 delivery method. One broad recommendation that I have for states is to remember that P3s are a different type of delivery method, so enabling legislation should create processes and rules that are suited for P3s. Too often I think enabling legislation is burdened a bit because it is made to fit in within existing procurement structures, regulations and limitations, when there are different way of doing business under P3s that need to be accommodated.”
PWF also asked Brandon for his thoughts about Los Angeles being able to build fast enough to prepare for the 2028 summer Olympics. He closed the interview by saying, “I think you’ll be surprised at how well the city prepares for its big events this summer and of course for the 2028 Olympics. Don’t forget – I’m old enough to remember the ‘84 Olympics as well. They went great then and I think it's going to be great in 2028.”