Public-private partnerships (P3s) linked to parks are likely to become commonplace in 2012. Most cities throughout the country have slashed budget allocations to parks and recreation divisions and as funding flows to more critical services, public officials must seek alternative funding sources to maintain and operate parks. P3s are an attractive option.

There is precedent for cities to work with contractors. In the past, many have relied on funding from retail concessions and others have outsourced services such as maintenance and operations. P3 engagements offer cities a method of accepting funding, handing off risk and continuing services.

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Three potential corrections vendors submit protests that lead to suspension of bids

Bid protests from three potential vendors have halted the Florida Department of Corrections efforts to outsource health care services for Florida prisons. The department is seeking contracts for health care, including dental and mental health services for each of its four regions and three regions collectively.

Officials had hoped to have the bids due on Dec. 19, but suspended the bid calendar last week after three companies filed protests. Officials are working to resolve the protests so the bid process can continue.

Two of the companies that filed protests cited a proposal that the successful bidder achieve 7 percent savings over 2010 spending levels. That provision was set to expire June 30, 2012, due to budget language passed by the State Legislature. They argued that if spending caps were in place beyond that deadline, it would hamstring future legislatures dealing with financial and budget issues. They also noted that maintaining a 7 percent cost reduction throughout the contract term could become difficult, given the increasing costs of health care. Some of the protests also addressed penalties for failure to comply with the department's standards and the amount of required performance bonds.

The outsourcing proposal was expected to save the state about $23 million during Fiscal Year 2012-13. But officials are facing a lowering of that number if the contracts cannot be executed timely.

New proposal with fixed towers flanked by cameras could net $350M contract

The on-again, off-again border fence project is on again. This time, the U.S. Department of Homeland Security has published a draft solicitation for bids for a proposal they hope will fare better than the proposed $1 billion virtual fence project.

The new solicitation, which officials say could result in an award of up to $350 million, calls for towers flanked with cameras that will not be bothered by the extreme weather in Arizona. The products will be required to stand temperatures of up to 120 degrees, wind gusts up to 15 miles per hour and periodic lightning.

These towers must be "nondevelopmental," meaning they are readily available from production lines. The first of the fixed towers would be deployed at the Nogales Border Patrol station as well as to five more sites in Arizona - Sonoita, Douglas, Casa Grande, Ajo and Wellton. The radars and cameras would be mounted in stationary towers powered by the contractor, and include communications gear for transmitting images and data to command-and-control centers. Once the contract is awarded, the successful bidder will have one year to provide the engineering, staff, management and equipment required to test the structure. Once approved, the contractor would maintain the equipment for the remainder of the 10-year contract.

A final RFP is expected to be distributed in early 2012. Officials say the first tower would yield $100 million for the successful contractor, and each additional tower would yield another $50 million.

Gift to lead to construction of new USM student housing facility

Joe Paul

With the help of a $4 million gift to the University of Southern Mississippi, the university will construct a new student housing complex that will provide freshmen and scholarship students a home away from home. The Luckyday Foundation's gift will allow the university to construct a residential facility that will house 950 students. "It will primarily be for freshman housing, scholarship housing and of course the Luckyday Scholars," said Joe Paul, the university's vice president for student affairs. The new construction rests on approval for demolition of Vann Hall, Scott Hall and the east wing of Bond Hall. Paul said the university hopes to start dirt work on the project by the summer and see the housing complex opened no later than fall 2015. The latest gift from the Luckyday Foundation brings its donations to the university to $20 million. There are approximately 400 Luckyday Scholars at USM, with the foundation providing 100 incoming freshmen with $4,000 per year renewable scholarships.

 

Gift will help build new football stadium club at Middle Tennessee State

A $1 million gift from the late Jeff Hendrix, a longtime Middle Tennessee State University athletics booster, will help the university build a football stadium club at Floyd Stadium on the MTSU campus. It is the largest unrestricted gift in MTSU athletics history. The club will be named the Jeff Hendrix Stadium Club. The club level of the stadium will be glassed in and renovated and become an annual revenue producer. Construction should begin soon and officials are hopeful it will be finished before next season.

 

Salem State University gets go-ahead for new fitness center construction

Artist's rendering of newly approved Salem State University Fitness Center.

The Salem State University in Salem, Massachusetts, has been approved for construction of a new $15 million, two-story fitness center (as depicted in the accompanying artist's rendering). The Board of Trustees unanimously approved the facility, which will be attached to the O'Keefe Sports Center. The 40,000-square-foot fitness center will include an atrium entrance to the O'Keefe Center and will have three to five studios for yoga, Pilates and dance. There will be two recreational basketball courts on the second floor. The next step will be moving forward on the design and construction of the facility. Work is expected to begin after spring commencement, according to university officials, who expect the facility to be completed by fall 2013. A student survey about a year ago led to the identification of the need for a fitness center. It will also include some commons areas with student lounges.

 

Design plans released for University of Tennessee University Center

The long-awaited design plans for the new University Center on the campus of the University of Tennessee have been released, and the project will include two phases. The first, which will begin after the upcoming holidays, will include relocating utilities around the building. The University Center Parking Garage will be demolished in March. The new facility, which will include a larger bookstore and more dining facilities, will be built on the old garage site. The second phase is expected to begin in January 2014 and will include a larger auditorium and ballroom, new student recreation area and meeting spaces. The last remodel of the University Center was in 1967. The facility was built in 1954. Once complete, the project will be the most expensive capital project in UT history, carrying a price tag of from $125 million to $130 million. Another $30 million will be spent on utility relocation and streetscape work. Funding for the project will come from student activity fees and auxiliary revenue, such as from sales in the university bookstore. Other upcoming projects for the university include widening Phillip Fulmer Drive and extending the Joe Johnson and John Ward Pedestrian Mall to create a pedestrian plaza linked to the garage.

 

Santa Fe to put bond package before voters in March

Police and fire infrastructure and a new regional park are among the offerings to be voted on in March by Santa Fe, New Mexico, voters. The Santa Fe City Council recently voted to approve a multi-million-dollar bond vote that would result in a slight increase in local property taxes. The $22.8 million referendum will be on the March 6 municipal election ballot. A proposed $3 million visitor's center at the Santa Fe Railyard was axed, and the money being sought for Internet broadband infrastructure was reduced from $2 million to $1 million.

County in Florida may seek new bids for $60M garbage hauling services

Al Higginbotham

Hillsborough County's (Florida) Public Utilities Department could open up for new bids its $60 million-per-year contract for garbage hauling. County commissioners are meeting today, Wednesday, for a workshop to discuss such a move. Utilities officials say they could possibly get lower prices if they seek new bids. "Without an open and competitive bid process, how can we be sure we're getting the best deal for county residents and taxpayers?" asked Commissioner Al Higginbotham. County officials not only are looking at the possibility of holding down rates, but also with ensuring that there is no drop in the amount of garbage being fed to its waste-to-energy plant. The county must meet a minimum tonnage or pay a penalty to the incinerator operator. Going with another contractor who does not recycle its waste at its own facility or make deals on its own could help solve that problem, they said. However, officials feel that if they seek bids, it will make even the current contract-holders more competitive in their bids.

Arkansas county to receive federal grant to rebuild bridge

Chicot County in southeastern Arkansas has been awarded a $1.27 million grant from the Federal Emergency Management Agency. The funding will be used to rebuild a bridge that collapsed during flooding along the Mississippi River earlier this year. Officials are hopeful to rebuild the Macon Bayou Bridge on Lewis Road to its same function as before the floods, a $1.7 million project.  

Proposed East Mesa public safety facility under study in New Mexico

The Las Cruces City Council was to hear an update this week on a proposed East Mesa public safety facility this week. The proposal includes a fire station and a police command station and would also house the Mesilla Valley Regional Dispatch Authority. The proposed site for the facility is on property owned by the Bureau of Land Management. Officials are contemplating a timeline that includes completion of the design by next year at a cost of $1 million. The fire and police stations are expected to cost $4 million and $7 million respectively and would be completed between 2013-2017. Park facilities would be added at a later date.

California city to advertise for bids for improvements on Coast Highway 101

Mike Nichols

City officials in Solana Beach, California, have authorized the advertisement for construction bids for improvements along the west side of Coast Highway 101. The council recently approved the design plans for the project, which will be done in three phases. The project will include 27 additional parking spaces from Cliff to Dahlia and another 20 to the south. Four crosswalks will be added and midblock crossings with flashing beacons near the stairs of the train station between Dahlia and Lomas Santa Fe Drive. Medians wider than 8 feet will include 77 new trees and will have root barriers for long-term pavement protection. In response to concerns about possible view blockage, Councilman Mike Nichols said it would never be as bad as it used to be with the trees that were there before. The project also includes low-water-use landscaping and 11 community gathering places with seating.  

County in New Jersey could see $20 million in spending on local projects

The Delaware River Port Authority (DRPA) has released its plans for nearly $20 million in spending on economic development projects in Camden County, New Jersey. The projects will be funded with bridge tolls collected from motorists. A resolution announcing the projects was to be acted on today, Wednesday. The DRPA has elected to spend the money on development projects instead of applying the funding to its debt, and has the support of Gov. Chris Christie. In addition to the $20 million for those projects, another $10 million will be used on DRPA core projects. Among the projects are:

• $6 million for construction of a cancer center on Haddon Avenue in Camden to be owned by Cooper University Hospital;
• $4.3 million to the state Economic Development Authority to prepare the site of the former Riverfront State Prison in Camden for development;
• $2 million to the Food Bank of South Jersey;
• $2 million to the Camden County Improvement Authority for construction of a 350-bed dormitory at 4th and Cooper streets in Camden for Rutgers graduate students;
• $1 million for roadway improvements leading into a proposed transit village next to PATCO's Ferry Avenue station;
• $4 million to Camden County to dredge the Cooper River surrounding the Camden County Boathouse to improve the waterway for rowers; and
•  $4,000 to Gloucester City for repairs to a pier.

Want to know who your competition is? Who was awarded the contract on a particular project? Below are listed some recent winners of major government contracts:  

• Templeton Construction has been awarded a $5.92 million contract by the City of San Marcos, Texas, for reconstruction of the terminal at San Angelo Regional Airport.
• TASC Inc. has won a five-year NASA contract to provide highly specialized system software services. The cost-plus-award-fee contract has a potential value of $133.9 million.
• Archer Western Contractors, LTD, of Atlanta has been awarded a $72.772 million contract by the Georgia Department of Transportation for the "last mile" project for the Port of Savannah - the Jimmy Deloach Parkway Connector.
• MELA Contracting, Inc. has been awarded a contract for $1,070,738 by the Rhome, Texas, City Council to build a new wastewater treatment plant - a package plant to replace a lagoon-style system.
• Sheetak Inc. has been awarded a $4.7 million contract by the Department of Energy's Advanced Research Projects Agency-Energy to develop a thermal energy storage system for cooling and heating electric and hybrid vehicles.
• BurWil Construction Co. has been awarded the contract for the renovation of Marion (Virginia) Primary School and construction of a new elementary school west of Marion.
• Rodriguez Brothers Co. has been awarded a $275,000 contract for the dredging of the Tompkins Channel on S. Padre Island.
• Sunesis Construction was awarded a $3.7 million contract by the Kentucky Transportation Cabinet to widen lanes of Kentucky 35 as well as upgrade the southbound ramp of Interstate 71.
• General Dynamics Information Technology was awarded a $10.7 million contract by the U.S. Department of Health and Human Services Administration for Children and Families to provide software development, training and technical assistance to the Office of Child Care. The contract has a one-year base period of performance and a four-year extension option.
• AAR has been selected prime contractor by the U.S. Department of Energy National Nuclear Security Administration (NNSA) to provide supply chain and aircraft support services for NNSA's aircraft maintenance operations in Albuquerque, New Mexico. The contract has an initial one-year base period and four one-year renewal options with a total estimated value of $18.5 million.

Public-private partnership being considered for Virginia Beach hotel project

Steve Herbert

Still aiming to get a hotel built next to the Virginia Beach Conference Center, officials are holding a public hearing this week to further discuss the issue. The $109-million, four-star Hyatt hotel project is not without its detractors, however. Deputy City Manager Steve Herbert said the city is "losing ground" by not having a hotel available for those attending events at the conference center. The proposed deal would have the city contribute $61.8 million to help the developer build a 15-story, 361-room Hyatt Regency hotel, additional conference space owned by the city and a pedestrian bridge to connect them to the convention center. The city would award $4.8 million in grants and pay a management fee of $450,000 per year. The developer would contribute $47.4 million in up-front funding and repay city loans totaling $19.1 million. Some of those who do not support building a new hotel, are signing on in support of the renovation of the existing DoubleTree Hotel near the convention center instead of building new.

Private company could take over UK campus housing projects

A private developer is in negotiations with the University of Kentucky on a partnership that would have the company take over UK campus housing - both existing and new construction. The company could spend up to $500 million in the next several years to raze and then rebuild most of the university's 6,000 beds on campus. It would also construct an additional 3,000 new beds. It would then both control and manage all housing facilities on campus. The university reports it has about $1 billion in new building needs, from residential facilities to academic classrooms. The university is focused on creating more high-tech living and learning residence halls.  

 

Banks sign on for pledges to Baltimore County Small Business Loan Partnership

Kevin Kamenetz

Twenty financial institutions in Baltimore County have signed on with commitments that bring the Baltimore County Small Business Loan Partnership loan fund total to $12.350 million. The loan program is a public-private partnership between the Baltimore County Department of Economic Development and the region's leading financial institutions. Baltimore County Executive Kevin Kamenetz said the fund provides real estate and equipment loans to companies that are currently in Baltimore County or planning to move to the county. "These loans are critical to providing small businesses with capital to invest in people, equipment or buildings," said Kamenetz. The partnership obtains fixed-rate loans on favorable terms for small businesses. A 10 percent equity is required to qualify and companies that receive the loans can employ fewer than 100 people. The maximum loan amount is 40 percent of the project cost of $500,000, whichever is smaller.

 

University in Ohio seeks developers for possible hotel construction

Cleveland State University is looking for a developer to spend about $10 million on a 43-room Tudor mansion the university owns. University officials are seeking to redevelop the property and operate it as a hotel. The hotel would then be subleased to the developer. Officials say that upgrades are needed to make the property up to code for building and safety. Most of the interior and exterior features - such as elaborate wood and stone carvings, leaded windows, plaster ceilings, marble fireplaces and more - remain. The building is in good shape, says Jack Boyle, CSU's retired vice president of business and finance, who still is consulted on university projects. The mansion was built in 1910 at a cost of $1.2 million and at the time was the most expensive home ever built in Cleveland. It features a third-floor ballroom with a 16-foot ceiling that could hold 300 guests, say university officials. Boyle said there is interest in the home because of a new casino and medical mart, both of which lend themselves to the need for additional hotel rooms. Developers should be able to secure historic tax credits, new-market tax credits and other state of federal funding for historic properties. 

 

Some contracting opportunities from across the country

Florida:

• Cape Canaveral Patrick Air Force Base later this month will seek bids on an air traffic control tower for Cape Canaveral in Brevard County. The value of the contract is $540,000.
• The Florida Department of Transportation is seeking bids for an Advanced Traffic Management System installation in Central Broward County. The estimated cost is more than $7.9 million.
• The Pinellas County School District is expected to seek bids in late December for major construction of new classrooms at Palm Harbor Elementary. The estimated cost of the project is more than $25.3 million.
• The Florida Department of Transportation will issue an RFP soon for $3.45 million in bridge painting projects at various locations.

New York:

• New York State Office of General Services is seeking bids for hourly-based IT services. The contract is for five years with an optional one-year extension.
• New York State Office of General Services is seeking bids for bank card services. The contract will be for provision of fuel card services for New York state authorized users that can be used at fuel locations throughout New York State and nationwide for purchase of fuel from major oil companies. The contract is for three years plus up to two one-year renewal options.

South Carolina:

• University Hospital, Charleston, is seeking bids for renovation of its MRI room, selective demolition and replacement of ceiling and floor finishes, electrical, mechanical and minor structural work.
• Greenwood School District 50 seeks a construction manager-at-risk for a project that includes six classroom additions and miscellaneous renovations at two middle schools and various renovation measures and outdoor restroom facility construction at Emerald High School. 
• The Town of Mount Pleasant is seeking bids to construct a fire training building to include one three-story tower, one two and one-half story residential section and a one-story burn room annex joined together to provide approximately 2,065 square feet of interior training space.

Illinois:

David Baird (top left), city manager in Milford, Delaware, has lost his job after failing to come to terms on his new contract and veteran administrator and former Milford city manager and police chief Richard Carmean will take his place. Kenneth Dueker (top center), a veteran of the Palo Alto Police Department and a well-known emergency preparedness official, has been selected to head the Office of Emergency Services. Mary A. Papazian (top right), provost and vice president of academic affairs at Lehman College in the Bronx, will serve as the next president of Southern Connecticut State University, after two other finalists dropped out. Workforce Central Florida Chief Operating Officer, the only agency executive not forced out of the agency when Gov. Rick Scott ordered a house-cleaning, has resigned. Jerry Leatherman, general manager of the Valley-Wide Recreation and Park District in San Jacinto for three years, has been picked by Sacramento County's top executive to serve as the head of the county's parks department, replacing Janet Baker, who resigned in July. Fred Julius, a vice president with the firm hired by the city of Gastonia, North Carolina, to oversee the Gastonia Conference Center, has been chosen to replace Tony Swainey as general manager of the facility. Federal Aviation Administrator Randy Babbitt (middle right) has resigned after his recent arrest on a drunken driving charge near his suburban Washington home. Raymond Pierce (middle center), dean of North Carolina Central University's law school for the last seven years, will step down next year and return to private practice with a law firm of 420 lawyers in 12 locations in six states and the District of Columbia. Miami Dade College has named Brian Sepe (middle left), a longtime South Florida financial services executive and managing director and head of a wealth management firm, as the dean of the School of Business. Jennifer Blumenthal, township manager for Mount Laurel, Burlington County, New Jersey, has been chosen city manager of New Brigantine, and will begin her new charge on Jan. 9, 2012. Robert Stegemann, former executive vice president of the Empire State Forests Products Association and senior policy analyst for the Tug Hill Commission, will run the New York State Department of Environmental Conservation's Region 5 office in the eastern Adirondacks. Miami City Manager Johnny Martinez has tapped Janice Larned, vice president of a Coral Springs firm that manages cities' finances and former CFO and assistant city manager in Kansas City, Missouri, as the city's new chief financial officer. Peter J. Fos (bottom left), professor and program director of health policy and systems management at Louisiana State University Health Sciences Center in New Orleans, has been chosen as president of the University of New Orleans by the University of Louisiana Board of Supervisors. Cape Cod Community College's Board of Trustees will recommend Dr. John L. Cox (bottom center) of Harford Community College in Bel Air, Maryland, to the Massachusetts commissioner of higher education to succeed retiring Kathleen Schatzberg as president, effective July 1, 2012. Susan Stanton (bottom right), who has served as city manager of Lake Worth, Florida, for the last two and one-half years, has been terminated by the city commission, with Finance Director Steve Carr named acting city manager. Flint, Michigan, Emergency Manager Michael Brown has fired seven city hall staff members as the city tries to dig out of its financial hole. City Administrator Gregory Eason, Human Resources Director Donna Poplar, Citizen Services Director Rhoda Woods, Green City Coordinator Steve Montle, City Administrator's Assistant Kathleen Sheetz, Ombudswoman Brenda Purifoy and Ed Parker of the Flint Civil Service Commission. Harold Martin III, Pilot Point, Texas, police chief, will be sworn in Dec. 20 as the new police chief for the village of Manhattan, Illinois, replacing Chief William Fitzgerald, who is retiring. David Calderone, who has led the fire department in Coventry, Ohio, for 23 years, will retire Dec. 31, after being elected to one of the township trustee positions.