ARRA program saved entities $20 billion; Oregon senator proposes similar plan 

Highway construction projects like this one in Texas are among a number nationwide created with Build America Bonds.

"Decidedly a success" is the way U.S. Treasury Department Acting Assistant Secretary John Bellows described the Build America Bonds (BAB) program.

Part of the American Recovery and Reinvestment Act, BABs were credited with saving local entities $20 billion in borrowing costs before the program ended last December. It is that success that has some looking for ways to bring the program back to life.

State and local government groups lobbied for extension of the program and the Obama administration sought to continue the program permanently, but at a lower subsidy rate. Lawmakers, however, allowed the program to end at the end of 2010.

BABs are taxable municipal bonds with special tax credits and federal subsidies that can be collected by either the bond issuer or the bondholder. BABs are taxable bonds, and state and local issuers received a federal subsidy payment equal to 35 percent of interest costs. Bellows said that in addition to lowering borrowing costs, the BABs program "helped to restore a badly damaged municipal finance market and supported job creation through thousands of much-needed infrastructure projects." He cited state and local governments as having made 2,275 separate BABs issues, providing more than $181 billion in financing for capital infrastructure projects such as schools, bridges and hospitals.

Some examples of the use of BABs - $1.75 million of MTA and other public works infrastructure in New York City, highway improvements totaling $1.2 billion in Texas, $600 million for sewer upgrades in Chicago and $1 billion in improvements to the University of California System. New Jersey issued $3.2 billion in BABs to widen the New Jersey Turnpike and Garden State Parkway. San Francisco's Bay Area Toll Authority issued $1.5 billion in BABs to underwrite improvements to the San Francisco-Oakland Bay bridge.

Other projects were public buildings, courthouses, transportation and highway improvements, maintenance on police and fire department facilities, environmental projects, energy projects, government housing projects, public utilities and water and sewer projects. More than $185 billion in BABs helped entities begin projects that would have remained on the drawing boards without them.

The Treasury Department is making its case for bringing back the program. Oregon Sen. Ron Wyden (pictured) recently proposed a similar program he is calling Transportation and Regional Infrastructure Projects (TRIPS). It would limit the amount of federal subsidies by capping the total bond issuance at $50 billion. And it would allocate $500 million to each state. Some speculate that any new infrastructure bond program would lower the interest subsidy of 35 percent from the BABs program to something closer to 28 percent.

City seeks private firms to install solar systems on city buildings

New York officials recently announced that they are seeking proposals from private companies to install and operate solar energy systems on five city buildings. In this public-private partnership, the solar developer will install, own and operate photovoltaic systems for 20 years and earn federal incentives to sell the electricity to the city at a discounted rate.

The buildings in which the systems will be installed include the John F. Kennedy High School and Herbert Lehman High School, both in the Bronx; the Department of Sanitation's Manhattan District 12 garage; and the Department of Environmental Protection's Port Richmond wastewater treatment plant, both in Staten Island; and the Staten Island Ferry Bay Street Maintenance Building.

Deputy Mayor Stephen Goldsmith (pictured) said the partnership "illustrates the city's commitment to using renewable energy and supporting the renewable energy market in New York City. This initiative is a great example of how government can partner with the private sector to achieve mutually beneficial results. We hope this partnership will become a model for other public-private partnerships in the City."

Texas Tech regents approve remodeling, renovation projects

Regents for Texas Tech University recently approved several remodeling and renovation projects. Michael Molina (pictured), Tech's vice chancellor for facilities, said $5.1 million dollars has been made to pay for a multi-million-dollar renovation and upgrades to Dan Law Field. Upgrades at the ballpark will include larger suites, a canopy, a clubhouse facility and more. He said bleachers in the middle section of the current facility will be replaced with individual seats. Another Tech project on the drawing board is a new Texas Tech School of Nursing building in Abilene. Gifts of $13 million toward that project have already been received.

Funds allocated for capital improvement projects in Massachusetts

Officials in the town of Weston, Massachusetts, recently voted to allocate funds for capital improvement projects, including high school science labs and a roof for the middle school. Those two projects were among $15 million in improvements that were approved. The largest part of the funds will go toward the high school science labs. That project expands the current labs and will also pay for installation of sprinklers in the high school.

Delaware college seeking $13.5 million for capital projects

The president of Delaware Technical and Community College has asked members of the Bond Bill Committee for $13.5 million in capital funding. Orlando J. George, Jr. (pictured) noted that the projects for which funding is sought would mark the first major building expansions since 1999 and would mean capacity to educate more students in fields seeking trained workers. The largest portion of the funding - $7 million - would provide for construction of a 30,000-square-foot expansion of the nursing and health care facilities at the Stanton campus. A new training center for airplane engine mechanics would be built with $1.5 million of the funds. Two other projects - expansion of the dental hygiene center at the Wilmington campus and expansion of the science and nursing programs at the Dover campus - each would garner approximately $750,000 of the funds. The governor's Bond Bill initially proposed included $3.5 million for maintenance and repairs on each of the college's four campuses. Another $10 million was later recommended for each of the state's three public institutions for capital projects once a budget surplus became available.

Structural feasibility study being sought for Massachusetts high school

A comprehensive structural feasibility study is being sought for the Ayer High School Building in Ayer, Massachusetts. Voters were asked to authorize $750,000 in borrowing authority for the Regional School District facilities for the study. The high school was tagged as being structurally deficient during its last recertification audit. Some of the other vintage 1960s buildings are not energy efficient. Other concerns relate to outdated science and lab space. Feasibility studies for 18 projects were analyzed and officials felt a $750,000 maximum would suffice for the study.

Oregon school district voters OK $63 million bond referendum

A new high school for Waldport and major renovations to all schools in Lincoln County (Oregon) will occur thanks to the recent passage of a $63 million school bond issue. A major portion of the bond package includes replacing old portable buildings with new permanent brick and mortar classrooms. The new high school will replace the current high school, which is in the path of any major tsunami that might come ashore.

Gift leads to major expansion of technology in Missouri school district

A $500,000 anonymous gift to the Wentzville, Missouri, School District will lead to major technology upgrades. District Superintendent Terry Adams (pictured) said the gift was unique and praised the donor's interest in the district's school children. Most of the funds will be used for installing more than 200 SMART boards in elementary, middle and high school classrooms. Another $75,000 of the funding will be used to purchase e-books for school libraries. Some 400 Android tablets also will be bought, with each elementary school to receive approximately two-dozen. The tablets are used for accessing the Internet and for reading e-books. The donation frees up existing funds in the district for other purposes. District officials will in June outline how they plan to spend that money.

New artificial turf, variety of upgrades planned for Illinois high school

The Collinsville (Illinois) School Board recently voted to allow the school's administration to hire an engineer and architectural firm to move forward with a $1.3 million plan for installing artificial turf at the athletic field. Also in the funding are a new track, fencing, scoreboard, bleachers and sound system. The projects are expected to be paid for with surplus funds.

The Phoenix City Council has approved a development agreement to become a partner in helping build a $135 million Arizona Cancer Center outpatient clinic in the city's downtown area. The facility will be a six-story, 250,000-square-foot center. Mayor Phil Gordon (pictured) said the facility will "add jobs - crucial, high-paying jobs." The $14 million the city will kick in on the project will help defray the design and financing costs. The design for the clinic is set to be completed by June of next year and start construction before the end of 2012 as well. Both temporary construction jobs and permanent medical and research jobs will come out of the project. The University of Arizona Foundation is seeking to raise private funds to pay for the planned cancer center, which eventually would treat about 60,000 patients each year.

Design completed for multi-purpose events center in Colorado

The design for a $4 million multi-purpose events center at Stanley Park are complete and city officials now only have to determine if they are ready to seek financing. The project is ready to bid, although the town board must decide if it will be built. That decision is expected in July. The project has been ongoing for six years. A master plan completed in 2005 recommended a multi-purpose events center. A survey two years later showed local support for such a facility. Then earlier this year, a market study indicated an events center would pay for itself through fees, rentals, increased sales tax and other income. Existing horse stalls at the fairgrounds were built in the 1950s and to replace them would cost more than $3 million. That was one reason for the push for the multi-purpose center. The design of the new stalls is to industry standard. The first floor of the center would feature 28,000 square feet and include about 140 vendor spaces and 10 X 10 foot horse stalls, a loading dock, restrooms and a service area. It will accommodate 2,000. The upper floor will include 1,600 square feet.

Desalination projects in three states approved for federal funding

Nine advanced water treatment and reuse projects in three states have been selected for federal funding from the Bureau of Reclamation. The projects are located in California, Texas and Oklahoma and together will share more than $1.176 million in funding. "These Reclamation-sponsored feasibility studies will examine where project sponsors can stretch available water supplies and protect against drought by using recycled water and advanced water treatment technologies," said Bureau of Reclamation Commissioner Michael Connor (pictured). Among the projects is through the Water Replenishment District of Southern California, which will address the technical, legal and institutional issues necessary to expand the Goldsworthy Desalter saline groundwater reclamation facility from its current capacity of 2.5 million gallons per day to a total of 5 million gallons per day.
 
Other new feasibility studies selected for funding under the Reclamation and Reuse Program are:  

• Delta Diablo Sanitation District, Recycled Water Master Plan (California);
• Pasadena Water and Power, Recycled Water Feasibility Study (California);
• City of Anaheim, Ball Road Recycled Water Project Feasibility Study (California);
• Dublin San Ramon Services District, Dublin Recycled Water System Expansion Feasibility Study (California);
• Groundwater Replenishment Improvement Program Joint Powers Authority, Groundwater Reliability Improvement Program Feasibility Study (California);
• San Diego County Water Authority, Camp Pendleton Seawater Desalination Project Feasibility Study (California); and
• City of Kyle, Water Reuse Feasibility Study (Texas)

Texas city enters into public-private partnership for mixed-use project

The City of Frisco, Texas, has entered into a public-private partnership with Forest City Enterprises, Inc., for development of a more than 300-acre, mixed-use project which will be called Frisco North. The project will include retail, residential, office, entertainment and hospitality components. It will also feature open space, public parks and municipal uses. The team includes a design firm and leasing partner. City officials are hopeful such endeavors will grow the northern part of the city and enhance its reputation as a retail and entertainment destination.

Hawaii lawmakers approve $1.85 billion for capital improvements

Lawmakers in Hawaii recently approved $1.85 billion for capital improvements for FY 2012 and another $1.01 billion for the following year. Of that amount, $2.9 billion is set aside for construction projects, mostly for harbors and highways. More than 400 projects are outlined in the funding for the capital improvement plan portion of the state budget bill. Sen. Michelle Kidani (pictured) said the transportation projects on the list for funding are either shovel-ready or necessary for health and safety reasons.

Some of those projects include:

• $816 million for state harbors and highways through the Department of Transportation;
• $328 million for public schools and libraries;
• $174 million for the 10-campus University of Hawaii system;
• $149 million for the Department of Health and the public hospital system;
• $8 million to repair infrastructure damaged by the tsunami; and
• $20 million worth of grants-in-aid to nonprofits for facilities and maintenance.

 Are you a government official who has moved into a new position or to a new agency? Did you recently retire? Were you recently named to an executive-level position at a state-supported college, university or community college? Have you secured a new job as superintendent of a public school? If so, we'd like to hear from you - and so would your friends and colleagues - for our "Where Are They Now" column. Just drop us a line at editor@spartnerships.com and let us know about your previous job and where you are now. This week we feature John B. King, Jr.

Dr. John B. King, Jr., son of New York public school educators and a product of New York City public schools, earned his bachelor's degree from Harvard University, his master's from Teachers College, Columbia University, a law degree from Yale Law School and an Ed.D. from Teachers College, Columbia University. King taught high school history in San Juan, Puerto Rico and in Boston. He then co-founded and was named Co-Director for Curriculum and Instruction of Roxbury Preparatory Charter School. He later served as managing director with Uncommon Schools, a nonprofit charter management organization that operates some of the highest performing urban public schools in New York and New Jersey. The longtime educator in 2009 joined New York's State Education Department, where he served as Senior Deputy Commissioner for P-12 Education. King was recently selected by the New York State Board of Regents to serve as New York State Education Commissioner and president of the University of the State of New York. He is the 14th Education Commissioner to serve New York and will be the first African-American and first Puerto Rican Commissioner of Education in New York State. He will begin his new job on June 15.

Douglas Houston (top left), superintendent and president of Lassen Community College District, has been named chancellor of the Yuba Community College District in California, and will replace Chancellor Nicki Harrington, who announced in January that she would retire. Forty-two year educator Lillian Cook (top middle) is retiring as vice president of instruction at Panola College in Carthage, Texas, and will be replaced by Dean of Instruction Joe Shannon (top right), who has worked at the college since 2004 and is also director of the Shelby Regional Training Center and the Shelby College Center in Center, Texas. Broward County (Florida) Judge Victor Tobin is resigning from the bench to join a private law practice in Fort Lauderdale. Gary Bratcher, head of the Valles Caldera Trust that manages the Valles Caldera National Preserve in northern New Mexico and the fourth person to hold that post is resigning, effective May 31. With more than two decades of technology and business experience consulting in New York, Massachusetts and Connecticut, Mark Raymond will now try his hand as the state of Connecticut's new Chief Information Officer. The Village of North Aurora, Illinois, has a new police chief after the promotion of Sgt. David Summer to the top spot, and a new village administrator, following the recommendation of Chief Administrative Officer Wes Kornowske for that post. Palm Bay, Florida, City Manager Lee Feldman (middle right) beat out a field of 90 applicants and has been named city manager for the city of Fort Lauderdale. Karen Brust (middle center), city manager in Del Mar, California, for the last four years, topped a field of more than 80 applicants to be named city manager of San Juan Capistrano, effective June 30. Troy Schulte (middle left), who has served as acting city manager for the last 18 months, has been chosen as the city's new chief executive, replacing former City Manager Wayne Cauthen, who was dismissed in November 2009. Dave Tarbet, who has served as interim police chief in Redmond, Oregon, since January and is a former captain on the force, has been named chief, replacing former Chief Ron Roberts, who left to accept the chief's spot in Olympia, Washington. After ending a contract with City Administrator Gwendolyn Voelpel in September, the city of Black Diamond, Washington, has chosen Leonard Smith, owner of an engineering firm and a former city engineer and city administrator, as its new city administrator. Texarkana (Texas) Independent School District Superintendent James Henry Russell has been named lone finalist to become president of Texarkana College, to replace Dr. Alan Rasco, who resigned earlier this month. Veteran community college administrator Pamela Luster (bottom left), interim vice president of academic services at Las Positas College in Livermore, California, will be the next president of San Diego Mesa College, one of the largest community colleges in the state and nation. Rick Gregory (bottom center), state director for U.S. Sen. Chris Coons of Delaware and a former lieutenant colonel in the Florida Highway Patrol, has been chosen police chief for the city of Provo, Utah, to replace Craig Geslison, who retired in January. Gorden E. "Mike" Michalson, Jr. (bottom right), the longest-serving president in the history of New College of Florida, has announced his retirement, effecting July 1, 2012, and after a year on sabbatical, will return to the classroom as a professor of religion. Roland VanDerWerff, who has served the last 11 years as city administrator for Hartford, South Dakota, has been named city administrator in Lennox, replacing former administrator Justin Weiland. Bringing 30 years of municipal fire experience to his new job, former Los Angeles Fire Department assistant chief Donald Austin has taken over as Detroit's new fire commissioner. Carolyn Lawson, director of the California eServices office and deputy director of the state's Technology Services and Governance Division, has been selected to serve as CIO of the Oregon Health Authority, effective July 1, replacing Rick Howard, who left last year. 

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