I spent a couple of days last week at a P3 conference in New York. The event drew more than 300 participants - no doubt because of the high level of interest in public-private partnerships (P3s). The high attendance could also have resulted because it was a way to spend quality time talking to eight governors about upcoming opportunities in their states.

Whatever the reason, the attendees enthusiastically discussed every aspect of P3 engagements and there was but one conclusion to be reached - public-private partnerships will be abundant in 2012.

P3s engagements come in a variety of shapes and sizes and their use varies depending on the type of project. 

[more] 

Low construction costs to lead to additional road, bridge construction

Sam Brownback

Nearly $50 million in highway preservation projects throughout the state of Kansas have been moved up for start dates, thanks to lower-than-anticipated costs on other projects. Gov. Sam Brownback recently announced that a total of 32 projects that were originally slated for work in 2013 will now be moved up to the current year. There are 24 highway projects and eight bridge projects on tap, totaling 287 miles of work.

These projects being moved up for a quicker completion date are part of the $8 billion T-WORKS transportation program under way to address the state's transportation needs. By moving the start dates up, state officials are looking forward to creating more jobs sooner than anticipated. "By starting these projects ahead of schedule, we can create hundreds of construction jobs sooner rather than planned and provide an economic benefit to thousands of other Kansans and businesses," said Brownback.

Acting Transportation Secretary Barbara Rankin cited "great bid prices" on other projects as the reason the projects can get under way sooner.

The 32 projects are in several KDOT districts. The Southeast district has one highway and one bridge project scheduled. These two projects include 35 miles of work and carry a price tag of $6.8 million. They include light preservation work on U.S. Highway 400 that will be let in May, and bridge repair costing more than $837,000 along U.S. 400 in Cherokee County. The length of the bridge will also be resurfaced. 

Headlines from around the nation

Ohio to promote teamwork between local governments

California community colleges prepare to ration their offerings

(To view these stories, click here and look under "Around the Nation.")

Michigan proposes initiative to raise more money for roads, bridges

Rick Olson

A bill has been filed in the Michigan Legislature that its supporters say would raise more than $1 billion to deal with deteriorating roads and bridges in the state. Under the proposal, the state gas tax would be shifted from the pump to the wholesale price of fuel. That tax would increase 9 cents per gallon. Another part of a 17-bill infrastructure package would increase the cost of car registrations by 67 percent, or about $60 per car. That would raise an additional $500 million With the 19 cents per gallon paid at the pump for gas shifted to a tax on the wholesale price of gas, it would increase to 28.3 cents per gallon. The diesel discount for vehicles owned by local governments, school buses, transit agencies and nonprofits would end.

The effect of the legislation would result in Michigan being the only state without an at-the-pump gas tax. While the state School Aid Fund would continue to draw funds from gas tax collections, the remainder would go toward roads in the state. "It's $1.04 billion - I'm still very firm if we don't get that amount we're really going to have to spend a whole lot more later," said State Rep. Rick Olson, author of the bill and chair of the House Transportation Committee. "If we allow the roads to fall into poor condition then we have to pay four to six times more to get them fixed." Other bills in the 17-bill package would set up a regional transportation authority for southeastern Michigan, mandate that all road projects, regardless of cost, would have to be subject to a competitive bid process and local road programs with budgets under $50,000 would be handled by counties.

Baltimore schools looking for funds for renovations at many buildings

Andres Alonso

Andres Alonso, CEO of Baltimore City Public Schools, is seeking authority to borrow $1.2 billion to pay for a much-need overhaul of many facilities in the district and at a rapid-fire pace. "This will allow us to really target, in a short period of time, huge systemic needs," he told members of the state legislative committee, citing problem areas such as broken windows, faulty heating systems and more. He tried to sell the legislators on a single construction initiative that would get as much done as quickly as possible. However, he is counting on both a state commitment of funds and an increase in the city's bottle tax to help fund the revitalization of schools. Alonso said that the cost of repairing some schools will force them to be closed. A study already has been commissioned that will list the needs of individual schools and make recommendations for closures. Alsonso is seeking a funding commitment of at least $32 million per year for school construction. The city would put up another $40 million, $10 million of which would come from proceeds after increasing the bottle tax from two to five cents. Other revenue would come from a $12 million savings from a recalculation of the teacher pension plan and $1.6 million in revenue from a planned slots casino. That would be supplemented by the usual up to $19 million in school revenue allocated by the city. The plan calls for the school system to join together with another entity to float the bonds, such as a nonprofit formed to assist with the issue.

Oklahoma district planning school bond election in March

Voters in the Silo school district in Oklahoma will decide the fate of a proposed $2.3 million bond election. The goal of the bond vote would be to ease overcrowding. Silo Superintendent Bill Caruthers said buildings in the district currently can only accommodate about 300 students, but more than 800 are enrolled. The bond, said the superintendent, would help build 16 additional classrooms, renovate the entrance of the elementary and high schools, build a new AG building and reconstruct the school bus garage. A successful bond vote would cost voters an approximate 9 percent a month tax increase for the first year. The rate would be expected to decrease over the next 10 years.

Town in Massachusetts gets go-ahead for new high school facility

Tom Mercer

"It's been a long road to get to this point, but we're here and looking forward to moving on to the next step," said Franklin, Massachusetts, Town Councilor Tom Mercer after the Massachusetts School Building Authority approved a major funding mark toward a new high school. The state has committed to pay for nearly 60 percent of the project - or $54.6 million toward the school. The turn-key price of the facility is expected to be $104.5 million. The town will now have 120 days to come up with the funding for the remainder of the cost of the project. A special referendum is planned for March 27 for a debt exclusion that reflects the town's share of the project - $47 million. Officials are confident that now is the time to construct the facility, with construction costs down and interest rates low. They have also begun a campaign to seek support for the ballot. The facility will be built under the state's model school program, which has re-designed building plans for new projects.

  

Michigan State's multi-million-dollar facility, other projects approved

New construction and renovations in the millions of dollars were recently approved by the Board of Regents of Michigan State University. One 10-year project that is expected to cost $600 million got a go-ahead for the first phase of construction - the Facility for Rare Isotope Beams (FRIB), a new national user facility for nuclear science, funded by the Department of Energy, state appropriations and MSU funding. The project is expected to be completed by 2020. Regents also approved renovation plans for the first-floor lobby of the Union, a $2.4 million project. Additionally, a fourth neighborhood engagement center, to be located in McDonel Hall, was approved. Other construction projects approved include replacing the current scoreboard and sound system at Spartan Stadium, demolishing the old Michigan State Police post on Harrison Road and renovations to Armstrong and Bryan halls. The stadium will eventually have a new scoreboard on the south end and two on the north end, with a 10.5-foot video wall. 

 

San Francisco Mayor Edwin Lee will direct examination of issues

Edwin Lee

Edwin Lee, mayor of San Francisco, was appointed to head the U.S. Conference of Mayors' Technology and Innovation Task Force, whose goal is to identify how technology can spur innovation and transparency in local government. Members of the committee will set priorities of the nation's mayors and advise both Congress and the President on the issues. "Technology and new economy companies and the people behind them are the engines of innovation and job creation and, as cities, we must support policies that foster their growth and ensure our residents are educated and prepared for the 21st century economy," said Mayor Lee. "Cities must be laboratories for innovation across the nation to create new jobs, improve government transparency and efficiency and build new public-private partnerships.

According to a press release from Lee's office, the task force will examine:

• Tax Reform - finding ways to reform the tax structure to ensure it is equitable across all business sectors, including tech;
• CEO Engagement - working with CEOs of companies large and small to ensure that the business environment in cities continues to attract entrepreneurs while allowing companies to grow and succeed;
• A New Economy Apprenticeship Program - create a new workforce strategy that trains local residents for the new, high-tech economy, whether entry-level or mid-career;
• Access to Public Data - make government information and public data more accessible to allow private companies to develop innovative applications and services for public benefit; and
• Maintaining a Tech-Friendly Ecosystem - work to ensure cities provide the competitive advantage when seeking talent by enhancing quality of life, such as parks and open space, and public transportation that attract and inspire creative minds and talent.

New York legislator wants program extended to included veterans

Patty Ritchie

Sen. Patty Ritchie is pushing for expansion of a program that helps minority- and women-owned businesses (MWBE) secure state and local government contracts to include veterans as well. Ritchie said she would like to see the program doubled. The MWBE program requires local and state governments to look for minority-owned and women-owned businesses to fill orders for goods and public services. Ritchie points to figures that show that while the civilian jobless rate has been dropping of late, the rate for veterans returning from Iraq and Afghanistan has increased. "Nearly one in three veterans of these conflicts cannot find work," said Ritchie. "This problem threatens to get worse with the return of tens of thousands of currently deployed troops." Ritchie encouraged the governor to expand the definition of MWBE firms to also include businesses owned by veterans. She said that would fill a double need - allowing the state to achieve its goals for expanding MWBE contracting opportunities while helping returning troops find employment.

Washington State considers stimulus project valued at $1 billion

Weatherization, storm water improvements and toxic site cleanup are among a variety of projects that would benefit from a $1 billion stimulus project being considered in Washington State with a goal of creating construction jobs. The House recently released the plan, trying to ease the high unemployment in the construction industry. The plan, however, is not without its detractors. Some are concerned it will create jobs only short-term, but at the same time increase bonding for years into the future. On the other hand, labor and business groups back the plan, and had even proposed one twice as large. 

North Miami officials considering privatizing trash pickup in city

Jean Marcellus

The City of North Miami is moving forward with its plans to privatize garbage collection. The city currently uses 22 private haulers to service apartment complexes and commercial establishments. The remainder of the city, including single-family homes, is serviced by the city. If the service is privatized, only one firm will earn the contract to collect garbage for the entire city - apartments, businesses and residences. Councilman Jean Marcellus encouraged the use of an RFP from companies interested in the trash contract and even suggested the possibility of piggybacking on contracts of other cities. The city currently charges more than $50 per month, and some council members say they think that privatization could bring that figure down to $20 per month. Commissioners are visiting with representatives of other cities to see how privatization is working for them and if it is less expensive but high quality service.

 

Iowa City officials approve designs for wastewater treatment project

A bid date of March 20 is expected for the Iowa City Wastewater Treatment Facilities Consolidation Project, which has a price tag of approximately $40 million. The City Council approved the design details last week. The plan will eliminate the north plan, which was inoperable for about a month after the flood in 2008, and move all wastewater treatment operations to the south plant, which escaped flood damage. The north plant site is expected to be converted into green space.

 

Multi-million-dollar RFP released for Iowa Lottery marketing

The Iowa Lottery Authority has issued a multi-million-dollar marketing RFP with significant public relations components. The contract calls for marketing strategy and planning, including ongoing strategic brand communication counsel. Assistance must also be provided for promotional event planning, Web site consultation and social media guidance. The contract is expected to be close to $7 million for the first of its two years.

 

Voters in Connecticut city approve $11.4 million bond for variety of projects

John Adams

Eleven projects will move forward in Granby, Connecticut, after voters recently passed an $11.4 million bond issue. However, taxpayers will only be responsible for approximately $8.4 million of that total, said First Selectman John Adams, with the remainder coming from other sources, mostly state and federal grants. A $2.4 million federal grant will help defray the costs of replacing the Silver Street Bridge, with Granby only having to pick up $600,000 of the costs. A project for a new 3,200-square-foot pond house at Salmon Brook Park will be funded by a state Small Town Economic Assistance Program grant. Other projects to benefit from the bond proceeds are buying a tract of land called Evonsion Farm and building a $3.2 million new track and stadium and other upgrades at Granby Memorial High School. Also on the bond projects list is a $165,000 electronics lab at the high school.

 

Town in New York looking at pair of options for its town offices

Anticipating a June 4 completion date for an engineering study, officials in Hoosick, New York, are likely to have two options for their town offices. Their choices are likely to be either retrofitting the armory building the city has leased since 1995, or constructing a new facility. An RFP was to be issued for the engineering study. When the National Guard left the armory on Jan. 1, New York state requested the town either relocate its offices for take on full responsibility for the building it is using. The town can purchase the armory for $1, but it will need legislative approval before the end of the legislative session in Albany in June. The RFP includes several office options and renovations and the costs related to new construction. A bidder's conference is scheduled for Feb. 7 and proposals are expected to be due Feb. 23. Town officials would then decide on an engineering firm for the study in March.

  

City in Mississippi advertising for renovations to turn bridge into walkway

The Columbus, Mississippi, City Council has approved a request to advertise for bids for its Old River Bridge Rehabilitation Project. The $2.5 million project would renovate the Highway 82 bridge across the Tennessee-Tombigbee Waterway into a pedestrian walkway. The project is being jointly financed by the city, the Lowndes County and Columbus-Lowndes Convention and Visitors Bureau, each of which will throw in $233,000 toward the project. The remainder will be paid for with a grant from the Mississippi Department of Transportation.

 

Federal courthouse project in downtown Los Angeles gets go-ahead from GSA

Martha Johnson

Long on the back burner, the new federal courthouse for downtown Los Angeles has gotten new life from the General Services Administration (GSA). GSA Administrator Martha Johnson recently notified members of Congress that the building will be constructed with the funds previously appropriated. GSA last month issued a request for qualifications for the 600,000-square-foot courthouse that is expected to be completed by March 2016. The $400 million project has been planned for more than 10 years and is finally expected to begin construction in the last quarter of this year. Johnson told members of Congress in a letter that the courthouse is needed to address the court's housing and security needs. The old courthouse is suffering from asbestos problems as well as the need for additional security. City officials say the new building will breathe new life into the downtown area, boost the economy and create a significant number of jobs. In 2008, the projected cost of the building was approximately $1.1 billion and had more than 50 courtrooms. Plans have been scaled back to the current proposed 600,000-square foot building with 24 courtrooms and 32 judges' chambers. 

 

Maryland Transportation Authority will rebid toll facilities ad campaign

After the previous owner of an advertising campaign account for the Maryland Transportation Authority went out of business, the Authority now finds itself about to rebid the contract. The contract for the toll facilities advertising campaign is approximately $2.3 million. Officials thought they would be awarding a contract to a Washington, D.C., firm earlier this month, but the State Board of Public Works did not vote on the contract because the company was not the lowest bidder on the project. Maryland firms had under-bid that company. The rebid is expected to more closely and equally weigh the technical and financial aspects of a new contract. In the original proposal, the technical aspects were weighted higher than the financial aspects. The contract includes marketing and media buying for the state's toll facilities, with the main focus on the Chesapeake Bay Bridge.

 

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:

• FSA + JKC Joint Venture One LLC has won a $10.6 million contract with the Army Corps of Engineers to design and build an Army Reserve training center in north Cape Coral.
• Sherwood Freightliner Sterling & Western Star Inc. were awarded a $154,165 contract by the Pennsylvania Emergency Management Agency for prime mover.
• SiloSmashers won a $7.1 million contract from the U.S. Department of Transportation for education and training services.
• Northrop Grumman Systems won a $6.8 million contract from the Navy for professional, administrative and management support services.
• Strategic Resourcing and Energy was awarded a $45,097.66 contract by the State of Nevada for low wattage, LED fluorescent lighting.
• CGI won a $22.1 million contract from the U.S. State Department for information technology services, including telecommunications services.
• ASRC Research and Technology Solutions won a $20 million contract from NASA for research and development.
• Booz Allen Hamilton won a $15 million contract from the Navy for professional, administrative and management support services.
• MSK2 was awarded a $195,000 contract from the city of Charleston, West Virginia, to develop comprehensive and downtown revitalization plans.
• NJVC won a $346.9 million contract from the National Geospatial-Intelligence Agency for information technology/information services.
• ManTech Telecommunications and Information Systems Corp. won a $100.9 million contract from the Army for sustainment support services.
• Athens Services has been awarded a one-year, $292,000 street sweeping contract from the City of Lake Forest, California.
• Contrack International won a $27.9 million contract from the Army for construction services at Al Udeid Air Base, Qatar.
• DynCorp International won a $26 million contract from the Army for security services at Camp Bondsteel, Kosovo.

Maryland Lieutenant Governor Anthony Brown's bill encourages use of P3s

Anthony Brown

Maryland Lt. Gov. Anthony Brown will lead the charge of the O'Malley Administration to pass a series of measures that encourage public-private partnerships (P3s) as a way of creating jobs on infrastructure projects. The bill will both streamline and improve the state's framework for P3s for infrastructure projects. It will improve the state's definition of a P3, strengthen and shorten the legislative review process and provide the foundation for improving review and coordination processes within the Executive Branch. Brown noted that investing in infrastructure projects is the most effective way to spur job creation and economic growth. "We need to take an innovative approach and look at all options for funding our infrastructure needs. Well-structured public-private partnerships can create jobs by encouraging private investment in our public infrastructure projects," he said, noting that the bill will make P3s in the state "more predictable, streamlined, transparent and attractive to private investment while ensuring strong workforce protections and maintaining control of State assets."

The P3 legislation includes language promoting Maryland's current policy objectives, such as prevailing and livable wage, green buildings, environmental protection, and minority and women-owned business participation. It grew out of a series of recommendations developed by the Joint Legislative and Executive Commission on Oversight of Public-Private Partnerships, chaired by Brown. 

Louisiana official backs P3, tolls to complete I-49 South extension

John Kennedy

Louisiana Treasurer John Kennedy is urging the state to consider a public-private partnership to help facilitate the completion of the extension of I-49 from Lafayette to New Orleans. That section of highway is currently U.S. Highway 90, and Kennedy said there needs to be some action on the extension before the current road is no longer usable. Kennedy said an infrastructure investment fund (IIF) might be the solution to the funding problem. An IIF is a type of public-private partnership that raises funds from private investors to fund a project in exchange for a profit return once the project is finished. The IIF would be responsible for funding the project, building it and maintaining it. The return on investment would come through tolls charged on the interstate. He said completion of the interstate would create an international north-south trade border from the coast of Louisiana to Canada. He listed benefits as keeping local ports from losing business to Houston, improving evacuations during hurricanes, relieving traffic congestion, saving lives and creating jobs. Kennedy pointed out that U.S. 190 continues to deteriorate and predicted complete failure of the roadway by 2030 if improvements are not made. Recognizing that there might be push-back on creating a toll road and having it operated by a private company, Kennedy suggested putting the issue before voters. He also cited a number of successful projects that used IIF and P3 models - in Dallas, Florida, Virginia and Chicago. 

 

Some contracting opportunities from across the country

Julian Alvarez (top left), South Texas office director for U.S. Sen. Kay Bailey Hutchison in Texas, has been named the next president and CEO of the Rio Grande Valley Partnership, the regional chamber of commerce for the Rio Grande Valley, replacing Linda McKenna, who resigned. New Jersey Gov. Chris Christie, in an effort to maintain diversity at the highest levels of the state's judiciary, has named to the New Jersey Supreme Court an openly gay African-American Bruce Harris (top middle), who serves as mayor of Chatham Borough, and Korean-American Phillip Kwon (top right), who worked under Christie as an assistant attorney general. Frank DiGiammarino, former advisor to the vice president on the implementation of the Recovery Act and former president of strategic initiatives at the National Academy of Public Administration, has joined Amazon Web Services and will be working with public-sector customers. Steven Johnson, associate vice president for enrollment management at Howard University, has been appointed Central Michigan University's first vice president for enrollment and student services. Carlsbad, New Mexico, Mayor Dale Janway has recommended Jon Tully, who has been serving as the interim city administrator since October 2011, to become permanent administrator, following the resignation of former city administrator Harry Burgess. J.C. Schnabl (middle right), former deputy assistant vice chancellor for alumni relations at the University of California, Los Angeles, has been chosen to be assistant vice chancellor for alumni relations and executive director of the University of Massachusetts Amherst Alumni Association, succeeding Anna Symington, who retired. Joanne Sheldon (middle center), former CEO of LifeWays Community Health, has accepted the position of administrator of the Michigan Department of Corrections Bureau of Health Care Services in Lansing. Arkansas State Rep. Nate Steel (middle left), a state representative since 2010, will follow in his father's footsteps and take over as city attorney for the city of Nashville, Arkansas. Steve Schulze, chief human resources officer and director of special projects for Texas A&M AgriLife has been appointed assistant vice chancellor of administration, and will be succeeded in that position by Jennifer Humphries, current director of human resource services. John Haynes, a 17-year veteran law enforcement officer and investigator for the Durant, Mississippi, Police Department, has been named police chief, succeeding Jerry Bankhead, who is retiring. After serving 27 years in the Portland Fire Department, the last 10 as chief, Chief Fred LaMontagne has announced he will step down in April. First-term North Carolina Gov. Bev Perdue (bottom left), a former public school teacher and director of geriatric services at a community hospital in her hometown before entering politics, has announced she will not seek a second term as governor. The nation's first-ever chief technology officer, Aneesh Chopra (bottom center), who was the White House's ambassador to the commercial technology sector, is leaving the government in early February, White House officials have announced. George Lahanas (bottom right), interim city manager for the city of East Lansing, Michigan, and who was deputy city manager from 2008-2011, has been named city manager full-time. Neal Niefeldt, who has served as city administrator in Beatrice, Nebraska, since 2008, has announced he will leave that post to become president and CEO of the Grand Island-based Southern Public Power District. Thalia C.Kay (T.C.), former mayor of Pemberton who has more than 20 years of experience working on municipal budgets, has been named the new chief financial officer for the city of Northfield, New Jersey. Jeff Mulqueen, chief academic officer in Worcester, has been chosen by the Pentucket, Massachusetts, Regional School Committee as its choice to succeed retiring Superintendent Paul Livingston.