The question of how to fund affordable public housing continues to plague city officials throughout the nation. However, an attractive solution is emerging - public-private partnerships (P3s).

P3 initiatives come in various sizes and shapes and they are attractive for many reasons. Private sector firms willing to invest capital in large public initiatives and wait years for a return on investment have become "saviors" to public officials. Most governmental entities have exhausted other funding options.

More than $500 million allocated to 47 projects in 34 states for infrastructure needs

Projects from public transportation to bicycle lanes will benefit from the approximately $500 million in Transportation Investment Generating Economic Recovery (TIGER) grant funding recently announced by the U.S. Department of Transportation. A total of 47 projects in 34 states were granted funds, although there were more than 700 applications received requesting about $102 billion in funding, which speaks to the condition of infrastructure throughout the country. Transportation Secretary Ray LaHood said the funding  "will mean better, safer transportation for generations to come" and "good transportation jobs today and a stronger economic future" for the entire country.

Ray LaHood

More than $140 million of the total is headed to road and bridge projects. Another $104 million was allocated for port and freight rail projects and $175 million is geared toward replacement of roads and bridges. The remaining approximately $10 million is for projects on Native American reservations. To view the complete list of awardees, the amount awarded and a description of each project, click here.

Some of the recipients of the latest rounds of TIGER grant include:

• The Chicago Transit Authority will get $20 million toward a $140 million project that will improve the 9th Street Terminal as part of an overall improvement project that includes repairs and updates to terminals and stations.
• Raleigh, North Carolina, was the recipient of a $21 million grant to begin work on a Grand Central-style train station planned in downtown's warehouse district and can start track and signal upgrades.
• The Vermont Agency of Transportation was awarded more than $7.9 million toward an $11.2 million project to upgrade 18.8 miles of railroad track between St. Albans and the Canadian border.
• The city of Houston is in line to receive $15 million to develop 18 miles of hike and bike trails, sidewalk improvements and on-street bikeways. Houston will use the federal funds to improve safety measures for pedestrians and cyclists, meet increasing demand for trails and bikeways and connect numerous destinations throughout the city that will allow the use of alternate transportation methods.
• The Arizona Department of Transportation was awarded $21.6 million toward its $27 million project to rehabilitate a bridge along I-15 in the Virgin River Gorge as part of an initiative that also involves Nevada and Utah.
• West Virginia was awarded $5 million to acquire rights-of-way for the Mullens to West Helen segment of the Coalfields Expressway in the southern part of the state.
• Joplin, Missouri, got $12 million toward $23.5 million in street projects that will likely lead to construction of train overpasses on two major corridors on which grade crossings now can create traffic delays and congestion. 

Because of the upcoming July 4 holiday next Wednesday, the Government Contracting Pipeline will not publish next week. We will resume our regular Wednesday publication date on Wednesday, July 11. Have a safe and happy holiday!

Could lead to public-private partnership for new $1 billion southern terminal

Phil Brown

Officials point out that although talks are still in the early stages, Orlando International Airport could undergo a $470 million expansion project next year that could lead to a new $1 billion southern terminal. The expansion would include a train depot and parking garage. Airport Director Phil Brown said there are still numerous issues yet to deal with.

 

However, Brown said the airport has signed an exclusive 60-day negotiating period with a Coral Gables company regarding the possibility of building a passenger train system between the airport and Miami. The talks apparently have the private partner paying for the station south of the existing terminal near a parking lot. The airport's part of the deal would be building a one-mile, elevated monorail that would serve the station. The airport would incur that $181.4 million cost, plus nearly $80 million in additional infrastructure costs. A 3,500-space garage and depot are estimated to cost $210.7 million, but who would bear those costs has not been decided.

 

Funding could come from a variety of sources - bond sales, federal and/or state grants and fees and surcharges on tickets sales and car rentals. If an agreement goes forward, the station could be open by 2015, according to Brown.

 

Houston school district gets look at proposed $1.89 billion bond projects

Houston ISD Board of Education members are studying a proposed $1.89 billion bond issue that could go before district voters in November. The list includes rebuilding, renovating or renewing more than 40 schools in the district. The board has until August to decide if it wants to put the issue on a ballot for voter approval. The district's high schools are being considered for the bulk of projects, although nearly $225 million in projects would benefit students in all 279 of the schools in the district. Many of the high schools in HISD are at an average age of 50 years. The recommended bond proceeds spending would include $577 million to replace eight high schools, $354 million to replace inadequate facilities at four high schools, $259 million to replace inadequate facilities and renovate five high schools, $27 million to build two new early college high schools, $61 million to renovate or renew nine high schools, $121 million to convert four elementary schools into K-8 campuses, $47 million to replace Dowling Middle School and expand Grady Middle School and $126 million to replace five elementary schools. Another $67 million would be allocated to renovate and remake building additions at K. Smith Elementary, replace inadequate facilities and renovate Tijerina Elementary and build a new elementary on the district's west end. District-wide projects would cost $225 million and include $100 million in technology upgrades, $42.7 million for district athletic facility improvements, $35 million for middle school restroom renovations, $27 million for safety and security improvements and $20 million for land purchases.

Missouri community college approves new $9.4 million campus

A $9.4 million plan for a new Table Rock campus of the Ozarks Technical Community College in Missouri (as seen in accompanying artist's rendering) has been approved by the Board of Trustees. The price tag includes site construction, construction of the building itself, equipment and supplies, information technology, permits, testing services and architectural services. In addition to seeking a $1.1 million, 10-year, no interest loan from a Rural Economic Development loan through the White River Electric Cooperative, the college has also received donations to help offset the costs. The state-of-the-art, four-story campus is expected to be open in the fall of next year.

 

Rutgers University using P3 for campus building project

Rutgers University officials are negotiating with a development corporation on a $295 million campus building project. The project will include a 150,000-square-foot academic building, a residential honors college and an 800-bed student residence hall with street-level shopping and dining. A new campus parking deck is also part of the project. As a public-private partnership, the developer will recoup its investment through residential and dining fees, operating revenues and tax credits. Like many other colleges, Rutgers is looking to grow not only to meet the increasing student population, but also to attract and retain both new students and top faculty and researchers. Officials are hopeful the project will be approved so it can begin construction by fall 2016.

 

New Jersey bond issue planned for upgrades to colleges, universities

Tom Kean

The largest bond referendum in New Jersey history - $750 million - is planned in November as a means of upgrading both the state's public and private colleges and universities. One of the legislative leaders in the movement, Minority Leader Thomas Kean, Jr., said passage of the bond issue would create thousands of construction jobs in the state. "It will help with jobs in the short term and help create world-class research and academic facilities in the long term," he said. If supported by the governor and the bond issue passes, officials also could use $500 million in unused borrowing to bring the total to near $1.3 billion. The funds would include about $300 million for public research institutions, $247.5 million for four-year institutions, $150 million for county colleges and $52.5 million for private institutions. Legislators also want to allow college officials to enter into public-private partnerships where developers finance projects and recoup their investment through revenue-producing assets like residence halls. College officials previously put together their wish list of some 300 projects they would like to have the bond issue finance. Their list totaled $5.9 billion.

 

Michigan colleges, universities to get $300M in state funds for projects

Following application of Gov. Rick Snyder's signature, a bill that passed out of the Michigan Legislature will provide for the investment of more than $300 million in infrastructure projects on Michigan college and university campuses. The bill authorizes and assists with construction on 18 projects at public universities and community colleges in Michigan. The value of the projects is approximately $613 million, with the state picking up $305 million of that amount. Included is a biomedical research building at Wayne State University. Also included are a bioscience building at Central Michigan University and an engineering center at Oakland University.

 

Delaware city anticipating wastewater treatment plant upgrades

A $25 million loan will be sought by the city of Rehoboth Beach, Delaware, to help defray the costs of upgrades to the city's wastewater treatment plant. Included in the upgrades would be a new building for processing biosolids and new electrical equipment. Officials will seek the funding from the U.S. Department of Agriculture and are hopeful if the loan is approved, the upgrades will allow the plant to continue to serve the city for another 20 years. The biosolids part of the project carries a price tag of $8.45 million. A new building will be needed to process the sludge, draining the liquid and making it dried sludge which can be used as fertilizer. Additionally, the project would include new electrical equipment and filtration system. The plant also is in need of a new transformer and upgrades to its breakers, along with a new diesel-powered backup power generator. The city will seek a low-interest loan from the USDA. If the loan is approved, the plant upgrades could start within the next 18 months and take approximately two years to complete.

Florida Transportation Department seeks marketing, development services

The Florida Department of Transportation has issued an RFP for business development/marketing services professionals for the Central Florida $1.3 billion, 61-mile Sun Rail commuter rail. The contract will include project marketing and business development outreach manager, a marketing coordinator and a business development officer/coordinator. Support positions will include marketing and business development assistants/researchers; marketing and business development aides/event staffers; administrative assistant/clerical; Web site operator/designer; videographer; digital media/video editor; photographer; graphic artist and on-air talent. Proposals are due Aug. 2, with letters of interest due June 29 and an award date set for Aug. 16. If that schedule stays in place, work could begin in September.

 

Port of Savannah study shows need for more dredging

Curtis Foltz

The fourth-busiest port in the country - the Port of Savannah - recently was the subject of an Army Corps of Engineers study regarding the need for deepening of the port. Like other ports across the country, the Port of Savannah is expecting more and larger ships as a result of the expansion of the Panama Canal. A $652 million project to deepen the port was approved in 1999 by Congress and a 15-year study was recently completed. The study now becomes a part of the approval process. The report calls for deepening the Savannah River by five feet, which officials say would generate $174 million in economic benefits each year. Georgia Ports Authority Executive Director Curtis Foltz said the study was probably the highest benefit-to-cost project in the Corps' history, saving the nation $5.50 for every dollar spent. The project must now compete for federal dollars. 

 

North Carolina city to take ballpark bonding directly to voters

After a public-private partnership proposal fell through, officials for the city of Wilmington, North Carolina, will ask voters to decide a bond issue on the project this fall. The exact amount of the cost for the facility has not yet been determined. However, because it is no longer a public-private partnership, the project could be scaled back. The original projected cost of $42 million could decrease significantly. The city is in hopes of luring an Atlanta Braves farm team to the city. But instead of a P3 where a developer is borrowing money for the park, the city now will call a bond issue that will determine if the city will pay for the park.

 

Bidding process for Tennessee wastewater basin project upcoming

The bid process for construction of a new wastewater basin in Gatlinburg, Tennessee, should begin within the next 60 days. An engineering firm was hired earlier this year to design a replacement basin for one that failed last April. The new 1 million-gallon concrete tank will be built where the existing maintenance facility is located. The maintenance building will be demolished during construction of the new tank, which results in the project including design and construction of a new maintenance and operation building. After one wall collapsed on the basin's east wall last April, nearly 1 million gallons of raw sewage spilled into the Little Pigeon River. A contract was later awarded to demolish the remaining parts of the tank. That work was completed last March.

 

California city planning $45 million in infrastructure improvements

Tej Mann

Yuba City, California, officials are planning to double their usual $17 million to $20 million spent annually on infrastructure needs as officials recently approved $45 million in infrastructure improvements. Grants and low-interest loans have allowed the city to increase its infrastructure spending. Councilman Tej Mann said he is glad that even during tough economic times, the city is keeping up with its infrastructure needs. "If we keep up with things, we will not be hurting a few years from now when the economy turns around," he said. Among the projects approved for 2012-2013 include: $9.7 million to rehabilitate and replace the city's oldest sewer system south of Highway 20; $7.5 million for extension of a waterline to Franklin School and Wildwood West and El Margarita Estates subdivisions; $5 million for raw water intake and low lift pump station improvements on the Feather River; $4.2 million in improvements to the wastewater treatment facility; and $2.2 million for new signal and intersection improvements at Highway 20 and Western Parkway. Other projects also are expected to result in savings, including installation of irrigation wells at city parks and converting all of the city's streetlights to energy-efficient LED lighting.

  

North Dakota city discusses study on community, aquatic center

Administrators in West Fargo, North Dakota, are studying the possibility of a feasibility study to determine the need for construction of a community and aquatic center. Citing community growth, city officials say a new facility would take pressure off the Veterans Memorial Pool, which is deteriorating and aging. A feasibility study would decide what type of facility the city should seek, where to put it and financing methods. If the $60,000 feasibility study is approved, the results could be back by September. A cooperative effort of the city, parks and schools, the park board has already approved the study. The school board was to discuss at a meeting this week. The park district already owns land where the facility could be located. The facility is estimated to cost between $16 million and $22.4 million. The wide range in costs depends on the features of the center. Among the possibilities for funding the center are voter approval to use a half-cent sales tax for funding. Another possibility is a fundraising campaign to seek private donors and capital contributions from the schools and parks. Officials feel the costs could be recouped through leases, rental fees and other charges for private use of the center.

 

Capital improvement plan for California city means $57M in projects

From street paving to public facility projects, the capital improvement projects for Cypress, California, from FY 2012-2013 to FY 2018-2019 was discussed at a recent public hearing. Among the projects projected are street paving, traffic and transportation projects, storm drains, sanitary sewers, street irrigation and planting and more. Although the plan covers a lengthy period of time, the projects for FY 2012-2013 that were approved include the following: $2.95 million for street pavement, $255,676 for traffic and transportation, $816,500 for storm drains, $2 million for sanitary sewers, $1.267 million for concrete within street right-of-way, $300,000 for street irrigation and planting, $358,000 for street trees and $256,924 for public facility projects.

 

Check out these recent awards:

University of Nebraska-Lincoln seeks parking public-private partnership 

Christine Jackson

Georgia

• Georgia Southern University is seeking bids for reconstruction of Georgia Avenue and Forest Drive pavement.
• Athens-Clarke County government is seeking bids for turn-key, advanced metering infrastructure system; inclusive of water meters, equipment, hardware, software, installation and service for the Athens-Clarke County Public Utilities Department.
• The Glynn County Board of Commissioners is seeking a pre-event contract with an experienced, qualified firm for debris removal and disposal related to a disaster.

Maine

• The Maine Department of Health and Human Services is seeking proposals from qualified providers for the design and implementation of the Supplemental Nutrition Assistance Program - Education (SNAP-Ed) a federal/state partnership that supports nutrition education for persons eligible for the Supplemental Nutrition Assistance Program.
• The Maine Department of Economic and Community Development is seeking bids for a forest products industry project consultant to pursue activities to assist the Forest Products Industry with projects and initiatives which strengthen and grow the industry in Maine.
• The Department of Defense, Veterans and Emergency Management is soliciting proposals to provide scheduled periodic inspections, preventative maintenance, miscellaneous and emergency repairs to all major components within the generators and fire pumps at Bldg. #2, #14/35 & #39 Camp Keyes - Augusta; RTI, FMS#3, AASF, AFRC & Bangor Training Site - Bangor; Gardiner Training Site - West Gardiner; and Skowhegan Armory - Skowhegan.

Vermont

• The Vermont Department of Transportation is seeking proposals for its Go Vermont rideshare matching software and services. Currently, this program is using Trapeze Software (RidePro 3) with roughly 4,500 registrants. This matching software will seamlessly refer people to others looking to carpool and vanpool.
• The Vermont Department of Buildings and General Services is seeking bids for snow removal services for buildings and general services in Burlington.

Texas

• The Leander Independent School District is requesting proposals from qualified bidders for truck-mount steam extractor custodial equipment.

• The Texas Facilities Commission is seeking proposals for the provision of custodial services for multiple State Office Buildings in Austin.
• The Texas Facilities Commission is seeking proposals for Texas Department of Public Safety McAllen area office renovation that includes interior renovation of approximately 24,000 sq. ft. that includes installation of new HVAC, new lighting, reconfiguration of offices and site work on the parking lot. Proposals are also sought for a new one-story, approximately 14,655-square-foot area office for Rio Grande City.

California

• San Diego State University is seeking statements of qualifications from interested, qualified construction managers to provide construction manager services with a guaranteed maximum price for construction of the University Towers and Cafeteria renovation project.
• The state of California is seeking bids for frozen dietary meals from Oct. 1, 2012, through Sept.30, 2013. The result will be a mandatory 1-year statewide contract for California Correctional Treatment Centers within CDCR. Estimated value of the contract is $2 million.

Michael Mikhail (top left), professor and director of the School of Accountancy at Arizona State University, has been named dean of the College of Business Administration at the University of Illinois at Chicago. Denton, Texas, Mayor Pro Tem Pete Kamp (top center) will lead the Regional Transportation Council for the next year after recently being elected chair of the North Central Texas Council of Governments' transportation policymaking body. Pearlie Reed (top right), a 35-year veteran of the U.S. Department of Agriculture, recently retired from his post as assistant secretary for administration, having joined USDA in 1968 as a college student trainee in Arkansas. John Telford has been named interim superintendent of the Detroit school district, if the school board regains its authority in the coming weeks or months, and will also lead the search for a permanent superintendent. Terrence A. Gomes, president of Roxbury Community College who has led the Massachusetts institution for the past nine years, will step down on June 30. Mike Kane, chief human capital officer at the U.S. Department of Energy, will retire from that post after a 30-year career with the federal government, all of that time spent with the Energy Department, and Deputy Chief Human Capital Officer Sarah Bonilla will become acting CHCO. Denise Turner Roth (middle right), who has led the city of Greensboro, North Carolina's, human resources, information technology, libraries, parks and recreation and public affairs departments as an assistant city manager and has served as interim city manager since December of last year, has been named full-time city manager. President James D. Spaniolo (middle center) has announced that he will retire from The University of Texas at Arlington, but will continue to lead the university until his successor is hired. Steve Larsen (middle left), director of the Centers for Medicare and Medicaid Center for Consumer Information and Insurance Oversight will resign from his position sometime in July, with Michael Hash named interim CCIIO director. Jim Sargent, a 32-year educator from Caruthers, is the new Yosemite, California, Unified School District superintendent and will assume his duties July 1, replacing Steve Raupp, who will leave the superintendent job June 29. Marcelo Suarez-Orozco, a professor of globalization and education at New York University, will become dean of the Graduate School of Education and Information Studies at the University of California at Los Angeles. Simi Valley, California, interim City Manager Laura Behjan has been named city manager, replacing longtime City Manager Mike Sedell, who is retiring, but Behjan says she will still retire next year. John C. LaRosa (bottom left), president of the State University of New York's Downstate Medical Center, has stepped down after 13 years in the position, with Ian L. Taylor, dean of the Downstate college of medicine, to serve as the officer in charge. Following the removal of University of Virginia President Teresa Sullivan, Carl P. Zeithaml (bottom center), dean of the university's top-ranked McIntire School of Commerce, has been appointed interim leader of the university. The Orland School District 135 Board of Education in Orland Park, Illinois, has appointed Dr. Carol Kunst (bottom right) as interim superintendent, replacing Dennis Soustek, who is serving on a temporary basis. Robert Brese, acting CIO of the U.S. Department of Energy since CIO Mike Locatis left in April to become assistant secretary for cybersecurity and communications at the Homeland Security Department, has been named the permanent CIO. Ron Ryder, assistant superintendent of the Dallastown, Pennsylvania, Area School District since 2005, has been chosen as superintendent, following the resignation in February of Stewart Weinberg. Capt. Dan DeSmidt, a 25-year veteran of the Belmont, California, police force who has worked his way up through the ranks, has been named chief of the department, replacing Chief Don Mattei, who is retiring.