As local governments struggle to make ends meet, many public officials appear to be evaluating what is universally thought to be the least desirable option - municipal bankruptcy. At Strategic Partnerships, we have been tracking municipal bankruptcy and the sad truth is that the trend is on the increase.

Officials anticipate needs could go as high as $900 million for I-4 makeover

Now that passage of the federal transportation bill has cleared the way for adding toll lanes to Interstate 4 in Florida, the Florida Department of Transportation is looking for investors with deep pockets. Companies will be sought to invest hundreds of millions - maybe up to as much as $900 million - to build toll lanes down the middle of I-4's main transit artery in Orlando.

The state has socked away about $857 million - less than half - of the more than $2 billion the project is expected to cost. The state anticipates it will be another $900 million short on funding and are hoping to find a private sector partner to fund that amount and recoup its investment through toll revenue.

Based on financial estimates, FDOT could be $900 million or more short of paying for the makeover. Officials are hopeful they can convince a company to come up with the additional money. It would be repaid with tolls. There is also the possibility of borrowing the money through bond sales that could be paid over a long period of time, such as 30 years or more.

No one is certain how the work would be financed, though one possibility is borrowing it through the sale of bonds and repaying it over time, maybe 30 years or more. A yet-to-be-released study on how much money the toll lanes might collect could well decide the fate of the project. 

Bonds to be sold to build first 130-mile section of high-speed rail line

Initial spending for the first 130 miles of phase one of California's proposed bullet train was recently approved by the California Legislature. The action frees the state to spend $4.7 billion on the project, and also ensures an additional $3.2 billion in federal funds.

Gov. Jerry Brown, a major backer of the initiative, called the action a "bold move" on the part of the legislature that "gets Californians back to work and puts California out in front once again."

The state can now begin selling $4.5 billion in voter-approved bonds, with $2.6 billion toward the initial 130-mile section of high-speed rail line in California's Central Valley. The first segment of the line will run from Madera to Bakersfield. When completed, it is to extend from Los Angeles to San Francisco and carry a price tag of $68 billion.

The $4.5 billion in bonds to be sold is part of a larger $10 billion high-speed rail bond approved by voters in 2008.

Those who advocated for the funding say the project will provide jobs and improve transportation infrastructure in the state.

The mayors of San Francisco, Los Angeles, San Jose and Fresno issued a joint statement saying, "This is an important project for California, and we need to get started now." 

Mississippi State planning expansion of football stadium

An $80 million expansion of the Davis Wade Stadium at Mississippi State is out for bid and will get under way before the upcoming football season ends. The contract could be awarded later this month. The project will add about 6,000 more seats, including 5,200 bleacher seats on the east side and 800 to 900 premium seats that will be ready for the 2014 season. The expansion will include renovations to the MSU's concourse, concessions and restrooms, and a large video board atop the new north end zone bowl. Each open-air box, separated from other loge sections by a small wall, will include a television and four to eight high chairback seats. There will be a total of 240 loge seats. Other upgrades could surpass $100 million over the next two years. The university is upgrading its drainage system at Scott Field and will also re-sod the field at a cost of $1.4 million before the upcoming season.

Stanford University officials reveal plans for new art department building

Stanford University recently released the design and other details of its planned McMurtry Building (as seen in the accompanying artist's rendering), the new home for the university's art department. The multiuse facility will include space for programs in art, practice, design, art history, film and media studies and documentary film and video. The facility will include art studios, screening rooms, film editing rooms, exhibition space, the Experimental Media Art Lab and Sound Studio and the Art and Architecture Library. In addition, the building will have a flexible presentation area with retractable seats that can be used for a number of events. It will feature a sky court with outdoor space and a covered court on the first level that will connect areas of the complex. Construction is expected to be completed by 2015.

Minority businesses in New Orleans promised contracting opportunities

Additional minority-owned businesses are expected to receive contracts from the state-run Recovery School District in New Orleans. The agency oversees hundreds of millions of dollars' worth of construction spending on school buildings in New Orleans. The district has designed a new disadvantaged business enterprise program, which will have a goal of directing 25 percent of its spending toward the economically disadvantaged businesses in the city. Heretofore, only a small part of approximately $2 billion in Federal Emergency Management Agency funds that are being directed to the city to repair and replace education infrastructure damaged or destroyed by Hurricane Katrina has gone to African-American contractors. The local school district instituted a disadvantaged business program last year, but all the details of the policy have not been finalized.  

Nikki Krawitz

University of Missouri plans new five-story residential hall
A new housing project has been approved for the University of Missouri campus. The dormitory, expected to begin next summer, will have a 330-bed capacity. Missouri Vice President of Finance and Administration Nikki Krawitz said approval of the five-story residential hall is in response to the "exploding growth in enrollment" and a growing interest in students who want to live on campus. While freshman students are required to live on campus, even upperclassmen are seeking to live on the Columbia campus. Officials report there is a waiting list for dorm rooms. The residential hall carries a $28.4 million price tag, most of which will be paid for through revenue bonds. Missouri officials are hoping for a completion date of April 2015. 

Kentucky school district looking at building new elementary school
The Fayette County Board of Education in Lexington, Kentucky, recently voted to buy 15 acres of land for the site of a new elementary school. It will be built in the area of the rapidly developing residential area east of Interstate 75. The new school, as yet unnamed, will accommodate approximately 650 students. Construction is expected to start during the 2013-2014 school year, which could mean an opening in fall 2015.

Missouri gets $30M donation toward Memorial Stadium renovations

The University of Missouri has received a $30 million private donation to help defray the recently announced $72 million project to upgrade and renovate Memorial Stadium and other athletic facilities. The debt taken on for the stadium upgrades (as seen in the accompanying artist's rendering) will be financed through increased revenue received from additional premium seating being sold at Missouri football games. In unveiling plans for the stadium updates, officials said it is part of a $200 million vision the university hopes to see come to fruition over the next 10 years. Current renovations will address Memorial Stadium and facility upgrades for other athletics - softball, baseball, tennis and golf. The stadium will see the addition of an upper bowl on the east side of the stadium and more than 5,000 general admission and 1,000 club-level seats will be added. Also added will be restrooms, concessions, lounge spaces, kitchen, support and circulation spaces. The east side addition will cost a little over $46 million, with $45.44 million of that coming from revenue bonds and $500,000 from campus facilities utility reserves. While some seats will be lost due to the new construction, the total stadium capacity will increase from a little over 71,000 to approximately 75,000. Later renovations could bring that total up to 80,000. The stadium will also see a $9.75 million press box renovation on the west side, funded through revenue bonds. Part of the press box area would be relocated to the upper deck and the vacated press area would be converted to suites. Other additions planned are a 100-yard indoor football practice facility and an additional weight room. All football operations would be moved eventually to the south side of the stadium, overlooking the field.

  

IUPUI to transform campus hotel into housing, classroom space

The University Place Hotel and Conference Center on the campus of Indiana University-Purdue University Indianapolis (IUPUI) is about to get a makeover. The facility, built in 1987, has struggled financially in recent years. It has actually lost money in six of the last seven years. So campus officials are planning to convert the campus hotel into housing and classroom space. The hotel will be transformed into a multi-use facility that will include dorms, classroom space and a dining hall. The transformation is expected to be completed by the 2013 fall semester. IU took on operation of the hotel from a major hotel chain in 2005 and sunk nearly $31 million into it in renovations and maintenance. IUPUI Chancellor Charles Bantz said officials are pleased with the role the campus had played in promoting convention and tourism business in Indiana. However, he added that new uses of the facility that are planned will better support critical needs of the campus while providing a quality learning environment and ensure retention of students. The operation of the conference center and hotel will end Nov. 30. Single bedrooms will be converted into double rooms, meaning an additional 560 beds, increasing available beds on campus to house 1,900 students. The facility will be open to first-time, full-time students.

 

Wayne State University planning $93 million biomedical research facility

Allan Gilmour

A capital outlay bill committing $30 million will help Wayne State University build a $93 million biomedical research facility in Midtown Detroit. The project includes renovation of the former Dalgleish Cadillac dealership. It will also see construction of a new addition and demolition of the American Beauty Electric Irons Building. Wayne State President Allan Gilmour said the facility is expected to bring new life to a city block that is pretty much vacant right now. The university will occupy most of the nearly 200,000-square-foot facility. It is expected to house 450 research-related employees. Work will begin later this summer with demolition of the American Beauty building so a parking lot can be built and later another research facility. The current Cadillac building, which includes 127,000 square feet, will have a 70,000-square-foot addition. Officials are going to try to keep some of the character of the building and Gilmour said the large showroom area is ideal for a collaborative research area. "It's an interesting, but great building," he said.

 

Technology upgrades on tap for Philly City Council

Members of the Philadelphia City Council are soon to get an IT upgrade. A line item in the recently approved $3.6 million city budget is a $500,000 Internet-technology upgrade for the Council. In addition to new software and hardware, the Council will explore hiring additional technical staff and support for the Jobs Commission, which will study unemployment in the city.

New York issues RFP for 'micro' apartments in city

Michael Bloomberg

The New York Department of Housing Preservation and Development will soon issue an RFP for the development of "micro" apartments in the city. Mayor Michael Bloomberg is pushing for these apartments - from 275 to 300 square feet - to meet the ever-growing demand for housing in the Big Apple. Bloomberg says the city's housing market has not kept up with the growing need for housing for studio and one-bedroom apartments sought by nearly 2 million one- and two-person households. "Developing housing that matches how New Yorkers live today is critical to the city's continued growth, future competitiveness and long-term economic success," said the mayor. The RFP will seek design, creation and operation of a Kips Bay rental building that will be either completely or mostly the "micro" units that also include kitchens and bathrooms. The city will waive some zoning regulations for the program, but will not waive building codes or make any permanent code changes.

Nebraska village to use USDA grant for waste water treatment plant

The Nebraska village of Bellwood is planning to use grant funds to build a water treatment plant. The $1.7 million grant comes from the U.S. Department of Agriculture Rural Development. The village's water supply is contaminated with arsenic and officials say the new plant will help them clean their water supply. The funds are from the USDA Rural Development Water and Waste Disposal Loan and Grant program. The end result will be a safe and clean water supply for residents.

California county planning to contract out mental health services

The Mendocino County (California) Health and Human Services Agency is preparing an RFP that could lead to the contracting out of all its mental health services. A large portion of the services already are contracted out, but to more than 70 contractors. Officials are looking to consolidating those contracts into one with all services included. The singular contract is expected to provide comprehensive, integrated, seamless services. Some $14 million of the county's mental health budget goes to children's mental health services, and more than 80 percent of that amount goes to contractors.

State of Nevada selected for $4 million grant for student data system

Brian Sandoval

One of 24 state-level grants to support the design and implementation of a Statewide Longitudinal Data System has been awarded to the state of Nevada. The State Department of Education announced the $4 million grant from the Institute of Education Sciences. The funds, to be allocated in a three-year cycle, will allow the state's Department of Education access to link students through one unique student identifier, from their starting in pre-kindergarten through high school. It would allow for following them through post-secondary education and workforce development. Gov. Brian Sandoval said he is hopeful the data can be used to better student outcomes and fill the state's main economic job needs. "This grant will move Nevada closer to a fully integrated system that follows learners from childhood to adulthood," said the governor. Department of Education officials says the data will allow education officials to detect an early warning system to direct students to the type of college or career-ready jobs and to a field where they can be successful while helping meet the workforce needs of their state.

 

City in Alaska issues RFP for 800 LED streetlights

An RFP requesting large-scale deployment of LED streetlights for Fairbanks and North Pole, Alaska, has been issued. Funded by the state's Department of Transportation and Public Facilities, the contract will have an estimated value of $1.5 million. It includes conversion of 800 high pressure sodium cobrahead streetlights to LED cobrahead streetlights in the Fairbanks Metropolitan Area Transportation System area. This represents the second phase of the system's conversion to LED lighting. Both cities previously installed 1,600 LED streetlights. The resulting energy use reduction was more than 50 percent. The bid documents note that responders are requested to submit bids for LED fixtures manufactured by Acuity Brands Lighting, GE Lighting Solutions, Lighting Science Group and Philips Lighting or approved equivalents.

 

Illinois bill signed authorizing $1.6B in state transportation projects

Road, rail and transit projects in Illinois totaling $1.6 billion were authorized Tuesday through the signing of a bill by Gov. Pat Quinn. The Illinois Department of Transportation can now move forward with projects throughout the state. The bill funds the second stage of the state's Illinois Jobs Now! Capital program. An additional $93.8 million is headed to Chicago for road and bridge projects there. Among them are a $36.2 million project to separate the road from the railroad on a 25th Avenue intersection that has proven to be dangerous. Another $3 million will be set aside to improve the 35th Street pedestrian bridge. The Wells Street Bridge over the Chicago River also will get steel work rehab, $392 million will help reconstruct the Red Line's North Branch and upgrade a portion of the Purple and Blue lines. 

 

Check out these recent awards:

• URS Corporation received a $129 million contract from the U.S. Navy to deliver its construction services for the land-based Aegis Ashore missile defense program at the Pacific Missile Range Facility, Barking Sands, in Kauai, Hawaii.
• Ray Group International LLC was awarded a $4.9 million contract by the Veterans Affairs Department to support the open source community that is contributing software code to the VA and Defense Department integrated electronic health record system.
• Brown Reynolds Watford was awarded a contract for $304,200 by the City of Brownwood, Texas, for architectural and engineering services for a fire station design.
• Insituform Technologies USA, LLC, a subsidiary of Aegion Corporation has been awarded a $6.3 million contract from the City of Springfield, Missouri for the rehabilitation of more than 114,000 feet of small-, medium- and large-diameter sewer pipelines.
• LAZ Parking, has won final approval, along with Australian financiers, to manage Ohio State University parking operations, with a $483 million upfront payment to the university over a 50-year contract.
• HDR Inc. was winner of a $1.47 million contract from the Amarillo (Texas) City Commission to handle design and construction engineering for a pipeline that will take water from the Northeast 24th Avenue to a point near Southeast 34th Avenue and Osage Street.
• Northrop Grumman Corp. was awarded a $782 million sole source contract by the U.S. Air Force to continue operating an airborne communications relay system in Afghanistan through September 2015, pushing the total value of the project to $1.7 billion.
• Muniz Concrete and Contracting Inc. was awarded a contract from the city of Austin (Texas) worth $3.5 million for Americans with Disabilities Act sidewalk and ramp improvements.
• Science Applications International Corporation (SAIC) was awarded a prime contract with a one-year period of performance and a contract value of approximately $37 million by the U.S. Army/Research Development and Engineering Command Intelligence and Information Warfare Directorate to provide Vigilant Pursuit (VP) system design, production, testing, delivery, spares, new equipment training and field service representative services in support of the U.S. Army Multi-functional Teams (MfT). Work will be performed primarily in Charleston, SC, Alexandria, Va., and Aberdeen, Md.
• ReconRobotics, Inc. has been awarded a $13.9 million contract by the U.S. Army's Rapid Equipping Force for up to 1,000 miniature, throwable, mobile robots. The Indefinite Delivery, Indefinite Quantity (IDIQ) contract will streamline the purchasing process for deploying Army and Marine Corps units and speed delivery on the company's pre-priced micro-robot systems and accessories. 

• Booz Allen Hamilton has been awarded a five-year, Cost Plus Fixed Fee contract valued at $73.1 million to support the U.S. Department of Energy Advanced Research Projects Agency with scientific, engineering, technical, professional, financial and administrative assistance.

Pennsylvania 33rd state to pass legislation allowing P3s for transportation projects

Transportation projects such as the need to repair bridges and construct new roads, got a boost from the Pennsylvania State Legislature, which recently approved a bill that allows public-private partnerships (P3s) for such projects in the state. Although the state is still facing a multi-billion-dollar transportation shortfall, the P3 legislation could mean large projects that have been put on hold could be back on the drawing boards.

The legislation allows private sector firms to propose new highway projects and gives state and local governments more flexibility to use private firms to design, construct, finance and manage roads.

Proponents say the bill will allow the state to move forward with bridge construction and repair, as the state has more structurally deficient bridges than any other state in the country. Additionally, about a quarter of its state-owned highways are in very poor condition. Pennsylvania now becomes the 33rd state in the nation to pass legislation authorizing the use of P3s for transportation projects.

The process would include a panel reviewing and approving projects, and then the legislature would be allowed 20 days to veto a suggestion from the panel.

Illinois

• John Wood Community College in Adams County is seeking bids for replacement of concrete walkways.
• North Riverside Armory in Cook County is seeking bids for renovation of facility maintenance shop #3.
• The Illinois Department of Transportation is seeking bids for chiller replacement and HVAC system upgrade at its District 3 Headquarters in Ottawa in LaSalle County.

Kansas

• The Osawatomie State Hospital is seeking bids for reroofing the Special Services Building and reroofing of canopies.
• Kansas State University is seeking bids for high-performance compute cluster nodes.

Missouri

• The Missouri Department of Corrections is seeking bids for janitorial services for offices located at 2002 Warren Barrett Drive, Hannibal, Missouri, that include approximately 11,552 total square feet.
• The Missouri Department of Corrections is seeking bids for cable/satellite television service for its Southeast Correctional Center.

Colorado

• The Colorado Department of Human Services is seeking bids for upgrades to the existing fire alarm system at the Colorado State Veterans Nursing Home in Rifle, Colorado.
• The Colorado Commission for the Deaf and Hard of Hearing is seeking bids for Legal Auxiliary Services that provides auxiliary services to the Colorado State Courts, probation and court ordered treatment and therapy. Auxiliary services include sign language interpreters, Communication Access Real Time Translation (CART) providers as well as assistive listening devices and systems.

Nevada

• The State of Nevada Department of Administration, Buildings and Grounds, is currently seeking bids from vendors to provide a trailer-mounted Fuel Polishing System.
• The State of Nevada Department of Public Safety, Highway Patrol Division, is seeking bids for Automatic Emergency Vehicle Identification Transmitters.

Indiana Gov. Mitch Daniels (top left), whose term expires in January of next year, has been selected to serve as the 12th president of Purdue University, succeeding France A. Cordova, who is leaving July 15 and will be replaced in the interim by Provost Timothy Sands. Denton (Texas) County Commissioner Bobbie Mitchell (top middle) was recently elected chair of the Executive Board of the North Central Texas Council of Governments (NCTCOG). Susan Swart (top right), State Department chief information officer since 2008, is stepping down to become the CIO of the International Monetary Fund (IMF), where she will also serve as the associate director of IMF's Technology and General Services Department. The Crossett (Arkansas) school district has hired Tommy Tyler, former assistant superintendent of the Monticello School District and former superintendent of the Fouke School District, as its new superintendent. Dale K. Nash, CEO of Alaska Aerospace and former director of launch operations at NASA's Kennedy Space Center in Florida, has been named executive director of the Virginia Commercial Space Flight Authority, replacing Billie M. Reed, who has served as executive director since the authority was established in 1995. Lee Saunders, secretary-treasurer of the 1.6 million-member American Federation of State, County and Municipal Employees, has been elected as the group's first new president in more than three decades, succeeding longtime President Gerald McEntee. Jeff Moseley (middle right), consultant for Opportunity Houston and former president and CEO of the Greater Houston Partnership, has been appointed as a member of the Texas Transportation Commission, which oversees the Texas Department of Transportation. University System of New Hampshire Chancellor Edward MacKay (middle center) plans to retire next spring after having served as chancellor for three years and after having worked for the university system for more than 36 years. Pascagoula Port Director Mark McAndrews (middle left) has assumed the chairmanship of the American Association of Port Authorities' Gulf Caucus, representing the ports on the Gulf of Mexico - Texas, Louisiana, Mississippi, Alabama and Florida. Mark Porter, superintendent of South Washington County (Minnesota) Schools, has been offered the post of superintendent of the Florida Keys schools, and will replace Superintendent Jesus Jara, whose term expires in January of next year. California Gov. Jerry Brown has appointed Adelina Zendejas, former data processing manager III at the State Board of Education, as assistant secretary of broadband and digital literacy at the California Technology Agency. Henry Porretto, who has served as interim chief of the Galveston Police Department since July, has been named police chief of the Island City. Robin S. Rosenbaum (bottom left), a federal magistrate in Fort Lauderdale since 2007, has been confirmed by the U.S. Senate as South Florida's newest federal judge, replacing U.S. District Judge Alan S. Gold in Miami. Texas Tech University President Guy Bailey (bottom center), has been confirmed as the lone finalist for president of the University of Alabama, his alma mater. Dr. Marcia Lyles (bottom right), superintendent of the Christiana School District in Delaware for the last three years, has been offered the job of superintendent of the Jersey City school district in New Jersey. William Hite Jr., who has headed up the Prince George County schools in Maryland since 2009, has been selected as superintendent of the Philadelphia schools, replacing former Superintendent Arlene Ackerman, who resigned last summer. Mike Calvert, dean of humanities and social science at Butler Community College in Kansas, will become the new president of the Central Community College Grand Island (Nebraska) campus on Aug. 6, taking over for retiring President Lynn Black. Walt Griffin, former director of high schools in the Seminole County schools in Florida, has been named superintendent, replacing Bill Vogel, who is retiring after 44 years in public education in Florida.