In spite of reduced funding, there are hundreds of construction projects on college campuses throughout the country. The new facilities are definitely needed, but one might wonder how these institutions of higher learning are managing to spend millions at a time when public funding is being curtailed and the nation's economy is taking its toll on every industry.

Community college systems and other two-year universities have enthusiastically endorsed public-private partnership (P3) engagements. The school systems desperately need more classrooms and many are adding student housing. The much-needed facilities under construction will definitely help retain students and recruit new ones. 

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RFP has been issued for private firm to manage state's consolidated facilities

George White

The Commonwealth of Pennsylvania, already involved in consolidation of its data centers in recent years, is now poised to issue a contract for a private sector firm to manage those centers. Pennsylvania recently issued a request for proposals (RFP) seeking a private sector firm to manage its six data center facilities that it is whittling down to two. While one of those two centers already is privately operated, that contract will expire at the end of 2014. The second data center is currently being operated by state employees.

The consolidation is part of a 2007 Executive Order that was aimed at consolidating Pennsylvania's $1 billion information technology portfolio. A recent strategic plan for the state's technology needs, introduced by George White, Pennsylvania's Chief Information Officer, includes outsourcing as an option. With public-private partnerships in many cases offering more expertise than can be provided by state employees as well as less costly solutions, the option for allowing private entities to own, manage and update IT systems is becoming more attractive.

White notes that the state is exploring several different models for outsourcing, aimed at saving money. The RFP seeks information on proposals that include how the vendor plans to set up and connect the current data center, along with what security provisions would be implemented and what the plan includes regarding disaster recovery and continuity in the event of a disaster. Responses to the RFP are due March 8 of next year.

Proceeds for campus construction, office buildings, mental health facilities

Tim Jones

Missouri lawmakers are expected when they meet in January to discuss a new bond program of up to $1 billion, with the bond proceeds to be used for construction on college campuses, state mental health institutions and office buildings. Low interest rates, low construction costs and having paid off the last round of building debt, combined with a longstanding need for capital maintenance and improvement projects, have created a perfect storm for the state to again take care of its construction needs and maybe even some road projects. After having paid off the last round of bonds, those millions of dollars dedicated to repayment of those funds are now available for the next round of bonding.

The bond issue would be similar to one passed in 1982 by Missouri voters, which provided $600 million to pay for state building improvements and upgrades to parks, water and wastewater projects, highways, rail and other improvements. The bonds were issued over five years and paid back in 25.

House Speaker Tim Jones said one of the positives regarding a bond proposal is that it would "put people to work almost immediately" on new construction projects and upgrades and improvements. Jones said one of the responsibilities of the state to taxpayers is to maintain its resources. He said the question now is, "Is the time finally right to pursue this issue?" He said he is confident most residents of the state would back a bond proposal.

Depending on whom you ask, the bond issue could go before voters as early as April 2013, while some members of the legislature are not ready just yet, and predict the bonding proposal would be better suited for sometime in 2014. There is also some discussion on whether the bond issue should separate building construction from transportation projects.

P3C conference in Dallas features public-private partnership opportunities

University of Rhode Island seeks P3 for shared nursing school

A public-private partnership could be the solution to the flailing new nursing school project in Providence at the University of Rhode Island. University President David Dooley is hoping for a private developer to finance construction of a nursing facility in the Knowledge District. The University of Rhode Island and Rhode Island College would share the facility and lease it from the developer at an annual cost of $4.8 million to $5.2 million over a 20-25 year lease. The state legislature, however, would have to commit the funds for the lease. Rhode Island College President Nancy Carriuolo said she expects discussions to continue, whether the project is funded by a public-private partnership or a bond issue. The proposed project calls for an approximately 125,000-square-foot facility that would serve as a combined nursing center for the two institutions, which they say would save between $15 million and $20 million because it would serve both institutions.

Seven Tennessee community colleges partner with state on IT projects

Tim Carroll

More than half of Tennessee's 13 community colleges have chosen to partner with the state in moving major systems to the cloud. The state's Office of Information Resources is now serving as a central cloud hosting provider for those colleges. The agreement, according to Tim Carroll, assistant vice president for information technology at Roane State Community College, says the agreement ensure the community colleges have greater dual power and Internet sources, physical and data security, fire suppression, heating and cooling and generator capacity. "There is no way we could replicate the types of benefits that we gained by moving to this data center on our campuses," Carroll said. "We just simply could not have afforded to do it." The colleges chose to partner with the state because it offered to work with them on their unique consolidated effort. With the state and the colleges on the same network, redundancy was already built in and traffic did not have to go outside state lines. Also, each college saved about $300,000 in capital expenditures by working with the state, as hardware did not have to be replaced. The benefit to the state is that it had additional floor space in the data center and can recoup some of its costs through that space. Without hardware, environmental and electrical costs, college personnel can be used for other tasks.
 

Center at University of Florida in line for $50 million makeover
The O'Connell Center at the University of Florida is due a $50 million makeover, with the university to decide Thursday if it will pony up $10 million of the costs. Donations would cover the remainder of the costs. The renovations include new seating, club space, a new entrance and additional concessions and retail space. The center was built in 1980 and has undergone a number of renovations since then. Other possible renovations include replacing retractable bleachers on the floor with permanent seating and adding club seating and boxes. The building's infrastructure would be upgraded and audio-visual systems added. The construction timeline would be dictated by the fundraising success.

 

Wichita State University issues RFP to develop 700-bedroom student housing 

Wade Robinson

Wichita State University is seeking bids from developers for its first new residence hall construction since the 1960s. Wade Robinson, Vice President for Campus Life and University Relations, said the new student housing will attract prospective students and their parents to the university. University officials are seeking developers to build a 700-bedroom residence hall for campus freshmen. When completed, two other housing facilities - Brennan Halls and Wheatshocker Apartments - will no longer be used for student housing. Officials hope to have the new facility available for fall 2014. The new hall will replace Fairmount Towers, which currently houses freshmen. Robinson said the Towers would then be reserved for upper classmen. Designed with four individual bedrooms, two shared bathrooms and one common area for units, the facility will also feature a dining hall, lounge areas and laundry on each floor. There also will be two classrooms with a 50-student capacity in each. The price tag for the facility is between $50 million and $55 million. It will be paid for through revenues from rental fees.

 

Los Angeles seeking developer for proposed new four-star hotel

Antonio Villaraigosa

A request for proposals (RFP) for developers for a proposed new hotel to be located by the Los Angeles Convention Center has been released by the city of Los Angeles. Bids are due Jan. 4 of next year. Mayor Antonio Villaraigosa said such a development will not only mean more tourism and jobs, but also additional revenue for services for city residents. Officials are hoping to attract a four-star hotel with LEED Silver certification. The downtown area currently has more than 1,600 hotel rooms within a half mile of the convention center. Other large California cities have thousands more than Los Angeles. The city has three plots of land on which it is hopeful that a new hotel will be built. The hotel, in conjunction with the overhaul of the Convention Center, would help attract more tourists, along with the creation of the new Farmers Field stadium. The city is seeking developers with a proven track record of designing, financing and constructing large-scale urban hotel developments. 

GSA announces plans for new Federal Bureau of Investigation campus
The U.S. General Services Administration has announced its plans to seek a private developer for the possible relocation of the Federal Bureau of Investigation (FBI). The agency plans to move the FBI out of its home in the J. Edgar Hoover Building on Pennsylvania Avenue in Washington, D.C., to a new Washington-area campus. The plan is in direct response to the President's call for reducing the FBI footprint and cost of its real estate. GSA is searching for a private development firm for two major parcels of land in downtown Washington, D.C.  

Chicago mayor slowly putting airport privatization before public, council
Chicago Mayor Rahm Emanuel is facing a Dec. 31 deadline, but plans to go as slowly as possible with his proposal to study privatization for the Midway Airport. A similar project previously floated included a $2.5 billion deal with a 99-year lease. That proposal failed because of a lack of financing. Emanuel is seeking a much shorter lease engagement and wants the city to retain an ownership interest in concessions and parking to protect consumers from higher food, retail and parking rates. Emanuel's plan is to give city officials and the public more time to consider a possible deal and is reserving judgment on the marketplace until all proposals are considered.  

Philadelphia considering RFP for management of convention center

Gregory Fox

Privatization of management of the Pennsylvania Convention Center is being reviewed by a consultant recently hired by the Convention Center Authority. The firm, Public Financial Management Inc. is reviewing responses to proposals to privatize some of the center's functions. Authority Board Chair Gregory Fox said the board hired an independent consultant to not only evaluate the responses it has received, but also to study the board's options. He said hiring a consultant provides "a fresh look and a different perspective." The board issued a request for qualifications after a $786 million expansion was completed. Five responses were received from companies with experience in convention business, including facility maintenance, operations and management. Once the submissions are reviewed, the firm will report to the board on whether it recommends going forward with a request for proposals for operations management of the facility. "The board believes it has a fiduciary duty to explore all options concerning the activities of the Convention Center and how to best serve our customers," said Fox.

Nebraska city seeks bids on $43 million power plant retrofit

Bids will be received through April of next year as the city of Fremont, Nebraska, issued an RFP relating to a $43.3 million power plant retrofit project. The contract is expected to be awarded in May. The project includes emission controls for mercury, acid gases and fine particulate matter. It is hoped it will help bring the city's coal-fired plant into compliance with Environmental Protection Agency standards. The project likely will be paid for through bonding, but the city Utility Department also has $1 million to $2 million in reserve funds that are available as well. The city also is taking into consideration the possibility of converting the existing plant to natural gas. But that will likely require an investment of about $12 million, and nearly doubling the cost per megawatt. Officials have concluded that for now, it is more feasible to stay with coal generation. 

New Mexico town accepts grant toward water system improvements 

Nora Barraza

The town of Mesilla, New Mexico, has accepted a $30,000 grant from the Border Environment Cooperation Commission and hopes to leverage that into more than $500,000 in other funding to address water system improvements. Town officials hope to find a way to loop the town water system to improve both the efficiency and safety of the system. The total cost of the project is more than $535,000. Once certified, the project can likely qualify for funding of close to 80 percent of the project costs, with assistance from the New Mexico Finance Authority. Three new water line loops would be constructed, with more than 12,000 linear feet of new water line included and 26 new water connections. The new lines would connect the existing water system. Mesilla Mayor Nora Barraza called the grant "a crucial amount of funding," as the town - like many others across the country - has been dealing with tight finances because of the recession. Town officials say the planning and design study could start early in 2013 and take six months. If the additional funding is received, construction could begin within the next year and take another 12 months to complete.

City in Texas approves $139 million water, wastewater master plan
City officials in Killeen, Texas, have approved a $139 million water and wastewater management master plan which provides a roadmap for infrastructure growth and maintenance in the city for the next two decades. The plan is just short of 75 projects and City Council expects the projects, which must be approved individually by Council, will be paid for through sewer bonds. The city passed a similar plan in 2007 and all of those projects have been completed. Thus, a new plan is necessary to issue more bonds. More than 40 percent of the projects are for rehabilitation and upgrades to existing infrastructure.

Ohio Dept. of Transportation seeks private partner for Cleveland Innerbelt Bridge 

Jerry Wray

For the first time ever, the Ohio Department of Transportation (ODOT) is seeking a design-build-finance (DBF) approach for the construction of a major transportation project in Ohio. ODOT officials are seeking a private sector firm to build the new eastbound Innerbelt Bridge in Cleveland and demolish the current structure. The plan is for the private firm to design and finance the bridge, with the state paying back the costs over time. "We must innovate and we must seek out new ways of generating money in order to deliver these large transportation projects that communities want and need in order to continue our state's economic recovery and create jobs," said ODOT Director Jerry Wray. Last year, the Ohio Legislature approved legislation to allow ODOT to participate in public-private partnerships (P3s). Teams interested in participating in the request for qualifications (RFQ) have until Dec. 21 to respond. Those teams qualified for the project will then likely be whittled down to three and will be asked to develop technical and financial proposals to be submitted to ODOT. Officials expect to name a winning team by the summer of next year. The project includes replacing the span over I-90 with two new bridges. The number of lanes will be expanded from eight to 10. The team chosen for the project will be responsible for a portion of the $330 million construction costs. Once the first westbound bridge is completed, construction could start in late 2013 or early 2014. Officials say by seeking a P3 project, the construction, which had been put off due to lack of funding, can now go back on its previous schedule.

Free listings offered for RFPs to public sector entities, nonprofits

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P3 drawing local support for construction of Brent Spence Bridge

Looking to get construction started on the Brent Spence Bridge that spans the Ohio River between Covington, Kentucky, and Cincinnati, Ohio, a group of organizers is calling for creation of a public-private partnership for the project. The Build Our New Bridge Coalition is running radio and television ads in support of a P3 they say will accelerate the construction and save $18 billion in fuel and congestion costs if the project starts in 2014. The current schedule is for the project to start four years later than that. But backers of the project say a P3 is a viable financing option for the $2.7 billion project. The bridge project has been identified as the region's top priority among transportation projects. It is nearly three decades old and has been tabbed as functionally obsolete. Business leaders have promoted construction of the bridge and the group of backers has indicated it will spend $1 million on advertising to run through January 2013 in support of the project. The group also will face finding a Kentucky lawmaker willing to sponsor legislation enabling a public-private partnership. 

 

Illinois Housing Authority heads partnership to buy delinquent loans

Mary Kenney

The Illinois Housing Development Authority headed up a public-private partnership recently that put in one of the winning bids in an auction of delinquent mortgages held by the Federal Housing Administration. Some $25 million of federal hardest-hit funds awarded to the state will be used by the Mortgage Resolution Fund to buy nearly 325 delinquent mortgages among Chicago-area properties. Valued at about $40 million, the loans have an unpaid principal balance of approximately $62 million. Owners of the mortgages will have another chance in early 2013 when they are contacted by a new mortgage servicer that will offer the option of writing down the principal balance of the loans and setting up more affordable payment terms. "We want to help as many borrowers as possible achieve long-term stability so they can stay in their homes without the fear of foreclosure," said Mary Kenney, executive director of the Illinois Housing Development Authority. The homeowners who qualify will pay no cost for the loan modifications. The nationwide note sale involved some 9,400 loans and bids were submitted to the U.S. Department of Housing and Urban Development. Another 10,000-15,000 distressed loans will be sold during the first quarter of next year and 40,000 for the duration of the year.

 

Ohio boulevard project could move forward with public-private financing
A combination of public and private financing could provide a solution to the stalled Opportunity Corridor, a proposed 2.77-mile boulevard between I-490 and University Circle in Cleveland, Ohio. The preliminary engineering on the project is continuing, but funding for the $220 million project is not available. In addition to providing a quicker route to the Cleveland Clinic and University Hospitals, the boulevard would also spur development in some under-developed areas. The Ohio Department of Transportation has already spent $4.5 million on engineering and has another $11 million going into the design process. But unless a funding source is found, the project could be delayed for nearly 20 years. So ODOT is joining with other stakeholders to seek alternative funding sources, including a public-private partnership for financing. ODOT and local officials hope to have a financing proposal solution by late 2013.

 

Texas 

• The city of Denton is seeking bids for substation and transmission line easement site preparation services.
• The city of Cedar Park is seeking bids for wastewater line improvements for Ronald Reagan and County Road 180, including construction of approximately 1,000 LF 8-inch SDR 26 wastewater line, 1,300 LF 8-inch C-900 wastewater line, 3,100 LF 12-inch SDR 26 wastewater line, 300 LF 8-inch C-900 water line and 60 LF 30-inch storm sewer line.

Ohio

• The Ohio Department of Job and Family Services has issued a request for qualifications for rapid response services, for the purpose of obtaining multiple vendors with the experience, knowledge and capacity to plan, coordinate and deliver rapid response services quickly, competently and efficiently in one or more Ohio counties. No contracts will be awarded as a direct result of this RFQ. Through this RFQ process, ODJFS will compile a list of pre-qualified vendors that may be used by local areas to expedite the procurement of rapid response services for displaced Ohio workers.
• The Ohio Department of Public Safety is seeking bids for trained narcotics detection/general patrol (dual-purpose) and/or, trained explosive detection/general patrol (dual-purpose), and/or trained narcotics detection (single-purpose) and/or trained explosive detection (single-purpose) canine(s), handler training and consultative services.

California 

• The Board of Directors of the 32nd District Agricultural Association is seeking bids for Web Development Services from Monday, April 1, 2013, through Tuesday, March 31, 2015, with three 1-year options to renew. The agreement options are to be exercised independently and at the sole discretion of the District. The site of the work to be performed will be at the Orange County Fair & Event Center for the 32nd District Agricultural Association.
• The Board of Directors of the 32nd District Agricultural Association is seeking bids for the purpose of conducting parking study services at the Orange County Fair & Event Center. It is anticipated that the majority of the study will take place March through September, 2013.

Pennsylvania 

• The State System of Higher Education is seeking bids for renovation of the Montgomery Apartments bathrooms. The project includes five buildings with 16 bathrooms each and one building with 15 bathrooms.
• The Department of Public Welfare is seeking bids for refurbishment of the floors in Ward A-1 Shower and Locker Rooms, Building 51 (Forensic Unit) at Norristown State Hospital in Norristown, Pennsylvania.

South Carolina 

• The Information Technology Management Office is seeking bids for traffic signal control software and equipment.
• The University of South Carolina is seeking bids for Meiji Microscopes, Stereomicroscopes and Labomed CXL binoculars.

Carol Probstfeld (top left), vice president for business services at State College of Florida, has been named acting president of the university, taking over for Jack Crocker, vice president of academic quality, who plans to retire at the end of the year and who replaced outgoing president Lars Hafner, who resigned. Superintendent Russell Sapaugh (top middle) of the Texarkana (Arkansas) School District, whose contract ends June 30, 2013, will retire at the end of the school year. Ann S. Bishop (top right), executive director of the Employees Retirement System of Texas since 2004, has been named Gov. Rick Perry's new chief of staff, replacing Jeff Boyd, who has been appointed to the Supreme Court of Texas. Gov. Chris Gregoire, who will soon be end her term leading Washington State, has appointed her daughter, Courtney Gregoire, a lawyer who has worked as a legislative director in the U.S. Senate and deputy chief of staff for the U.S. Department of Commerce, to the board of the Seattle Community Colleges. Gov. Jerry Brown appointed Lt. Col. David Kauffman as the first independent inspector general of the California Military Department, which includes the National Guard. Joseph Silver, president of Alabama State University, has been placed on leave for reportedly trying to fire two officials, one of whom has since been named interim president. President Barack Obama has appointed Waded Cruzado (middle right), president of Montana State University and former New Mexico State University provost and interim president, to the Board for International Food and Agricultural Development, which advises United States Agency for International Development on agriculture and higher education issues related to food insecurity in developing countries. San Antonio attorney John T. Steen Jr. (middle center) has been named Texas' 108th Secretary of State, replacing Hope Andrade, who resigned the post she had held for four and one-half years. Mario Acosta (middle left), who most recently was the deputy fire chief of the Woodinville (Washington) Fire and Rescue District, has been named fire chief for New Mexico State University. Will Seccombe, chief marketing officer who has been acting head of Visit Florida, the state's official tourism marketing arm, has been named the agency's new president and CEO, replacing former CEO Chris Thompson, who resigned. John Barry, a retired Air Force general who took over as superintendent of the Aurora Public Schools in 2006 has announced he will step down at the end of the current school year, even though his contract does not end until 2014. Clarence Anthony, former mayor of South Bay, Florida, has been named executive director of the National League of Cities (NLC) and will replace retiring NLC head Donald Borut in January 2013. Mary Schapiro will step down as chair of the Securities and Exchange Commission next month and will be replaced by Elisse Walter (bottom left), one of five SEC commissioners. North Carolina Supreme Court Justice Patricia A. Timmons-Goodson (bottom center) will resign her seat on the state's highest court, although her eight-year term runs through 2014. Ivan Allen (bottom right), president of Middle Georgia Technical College since 2005 and interim president of Central Georgia Technical College in Macon, has been chosen by the Board of the Technical College System of Georgia to be the college's new president. Rhode Island Gov. Lincoln Chafee has named William J. Parsons, a longtime state economic development official and managing director at the Rhode Island Economic Development Corp., to lead the economic agency. Jim Lewis, who has served as Atascadero (California's) assistant city manager since 2004, has been chosen as the new city manager for Pismo Beach, replacing outgoing City Manager Kevin Rice. Jeanne Barker, associate director of the Lebanon (Tennessee) Special School District, has been selected as the new director of schools to replace Wayne Miller, who is stepping down from that position.