Americans are accustomed to being near the top in any type of economic ranking, but recently a World Economic Forum report ranked the United States 24th worldwide in overall infrastructure stability. That is shocking news to most Americans. Even more shocking, however, is the cost of upgrading America's critical infrastructure. Billions of dollars are needed immediately and without immediate attention, the nation will incur even more costly emergency repair work, an abundance of lost time related to the movement of goods and people as well as significant economic decline.

Local, state and federal government leaders are exploring options in infrastructure banks as they scramble to identify funding sources for critical public projects.  

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Public-private partnerships could be part of solution for bridging funding gap

Robert St. Onge

The state of South Carolina is in need of nearly $49 billion in new revenue to meet its transportation needs over the next 20 years, and public-private partnerships could be part of the mix. An infrastructure task force recently reported that during the next two decades, that amount of funding will be necessary to fund highway repairs and maintenance, bridge replacement and mass transit needs.

According to the task force report, the state will need $17 billion for highway system maintenance, $22 billion for highway and interstate upgrades, $3 billion for bridge replacement and $3.9 billion for mass transit. That's the bad news. The worse news is that state transportation officials are expecting only about $19 billion in revenue during that 20-year period, creating a funding gap of almost $30 billion.

Among the possible sources of new revenue mentioned in the report are public-private partnerships (P3s). While South Carolina law allows for the use of P3s, the report notes that the law "is in need of refinement." Highway P3s, the report states, usually involve turning over tolling rights and other concessions to a private sector entity in exchange for up-front funding. The upside of such arrangements is that the state's financial liability is thus limited. Thus, P3s offer a "viable funding alternative" for specific projects.

Like many other states, South Carolina depends heavily on its state motor fuel tax as a source of transportation funding, but the rate in the state has not increased since 1987. Higher gas prices have people staying off the roads and not buying gasoline and more efficient vehicles also have cut into gasoline sales.

While the task force recommends other possible sources such as increases in driver's license and auto registration fees and other surcharges and permit fee increases, public-private partnerships would not put the burden of raising new revenue on the backs of taxpayers.

Secretary of Transportation Robert St. Onge has said that without adequate financial resources, the role of the Transportation Department will be to "manage the decline of the highway system." This report indicates Onge's statement represents the recipe for disaster that cannot be ignored. " The consequences of inaction are clear and predictable: deterioration of roads and bridges; reduced highway safety; the posting or closing of bridges; increased traffic congestion; increased vehicle upkeep; and, a loss of economic competitiveness." 

Increasing size of contracts could level playing field with other small businesses

Anie Borja

Women business owners are expected to get a bigger slice of the federal contracting pie following the recent passage of legislation that removes financial limits on their contracts.

The current Women-Owned Small Business Federal Contract Program requires a 5 percent set-aside of all government contracts for women. But, the program also limits the size of the contracts that those women-owned businesses can receive. Those limits include $6.5 million for contract awards in manufacturing and construction and $4 million for contracts for the remaining 300 industries that are under the program.

Anie Borja, executive director of the National Women's Business Council, said increasing the threshold for women-owned businesses could prove to be a "tremendous resource" for those businesses. She said the change in the contract size those businesses can receive "helps increase access to markets and has a positive impact on the economic growth of women-owned businesses."

Some members of the Senate Small Business and Entrepreneurship committee released a statement noting that the new directive puts women-owned businesses on "a level playing field with the other federal small businesses."

"Women-owned small businesses have yet to receive their fair share of federal contracting dollars, and as the fastest growing segment of our economy, women-owned small businesses will play a critical role in helping our nation recover from the recent recession," said Sens. Mary Landrieu of Louisiana and Olympia Snowe of Maine.

State judge says only full legislature can approve privatization, not commission

A state judge's ruling that Florida cannot privatize the provision of prison health care using a budget process instead of a vote by the State Legislature has left state lawmakers facing a $90 million deficit they had counted on from estimated savings. The state's attempt to privatize inmate health care is not outside the legislature's powers, ruled a county circuit court judge, but the process by which the privatization occurred was.

Politicians feared taking the proposal before the full legislature would have been voted down. So instead, the Legislative Budget Commission authorized the privatization. "While the State of Florida does have authority to privatize prison health care throughout the state, the full Legislature must do so by passing the appropriate funding mechanism specifically directed to that goal,'' wrote Judge John Cooper in his 12 ruling. Cooper said the decision to privatize was that of the legislature alone and not the budget commission.

The commission approved the privatization and the budget amendment even allowed a $259 million contract with a Nashville-based provider. That contract has since been rescinded. Gov. Rick Scott and the Florida Department of Corrections have indicated they will appeal the judge's ruling.

Pennsylvania school district feasibility study will address renovations

Shellie Feola

The Pottsgrove School District in Pennsylvania is planning a feasibility study regarding a possible multi-million-dollar renovation of its high school. This comes on the heels of $9 million already being dedicated by the district for repair work. But, that repair work is in the emergency caliber and includes such items as replacement of failing air conditioning chillers, roof repairs and other structural projects. Some of the projects outlined by Acting Superintendent Shellie Feola include adding space and a classroom to the library, creating revamped science classrooms and labs, providing for security and safety at the school entry way, replacing bleachers and hardwood flooring in the gym, installing additional seating for the auditorium and renovating the cafeteria. Officials are not sure how much their renovations will cost, but said if the project does not go over $30 million, it may be completed without raising the tax rate. They are hopeful that the feasibility study will at least arm them with a variety of options available.

Seven school construction bond measure pass in San Diego elections

Seven school district bonds in San Diego, California, were passed during November's general election, leading to a number of projects to construct new schools or rehabilitate old ones. As a result are the following:

• San Dieguito Union High School will be able to sell $449 million in construction bonds for improvements on 10 campuses and to build a new middle school. Among the improvements are new physical education facilities, modernized science and technology labs and replacement of some portable buildings with new multilevel classroom facilities.
• The Dehesa School District passed a $3 million bond issue that will allow for classroom upgrades that include new computers, construction of a new science lab and an outdoor pavilion for physical education.
• San Diego Unified School District will sell $2.8 billion in bonds to pay for new technology equipment, upgrade current infrastructure and build new facilities.
• Chula Vista Elementary School District will issue $90 million of bonds to pay for repairs, renovations, new buildings and upgrades to classrooms and other facilities. The bonds will also mean new technology, upgrades to heating systems and energy savings improvements.
• South Bay Union School District will sell $26 million in general obligation bonds to pay for elementary classroom and school renovations, safety improvements, computers and technology access and roof, plumbing and HVAC repairs at 13 campuses.
• Cajon Valley Union School District will renovate, repair and construct elementary classrooms and ancillary school facilities such as gyms, purchase new computers and upgrade related technology equipment.
• Grossmont-Cuyamaca Community College District will use $398 million to upgrade career training facilities for science, medical, public safety and other in-demand fields. It will also create a Veterans Support Center on each campus, update technology in classrooms, libraries and science labs and improve access for persons with disabilities.

Michigan's Oakland University approves $29.9 million student housing proposal

John Beaghan

The Board of Trustees of the Oakland University in Michigan recently approved a $29.9 million housing initiative, hopeful of solving some of the lack of housing space on the university. Housing has been so scarce, in fact, that university officials have housed students in a local hotel. Although the school in the past has been a commuter school, the enrollment has continued to increase. The new housing facility is expected to have 550 new beds for university students. "By expanding our housing, we can get students from farther away," said John Beaghan, vice president of finance and administration. Officials expect the project could be completed by fall 2014 so those students no longer have to be housed off-campus. The building is expected to be built to Leadership in Energy and Environmental Design (LEED) specification, ensuring energy efficiency and energy savings.

 

Free listings offered for RFPs to public sector entities, nonprofits

Massachusetts center seeking construction of new terminal

Bids are being sought by the Massachusetts Clean Energy Center for a $100 million New Bedford Marine Commerce Terminal. The facility would be located on a 18-acre site at the harbor. The new facility would provide berthing space for shipping vessels. It will also increase the city's competiveness as a medium-size port in the Northeast. The project is a collaboration between the city of New Bedford and the state of Massachusetts. Also supporting the project are the offices of Energy and Environmental Affairs and Administration and Finance and the departments of Environmental Protection and Fish and Game. The facility would allow vessels involved in delivering offshore wind components and barges that will serve as construction vessels for offshore wind projects. The new berth would allow ships up to 500 feet in length. The terminal would also provide new ability to serve oversized equipment such as rail cars and industrial-sized boilers. Bids for the project are due Jan. 23, 2013.

Marketing grants awarded to 73 recipients in cities in Nevada

Brian Krolicki

A total of 73 recipients will share $510,000 worth of state marketing grant funds in Nevada. The monies will be used to promote rural tourism in the state. All are required to provide a 50-50 match in funds or volunteer hours. Big winners in awards from the Nevada Commission on Tourism went to Virginia City, which garnered a grant of for its historic district and the Emigrant Trails center near Elko. Other funds went to the Nevada State Railroad Museum in Boulder City and to Fallon for promoting the Stillwater National Wildlife Refuge. Lt. Gov. Brian Krolicki, commission chairman, said the grants help rural areas of the state "accomplish vital projects that otherwise might not have been possible." The largest grant - $20,000 - went to the National Historic California Emigrant Trails Interpretive Center Foundation to continue contracts on three existing billboards and to establish two new billboards promoting the visitor's center that opened along Interstate 80 in June near Elko. The Virginia City Tourism Commission got $12,000 to develop a mobile application that will enable visitors to access information on their smartphones, tablets and mobile Web sites and offer real-time information on lodging, events, attractions, shopping and dining. Another $10,000 went to Nevada Silver Trails to work with a public relations firm on a comprehensive social media strategy and to provide social media training to its members. Friends of the Nevada Southern Railway Inc. were awarded $9,500 to promote a special event for children. Fallon Convention & Tourism Authority was awarded $8,000 to pay for production costs for an episode of "The Birdmen" television series, focusing on stories of hunting and wildlife biology. Indian Territory, an organization that promotes Indian cultural and special events, was awarded $7,200 to provide training to Nevada tribes and tribal members on national tribal tourism initiatives and projects.

Check out these recent awards: 

Chabert hospital officials talking to private sector firms about partnerships

Rhonda Green

Chabert Medical Center, a hospital of the Louisiana State University, could be partnering with private hospitals to continue operating while facing continuing budget cuts. The charity hospital, one of eight hospitals operated by LSU, would enter into a partnership that would be part of a long-term plan to continue operations in the face of state and Medicaid budget cuts. Those cuts have resulted in some layoffs and service cuts. CEO Rhonda Green said the partnership discussions have been with more than one entity. Chabert is not the only state hospital in talks regarding possible public-private partnerships. Because of Medicaid cuts by the federal government, cuts totaling $152 million have been ordered by the Louisiana Bobby Jindal administration and the LSU hospital system. Of that amount, Chabert faces cuts of $14.3 million. If those cuts occur, the hospital could face losing about one-quarter of its staff and services to the hospital's many poor or uninsured patients would be heavily curtailed. Those cuts could go into effect on Jan. 21, 2013. However, those cuts are on hold while the LSU hospitals discuss partnerships with private companies to take over some or all of their operations.

 

Indiana zoo considering public-private partnership

The Mesker Park Zoo & Botanical Gardens in Evansville, Indiana, could join about 80 other zoos across the country to enter into a public-private partnership (P3) for its operation. Facility director Amos Morris said use of a P3 would allow the facility to grow in the upcoming years. Morris said the city partnering with a nonprofit would likely offer the best way for the zoo to leverage resources. That could come in handy as the zoo is currently planning a new African animals exhibit and an amphitheater. Many facilities at Mesker are outdated, according to Morris, and some are "crumbling around the animals they hold." 

 

Bullet train could benefit from sovereign wealth funds, pensions, endowments

Jeffrey Morales

The most expensive public-works project in American history - California's proposed bullet train that would link some of the nation's largest cities - could turn to sovereign wealth (state-owned investment funds), pensions and endowments for financing the more than $50 billion project. These types of projects are attractive to these types of investors, who collectively have about $6 trillion in assets. The $68.4 billion high-speed train project that would link San Francisco with Los Angeles, is planning on having $10 billion in bonds available that are authorized by voters, $3.3 billion from the federal government and as much as $55.1 billion from private sources. "We have active interest in and outreach to sovereign funds and foreign consortia that are looking at us," said Jeffrey Morales, chief executive of the California High-Speed Rail Authority. Other potential investors in addition to sovereign funds include companies that will build and operate trains and stations, he said. Morales noted that pension funds have been "increasingly looking at infrastructure as an investment opportunity." California's project is the only currently active high-speed rail proposal in the country following Congress cutting off funds for those projects earlier this year. While the California Public Employees' Retirement system, the largest in the nation, voted last year to commit investments of as much as $800 million in industries including transportation, it has not committed any money yet to high-speed rail, nor has the California State Teachers' Retirement System.

 

Illinois 

• Maercker School District 60 is requesting qualified providers to propose energy conservation measures through a guaranteed savings contract on a performance contracting basis.
• The Illinois Capital Development Board is seeking bids from qualified vendors for a $4.688 design-build project for various improvements at Rend Lake Resort, Wayne Fitzgerrel State Park, Illinois Department of Natural Resources, including upgrading and expanding current facilities.  

Ohio 

• The Ohio Department of Job and Family Services (ODJFS) is seeking bids from experienced court reporting services vendors with current certification from the Ohio Department of Administrative Services as Ohio Minority Business Enterprises (MBE). The solicitation is to select one or more qualified MBE to provide stenographic court reporting services for administrative hearings conducted by ODJFS, and other stenographic services as requested by the ODJFS Office of Legal and Acquisition Services.
• The Columbus Metropolitan Library is seeking bids for cellular phone/data services.

South Dakota 

• The Office of Procurement Management is seeking bids from qualified contractors for independent auditing services. Proposals must cover all three plans - the South Dakota Retirement System, the South Dakota Retirement System Supplemental Retirement Plan and the South Dakota Retirement System Special Pay Retirement Program.
• The South Dakota State University is seeking bids for the privatized development of an upscale, contemporary-style apartment project.

 Pennsylvania 

• Shippensburg University is seeking bids for repainting of the water tower, including surface preparation, interior and exterior coating and disinfection of an elevated 1 million-gallon water tank.
• The Pennsylvania Department of Environmental Protection is seeking bids for the cleaning out and plugging of three abandoned gas wells about 1,800 feet deep in Jones Township in Elk County.

 Texas 

• The Legislative Budget Board(LBB) has issued a Request for Qualifications (RFQ) to pre-qualify vendors to assist the LBB in conducting a variety of performance reviews of Texas schools, charter schools and community college districts.
• The Texas Facilities Commission is seeking a Request for Qualifications to provide prime professional architectural/engineering services for construction material testing for the exterior envelope replacement of the Robert D. Moreton Building, located at 1100 West 49th Street, Austin TX.

Brandon Harris (top left), former director of the Information Resources Division at the Texas Commission on Environmental Quality, has been named chief information officer over the Texas Railroad Commission's Information Technology Division. Oklahoma Secretary of State Glenn Coffee (top middle), a former state senator who has served as Gov. Mary Fallin's chief budget negotiator since 2010, recently announced he is stepping down to pursue an opportunity in the private sector. Russlynn H. Ali (top right), an appointee who served during President Barack Obama's first term, announced she is stepping down as head of the U.S. Education Department's Office for Civil Rights and assistant secretary for civil rights. Ken Johnson, a Certified Public Accountant who was working in the private sector, has been named the new finance director for the city of Alamogordo, New Mexico. Yarmouth, Maine, Superintendent Judy Paolucci could be leaving the district she has served since 2009 after being named one of two finalists for the superintendent post in Leicester, Massachusetts. Jim Lewis, who has served as assistant city manager in Atascadero, California, for the last eight years, has been named to succeed Kevin R. Rive as city manager of Pismo Beach, California, starting in February of next year. Alan Johnson (middle right), who has served as executive director of the Palm Beach County, Florida, ethics commission, is leaving that post to become Chief Assistant State Attorney under State Attorney-elect Dave Aronberg. David Cagigal (middle center), who has been working in the private sector in IT leadership roles with a major oil company and a major manufacturing company, has been named new CIO for the state of Wisconsin. U.S. Sen. Jim DeMint (middle left), a staunch conservative from South Carolina, will resign before the new Congress is sworn in next month to lead the Heritage Foundation, a conservative think tank. The Plainfield, Illinois, School District 202 has named former Plainfield High School-Central Campus Principal and Associate Superintendent Lane Abrell to succeed Superintendent John Harper. John Park, city administrator for Highland City, Utah, has been appointed the new city manager for Cottonwood Heights, replacing current City Manager Liane Stillman, who is retiring. The city of Cedar Park, Texas, has selected James Mallinger, who has worked his way up the ranks in the department since joining in 1996 and who has served as both assistant fire chief and interim fire chief, to serve as chief of the Cedar Park Fire Department. Pete Antonacci (bottom left), who has served as Palm Beach County, Florida, state attorney since March, is returning to the Florida Capitol after being named Thursday as Gov. Rick Scott's new general counsel. Marie Lopez Rogers (bottom center), mayor of Avondale, Arizona, since 2006 after serving 14 years as a council member and vice mayor, has been named 2013 president of the National League of Cities. The Austin Community College District's new and re-elected Board of Trustees members officially took office Dec. 3, and voted Jeffrey Richard (bottom right) as the new chairman of the board. The City of Evanston, Illinois, recently announced the appointment of Homayoon Pirooz, P.E., former Project Management Services Unit Manager for the city of Ann Arbor, Michigan, as the new Engineering Division Manager/City Engineer in the Public Works Department. The Wentzville, Missouri, School District's Chief Financial Officer Dr. Kari Monsees has been named superintendent of the Raymore-Peculiar School District near Kansas City, Missouri. Karin Hilgersom, vice president for instruction at Central Oregon Community College, has been chosen as the next president of the State University of New York Sullivan, succeeding interim President Bill Murabito.