The Military Housing Privatization Initiative was established by Congress to improve the quality of life for all service members. The initiative encouraged private sector funding and innovation and was designed to capture the expertise of private firms engaged in housing construction. Military Services now have the authority to enter into public-private partnerships where both construction and maintenance are assigned to a private firm.

Two major problems are solved through the privatization of military housing. First, because the existing military housing is often in poor condition, privatization provides better living accommodations. That results in a greater quality of life for military families. Second, private firms build more efficiently and construction as well as energy costs are much lower.

[more]

Includes major investments, proposes new sources of revenue to meet needs

"The Way Forward: A 21st Century Transportation Plan," Massachusetts' plan for the next generation of transportation investments throughout the Commonwealth, was laid out Monday by Massachusetts Transportation Secretary and CEO Richard Davey. According to the plan, the state will need $684 million just to maintain the current system. But officials note that to keep up with the state's needs, an additional investment of $5.2 billion over 10 years will be needed to address necessary road and highway repairs, bridges that need attention and growing traffic congestion problems. Another $3.8 billion will be needed for current transit services, according to the report, and $275 million will be needed for Registry of Motor Vehicles and airport maintenance.

Richard Davey

"We have spent the last year engaging our customers, the business community and various stakeholders in a conversation about what kind of transportation system they want," said Davey. "What is clear is that we can't afford the system we have today, much less the system we all want. This plan clearly articulates our vision for a 21st-Century Transportation system and the steps we must take to achieve that."

The plan also outlines numerous transportation projects that could create thousands of jobs and spur economic development throughout Massachusetts. The plan points to $1.02 billion necessary each year to create a suitable transportation network statewide. In addition, the plan identifies a number of high-impact transportation projects across Massachusetts that, if built, will create thousands of jobs and spur economic development across the Commonwealth. In all, the plan identifies a $1.02 billion average additional need each year to create a 21st-Century transportation network.

Among the other needs identified in the report:

• MassDOT - $371 million in FY14; $4.4 billion over 10 years - to end funding operating costs with borrowed funds, which would save money over time and free up funds for infrastructure improvements;
• Regional Transit Authorities - $100 million in FY14; $1.1 billion over 10 years - to allow RTAs to stop borrowing and paying interest, to fund operating costs by funding each agency and using $100 million beginning in FY 2015 to expand RTA service; and
• MBTA - $166 million in FY14; $3.2 billion over 10 years - to allow MBTA to end budget deficits and start in FY 2014 to allow $25 million in operating funds for service enhancements and improved customer service.

The plan also seeks a $13 billion investment of capital funds to supplement current amounts and make the agency able to address deferred maintenance projects, reduce congestion, reduce delays and minimize crowding on trains and buses and improve service.

To meet the needs, the report suggests a variety of revenue options. Among them are: increases in the gas tax, payroll tax, sales or income tax; a new green fee on motor vehicle registrations; a miles traveled tax; fare, fee and toll increases; and new tolling mechanisms.

Say both public and private entities must be involved to achieve success

Dave Bing

 A nearly 350-page, 50-year blueprint aimed at bringing back to life the financially struggling city of Detroit was outlined recently by Mayor Dave Bing. The report, which was two years in the making while officials performed research and obtained input from the community, focuses on growth, land use, neighborhood improvements and the city's deteriorating infrastructure.

The report depends on a $150 million funding infusion over the next five years and other yet-to-be-named funding sources. It also focuses on razing parts of semi-vacant neighborhoods as new sites for parks and relaxing some rules and restrictions to encourage startup companies in the city. "I'm convinced Detroit can be a world-class city again," said Bing in laying out the plan.

As residents of the city pulled up stakes and moved out, they left behind vacant lots and empty buildings, which Bing said could be used for employment districts that could grow neighborhoods and boost the economy.

The private sector must be a part of the equation, said city officials. In fact, Kresge officials say success will only happen through a coordinated effort from the public, private, philanthropic and nonprofit sectors. The city faces a dwindling population - from 1.8 million in the 50s to the current 700,000. The city's budget deficit stands at $327 million.

In addition to focusing on the business sector as a way to rekindle growth in the city, the report also proposes the establishment of neighborhood-based schools to become the center of a variety of communities. The report notes that improvements could be seen within the next 10 years and a complete transformation would take between 20 and 50 years.

Officials are encouraging all residents of the city to study the report to determine where they can contribute to the success of the plan and the rebirth of the city.

Officials say action could result in not having to increase tolls so soon

Officials with Florida's four main toll-road agencies - the Orlando-Orange County Expressway Authority, the Tampa Hillsborough Expressway Authority, the Miami-Dade Expressway Authority and Florida's Turnpike - are discussing the advantage they would realize if they consolidated their backroom operations. Although no concrete figures have been finalized as to how much such a consolidation would save or how many jobs might be eliminated,

Walter Ketcham

officials say the consolidation likely would help delay future increases in tolls.

Not only would the consolidation save money, say officials, but it could also mean better service as all four tollways would be operating the same way. More than two-dozen staff of the four tollway authorities are discussing how the plan would work and directors of each of the authorities have been meeting twice a month to discuss the proposal.

The four authorities are operating off a memo they all signed last September, showing areas in which the four can work together. That could mean everything from finding a single name for transponder brandings at the different agencies. Orlando authority Chair Walter Ketcham said he is hopeful the merger of services could prevent future toll increases. "I think we are looking every way we can to get around toll increases," said Ketcham.

Bids being accepted for $80 million high school expansion, renovation

Bids will be accepted through Feb. 20 for the $80 million Kodiak (Alaska) High School expansion and renovation project. It will be the largest single construction project in Kodiak Island Borough history. The project includes 77,000 square feet of new construction and 90,000 square feet of renovations and demolition. The project also will include dirt work, landscaping, utility replacement and parking and driveway improvements. The project has allocated $58 million for construction, $6.1 million for design, $1.2 million for construction management, $1.8 million for equipment, $600,000 for artwork, $4.8 million for administration and $4.3 million in reserves. Much of the project will be paid for with funding from a 2009 bond issue that allows revenue bonds up to $76 million to be issued. Another $4 million in bond authority remains from another bond issue that adds up to the $80 million for the project. Officials expect that a non-local firm will likely capture the contract because the size of the project is likely too big, and too expensive, for a local firm.

Eli Capilouto

Legislative leaders in Kentucky are urging passage of a plan that will set aside $363 million for construction projects at six public universities in the state. One of the projects involves the renovation of the Kentucky Wildcats' Commonwealth Stadium. The stadium project, which carries a $110 million price tag, is one of three projects sought for the university. Other construction would include a science building paid for partially from athletics revenues and $40 million to renovate the Gatton College of Business and Economics. University of Kentucky President Eli Capilouto said the proposal would mark the first time at UK that a significant amount of athletics revenue would be used to help pay for an academic building. Some $65 million of the price for the science building would be paid for by the athletics department. If the proposal passes, Northern Kentucky University would use $5 million to renovate the Albright Health Center and $12 million to purchase and renovate a residence hall. At Western Kentucky University, officials are seeking funding of $22 million for an Honors College and International Center. Murray State University would like to complete a $9.9 million dormitory renovation, and spend more than $5 million for various campus improvements, including a sprinkler system upgrade. At the University of Louisville, officials seek funds to renovate the Student Activities Center for $9.6 million. Morehead State University would begin a $9.2 million renovation of the Mignon Hall dormitory if funds are available.

Several state-supported institutions of higher education in Texas are hopeful the Texas Legislature, which is meeting for its 140-day session that began last week, will free up some bond money from the state to help meet their construction needs. The University of Texas at Austin would like to replace its main engineering buildings that are outdated and small. Officials there are looking at a $310 million price tag to replace the facility, $95 million of which would have to come from the state. Texas A&M University-Kingsville is hoping to expand and renovate its music building and is seeking $42 million in bonds to do so. The University of Texas at Arlington's proposed renovation of its life science building and the addition of an animal research unit would cost $64.3 million and Texas State University-San Marcos has an eye on a new $116.5 million Graduate School of Business building and a health professions building for its Round Rock campus that would cost $48.8 million. A major round of tuition revenue bonds (TRBs), repaid by tuition fees and other resources, were last approved in 2006. Legislation has been filed this session that would authorize more TRBs. Requests are being analyzed by the Texas Higher Education Coordinating Board and will be prioritized according to space needs, cost, efficiency and the positive effect a project might have on increasing enrollment and/or increasing graduation rates.

Wade Bartels

Officials in the Jackson (Missouri) School District have approved selling the school district's final general obligation bonds set aside for construction of a new elementary school. This elementary school, which will be the seventh for the district, will cost $16 million. Chief Financial Officer Wade Bartels said the district only used $9 million of the bonding authority approved by voters in 2012. "We felt it wasn't necessary to issue the full bond package at that time," said Bartels, "and the reason for that was the savings on the interest the district would've had to have paid. Now, in this new year, we feel it's time to get the entire funding together for the new school building." The district CFO said construction bids will soon be sought. He said he was unsure of the exact date for seeking bids, but estimated it would be within the next month or so. The bond sales will not result in a tax increase. Thus, the debt service levy was unchanged. "There were no new taxes called for in the school district when the bond issue was passed," he said. Bartels said the plans and specification for the new building are forthcoming. 

The University of Nevada, Reno and Nevada State College in Henderson are in line for construction of three new buildings. The Board of Regents approved $7 million recently for design and site preparation for a UNR student achievement center. The total cost for the project will be $36.2 million. At Nevada State College, construction was approved for a 60,000-square-foot nursing and education building and a 40,000-square-foot student activities and administration building that will cost $61 million. 

Concern expressed over possible loss of jobs if operations go to private sector

Lawmakers in Delaware have introduced a bill that would prevent the privatization of the Port of Wilmington without the General Assembly's approval.

The bill was introduced by Sen. Robert Marshall of Wilmington. It would prohibit the state-controlled Diamond State Port Corp. from entering an agreement to privatize or lease the port without having the consent of the House and Senate. Marshall said the purpose of filing the legislation was to prevent job cuts that might occur if a private sector firm took over the port operation. Last month, a Houston-based energy company was chosen as the preferred bidder in a long-term lease situation in which it would take over port operations.

Curt McKenzie

The future of the Central Valley Expressway, a north-south route that would intersect I-84 in the southwest portion of Idaho, is in the hands of Idaho legislators. A Transportation Economic Development Zone bill, if passed, would connect seven cities. Officials say the positives of the initiative are that it would have a $4.2 billion impact on the economy and create 33,000 jobs over three decades. A recently commissioned study also estimates that sales tax generated by expected new growth along the corridor would likely be enough to pay for corridor improvements. If the bill passes, the expressway could likely be built within two years. Sen. Curt McKenzie said he has a favorable impression of the bill because it does not rely on federal funding, but on local tax collections. He also said the north-south corridor is an "important step" that will facilitate individual and business successes. The population along the route is expected to increase to more than one million in 2035. The current population is approximately 600,000.

A request for proposals for the $1 billion Northwest Corridor design-build-finance contract has been issued by the Georgia Department of Transportation. Funding for the project will include $536 million from Georgia DOT, state bond sales receipts, as much as $270 million in anticipated TIFIA loans and $160 million from the concessionaire. The bond and loan debt would be retired with tolls collected. The project will include two reversible managed toll lanes on the west side of I-75 and I-575 to Hickory Grove Road and on I-575 and I-75 to Sixes Road. The department of transportation would retain responsibility for tolling, operations and maintenance and acquisition of right-of-way. Officials expect the project construction to begin in mid-2014 and for the roadway to be operational by the second quarter of 2018.

Seth Pinskey

The largest parcel of under-developed, city-owned property on Manhattan's lower east side could soon become a mixed-use space in an historic neighborhood. A request for proposals was recently issued to transform nine sites into a 1.65-million-square-foot development. The development would include 1,000 housing units, commercial space, a new and expanded Essex Street Market, open space and an area that could be developed as a school site or other community space. "We will not only create much-needed neighborhood amenities, but also generate thousands of new jobs," said New York City Economic Development Corporation President Seth Pinsky. "The release of this RFP is the culmination of an unprecedented community planning process, and we look forward to receiving a robust set of proposals that will ultimately reintegrate these sites back into this vital community." Some of the provisions and requirements of the RFP include the housing facilities, 50 percent of which must be permanently affordable for low, moderate and middle income families and seniors. It also requires construction of a 15,000-square-foot accessible public open space and encourages additional community facility space throughout. One or multiple developers could be selected to develop any or all of the sites. Officials expect the developer(s) to be chosen by the end of this year.

$400 million in federal funds announced for rural telemedicine projects

Public or nonprofit hospitals, rural health clinics, community health centers, health centers serving migrants, community mental health centers, local health departments or agencies, teaching hospitals or medical schools, or a consortia of the above will soon be eligible to apply for federal funding for rural telemedicine projects. Some $400 million will be made available by the Federal Communications Commission to strengthen and improve the nation's telemedicine capabilities. Called the Healthcare Connect Fund, the program will increase broadband Internet access for rural providers. It is also aimed at leading to development and deployment of broadband networks, to lessen the impact of the FCC's universal service health care funding. Funding could begin this summer. These funds will change a previous pilot program into a permanent program. It will allow urban and rural medical centers to be linked via the Internet. The result will be better patient care and better access in rural areas to the most current resources. With the addition of new providers, FCC expects to cut broadband costs in half through group purchases. FCC officials say broadband can "revolutionize health care" across the county and thus improve quality of care and at the same time saving money. 

A British national lottery operation firm will run the Pennsylvania State Lottery. Gov. Tom Corbett said the award of the contract was made in a deal that promises $34 billion in profits to the state over the next two decades. 

Pennsylvania, when it agrees to the contract, will join Indiana and Illinois in becoming the third state to hire a private lottery manager. Officials are predicting a win-win result for one of the largest lotteries in the country. 

The British firm was the only bidder for the contract and will charge a management fee worth hundreds of millions of dollars over the life of the contract. Government officials say the private firm's commitment is a more stable source of revenue than state employees could deliver. The proceeds from the lottery benefit the state's elderly. The private firm also plans to introduce keno in bars and restaurants, creating online access to games and other ways to pull in a broader number of lottery players.

Check out these recent awards: 

Miami Dolphins unveil $400 million plan to renovate stadium

Space satellite connects rural health clinics to broadband 

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

Illinois

• The Nashville, Illinois, School District 49 is seeking proposals for a guaranteed energy savings contract project(s) compliant with state statute. The proposals can include a training program or facility alteration designed to reduce energy consumption or operating costs and may include, but is not limited to, building insulation, storm windows and doors, caulking and weatherstripping, automated or computerized energy control systems, HVAC modifications or replacements, replacement or modification of energy efficient lighting, indoor air quality improvements, co-generation systems and alternative energy systems.
• The Illinois Capital Development Board will issue an RFP for design-build services for various improvements at the Rend Lake Resort at Wayne Fitzgerrell State Park. The project will include upgrading and expanding the current facility to enhance the potential of the resort. Such enhancements include renovations to existing buildings while adding new additions to improve the function and appearance of the resort.

Wisconsin 

• The Wisconsin Department of Administration, Division of Facilities Development is seeking bids for elevator upgrades at the King, Wisconsin, Veterans Home. The project includes providing elevator, electrical and fire alarm work necessary to allow three freight elevator hoistways in Ainsworth, Olson and Stordock Halls to be protected with fire suppression sprinklers at the top of the hoistway.
• The University of Wisconsin is seeking bids for removal and disposal of 126 aluminum framed windows and glass, and replacement with energy efficient, insulated units, as well as removal and replacement of sealants at window frames at the University of Wisconsin-Stout in Menomonie.

 Louisiana

• The Louisiana Department of Transportation and Development is seeking bids for microcomputer and CAD/engineering support software.
• Louisiana State University is seeking bids for medical recliners for the Pennington Biomedical Research Center.

Tennessee 

• The Tennessee Department of Children's Services is seeking bids for physician services for student residents at the Wilder Youth Development Center.
• The Tennessee Department of Environment and Conservation is seeking bids for emissions testing services for light-duty motor vehicles.

Maine

• The State of Maine Department of Environmental Protection has a requirement for the replacement of home heating oil tanks not meeting state standards and posing a high risk of an oil spill. In accordance with state procurement practices, the Department has issued an RFP for the purchase of those services.
• The Tennessee Office of the State Treasurer is seeking bids for security trust/safekeeping services.

David Joyner (top left), who served nearly nine years and was the first executive director of the North Carolina Turnpike Authority, recently retired from his post, along with his assistant Beth Wise, who was the last person on staff who reported directly to him. Nico Gomez (top middle), longtime employee of the Oklahoma Health Care Authority Board who started at the agency in 2000 as a public information officer and most recently was the agency's deputy chief executive officer, has been named the authority's new chief executive, effective Feb. 1. Washington's outgoing Gov. Chris Gregoire (top right), who was elected in 2004 and again in 2008, is rumored to be named administrator of the Environmental Protection Agency. North Carolina Gov.-elect Pat McCrory has named Sharon Decker, a Rutherfordton businesswoman, as his commerce secretary, former Republican State Rep. Bill Daughtridge to lead the Department of Administration and Neal Alexander, a retired vice president of human resources, will serve as director of the state personnel office. Massachusetts Attorney General Martha Coakley has appointed Patrick Hanley, an assistant attorney general and former senior counsel in the Enterprise and Major Crimes Division, to oversee a new division of her office that will enforce casino gambling laws. Chris Watts (middle right), a 24-year veteran of the Rock Hill, North Carolina, Police Department who most recently served as captain, has been named the city's chief of police, succeeding John Gregory, who retired in December. Janiece M. Longoria (middle center), who has served on the Port Commission of the Port of Houston Authority since 2002, was recently appointed Chairman of the Authority, replacing longtime Port Chairman James T. Edmonds, who did not seek reappointment. Ben Hall (middle left), a building contractor, former state representative and Lincoln County commissioner, has been elected chair of the New Mexico Public Regulation Commission. David L. Mathews has been named president of the Auburn Hills Campus by Oakland Community College Chancellor Tim Meyer, replacing Patricia Dolly, who retired as president of the campus in late fall to be a senior advisor to Oakland University President Gary Russi. Doug Browning, vice president for administration at Frederick Community College in Maryland, has been named to replace former President Frederico J. Talley, who was terminated reportedly for a personnel dispute with the Board of Trustees. Sean Keefer, chief of staff for the Indiana Health Department and former deputy commissioner of the Labor Department, has been named by Gov.-elect Mike Pence as the state Labor Department commissioner. Former Miami Mayor Joe Carollo (bottom left), has been chosen as the new city manager for the city of Doral, replacing interim manager Merrett Stierheim, who resigned. Dr. Karen DeLano (bottom center), who grew up in Auburn, Alabama, and obtained three degrees from Auburn University, has been named superintendent of the Auburn City Schools. Teresa Wilson (bottom right), who previously held the position as the City of Columbia, South Carolina's Assistant City Manager for Community Programs, Economic Development and Government Services, has been hired as the new city manager. Wildomar, California, City Manager Frank Oviedo resigned to assume the position of assistant city manager in the Southern California city of Santa Clarita. Dr. William VanNess, president and CEO of Community Hospital of Anderson for 15 years before retiring last year, will become the new Indiana state health commissioner. The city of Kansas City, Missouri, has named Paul Berardi, who has 26 years of service with the city's fire department, as chief, to replace Smokey Dyer, who retired last July.