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Delaney says his bill will finance rehabilitation, rebuilding of projects nationwide

Rep. John Delaney

Creation of a $50 billion infrastructure fund that can be leveraged to $750 billion is the goal of the recently introduced Partnership to Build America Act. Bill author Congressman John K. Delaney said the bill is aimed at upgrading the nation's aging infrastructure without additional taxpayer cost.

"We can't compete in the global economy of the 21st century without a significant investment in our infrastructure," said Delaney. The congressman said the legislation will finance a "massive investment" in infrastructure in this country.

The bill would finance rehabilitation and rebuilding the nation's transportation, energy, communications, water and education infrastructure through the creation of an infrastructure fund. Capital for the fund will come from 50-year bonds not guaranteed by the federal government and pay 1 percent interest. Public-private partnerships will also be encouraged. American corporations that purchase these bonds will be allowed to repatriate a certain dollar amount - determined by auction - in overseas earnings tax-free for every $1 they invest in the bonds. The fund will then provide loans or loan guarantees to states and municipalities to finance their infrastructure projects.

Delaney's bill would create the American Infrastructure Fund (AIF) which would provide loans or guarantees to state or local governments to finance qualified infrastructure projects. Those entities would then be required to pay the loan back at a market rate determined by the AIF, which would also invest in equity securities for projects in partnership with states or local governments. Additionally, at least 25 percent of the projects financed through the AIF must be P3s, with at least 20 percent of a project's financing coming from private capital using a public-private partnership model.

Proponents of the bill say it will create a large-scale infrastructure financing capability without any federal appropriation, create jobs, enable project selection to be made at the state and local level because they have investment in the project and encourage and create a framework for increased public-private partnerships.

Video conferencing to be used for consultations on inmate patients

Chris Wells

Some Colorado inmates may soon get medical consultations without seeing a physician - in person. The state will soon launch a pilot telemedicine program aimed at allowing inmates to receive consultations in rheumatology, infectious disease, orthopedics and general surgery via high-definition video conferencing.

The program is aimed at reducing possible prisoner escapes because the inmates will not leave their facility, and also at saving money by lessening the need to transport prisoners to medical centers. The pilot will affect 19 correctional facilities in the state.

"The program improves accessibility to specialty care and there's been some use cases throughout the U.S. about inmates escaping, so this decreases the risk," said Chris Wells, director of healthcare information technology architecture in the Colorado Governor's Office of Information Technology.

The State Department of Corrections is currently installing connections where the telemedicine appointments will be held. Officials say the biggest problem will be deciding which inmates qualify for telemedicine. Wells said training manuals are currently being prepared so that operational protocols can be implemented. While the initial program calls simply for a link between the inmate and physician. Wells said he is hopeful that in the future the system also will be able to transmit images and other medical data. He said online retailers have been transmitting sensitive data for some time and thus expanding it to health care is "the next level."

Infrastructure finance, public-private partnerships among topics for annual meeting

Mary Scott Nabers, president and CEO of Strategic Partnerships, Inc. has been named to a Clinton Global Initiative (CGI) working group that is an offshoot of the Infrastructure Financing for Cities Task Force, chaired by Chicago Mayor Rahm Emanuel, that will participate in CGI America 2013's annual meeting scheduled for June 13-14 in Chicago. The work group will continue to discuss this important topic after the annual meeting and into next year.

CGI America 2013 will bring together leaders from business, foundation, non-governmental organizations and government sectors to promote economic recovery. The infrastructure finance working group will feature mayors and senior city officials as well as national experts, leaders from financial institutions and organized labor, project developers and urban planners.

Established in 2005 by President Bill Clinton, the Clinton Global Initiative brings together leaders from around the globe to devise and implement innovative solutions to some of the world's most pressing challenges. CGI America is the first Clinton Global Initiative meeting focused exclusively on the United States. It seeks to not only share new ideas, but also to highlight programs that can be replicated and scaled. Read the press release.

UNT board approves hiring consultants for student housing plans 

The University of North Texas Board of Regents is planning for an influx of students on campus by 2015. The Board approved hiring consultants to advise on the addition of 600 to 800 new student beds. To fund the measure, money allocated from housing and auxiliary services will be reimbursed with $1.2 million in bond funds. UNT President Lane Rawlins said on-campus housing provides a better educational environment, "not only as just where somebody is going to sleep, but as part of the future of UNT." In coming months, consultants will conduct market research and financial analysis as well as weigh in on the architectural design of the new student housing.

University of Denver announces funding for building construction, expansion

Robert Coombe

A new engineering and computer science building is on the horizon for the University of Denver following $40 million in gifts. The gifts will fund construction and expansion of the Daniel Felix Ritchie School of Engineering and Computer Science and Knoebel Center for the Study of Aging. The facility will help launch a new interdisciplinary Science, Technology, Engineering and Mathematics (STEM) initiative to address 21st century needs, including preparing graduates to be able to compete globally for business and entrepreneurship. The building is made possible by gifts totaling $40 million from Daniel L. Ritchie, chancellor emeritus, Betty Knoebel and the late Bill C. Petersen. Chancellor Robert Coombe said the initiative will allow the university to expand its current engineering and computer science programs and plan for future development of mechatronics, bioengineering and software engineering curriculum. Added capacity will allow the school to increase its faculty by more than 30 percent and enhance scholarship and instruction. Coombe said the university will "be on the cutting edge of developing a new breed of STEM graduates" thanks to the facilities. Groundbreaking for the new building is planned for late this year, with completion anticipated in 2015.

  

Renovations of major buildings planned at University of Missouri

The University of Missouri has announced a $23 million plan to renovate its main administration building and two other halls that are housing museums. Plans call for renovating Pickard Hall, home of the Museum of Art and Archaeology; Swallow Hall, home of the Museum of Anthropology; and Jesse Hall, the administration building. The proposal would first have to be approved by the Board of Curators. The two museums would be relocated while they are being renovated. The $11.5 million in renovations would include expanding for classrooms, offices and labs. The $9.5 million renovation of the administration building would include a new sprinkler system, fire alarm system, a second elevator and upgrades to the HVAC system. The project would see funding from savings resulting from refinancing current debt, money from the Campus Facilities' deferred maintenance budget and some from one-time savings the campus has accumulated.

 

Wake County schools considering $939 million in school construction

Officials of the Wake County school district are studying the possibility of a nearly $930 million school construction program. They are considering putting a bond referendum in the fall. The program would build 16 new schools, complete renovations of six other schools and fund other projects. Officials say the renovations and expansions would allow for 20,185 seats in the district, with 19,898 new students expected in the schools by 2017. Financial officials say it would take $810 million in bonds and $129.9 million in cash to pay for the $939.9 million in school construction projects.

 

Florida school system to privatize much of its school construction work

Robert Runcie

With a facilities department that has long been troubled, the Broward, Florida, School Board has voted to privatize many of its school construction projects. Superintendent Robert Runcie promoted the change, in spite of the fact that about 40 of the nearly five-dozen jobs in the department will be eliminated. The board's hope is to restore credibility to its school construction projects. Runcie said privatization would improve efficiency and would be a more effective way to get construction projects done on time and on budget. The proposal calls for the district to lose many of its project manager jobs along with all of its department's architects and engineers. Monitoring of the construction projects also will be privatized. The change could cost the district millions, but the district also is expected to save more than $4 million in payroll and benefits. That alone should cover the cost of outsourcing, said Runcie.

 

Louisiana school district passes $135 million school bond issue

New construction, upgrades and technology and security needs were approved in a $135 million school bond recently passed by the St. Tammany Parish voters in Louisiana. Of that amount, $46 million will be used to build classrooms and to replace modular units that have been in place on six campuses since 1998 and 1997. Renovations of $52.5 million would include: $6.7 million for a cafeteria/auditorium and other renovations at Abney Elementary; $4.1 million to renovate the cafeteria, library and gym at Carolyn Park Middle School; $1.8 million for a new administration building and entrance at Chahta-Ima Elementary; $8.5 million for new classrooms, floors and ceilings and a sprinkler system at Clearwood Junior High; $2.6 million for masonry, roof work and exterior painting at Fountainebleau High; $3 million to replace windows, flooring and doors at Mandeville Junior High; $5 million to replace floors and ceilings and renovate a consumer science classroom at Northshore High; $14 million for renovations to classrooms, cafeteria, band hall and physical education dressing rooms at Pearl River High; and $6.7 million for new classrooms and renovations to the cafeteria and physical education dressing rooms at Slidell High. Of the total, $20 million will be set aside for improvements to security and technology, in part to meet new requirements from the state. The schools will need new computers, network upgrades, security cameras and food service software. Other infrastructure repairs would be made at four campuses, totaling $16.5 million.

 

New Mexico county seeking bond election for new jail construction

Voters in Curry County, New Mexico, will face a $9.8 million bond election on Aug. 6. A successful bond vote would mean the county can build a new jail facility in an area that is not downtown. Officials say the current bond they're paying toward will expire before the new bond could go into effect, meaning property taxes would not go up as a result of passage of the bond issue.

South Carolina budget includes millions for road, bridge construction

Nikki Setzler

The South Carolina Senate recently approved a state budget that includes hundreds of millions of dollars for road and bridge construction. There are only a little less than two weeks less in the legislative session for the House and Senate to agree on the plan. An amendment to the budget would transfer $50 million to the State Infrastructure Bank. Those funds, say officials, can then be leveraged through borrowing, with payment plus interest replenishing the account. That means the $50 million could likely be leveraged into $500 million worth of projects. The money, however, must be used only for new projects. It begins to address infrastructure needs that are just tremendous," said Senate Minority Leader Nikki Setzler, co-sponsor of the amendment. "It gives us the biggest results." The South Carolina Department of Transportation has previously stated that it needs about $1.5 billion annually for the next two decades to advance roads in the state just to the "good" condition state. Setzler said there also is a push on for a bill that would finance infrastructure through a combination of redirecting taxes, borrowing funding and increasing fees. 

 

Sidewalks, street projects in Arizona town's capital improvement plan

The capital improvement plan for the 2013-14 fiscal year for the town of Fountain Hills, Arizona, totals $19 million, with some of the major expenditures for sidewalk projects in the downtown area and street improvements. Some $40,000 has been set aside for the sidewalk projects while a major street improvement that would be funded is a $1.64 million rehab and improvement for the Avenue of the Fountains median project. The sidewalk funding is available from an expected surplus from the Avenue of the Fountains project. More than 20 projects are proposed for the capital budget for the next fiscal year, but funding must come available for projects to begin. The proposed plan includes $1 million for the annual pavement maintenance program, $420,000 for a fire station expansion program and $120,000 for radio equipment for the fire department. Another $300,000 is allocated for continued work on water quality improvements on Fountain Lake.

 

Missouri city planning August bond vote for new water treatment plant

Dan Estes

"It is a long-term investment for long-term gain," said Liberty, Missouri, Finance Director Dan Estes of a proposed $95 million bond election slated for August. Estes said the successful bond vote would allow the city to end a relationship with Kansas City, Missouri, in which Kansas City treats Liberty's wastewater. The savings will come from ownership of its own wastewater treatment plant since Kansas City keeps increasing its cost to Liberty. Estes said if the city ever under-estimates the amount they will be charged, it could be a financial disaster funding-wise. The $95 million bond vote would allow the city to build its own treatment plant, controlling costs and ensuring rates to users do not increase. The bond would be paid from user fee receipts, not through tax increases. 

  

Subcontractors to be sought for San Diego Central Courthouse project

Subcontractors will be sought for the upcoming San Diego Central Courthouse. The 22-story, 71-courtroom project is the state's largest courthouse project. Bidders have been prequalified, but subcontractor bidding deadline has not yet been announced. It could begin, however, shortly after an anticipate budget passage on July 1, according to court officials. The project will feature a construction manager-at-risk, who will seek to ensure that approximately 30 percent of the labor force for the project comes from San Diego County. The contractor also is expected to seek subcontractors from the ranks of small, emerging and minority- and disabled veteran-owned businesses. In addition to construction, there will also be bidding for furniture, fixtures and equipment for the courthouse.

 

Two RFPs issued in D.C. area for renewable energy projects

Two requests for proposals (RFPs) have been issued by Washington, D.C.'s Department of General Services for renewable energy projects. The agency is seeking qualified vendors that are interested in developing a new wind and/or solar power project. The project should be capable of producing enough energy for the department to purchase 150,000 MWh of energy annually, including the associated renewable energy credits. George Washington University also has issued an RFP for a 75,000 MWh project, with deadline for submissions on June 14.

 

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FCC studying public-private partnership for broadband projects

A public-private partnership could be the key to bringing high-speed broadband Internet service to rural areas of the country. The Federal Communications Commission (FCC) has announced it will seek a P3 for that effort. The FCC notes that approximately 15 million Americans, most in rural areas, do not have broadband access and thus fall behind in having access to jobs, education and other opportunities. Not having access to the global Internet economy limits their job opportunities and their ability to prosper. This project is a result of the release of the second round of Connect American Fund dollars - up to $485 million for expanding broadband in rural America. The FCC's investment in expansion and support of rural fixed and mobile broadband and voice through universal service is budgeted at $4.5 billion.

Indiana governor seeks private partners to complete I-69 project

Gov. Mike Pence

Indiana Gov. Mike Pence is looking to the private sector to help complete the extension of Interstate 69 to Indianapolis. However, he is quick to point out this is not a toll project he's seeking to complete the project from Crane. "There's a variety of ways you can partner with the private sector and some of it has to do with simply financing the construction itself over the long term," he said. State officials say they plan to use a public-private partnership for the design, construction, financing, operation and maintenance of the highway. This particular section is expected to cost between $300 million and $500 million. Indiana Department of Transportation (INDOT) officials hope to be able to leverage their funding appropriations as a means of attracting low-cost private-sector financing. The Indiana Finance Authority and INDOT are asking interested companies to submit proposals. "We're going to finish what we started when it comes to I-69," Pence said. "It's enormously important that we do that." Three of the six sections of the 142-mile project are already open. A fourth is currently under construction and the final two sections are in the planning stage. 

 

California VA Medical Center looking for P3 for new facility

With only about $1 billion in federal funding available for major and minor capital projects for the Veterans Administration nationwide, the VA Medical Center in Mission Bay, California, is seeking a public-private partnership to fund a $500 million hospital and research facility. It would replace the smaller and outdated facility near the Golden Gate in San Francisco. U.S. Sen. Dianne Feinstein of California has asked San Francisco VA officials to look for a public-private partnership arrangement for a state-of-the-art medical center in San Francisco. Feinstein told local officials if they could come up with an alternate plan with a P3, she would support it and take it to VA officials. A similar project that used a P3 was the Mission Bay building, the University of California San Francisco's neuroscience center. A nonprofit is leasing the property from the UC System and the construction was financed through state bonds. The site was then subleased to a partnership that is leasing the building back to UCSF for 30 years. Officials say a shared building between UCSF and the VA would be an ideal situation.

 

Privatization of LSU-managed hospitals reportedly on schedule

Kristy Nichols

Privatization of Louisiana State University-run hospitals is on schedule, and the state will have enough funds to cover those costs without doing so on the backs of citizens who are indigent or uninsured. Deals already have been signed for the LSU-run hospitals in New Orleans, Baton Rouge and Lafayette. Six more deals are expected to be completed by the end of June, according to Kristy Nichols, commissioner of the Louisiana Division of Administration. Those hospitals are in Houma, Bogalusa, Lake Charles, Shreveport, Monroe and Pineville. All of the university-led hospitals are expected to be managed by the private sector by Jan. 1, with only the Tangipahoa Parish hospital to remain under LSU control. There was concern about whether enough state dollars would be available for the transfer of management as the Legislative Fiscal Office predicted that 94 percent of the funding set aside for the partnerships was used during the first three privatizations. Nichols said lease payments, available state and local funding and federal Medicaid money would also help bridge the gap. Even though there will be an initial cost increase to cover privatization, Nichols said the state is likely to net $100 million over the next year in lease payments the private firms will make after taking over the hospitals.

 

 Are you a government official who has moved into a new position or to a new agency? Did you recently retire? Were you recently named to an executive-level position at a state-supported college, university or community college? Have you secured a new job as superintendent of a public school? If so, we'd like to hear from you - and so would your friends and colleagues - for our "Where Are They Now" column. Just drop us a line at editor@spartnerships.com and let us know about your previous job and where you are now. This week we feature Richard McKinney.

Richard McKinney

Richard McKinney attended Ohio State University studying political science and earned a bachelor's degree in political science and a Master's of Public Administration from Tennessee State University. He has nearly three decades of technology experience in working in both the public and private sectors. He began his public sector career in May 1985 as an administrative assistant for the Tennessee Department of the Treasury. From 1987 to 1988, McKinney was an information technology consultant with the Tennessee Department of Finance and Administration, leaving that job for a six-year stint as assistant commissioner for administration with the Tennessee Department of General Services. In 1995, McKinney became director of legislative information systems for the Tennessee General Assembly, helping the state become the first to move from a paper-based bill drafting/tracking system to an electronic system and leading the development of the General Assembly's first Web site. He left that post four years later to serve as chief information officer for the Metropolitan Government of Nashville/Davidson County, a post he held until 2005. McKinney next spent six years in the private sector as government technology advisor for Microsoft. In 2012, he moved to a senior fellow position with the Center for Digital Government. McKinney was recently tapped to become the chief information officer for the U.S. Department of Transportation, where he will be principal technology adviser to U.S. Secretary of Transportation Ray LaHood.

   

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Pat Skorkowsky (top left), who has been with the Clark County (Nevada) School District for 25 years and who has served as interim superintendent since March, has been named superintendent, replacing Dwight Jones, who resigned. Ian McCaslin (top center), who has run the Missouri joint state and federal Medicaid program in the state and which is part of the social services department, has resigned from the post he had held since August 2007. Massachusetts Lt. Governor Timothy P. Murray (top right) will resign from the administration next month to run the Worcester Chamber of Commerce. California State University trustees named new leaders for five of the system's 23 campuses today, including: William A. Covino, provost and vice president of Fresno State, new president of Cal State Los Angeles; Joseph I. Castro, a vice chancellor at the University of California, San Francisco, new president of Fresno State; Joseph F. Sheley, executive vice president of Sacramento State, new president of Stanislaus State; Eduardo M. Ochoa, former vice president at Sonoma State, president of CSU Monterey Bay; and Willie J. Hagan, a former CSU Fullerton administrator, new president of CSU Dominguez Hills. Willie J. Gilchrist (middle right), chancellor of Elizabeth City State University in North Carolina has announced his plans to retire amid an inquiry by state investigators into allegations of witness intimidation and obstruction of justice against the campus police department. San Antonio Independent School District has chosen interim Superintendent Sylvester Perez (middle center) as the lone finalist for the permanent, top job after he has served as interim since March 2012. Two-term Arkansas State Treasurer Martha Shoffner (middle left) has resigned, a day after appearing in federal court to face an extortion charge. The three finalists who have been named to lead the Wake County (North Carolina) school system and replace former Superintendent Tony Tata include: Dana Bedden, superintendent of the Irving Independent School District in Texas; Ann Clark, deputy superintendent of Charlotte-Mecklenburg Schools; and James Merrill, superintendent of Virginia Beach, Virginia, City Schools. Missouri Social Services Director Alan Freeman has resigned and will return to his position as chief executive officer of Grace Hill Health Centers in St. Louis, effective May 31. Arlington, Texas, Deputy Police Chief Kim Lemaux (bottom left) has been tapped by The University of  Texas at Arlington as its new campus police chief, the first woman to hold the top police job in the 15-institution University of Texas System. Jason Glass (bottom center), director of the Iowa Department of Education, has resigned to accept the job as superintendent of the Eagle County School District in Colorado. Steven VanRoekel (bottom right) has been named to temporarily lead the White House Office of Management and Budget's management team while continuing to serve as the federal government's chief information officer. Grant Levi, who has been serving as interim director of the North Dakota Department of Transportation, has been appointed director by Gov. Jack Dalrymple, replacing Francis Ziegler, who retired. Pinal County, Arizona, Manager Fritz Behring has been selected the new city manager for the city of Scottsdale, replacing David Richert, who resigned. New Moreno Valley, California, City Manager Michelle Dawson has appointed Tom DeSantis as her top assistant, the same post he has held in Riverside until 2010.