The federal government owns more than 14,000 buildings and structures that have been classified as "not needed." The government also owns property that is not producing any revenue. These so called federal assets drain resources and cost taxpayers millions each year in maintenance costs. The General Services Administration as well as a congressional committee are looking for innovative ways to monetize or better utilize these assets. That is a very good thing.

Earlier this year, the House Transportation and Infrastructure Subcommittee on Economic Development, Public Buildings and Emergency Management sponsored a roundtable to explore the benefits of public-private partnerships (P3s) as a way to monetize the property and facilities. The objective was, of course, to find ways to reduce maintenance and reduce real estate costs.

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Success of project credited to P3, performance-based infrastructure contracting

The Los Angeles County Deukmejian Courthouse  was completed through a public-private partnership.

Los Angeles County is celebrating the completion of the $340 million Gov. George Deukmejian Courthouse (as seen in the accompanying artist's rendering), the result of a successful public-private partnership (P3) involving the Judicial Council of California, Long Beach Judicial Partners LLC and Los Angeles County. The 545,000-square-foot, five-story facility is home to more than 20 new courtrooms and the capability to expand to 30.

In addition to being a successful P3, the project also is the first social infrastructure project in the nation to use Performance-Based Infrastructure (PBI) contracting. This process allows a private team to finance, design, build, operate and maintain the court building.

According to the PBI agreement, the Administrative Office of the Judicial Council of California will own the building and pay Long Beach Judicial Partners LLC an annual, performance-based management service fee for 35 years. The Superior Court Los Angeles County will occupy approximately 80 percent of the space.

The public-private partnership and PBI allow the public sector the ability to leverage the private sector's access to financing, expertise and efficiency. The project had the support of both the executive and legislative branches of California state government. Los Angeles County and the city of Long Beach also threw in their support. The state acquired the site through an exchange agreement in which the city provided the site plus a financial contribution to the court building project in exchange for title to the existing Long Beach Courthouse property, which will be vacated now that the new court building is complete.

In addition to the new courtrooms, the facility also will house the court administrative offices, some 100,000 square feet of Los Angeles County justice agency lease space and retail space. It will also include secure inmate transfer facilities, detention facilities and secure parking for judges. Approximately 110,000 people are expected to visit the courthouse each month. Two of the five areas for retail businesses are already occupied and operational.

Virginia school district plans renovation as part of capital improvement plan

Renovation of three elementary schools is part of the recently approved capital improvement plan (CIP) for the Lynchburg City Schools in Virginia. The plan also calls for the replacement of Heritage High School. The CIP covers additional infrastructure projects through the 2018-2019 school year. The proposed replacement of Heritage High School is slated to cost almost $83.3M, with $8M being spent on renovations for Sandusky Elementary school and the rest being allocated to various maintenance projects across the division. School officials stress the importance of a buy-in from the city for the Sandusky renovation and renovations at Linkhorne Elementary and Paul Munro Elementary. Lynchburg's City Manager Kimball Payne (pictured) said he had not included the elementary renovations in the funding plan to build the new high school and to meet city building needs.

Pennsylvania school board announces $7 million bond issue for school improvements

Officials in the McGuffey (Pennsylvania) school district have approved a $7 million bond issue, with most of the proceeds from the bonds to be spent on safety improvements. The district's two elementary schools will receive upgrades, including replacement of doors, windows and handrails and work on heating and ventilation at both schools. A new air conditioning system would be installed at Joe Walker Elementary, which has never had air conditioning. The bond proceeds would also help pay for land previously purchased by the district that will be used for a parking lot. Work on both elementary schools will begin in the spring in time for the beginning of the 2014-15 school year.

Board OKs $6.5 million for downtown project garage

The request of the city of Fort Wayne, Indiana, for $6.5 million toward a project that will cover a city block has gained the support of the city's Capital Improvement Board (CIB). The funds will be used for loan payments over 10 years to build a 780-space parking garage that will be the cornerstone of the project featuring offices and housing in two towers. Ash Brokerage is planning to build a 95,000-square-foot, eight-story, $200-million headquarters building downtown, where it will move its current employees and add more to the facility. The project also includes a $32 million residential package that includes townhomes, apartments and condos. Both of those projects will be on top of the city-owned parking garage. Retail areas will be available at street level. John Urbahns (pictured), the city's director of community development, asked the board to make the loan payments for the first 10 years of an expected 15-year bond. Officials expect that after that time, property taxes generated by the development will be enough to make the payments. The CIB previously approved spending $4.3 million for property for the project. Another $2 million will be sought from the Legacy Fund for site preparations probably in March. If that timeline is upheld, construction could begin in April.

New Jefferson Davis Parish jail's gets $10 million financing approved

A new jail in Jefferson Davis Parish, Louisiana, was funded with $10 million from the State Bond Commission. Included is $835,000 in first-year funding for planning and construction of a new regional consolidated facility. Some $9.1 million will be needed for future funding. Already, the police jury has pledged $480,000 from a lawsuit settlement toward the project. The jail would house 200 inmates, much larger than the current 62-bed, nearly 50-year-old jail.

 

Gov. Rick Scott seeking increased legislative spending on three of Florida's ports

Gov. Rick Scott (pictured) is seeking $35 million from state lawmakers to help fund projects at Florida's three ports. His goal is to bring more cargo shipping and manufacturing jobs to the state. Scott said Florida could become "the shipping channel for the East Coast." Scott's proposal includes $9.7 million for Port Canaveral for a second phase of its cargo-terminal development. Scott's plan would also include $14 million for Port Everglades to support a project that would lengthen the existing deep-water turning area for cargo ships from 900 to 2,400 feet. That could lead to five new cargo berths and hopefully mean larger shipping vessels using the port. And, the Port of Tampa would get $10.4 million to improve its container yard. These changes are necessary, say port officials, because the expansion of the Panama Canal would mean additional shipments to the East Coast instead of the West Coast. "By investing now, we have the opportunity to get companies to expand here, grow here, and that's what we're going to continue to do," said Scott.

 

Orlando International Airport to undergo $1.1 billion improvement plan

Theme parks in the Orlando area have contributed to the need for improvements at the Orlando International Airport. Thus, the Greater Orlando Aviation Authority (GOAA) recently approved a $1.1 billion improvement program. Passenger traffic alone is 35 million, making the airport the 13th busiest in the United States. Part of the billion-dollar improvements will be paid for by $543.5 million in revenue bonds. Those bonds, according to GOAA Executive Director Phil Brown (pictured) will be backed by revenue from airport concessions and by Federal Aviation Administration-approved passenger facility charges. The executive director said requests for proposals are expected to be sought from investment bankers by the end of the year on the first $150-$180 million of the bond issue. Plans for the improvement include everything from additional international gates to upgrades to the baggage screening areas and an automated people mover. All of the new additions and upgrades are expected to allow the airport to process 45 million passengers per year. With another Disney section planned for the Animal Kingdom, it is expected to help push the passenger traffic past 40 million by 2016.

 

Colorado to see $1.5 billion in highway construction, maintenance

Work on Interstate 25, upgrades to bridges and culverts and efforts to prevent rock slides are part of a recently passed $1.5 billion Colorado highway construction and maintenance program. I-25 from Denver to Fort Collins will be widened as part of the proposal. Bridge repair projects will be funded with $33 million of the total allocated and another $800 million will be used to provide upgrades and maintenance of the state highway system. Another $700 million will be used over the next five years for highway construction and expansion. Highway officials are hopeful to attract private firms to help operate and maintain the state's highways. That $700 million is expected to fund part of 44 projects and will also be part of a program expanding public-private partnerships for transportation projects. Colorado Department of Transportation spokesperson Amy Ford said the department will be using part of the funds to leverage public-private partnerships on I-25 and C-470 as well as other projects. Officials say without partnerships, many of the projects would not have been able to be addressed for years.

 

Oklahoma Department of Transportation renews long-term plans for highway projects

Renewal of the Oklahoma Department of Transportation's eight-year construction plan and the five-year plan for County Improvements for Roads and Bridges was recently approved by state transportation officials. The result is that numerous road and bridge projects have been moved forward by years. Addressing bridge repair, ODOT Executive Director Mike Patterson (pictured) said, "It was not too long ago that our eight-year plan had 124 bridges on it." Today, the plan has 924 bridge-related projects. The 2014-2021 ODOT plan calls for $6 billion in improvements, nearly 2,000 projects and more than 650 miles of shoulders and other improvements for two-lane roads and more than 550 miles of improvements to highways and interstates. Patterson said ODOT projects will initially focus on bridges with an expectation of having no structurally deficient bridges in the state by 2020. Then the state can again focus on pavement maintenance and rehabilitation. 

  

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Jindal praises P3 that built community center/emergency shelter in Louisiana

Louisiana Gov. Bobby Jindal (pictured) is praising the new $10.6 million community center in St. Charles Parish as a prime example of a successful public-private partnership. "This is a great example of the federal government, the state government and local government, and private sector working together on behalf of our people," Jindal said. The project included $7.5 million in federal and state grant funds following Hurricanes Ike and Gustav. The parish paid an additional $3 million of the construction costs. The 30,000-square-foot Edward A. Dufresne Community Center in Luling will double as an emergency shelter and distribution point for supplies in case of an emergency. It was built to withstand hurricane winds up to 130 miles per hour. To further emergency care, the facility has a backup generator in case power goes off and has showers adjacent to restrooms in case persons must use the facility as a shelter. Jindal praised the facility for being multi-purpose, being able to serve as a community center, emergency center and a facility for community events and sports activities. The facility also features a more than 270-space parking lot, a 2,100-square-foot meeting room that can be divided and a gym that can be used for sporting and other events. The facility also will be available for rent for town hall meetings, weddings and such.

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Rick Rudometkin (top left), Eddy County, New Mexico, Public Works director, has been named the new Eddy County manager, succeeding Allen Sartin, who announced he will retire in December. Rodney McClendon (top center), Texas A&M University's vice president for administration, has announced he will step down on Oct. 31, giving up his job relating to facilities, utilities and energy management, business auxiliaries, risk management and compliance and safety and security. Sally Bradshaw (top right), former chief of staff to Florida Gov. Jeb Bush, has resigned her spot on the Florida State Board of Education, effective immediately, although her term is not up until the end of the year. McKinney, Texas Assistant Fire Chief Neil Howard, who has served McKinney for more than 30 years, has announced his retirement, effective Oct. 31, and will then become fire chief of the city of Rowlett, beginning Nov. 4. After placing Westfield State University President Evan Dobelle on paid leave following ordering an investigation into his spending, the university has named Elizabeth Preston, vice president of Academic Affairs, as interim president. President Barack Obama is nominating Jeh Johnson, former top attorney at the Pentagon, to head the U.S. Department of Homeland Security, succeeding Janet Napolitano, who left that position in July. Larry Niswender (bottom right), Oregon Lottery director, will end his eight-year run with state lottery operations that began as deputy director in 2005, with his retirement on Nov. 30. Kathryn Veronesi (bottom center), current interim principal at Elmer Thienes-Mary Hall School in Marlborough, Connecticut, has been selected as the Region 13 School District superintendent, bringing nearly three decades of state education experience to her new job. Matt Wesaw (bottom left), a former Michigan state trooper and a Native American tribal leader, has been chosen to fill the position of executive director of the Michigan Department of Civil Rights, filling the post vacated by Daniel Krichbaum, who retired in July. Salvataore Goncalves, principal at Bloomfield Middle School in New Jersey and interim director of personnel, has been appointed superintendent of the Bloomfield schools, after serving as a teacher and administrator in the district for 39 years. Spencer Nebel, city manager of the city of Sault Ste. Marie, Michigan, for the last 21 years, was recently selected as the new city manager of the city of Newport, Oregon. John Carter, a lieutenant in the Department of Public Safety in Mexico, Misssouri, has been appointed as the new police chief of the city of Monticello, Illinois, effective Nov. 6.