Airports are often inefficient - and that relates to operations, not lost baggage or time spent waiting for take-off on a runway. In fact, only 30 percent of all airports are profitable, according to the aviation trade magazine Airport World. And, while profitability tends to increase with the size of an airport, that is small consolation to the 70 percent of airports that lose money each year.

Privatizing airports may be the answer to this problem. And, a Federal Aviation Administration (FAA) program that facilitates public-private partnerships may soon play a role in incentivizing that concept.  

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Loans, grants will help pay for water, wastewater system projects nationwide

Ag Secretary Tom Vilsack (USDA photo)

Water and wastewater infrastructure projects in rural areas of 40 states throughout the country will benefit from $203 million in U.S. Department of Agriculture funding that was recently announced. The funding comes in the form of loans and/or grants that will help defray the cost of 74 projects nationwide and create millions of dollars in contracting opportunities.

More than 200,000 rural residents will be affected by the improvements to water and wastewater infrastructure.

"Rural businesses and residents need access to clean water and modern waste disposal systems. This isn't just an economic issue, it's an issue of basic health and safety," said Agriculture Secretary Tom Vilsack (pictured). "Water and wastewater projects like these help safeguard rural access to a modern, working infrastructure, which in turn ensures a decent quality of life."

The funding is provided through the USDA Rural Development's Water and Environmental Program. Among the projects funded is a $2 million loan/grant combination to upgrade a wastewater treatment system serving more than 3,000 residents in Eagle Butte, South Dakota. In Texas, the El Paso County Water Improvement District #4 will get a $4.2 million loan/grant combination to install a new water storage tank and nano-filtration system, meaning a clean, safe water supply for more than 8,000 residents.

Some other projects that will be funded include:

• City of Miami, Arizona, Municipal Property Corp. - $3.953 million loan for wastewater collection system improvements;
• Town of Larkspur, Colorado - $2.053 million loan and $1.135 million grant for a water supply project;
• Wise County (Virginia) Public Service Authority - $276,000 loan and $1 million grant for Roda and Osaka community sewer;
• City of Powers, Oregon - $672,000 loan and $4,272,608 grant for wastewater system improvements;
• Town of Alexandria, New York - $1.11 million loan and $1.19 million grant to construct a water distribution system;
• City of Holt Summit, Missouri - $3.25 million loan for a wastewater treatment and collection system;
• City of Hogansville, Georgia - $2.581 million loan and $2.5 million grant for sewage system improvements; and
• Stelle, Illinois, Community Association - $66,000 grant for sewer treatment plant replacement.

To view the complete list of the 74 projects in 40 states that were named for funding, click here.

Social Impact Bond Initiative aimed at reducing recidivism of former inmates

Pay-for-success initiatives are the latest incarnation of public-private partnerships and New York recently became the first state to participate in one. The state's program is one to reduce recidivism among individuals in the state who were previously incarcerated. The partnership, also known as a Social Impact Bond, includes the state and private sector and foundation investors. The investors raised $13.5 million in less than six weeks to fund the program.

 

The program's goal is to reduce recidivism, thus saving money for New York taxpayers. New York Gov. Andrew Cuomo (top left) called the project a "win-win" for the state, "facilitating the reentry process of individuals into the community by boosting employment opportunities and thereby reducing recidivism rates, but requiring payment for services only if these goals are met." Cuomo said keeping these individuals from making a return trip to incarceration will help make them productive members of society while keeping the state's communities safer.

 

Like other Social Impact Bonds, this initiative allows the state to set objectives for the contract between government and private and nonprofit entities. When the objectives laid out in the contract are met, the state pays the investors - in this case relative to increased employment of former inmates and reduced recidivism. Officials say that regardless of the degree of success in the program, the state's savings will always be higher than what it pays the investors.

 

The project will offer services to 2,000 high-risk for recidivism formerly incarcerated individuals. They will be offered employment training and job placement services, the state will assist them with reintegration into the community and boost their employment, which should reduce crime. The nonprofit Center for Employment Opportunities (CEO) will provide the services in Rochester and New York City. CEO offers employment services exclusively for people with criminal records. CEO Executive Director Marta Nelson (bottom right) said the public-private approach "will provide CEO with the flexible, long-term funding it requires to focus our efforts on delivering the right program, to the right people, at the right time."

 

Should the program exceed the contractual expectations, investors can earn a positive return on their investment that is proportionate to the savings and benefits achieved by the public sector. If goals are not met, no payment is made.

 

Brent Spence Bridge project joint effort of states of Kentucky, Ohio

Plans for financing the replacement and rehabilitation of the Brent Spence Bridge have been submitted to the Federal Highway Administration. The Kentucky Transportation Cabinet (KYTC) and the Ohio Department of Transportation (ODOT) presented the plan.

KYTC Secretary Mike Hancock (pictured) called the submission of the plan a "starting point" in the project that will be the result of a partnership between Ohio and Kentucky.

He said the plan will allow the participants "to determine how we can best finance and deliver long-awaited improvements to the Interstate 75 corridor through Cincinnati and Northern Kentucky."

According to the plan, tolling will be required on the project. Officials are expecting to use a design-build-finance-operate-maintain method for the project. In addition to toll revenue to support the project, both Kentucky and Ohio officials will kick in financially for development costs.

The project will improve a 7.8-mile corridor of Interstate 75 within the State of Ohio and the Commonwealth of Kentucky. The expected outcomes are improved traffic flow and level of service, improved safety, correction of geometric deficiencies and maintaining connections to regional and national transportation corridors. The bridge portion includes construction of a new Ohio River crossing and major rehabilitation of the current Brent Spence Bridge. The new bridge and rehabilitated bridge will mean more capacity in the corridor.

Massachusetts school to have ground-mounted solar array installed

A building permit will soon be issued for the installation of a 1,200-foot-long, ground-mounted solar array at the Mattacheese Middle School in South Yarmouth, Massachusetts. The project will represent 25 percent of a solar project planned by the Dennis-Yarmouth Regional School District, Cape Code and Vineyard Electric Cooperative and Broadway Electrical Company. This part of the project will produce 3.9 megawatts of power and over two decades of operation will result in $5.9 million in cash and energy savings. Regional School Superintendent Carol Woodbury said her interest in the project was mostly from an educational perspective, representing a way to bring job training for renewable energy vocation to the schools.

Fairfax County Public Schools planning school construction, renovations

Some $866 million in school construction and renovations are being planned for the Fairfax County (Virginia) Public Schools. The projects will help the schools deal with increased student populations that are leading to overcrowding. The 2015-2019 Capital Improvement Program includes construction of five new elementary schools in the next five years. Fairfax schools Superintendent Karen Garza (pictured) said the schools continue to face a critical shortage of facilities because of student growth. "The proposed CIP will help address the many needed repair, maintenance and new construction projects," she said. However, Garza added, "Without an infusion of additional capital dollars, the current and anticipated enrollment increases will continue to present a major challenge for FCPS as we struggle to provide sufficient capacity in our schools." The student population is growing at a pace that would need an additional 130 classrooms each year, but the district has only built 74 per year. While the school administration says $270 million is needed annually for new projects, only $155 million in bonds are being allocated for construction costs. Some school officials are anticipating a possible upcoming bond election.

Kansas school accepts land for site of future technical education center

Officials in the Lawrence, Kansas, school district have accepted land that will be the site of a new technical education center that will cater to high school students in the district. A total of 11 acres were donated to the district by HiPer Real Estate Holdings. Voters in the district in April approved a bond issue for $92.5 million, with $5.7 million of that amount going toward the cost of the technical education center. Superintendent Rick Doll said the new center will help expand job training and career preparation for students in the district. Officials expect construction on the center to begin soon and open at the start of the 2015-2016 school year.

Bids to be accepted in Arizona for highway construction project

Bids will go out this week from the Arizona Department of Transportation for a widening project on Highway 89 between Chino Valley and the Prescott Airport. The project will include a five-mile stretch of highway. The widening project will increase the current two-lane highway to four lanes and is expected to cost $25 million. The town of Chino Valley will pay about $100,000 for a roundabout on Kalinich. Work is expected to begin in March. Additionally, Chino Valley will build East Road 4 ½ South, Road 1 East extension and east Kalinich Avenue. Transportation officials noted that approximately 20,000 vehicles use the highway daily.

Transportation systems affected by Hurricane Sandy can qualify for funding

Approximately $3 billion in funding from the U.S. Department of Transportation will be made available to strengthen the resiliency of public transportation systems affected by Hurricane Sandy. U.S. Transportation Secretary Anthony Foxx (pictured) said the funds will be awarded by the Federal Transit Administration (FTA) on a competitive basis and will be for projects aimed at protecting critical transit infrastructure from future storms or other natural disasters. "We've made great progress in the year since Hurricane Sandy devastated transportation systems in New York, New Jersey and other states in the storm's path," said Foxx. He said the funds will be used to rebuild roads, bridges and subways "stronger than before." Public transportation providers in the states that were part of a major disaster declaration after the October 2012 storm will be eligible to apply for funding. That includes Connecticut, Delaware, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Virginia, West Virginia and the District of Columbia. FTA officials said the funds will go first to reinforce critical infrastructure necessary to support public transportation systems damaged by the hurricane so that the same systems will not have to be restored multiple times. Originally, $10.9 billion was allocated, but later cut by sequestration. The remaining funds will be allocated for response, recovery and rebuilding for locally prioritized resiliency projects and for competitively selected resiliency work. 

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Georgia city's public-private partnership to provide new housing

A recently approved public-private partnership will bring new housing to Ashburn, Georgia, and with it new property tax revenue for the city. The Georgia Department of Community Affairs approved plans for Eureka Heights in exchange for tax credits for the developers  for the new apartment complex for mixed-income families. The partnership includes the city, the Turner County Board of Education (the complex will be built on the site of a former school), IDP Housing and the nonprofit Family Vision Outreach. "We don't have that many rental properties in Ashburn and this will be a first class apartment complex," said Ashburn Mayor Jim Hedges (pictured). The mayor said the development will include 11 buildings at a cost of between $5 million and $6 million. Work on Eureka Heights is expected to begin in March or April, with an opening date by January 2015.

Appalachian State runs into problems in seeking P3 for new building

Appalachian State University is seeking a partner to help with construction of its new health college building, but is having problems finding a private partner to put up funding. A consultant has advised the university that site limitations and a declining retail environment are probably what are standing in the way. The university was in line for a donation of land from the Appalachian Regional Healthcare System if the university could secure funding for the facility by Dec. 31. ASU leaders almost immediately started looking to a public-private partnership to fund the project. Officials are considering a number of scenarios, including combining medical offices, retail space, commercial offices and even student housing with classroom space. The construction, estimated at $80 million, could result in $800,000 in private revenue annually for the university toward what would be around $4.5 million annual debt service payment. ASU Associate Vice Chancellor for Development and Alumni Relations Randy Gonzalez said that figure was much lower than anticipated. Medical facilities and student housing would likely generate the most revenue, university officials were told. Plans initially call for a 220,000-square-foot academic facility. But, even if private revenue opportunities were to work out, there would still be a funding gap for which the university would have to seek state support. If state support is not sufficient, ASU officials say they might consider scaling back the project size.

Governors in Iowa, Nebraska support public-private partnership for development

Advance Southwest Iowa Corp., a public-private partnership, got the backing of business leaders in Iowa and Nebraska with the recent signing of an agreement by Iowa Gov. Terry Branstad and Nebraska Gov. Dave Heineman. The two governors formally added the corporation to the Greater Omaha Economic Development Partnership that includes business leaders from Douglas, Cass, Washington, Dodge and Sarpy counties in Nebraska. David Brown (pictured), president of the Greater Omaha Chamber of Commerce, hailed the new partnership for the work it will do to market the area for new business investment and expansion. This P3 includes the city of Council Bluffs, Council Bluffs Chamber of Commerce, Iowa West Foundation, Pottawattamie County and the Western Iowa Development Association. "This unique, multi-county coalition now allows us to better leverage our region's many assets and offer our prospective companies and clients a wider range of business, talent and investment options," said Brown. The two governors noted that partnerships go a long way toward building mutually beneficial regional economic development partnerships. The result is an increase in jobs and a boost to the economy.

 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 John Letchford.

Former Irving, Texas, superintendent Dana Bedden (top left) was selected as the next superintendent for the Richmond, Virginia, city schools after resigning from his post in Irving last summer. Susan Desmond-Hellmann (top center), chancellor of the University of California at San Francisco, will become the next chief executive of the Bill & Melinda Gates Foundation, and will take over at the foundation in May, succeeding Jeffrey S. Raikes, who announced his retirement this fall after serving five years. Regional Transportation Authority of Illinois head Joseph Costello (top right) will retire from the agency where he has worked for the last two decades first as fiscal chief and then as executive director. Vernon Wilson, current Dona Ana County (New Mexico) International Jetport director, has been hired as the new city manager for the city of Sunland Park, which has been without a city manager for more than a year. Assistant Chief and Fire Marshal Eric Hurt, a 32-year veteran of the College Station Fire Department who has been the interim chief since former Chief Robert Alley retired in June, has been named the city's new fire chief. California's San Juan Unified School District Superintendent Glynn Thompson has submitted his resignation rather than be terminated for cause, according to school officials. Hartsfield-Jackson Atlanta International Airport General Manager Louis Miller (bottom right), who previously managed the international airports in Tampa and Salt Lake City, has announced his retirement to return to his native Salt Lake City. Gladys Carrion (bottom center), who most recently worked as the commissioner for the New York Office of Children and Family Services, has been chosen by Mayor Bill de Blasio as the commissioner of the Administration for Children's Services. South San Antonio Independent School District trustees selected retired Houston ISD superintendent and former Corpus Christi superintendent Abelardo Saavedra (bottom left) to lead the district, the fifth person in less than three years to be its chief. Joseph Jordan, head of the White House procurement policy office, is leaving the administration later this month to join a private firm that runs an online marketplace used by federal agencies, where he will be president of public sector. Alicia Glen, an executive with Goldman Sachs investment banking firm and a former New York city official, has been chosen the new deputy mayor for housing and economic development for the city. Kevin M. Maxwell, Prince George County (Maryland) Schools chief executive has chosen George H. Margolies as his chief of staff to oversee the communications office and legal department and serve as liaison to the school board and help create policy.