Volume 9, Issue 16 - April 19, 2017
Mary Scott Nabers, President/CEO, Strategic Partnerships, Inc.
Disruption has reached almost every aspect of public safety and technology is changing everything. Heard about drones? Welcome to the world of the future where there is total transparency. 

Drone technology is great but it is important to remember that now, and in the future, it is best never to think that no one is watching. Drone cameras are disrupting privacy and there is ample proof that drones will be even more prevalent in the near future. 

According to an April 2017 report from the Center for the Study of the Drone at Bard College, more than 374 state and local police, sheriff, fire and emergency departments acquired more drone technology in 2016 than all previous years combined. Drones with cameras can be found in so many places it may be easier to list the places where they are least likely to be used. The technology allows cameras to look around corners, under bridges, in heavy foliage and throughout large expanses of land. It can be used for all types of surveillance, data gathering and reporting. Drones are the future.

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"Transparency" has been a fairly popular word for government, businesses, non-profits and other agencies as they describe their openness regarding finances, transactions and decision making. A similar word is making its way into the mainstream, but it focuses more on the journey that a company's product or service went through to get where it is today. That word is "traceability," and it defines how our food, medicine, clothes and other products we use in our day-to-day lives are tracked. Traceability allows manufacturers to provide the history and location of a product by means of recorded and documented identification. This is important to consumers and government regulators who are trying to prevent illegal pharmaceuticals, unsafe food and clothing made in sweat shops from entering the United States. 

Recently, the U.S. steel industry was unhappy to learn that Canadian and Chinese steel was being used for a $4 billion construction project at the LaGuardia Airport. President Donald Trump signed an executive order this week that calls for a review of the way America does business. Part of the order calls for American firms to hire and buy American. Could there be stricter enforcement in the future on the traceability of products sold in America? The United States Department of Agriculture is asking for Trump to expand the traceability program currently in place for tracking animal disease in livestock. Traceability has already been implemented on several of our goods by using bar codes. While usage of these bar codes may be voluntary for some manufacturers today, it could become mandatory if traceability becomes law.

Upcoming contracting opportunities

New York- A series of resolutions approved by the Chemung County Legislature got the ball rolling on a terminal renovation at the Elmira Corning Regional Airport. Legislators unanimously voted to authorize advertising three bid packages for the $58 million project. The first package includes a reconfiguration of the terminal, which will then be divided in half by a temporary wall with construction starting on the east side. The baggage claim area will be relocated and two gates will be closed off while the eastern part of the terminal is demolished. A new foundation, steel skeleton, roof and temporary enclosure will be built. This initial bid also includes the purchase of items that have a long lead time, including a new boarding ramp that would keep passengers off the tarmac. 

The second package includes the construction of a building shell and infrastructure; including mechanical, electrical, plumbing, telecommunications and security systems. The third package involves landscaping, security equipment, signs, fixtures, amenities and remodeling of the western half of the terminal

Once complete, the Elmira Corning Regional Airport's terminal will include a landscaped courtyard, glass walls, a raised concourse and new jet bridges to access larger aircraft, updated infrastructure and a renovated restaurant area. Project leaders are aiming for a July construction start date.
Wisconsin- The West Salem School Board recently voted to approve architects to work on the first eight projects of a $350 million bond passed in November 2016. All design professionals, including architects, were chosen based on qualifications. 

Eight different architect firms were chosen for projects including a $27-million new middle school constructed on Robinhood Road. Construction for the school is slated to begin in 2018 and finish in 2020. Additional projects include a $3 million build on six new pre-kindergarten classrooms, a $17-million renovation of Philo-Hill Magnet School, a $9 million addition at Easton Elementary School, a $25-million replacement for Brunson Elementary School, a $9-million addition at Wiley Magnet School, and $6 million in upgrades and repairs at the two high school stadiums.

Additionally, the board recently finalized bid specifications for the combined $20-million middle school expansion and sports facility projects approved in last November's building referendum. These expansions will be sent to bid both together and separately, allowing construction companies the chance to take on either both or a single project. A final bid for the multi-purpose athletic facility will open after the district has received bids for the first two projects. The bids will become available to contracts beginning April 25.
Steve Bellone
New York- Suffolk County Executive Steve Bellone revealed a $192.6 million capital budget for 2018 and a $1.055 billion three-year capital plan this week. The capital budget is a 12 percent decrease from last year's capital plan and the three-year program has seen a decrease of $19 million from the current multiyear plan. In addition to the reduced spending, Bellone also is keeping the issuance of bonds under $100 million. His 2018 proposal includes only $95.8 million funded through bonds which is an 18 percent reduction. 

The budget still includes more than $300 million in projects for the Southwest Sewer district but instead of using funds from bond issuances, the projects will be funded through the sewer district stabilization fund. Included in the funds set aside for the Southwest Sewer district is a $200 million project to replace the outfall pipe, with construction planned to begin this fall. If additional funding is needed, the Environmental Facilities Corporation financing is available as a partial alternative. The budget also has set aside $46.7 million for highway work, which includes $18 million for road repairs and $19.1 million for bridge repairs.

The 2018-20 capital plan proposal includes $11 million for public safety projects such as an accredited police fingerprint laboratory, replacement of the police IT system and new canine headquarters with a training facility and kennels. The proposal also allocates $8.2 million for park work including $2.25 million to improve the Long Island Maritime Museum in Sayville. Other projects in the proposal includes expansion of the two lactation stations for nursing mothers in county buildings and a new online system for payment of delinquent taxes. A public hearing on the capital plans has been planned for April 25 by the county legislature. Legislators will consider amendments on June 6 and are required to adopt a final version by June 30.
Iowa- The city of Davenport has begun the process of relocating its accounts from their current bank after the Office of the Comptroller of the Currency dropped the financial entity's national Community Reinvestment Act (CRA) rating to "needs to improve." Established in 1977, the CRA rating requires all financial institutions to meet the credit needs of their communities. 

The city is drafting a request for proposals for new banking services to be released in about 30 days, with approximately nine months needed to completely move all city funds. While the current bank maintains both an outstanding local and state rating, its national rating faced this drop due to the "extensive and pervasive pattern and practice of violations across multiple lines of business with the bank, resulting in significant harm to large numbers of consumers." The city has decided to utilize a steering committee in the selection of the city's financial institution, though choices will be limited due to state and city restrictions.
Michigan- Detroit Mayor Mike Duggan and his administration are requesting proposals from real estate developers regarding the 264-acre Coleman A. Young International Airport. The facility faces continued operating losses and limited use and needs to be repurposed. The City of Detroit's Office of Contracting and Procurement recently issued a request for proposals (RFP) seeking plans from development firms and land use consultants that would facilitate the greatest economic impact and job creation in either aviation or non-aviation capacities. The RFP seeks to redevelop the airport land for an industrial or mobility park, which would end private and corporate aviation at the east side airport. 

City officials are also asking for proposals which would detail what a plan would cost to increase aviation use of the airport, which hasn't had commercial passenger airline service since 2000 when Pro Air discontinued service. Any attempt to shut down the airport would have to be approved by city council, whose members have passed resolutions in recent years calling for increased investment in the facility to attract private and commercial planes to land in Detroit. Council members have affirmed their belief in the airport being an important revenue generator and job creator for the area. 

The airport is expected to generate only $819,824 in revenue this year, which is less than half of the $2,124,195 the airport costs to operate - amounting to a $1.3 million operating loss. For the 2018 fiscal year, the airport's operating loss is estimated to be $885,000. The city's Office of Contracting and Procurement has set a June 8 deadline for firms to submit proposals for future use of the airport.
Hawaii- The Hawaii State Department of Transportation (DOT) is moving ahead with the planning for the last extension of Saddle Road, but availability of construction funds still remains a mystery. The state DOT recently finished a draft environmental impact statement for connecting the cross-island road with Queen Kaahumanu Highway near Waikoloa. It is estimated in the document that construction would cost between $63 million and $74 million with 80 percent of the funds coming from the federal government. The report also found that if the project is completed, about 6.6 minutes would be shaved off drive times because motorists would have a straight shot across the island from Hilo to the Waikoloa resorts.  

To cover the state's financial burden of the project, the DOT is requesting the state Legislature approve $17.8 million in revenue bonds. The DOT was able to come up with that figure based on a higher cost estimate of $89 million. If approved, the bonds could supplement the state's highway fund to allow the work to begin at an earlier point. Currently, the department's 20-year capacity improvement program, which is based on revenue projections, does not include the extension project. The department's current priority is on safety and preservation projects. If the project proceeds, there are three possible routes. Two merge with Waikoloa Road Makai of Waikoloa village, while the other option bypasses that road. All three possibilities connect with Waikoloa Beach Drive.  

Currently, Daniel K. Inouye Highway is going through work to widen and realign the road between mile markers 6 and 11, costing $51 million. Construction is expected to be finished in August. The highway has gone through multiple phases of improvements and as of 2013, around $290 million had been spent rebuilding and realigning the road. The last new leg opened in September 2013, taking the road on a more western and straight trek to Mamalahoa Highway. The highway currently ends at that leg and the extension would begin there. State officials also are planning to widen and realign Puainako Street in Hilo so that it connects directly with the Puainako extension and the rest of Saddle Road.
News about public-private partnerships (P3s)

California- Riverside County (RIVCO) is searching for participants that are interested in building a gigabit network. Responses are due Aug. 15 and a telecommunications partner or partners will be selected in the fall to build out the gigabit fiber network. The RIVCOconnect Broadband Initiative, a $2 billion to $4 billion public-private partnership (P3) with the goal of building a gigabit fiber network, represents the first time that a regional P3 has worked to install fiber optic infrastructure on such a large scale with multiple local governments in the United States. This project does not depend on taxpayer dollars and cities in Riverside County are not seeking to own or operate the fiber network. Instead, RIVCOconnect is designed to make it possible for the private sector to distribute the network. 

Riverside County's 7,200 square miles contain nearly one million homes, apartments, businesses and institutions that need high-speed internet access. The county, its 28 cities, and all participating tribal nations have signed on to a common resolution to support the effort. Each entity has agreed to streamline and expedite often time-consuming permitting processes in order to speed the process along. Among the ideas to facilitate the process are "dig-once" policies that allow fiber conduits to be installed whenever a roadway is opened for construction, as well as coordinating activities countywide through a single point of contact. These ideas and others could help eliminate hurdles that would amount to as much as 30 percent of construction costs, potentially saving hundreds of millions of dollars on the project.
Nebraska- Last fall, Nebraska voters rejected a $369 million bond issue for improvements to Southeast Community College (SCC). This year, the college is phasing-in campus improvements that total approximately $60 million, without seeking ballot approval. The improvements will occur at the Beatrice, Milford and Lincoln campuses, with funds partly coming from using the school's capital construction levy, which is currently 1.05 cents but can be increased to up to 2 cents. SCC officials are welcoming a public-private partnership to build new dormitory facilities and modernize the campus.

A new 68,000 square foot multipurpose classroom building that would replace Jackson Hall is the top initiative for the Beatrice Campus. For the Milford Campus, a new 40,000 square foot multipurpose classroom building and a new facility for the diesel technology program are the top priorities. On the Lincoln Campus, officials are prioritizing a new 61,000 square foot Health Sciences Building as well as new campus housing. 

While the projects will not be put to ballot, they will need the approval of the Coordinating Commission for Postsecondary Education; and the College Board will have to pass a formal resolution which will commit some or all of the college's capital levy to the academic and vocational training facility projects.
Minnesota- The University of Minnesota Rochester (UMR) is looking to expand its campus by 10 acres in the future. However, instead of a traditional campus expansion, the school is looking to expand downtown, opening up to the adjacent Soldiers Field Park, on a campus that's shared with the community. The campus is planned to be built around First Avenue with plazas and open areas to attract people outside, encourage biking, walking and the use of public transportation.

UMR is planning to utilize public-private partnerships (P3) to attract several organizations in the community to share a space and to rent. The design of the buildings will consider every individual organization's needs, but will also remain flexible enough that it will work for everyone. The university will look for a developer to finance and build the project, and then collect rent from each of the tenants. The expansion plan, when approved by the Board of Regents in 2014, originally had a build date of 2020, but that goal date seems unlikely. UMR officials have stated that the high maintenance and repairs costs of traditional university campuses and the volatile nature of state funding contributed to their decision to pursue P3s.
Kentucky- Forty acres of land that are currently home to a vacant factory junk yard could soon house a stadium and a $200 million development with restaurants and other businesses. Louisville City Football Club (LCFC) is looking to construct a brand new multi-million-dollar stadium in Butchertown. The Louisville City ownership group plans to transform the junkyard currently on the property into a large attraction for soccer fans. 

The success of the project rests on a public-private project, as the ownership group cannot complete the project on their own. It remains unclear as to how much public funding will be necessary, but LCFC has stated that it will be responsible for the stadium win or lose, with the future intent of having a Major League Soccer franchise. By United Soccer League rules, the city must have its stadium ready by 2020, with the construction to begin in 2018.
Delaware- The Carney administration created the Delaware Economic Development Working Group, which includes various executives, elected officials, and entrepreneurial community shapers. The purpose of the group was to create a report that would look into how state government can work with the private sector for economic development in Delaware. The group officially released their report and proposes the formation of a new P3 "between the state's economic efforts and the broader business community." The proposed P3 has been named the Delaware Prosperity Partnership (DPP). The report estimates the DPP will cost $2.5 million, with $1.5 million from the State and $1 million from the private sector. The report also outlines plans to pass legislation around the DPP, fundraise and hire a CEO.
Florida- The Florida House and Senate are considering a bill (SB 332 / HB 607) that would allow Florida's P3 statute to be applied to information technology. This would mean the P3s could be pursued for projects involving software, hardware, networks, and many other forms of IT. If passed, the bill will become effective July 1, 2017 and public agencies in Florida would be able to procure new technology through P3s. The bill also allows for government technology providers to come up with their own creative solutions to government's technology needs and submit unsolicited proposals. These providers would have their intellectual property and technology solution protected because unsolicited proposals are exempt from mandatory public disclosure for a period of time.
Calendar of Events 

June 18-20
The 2017 SelectUSA Investment Summit will be held June 18-20 at the Gaylord Hotel - National Harbor in Washington, D.C. The summit's theme "Grow with US" will highlight the
innovative business climate in the United States and feature investment opportunities from every corner of the country. Keynote speakers and panelists will lay out a clear roadmap of how businesses of any size, and any industry, can benefit and contribute to the U.S. economy. Register for the event here.
June 25-28
The Smart Cities Connect Conference and Expo will take place June 25-28 at the Austin Convention Center. This Internet of Things technology trade show will include hands-on workshops and smart technology demonstrations. Areas of focus include connected buildings, urban mobility, advanced networks, governance, infrastructure, energy, resiliency, technology and data and citizen life. Register for the event here.
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