Volume 10, Issue 24- Wednesday, June 13, 2018
Mary Scott Nabers, President/CEO, Strategic Partnerships, Inc.
Every region wants an airport and the larger the better. Airports stimulate the economic vitality of any area and long-term economic sustainability is difficult without an adequate airport facility. But, airport ownership has become challenging and that challenge is only going to escalate. 

Most U.S. airports are at least 40 years old and those that are owned or controlled by cities are in dire need of upgrades. Just as other public assets, airports must be maintained, upgraded and eventually expanded. 

Large cities need millions if not billions of dollars to make necessary updates and expansions, but funding is not available. Instead of the unpopular options of cutting other key services, raising taxes, increasing fees or taking on more debt, many in government-owned airport leadership roles are seeking alternative financing methods. Public-private partnerships (P3s) and privatization are attractive options but those types of engagements are somewhat new and the public at large is almost always skeptical about new funding options. 

When questions arise about using alternative funding options, here are a few things to remember: 

* Public funding is not available now ... nor will it be in the next few decades; 
* Airport upgrades cannot wait for another several decades; and 
* America's economic stability and prosperity is based on infrastructure and airports are a basic component of the country's critical infrastructure.

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Washington, D.C.-  The United States Department of Transportation has announced that the Federal Aviation Administration (FAA) will award $677 million in airport infrastructure grants, the first allotment of the total $3.18 billion in Airport Improvement Program (AIP) funding for airports across the United States. The 241 grants will fund 346 infrastructure projects that include runways, taxiways, aprons and terminals. 

The Texas Department of Transportation will receive a combined total of more than $43.8 million for development projects in the Texas State Block Grant Program. The Fort Lauderdale/Hollywood International Airport in Florida will receive more than $20.4 million to extend the runway. The Salt Lake City International Airport in Utah will receive $16.3 million. The funds will be used to repair the apron area of the airport where aircraft park. The Denver International Airport in Colorado will receive $ 14.2 million. Grant money will be used for repairing runways, taxiways, and runway and taxiway lighting. The Northwest Arkansas Regional Airport in Arkansas has been awarded $13.6 million to repair a taxiway. A grant in the amount of $12.1 million will go to the San Diego International Airport to fund the repair of the taxiway. 

The AIP provides grants to public agencies - and, in some cases, to private owners and entities - for the planning and development of public-use airports that are included in the National Plan of Integrated Airport Systems. Airports can get a certain amount of AIP entitlement funding each year based on activity levels and project needs. If their capital project needs exceed their available entitlement funds, the FAA can supplement their entitlements with discretionary funding. A complete list of projects is available here
Pennsylvania- The Lehigh Valley Transportation Study approved $534 million of transportation funding as part of the Transportation Improvement Program (TIP). Every two years, the Lehigh Valley updates its TIP, which establishes a maintenance schedule for bridges, roads and public transportation. In effect, the TIP confirms funding for existing projects and sets up money and timetables for new ones. 

The plan includes $50 million to widen and improve portions of Route 22; more than $80 million in work along Route 309; and more than $30 million to widen the Lehigh River Bridge to MacArthur Road by 2020 and to design and acquire the rest of the road between 15th Street and Airport Road. The full plan includes 58 road projects, 57 bridge projects and several railroad improvements to be completed between 2019 and 2022. Overall, $244.3 million would be allocated for road projects; $144 million to repair or replace bridges; and $145.8 to fund the Lehigh and Northampton Transportation Authority. Funding for the project is generally 80 percent federal and 20 percent state. The Lehigh Valley Planning Commission and the Pennsylvania Department of Transportation oversee the projects. Most of the money comes from the federal government, with the state and local municipalities picking up the rest.
VirginiaAfter years of declining enrollment, Norfolk school leaders have decided to close or consolidate more than a quarter of the city's elementary schools for the 2019-20 school year. The board has called for the construction of two new elementary schools and the consolidation of four existing schools into those buildings, expected to cost $48 million. 

In addition to combining schools, the city has considered changing attendance zones for the high schools. Recommendations also include constructing a new district-wide career and technical education center, an $88 million project expected to be funded through a public-private partnership.
Washington, D.C.-  More than $256 million has been approved for rebuilding infrastructure at national parks, wildlife refuges and fishing hatcheries. An additional $50 million was also approved for the United States Fish and Wildlife Service. 

Over $18 million will fund repairs to the Arlington Memorial Bridge, part of a $227 million project to rehabilitate the structure spanning the Potomac River in Washington. The bridge has been determined "structurally deficient" and, since 2015, can no longer be used by large vehicles such as trucks and buses. The Mammoth Hot Springs Hotel in Yellowstone National Park will receive over $21 million to update rooms and make the structure more earthquake resilient. 

The park service manages 417 sites, including Scotty's Castle in Death Valley National Park which received flood damage in 2015. Cleaning up the castle will cost over $5 million. Almost $2.6 million will go toward the rehabilitation of Great Smoky Mountains National Park's Elkmont Wastewater Treatment Plant in Sevier County; it was built in 1959 to serve the Elkmont Developed Area. Another $35.2 million has been allotted for the North Shore Road Monetary Settlement on the North Carolina side of the park. 

The National Park Service (NPS) completed over $650 million in maintenance and repair work in Fiscal Year 2017, but aging facilities, high visitation and resource constraints have kept the maintenance backlog between $11 billion and $12 billion since 2010. View the projects for the NPS here and for the Fish and Wildlife Service here.
Alabama- Two weeks ago, the University of South Alabama (USA) Board of Trustees voted to approve funding and construction of an on-campus football stadium. USA President Tony Waldrop has been authorized to start accepting bids for the construction of the stadium following unanimous approval from the board of trustees. The new stadium would have a seating capacity for approximately 25,000 spectators, at an estimated cost of $73 million. 

The USA plans to finance the project through a combination of the athletic department, auxiliary enterprises and public-private funding. While still undecided, the city of Mobile and Mobile County are considering contributing $5-10 million each.

Ohio- The University of Cincinnati (UC) has sent out a request for qualifications (RFQ) for a construction manager to renovate the Calhoun Hall dormitory. The university is putting this request out as a two-phase project. Phase one is preconstruction services, where the construction manager would work with UC, architects and the project team to help with schedule development, estimate development, guaranteed maximum price proposal, subcontractor prequalification and bidding, permits, budgeting and more. If and when the project construction funding is authorized, phase two would be construction services. 

The construction cost for the project is estimated at more than $43.7 million with a total estimated cost of $54 million. The 14-story high-rise residence hall that was built in 1967, will receive a new common lounge space, study areas, laundry, kitchen and a housing office suite on the ground floor. This 173,000-square-foot building will also receive installation of new mechanical, electrical, plumbing, fire alarms, technology and elevators. 
Also included is the construction of a new addition immediately north and west of the existing tower. 

Responses to the RFQ are due July 6. The university will create a short list from those responses and issue a request for proposals to the short-listed firms. The earliest the project could go before the board of trustees would be January 2019. 
Washington, D.C.- The United States Department of Transportation's Federal Transit Administration (FTA) will provide $25.8 million in grant funds to support transit planning efforts in communities across the country. The competitive grant funds are provided through FTA's Pilot Program for Transit-Oriented Development (TOD) Planning. The grants will fund comprehensive planning to support transit ridership, multimodal connectivity and mixed-use development near transit stations. 

The Pilot Program for TOD Planning supports identification of infrastructure needs, engagement with the private sector and development of financial tools to encourage TOD implementation such as value capture- the process of retaining some percentage of the value provided in every transaction. To ensure that planning work reflects the needs of the local community, transit project sponsors and entities with land use planning authority must partner to conduct the planning work. The application period will close on July 23.
Illinois- Chicago's Department of Aviation will issue a request for qualifications during the week of June 18 for an expansion project at the O'Hare International Airport. Architects will design and compete for this $8.7 billion expansion plan that calls for demolishing Terminal 2 and replacing it with a new global terminal shared by domestic and international flights. 

This makeover also calls for dozens of new gates and additional concourses. The city will hold an informational conference about submitting qualifications June 27.
California-The Los Angeles County Metropolitan Transportation Authority (LA Metro) is conducting a feasibility study to identify and evaluate a range of high-capacity rail transit alternatives between the San Fernando Valley and the Los Angeles International Airport. In addition to the study, which began in December 2017, Metro is hosting a series of community meetings to solicit input. The study is expected to be completed in the Fall of 2019 and will be the basis for future environmental analysis. 

The route proposed for the project experiences heavy travel with more than 400,000 people a day traveling through the area. Funding will come from Measure M, a transportation sales tax approved by Los Angeles County voters in 2016. The project will receive $9.8 billion from this sales tax funding. The LA Metro wants to expedite the project through a public-private partnership. The first stage of the project is expected to open in 2033, however, the goal is to have it open for the 2028 Summer Olympics. 
Hawaii- The county of Honolulu is seeking a consultant to develop a request for proposals (RFP) from development partners interested in redeveloping a 54-year-old entertainment and civic center. The county intends to use a public-private partnership model for the Blaisdell Center project. Once the consultant is hired, the county intends to move quickly and have a solicitation out by the fall. 

The city plans to submit a draft environmental assessment to the Hawaii Office on Environmental Quality Control this summer with the final environmental assessment to be published around October. This will occur the same time the schematic design process will be completed. The city estimates the cost to be $692 million. The Blaisdell Center master plan calls for extensive renovations to the existing concert hall and arena while demolishing the 65,000-square-foot exhibition hall and 1,400-stall parking structure. This will make way for a 95,000-square-foot exhibition hall and performance hall and twin parking garages with some 2,400 parking stalls at the back of the property.
Kansas- Kansas City officials put out a request for proposals to expand its Smart City, starting with the Prospect Avenue corridor. The new initiative would build on the Kansas City Area Transportation Authority's planned Prospect MAX bus service, which will run from 75th Street to downtown along one of the city's busier corridors. That project will also lead to the creation of two mobility hubs at each end, more smart kiosks, public Wi-Fi and wayfinding information for visually-impaired riders. 

Kansas City seeks a long-term contract, which would result in the selected partner becoming manager of its Smart City initiatives, under the chief innovation officer. The deadline to submit proposals is July 31.
Iowa- A $110 million bond referendum was passed by voters in April to build a new Ames High School. The programming phase of the project is set to wrap up on July 9, when the hired architectural firm will present to the Ames School Board. The information gathered from input sessions will be developed into a schematic design that will lay out the future building space and how it will be used. 

As the current project schedule stands, the schematic design portion of the process is slated to run until August, followed by design development from September to December. A bid for the project is expected to go out in April 2019, with construction taking place from May 2019 through March or April 2022. The goal is to have Ames students in the new high school by fall 2022.
Connecticut- New London is a major port between New York and Maine with a 500-foot-wide and 40-foot-deep navigational channel. The port's location is free of vertical obstructions and offshore barriers and presents a significant advantage to shippers looking to access valuable markets in the United States. 

The Connecticut Port Authority has released a request for proposals (RFP) seeking parties interested in developing, financing and operating the State Pier in New London under a long-term operating agreement. The State Pier is an under-utilized state asset that could accommodate a wide range of opportunities, including the staging of wind turbine components and the introduction of new commodities and cargo types.
North Carolina-The North Carolina Turnpike Authority (NCTA) and the North Carolina Department of Transportation (NCDOT) have received federal approval to complete the 540 Outer Loop around Raleigh. The project will extend the existing Triangle Expressway from the N.C. 55 Bypass in Apex to U.S. 64/U.S. 264 in Knightdale. 

The Federal Highway Administration's Record of Decision allows NCTA and NCDOT to acquire land needed for the project's right of way, obtain environmental permits and advance construction plans. The first of three construction contracts is now in the procurement process and the other two contracts will begin procurement later this year. The project's first phase is expected to open by 2023.
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Indiana- The Indiana Department of Transportation (INDOT) has changed the way they think about and plan to utilize public-private partnerships (P3). Last year, a private developer that was hired to build, finance and maintain Section 5 of Interstate 69, ran into financial difficulties. The state had to take over the project which is expected to be completed in August, two years behind schedule. 

INDOT considers the P3 model to be an asset for projects and plans to use such a model for the remaining section of I-69. The construction of Section 6 in Marion County will begin in late 2019, will be completed in five different segments, but will use a Design-Build-Best-Value model. This will allow INDOT to maintain power over managing the risks of the project.
New York- Empire State Development, comprised of the New York State Urban Development Corporation and the Job Development Authority, has issued a request for proposals to solicit ideas for redeveloping the 200-acre property of the shuttered Butler Correctional Facility in Wayne County. 

Interested parties will be able to submit ideas for using the 101-acre medium security facility, which closed in 2014, or the 50-acre minimum security facility, which shut down in 2011. Respondents also have the option of submitting proposals for both facilities. There also is a 45-acre parcel next to the facilities that may be added to any proposal. Each of the former prisons is equipped with administrative buildings, athletic fields, dining halls, gymnasiums, barracks-style housing units, industrial-style kitchens, maintenance facilities and parking lots. Proposals are due by Aug. 9.
North Carolina- Parking is a constant challenge in downtown Carolina Beach, especially in the summer. To address the shortage of parking spaces, the town council is planning to develop a multi-use parking facility. First, council is looking for area companies to do a pre-development study. 

The Initial plans for the development include commercial and residential use along with a parking deck. Currently, the downtown parking lots hold about 150 and the city intends to double that number and provide a total of 400 spaces. The town council is considering a public-private partnership for the project.
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CALENDAR OF EVENTS

July 23 and 24
The P3 Airport Summit will be held July 23 and 24 at the Manchester Grand Hyatt, 1 Market Place, San Diego, Calif. Several speakers, including Mary Scott Nabers, will examine airport infrastructure challenges faced nationwide and offer lessons learned and best practices in project delivery, procurement and life-cycle asset management. The event will provide keynotes, case studies, panels, workshops and diverse networking opportunities. 

Attendees with little experience in the development and operation of the P3 model will benefit from industry experts presenting their knowledge and valuable insights into market trends crucial for business decisions. Attendees include senior management from firms in the construction, engineering, architecture, legal, investment and consulting industries as well as senior business and facility administrators from airports. Join over 1,000 industry leaders, public owners and stakeholders for this two-day event with a packed agenda. Register for the summit here
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PEOPLE ON THE MOVE

-Chicago Chief Data Officer (CDO) Tom Schenk will depart the city later this month to join a private consultancy firm. Schenk has spent more than five years with Chicago's Department of Innovation and Technology. Chicago is now seeking a new CDO to continue this work.
- Diane Gutierrez-Scaccetti has been confirmed by the New Jersey Senate as New Jersey Department of Transportation commissioner. She had been the acting commissioner since January and is also chairman of New Jersey Transit, the New Jersey Turnpike Authority and South Jersey Transportation Authority.  
- The Tri-County Metropolitan Transportation District of Oregon (TriMet) has appointed Maurice Henderson II chief operating officer, effective July 16. He currently serves as chief of staff and director of strategic initiatives for the mayor of Portland. Henderson fills a position left open after Doug Kelsey was promoted to the TriMet general manager in March. 
- Sonoma Police Chief Bret Sackett has announced his plans to retire in mid-July after 11 years with this California city. Sackett has served 28 years with the Sonoma County Sheriff's Office and 14 years for the city of Sonoma. At this time, three possible candidates have stepped forward to begin the evaluation process for the new Sonoma police chief. 
- Scott Chadwick has been appointed as the city manager of Carlsbad, Calif. He will replace Kevin Crawford, who will retire at the end of July. Crawford, a former Carlsbad Fire Department fire chief, was appointed in February 2016 to stabilize the position. Carlsbad had three different city managers in three years before Crawford stepped into the role. 
- Randy Smith brings more than 30 years of experience to the position as Tuscaloosa's new fire chief in Alabama. Smith has 35 years of emergency experience; 31 of those are with Mobile's Fire Department. His first official day on the job is July 1. Smith's predecessor Alan J. Martin retired earlier this year after more than four decades of fire service. 
- Katrina VanderWoude has been chosen as the 12th permanent president of Contra Costa College (CCC) in California. VanderWoude, who is currently the vice president of academic affairs at Grossmont College in El Cajon, Calif., will officially take office on Aug. 6. The search for a new president began shortly after February when Mojdeh Mehdizadeh stepped down and Chui Tsang filled in as the interim president. 
- Craig Tindall has accepted the position of city manager. Tindall will replace former City Manager Rob Lyons, who resigned Dec. 15. Tindall resigned from his previous city attorney job and became legal counsel for a National Hockey League team before he accepted his job in Murfreesboro. In addition to hiring the city manager, the council appointed Adam Tucker to serve as the interim city attorney. G
- George Gervgais, the commissioner of the Maine Department of Economic and Community Development, intends to leave his post on June 22. He has been working with the department since 2008 and served as the acting commissioner before becoming commissioner. 
- The director of the National Aeronautics and Space Administration's Marshall Space Flight Center in Alabama is retiring. Todd May's retirement takes effect July 27. May is being replaced on an acting basis by Marshall's deputy director, Joan Singer. May was first named acting director of Marshall in 2015 and then took over the position on a permanent basis. 
- Barbara Rice, who recently resigned from the Franklin County Legislature and state Adirondack Park Agency board, has been appointed to the New York governor's office as assistant secretary for economic development.
Caryn E. Kauffman has become the new chief financial officer (CFO) of the Securities and Exchange Commission (SEC). As CFO, Kauffman will head the agency's office of financial management, which handles the SEC's financial reporting, accounting, budgets, and the entrusted money. She was named acting CFO in February 2017. 
- Cleveland State University (CSU) has hired David Bruce as its new chief information officer (CIO). Bruce has spent 18 years at the University of Arkansas, most recently in the position of deputy CIO. Bruce will start at CSU July 9.  
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