Volume 10, Issue 34- Wednesday, August 29, 2018
Mary Scott Nabers, President/CEO, Strategic Partnerships, Inc.
Government funding is tight at every jurisdictional level, but there is a huge disconnect between available funding at the state level compared to the local levels of government. That disparity is causing strains that may soon play out in ways that are negative for taxpayers and citizens. 

As fiscal years end for local governments, many are facing massive deficits. There is a clamor - almost a universal plea - being sent by local elected officials to state leaders. Their message is simple - they cannot handle more funding reductions or manage additional unfunded mandates. 

Many cities are trying to increase taxes. Almost all are asking voters to approve large bond packages. And, there is a growing discontent that is causing cities and counties to talk of marshalling their efforts to get the attention of elected officials. 

Of the country's 50 states, 39 are currently running budget surpluses. That's a good thing, but the reverse is true at the local levels of government. Most cities and counties are facing dramatic budget deficits. In spite of that, citizens rely on local elected officials to fund schools, public safety, healthcare clinics and hospitals, manage transportation, keep critical infrastructure in good repair and provide citizen services. 

Santa Ana, California, has a projected $17 million deficit and Pascagoula, Mississippi, has a $14 million deficit. Funding problems in other cities tend to be even greater than these examples because most have large deferred maintenance problems as well as critical infrastructure needs that cannot be addressed. Additionally, many cities have pension programs that are alarmingly underfunded.

Check out the latest article from our Texas Government Insider Newsletter!
Washington D.C.- The Federal Aviation Administration (FAA) will award $616.9 million in airport infrastructure grants, as part of the total $3.18 billion in Airport Improvement Program (AIP) funding for airports across the United States. Airports receive a certain amount of AIP entitlement funding each year based on activity levels and project needs. 

This fourth increment of funding provides 242 grants to 226 airports, and will fund 408 infrastructure projects. These include runways, taxiways, aprons, terminals, aircraft rescue and firefighting vehicles, snow removal equipment, and two firefighting training facilities. 

U.S. infrastructure, especially its 3,323 airports and 5,000 paved runways, increases the country's competitiveness and improves the traveling public's quality of life. According to the FAA's most recent economic analysis, U.S. civil aviation accounts for $1.6 trillion in total economic activity and supports nearly 11 million jobs. Among the grant awards announced are: 

- Hartsfield-Jackson Atlanta International Airport in Atlanta, Ga., $17 million- The grant funds the final phase of a new 4,200-foot taxiway around the approach end of Runway 9L. This project will enhance the safety and efficiency of airfield operations. 
- Guam International Airport in Tamuning, Guam, $16 million- The airport will use the funds to construct the final phase of a 30,000 square foot aircraft rescue and firefighting (ARFF) building to help the airport meet safety requirements. The new facility will also extend the life of the ARFF equipment by protecting it from adverse weather conditions. 
- Olive Branch Airport in Olive Branch, Miss., $15 million- Funds will be used for the local community to acquire and control a 460-acre, privately-owned airport, the busiest general aviation airport in MS. 
- Sioux Gateway/Col Bud Day Field Airport in Sioux City, Iowa, $13 million- Funds will be used to reconstruct a portion of Runway 17/35 that has reached the end of its useful life. 
- Appleton International Airport in Appleton, Wis., $12 million- The grant will fund the construction of a regional aircraft rescue and firefighting training facility to increase the access and frequency of training. 
- Piedmont Triad International Airport in Greensboro, N.C., $11 million- Funds will be used to repair 10,000 feet of Runway 5R/23L. 
- Lafayette Regional/Paul Fournet Field Airport in Lafayette, La., $10 million- The grant funds the fourth phase of the project to construct a new terminal building for the airport.

The complete list is here. 
Rendering of new esplanade
New York- New York City officials are soliciting bids from engineers and landscape architects for new riverfront improvements in East Harlem. The city will invest more than $100 million into its plan to fill in a seven-gap block of the East River Esplanade as part of a larger rezoning effort in the neighborhood. The seven-acre park will feature riverfront pedestrian and bike pathways between East 125th and East 132nd streets. 

The city is also committing $15 million toward repairs on an existing segment of the East River Esplanade, as part of the East Harlem rezoning plan, that stretches from East 96th to 125th streets. The park space will fill in the current gap along the river and allow for a contiguous 32-mile Manhattan Waterfront Greenway. Submissions for the request for proposals will be accepted until Sept. 28.
Rendering of Will Rogers World Airport
Oklahoma- The Oklahoma City Airport Trust approved plans for an $89.75 million project at the Will Rogers World Airport. Construction bids are to be opened this fall. Work is expected to begin early next year and be finished, with the new space ready to open in 2021. Plans include extending the concourse and adding four gates. The new east concourse is designed to be expanded, creating space for five additional gates. 

The design includes large windows and a consolidated security checkpoint to streamline the passenger screening process. An upstairs observation area will allow ticketed passengers' family and visitors to survey the new concourse. Construction of the new terminal building and aircraft apron will cost an estimated $70.4 million. Furnishings, equipment, technology and architectural design costs add $19.2 million to the total..
California- The Marin Housing Authority is seeking a developer to undertake the revitalization of Golden Gate Village, a 296-unit public housing development property in Marin City. The site targeted under this RFQ is comprised of eight high-rise and 20 low-rise buildings on about 30 acres and has been recognized as a historic district. A request for qualifications (RFQ) was issued on Aug. 15 that calls for both new market rate and subsidized units. 

Option B, which was chosen over Option A for the RFQ, is projected to cost $60 million more and features new affordable housing units as opposed to renovating the current ones. Since Option B would involve extensive new construction it would require a detailed environmental analysis to comply with the California Environmental Quality Act. The RFQ wants developers that have demonstrated successful public-private partnerships to plan, design, finance, develop and construct high quality mixed-income sites. Responses to the RFQ are due Oct. 1 and a developer will be selected by Nov. 15.
Missouri- The Port Authority of Kansas City (Port KC) Board of Commissioners approved the selection of a private firm to be the lead partner on a public-private partnership (P3) project. The firm will advise Port KC staff in the formation of a successful P3 to develop the Missouri River Terminal (MRT). This is the latest step in Port KC's plan to transform 415 acres of land along the Missouri River, which is the site of a former steel mill, into a full-scale inland intermodal port.   

The Port KC has determined the P3 model provides the greatest potential to create an intermodal inland port and sought to obtain expert services from the project's inception. Port KC anticipates the next step will be to seek a financial adviser and begin the pre-procurement process with the selected firm's assistance.
Michigan- Branch County voters last week approved a 20-year, 1.5 mill (millage rate) proposal for a new county jail that is estimated to cost $22 million. The new 184-bed jail will be built behind the current, overcrowded and crumbling Maple Lawn jail. The size and location of the jail comes from a $10,000 study that was conducted a couple of years ago for the jail design. 

The process of trying to find an architect to design a new Branch County Jail will start next week. The Branch County Board of Commissioners approved a process last month that would first ask for request for qualifications (RFQ) followed by a request for proposals. The RFQ schedule calls for a meeting Sept. 5 that must be attended by potential candidates. The deadline for submissions is Sept. 28.
Courtesy photo: Wayne County 
Hankins Pond Dam
Pennsylvania- Wayne County Commissioners have called on the state of Pennsylvania to preserve the historic Hankins Pond Dam. In a letter to Gov. Tom Wolf, commissioners requested an on-site meeting to discuss alternatives to the current plan to remove a portion of the dam to allow for water to flow freely through the area. The letter also included a petition that was signed by 1,135 area residents that have taken issue with the Fish and Boat Commissions previously approved plan to remove a nearly 200-foot section of the concrete structure. 

Funding for the project was made available via a $53 million statewide campaign to address dam integrity issues, but local officials hope that a public-private partnership could hold the key to solving the watershed issue without destroying part of the historic structure. The current solution for Hankins Pond is to carve a trapezoidal breach out of the dam, narrow at the base and wide at the top, to allow water to flow freely through the area. If discussions yield no alternatives, demolition will begin this fall.
Texas- A public-private partnership (P3) has led to an increase in campus housing for students at The University of Texas San Antonio (UTSA) and there is more housing to come. UTSA has partnered with a hotel and a loft developer that built two separate student housing facilities that have become available for the Fall 2018 semester. This housing is for students looking for the option of living near the downtown campus. While students have these two housing options available in the fall, UTSA may need to expand housing options as the university's downtown campus initiative progresses. 

UTSA is expected to release a request for proposal (RFP) for a public-private partnership sometime in the fall. The RFP is for private developers who are interested in mixed-use development on the downtown campus that will include a substantial number of residential units along with retail and dining options. A potential location for UTSA student housing is on UTSA property at Cattleman's Square, which is currently a parking lot adjacent to the downtown campus.
Courtesy photo: City of Mobile 
Mobile Civic Center
Alabama- Mobile officials announced their plans for a mixed-use project at the Mobile Civic Center site. A recent study indicated that the downtown space is underutilized despite its location at 401 Civic Center Drive. The current Civic Center, which sits on 22 acres of land, contains an arena, exposition hall and theater. The facility seats 10,000 people and includes 15 meeting rooms, 80,000 square feet of exhibition space, a 2,000-seat theater and eight permanent concession areas. 

After gathering resident input, city officials decided the site should expand beyond civic uses to include a venue for cultural performances and other community activities. A request for qualifications (RFQ) is expected to be released in late September.
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Massachusetts- Boston is reaching out for private help for the creation of a municipal electricity aggregation program. The new plan is meant to boost the city's efforts to make renewable energy more accessible to Bostonians. City officials will work closely with the Massachusetts Department of Energy Resources and form a community advisory committee to oversee its implementation. The program will need to be approved by the Massachusetts Department of Public Utilities. A request for qualifications was issued on Aug. 27 and is due by Oct. 10. 

Community choice aggregation enables cities and towns to aggregate the buying power of individual electricity customers in their communities. Under a municipal aggregation program, cities and towns can automatically enroll residents who receive default electricity service from their utilities into a single, bulk-buying group and may require a greater percentage of renewable energy content than the mandatory percentage set by Massachusetts' renewable portfolio standard.
California- The West Side Recreation and Park District in Taft is reaching out for private help to design and build a solar power generating system. District officials said that adding rooftop solar arrays and reroofing the Community Center Auditorium are some of the undertakings entailed in the project. Work could also include adding large solar panels in the parking lot of the Franklin Field complex. 

Currently, it is unclear how large the project will be until the district evaluates the budget and receives responses from a request for proposals (RFP). The RFP stipulates that those bidding should have completed similar projects in recent years. Officials will review RFP responses by the deadline, Sept. 19, and report to the board later that month.
Rendering of Route 18 project
New Jersey- The East Brunswick Redevelopment Agency intends to repurpose commercial buildings along Route 18. The project will develop more than 30 acres into a mixed-use area combining both residential and commercial space. Additionally, East Brunswick plans to build another commuter parking structure and place a bus terminal at the location. 

Officials issued a request for proposals on Aug. 13 and asked that potential redevelopers respond by Oct. 18. The RFP is for Redevelopment Area 2A, Loehmann's Plaza and the surrounding area, and Redevelopment Area 3A, 18 Central shopping center and the surrounding area. Interested parties may submit their ideas and vision for one or both areas.
Texas- The National Science Foundation plans to award $60 million to The University of Texas' (UT) Advanced Computing Center (TACC) for the deployment of Frontera, a new supercomputer that will be the fastest at any university and the third fastest in the United States. The Frontera, which is Spanish for "frontier," supercomputer will begin operations in 2019. Frontera will be located at the J.J. Pickle Research Campus at 10100 Burnet Road and will operate for five years. To match what Frontera will compute in just one second, a person would have to perform one calculation every second for about a billion years. Anticipated early projects on Frontera include analyses of particle collisions from the Large Hadron Collider, global climate modeling, improved hurricane forecasting and multi-messenger astronomy. 

While in service, Frontera will be used to build a future system that would be far more powerful than it is. That supercomputer could be deployed as Phase 2 of Frontera. Faculty at the Institute for Computational Engineering and Sciences at UT Austin will lead the world-class science applications and technology team, with partners from other out-of-state universities. Texas A&M University and other out-of-state universities will ensure the system runs effectively in all areas, including security, user engagement and workforce development.
Illinois- The Cook County Land Bank Authority has issued a request for proposals for the historic 94-year-old Washington Park National Bank in Woodlawn. The facility, located at 6300 South Cottage Grove Ave., has sat vacant at the southeast end of the CTA Green Line for more than a quarter-century. The county wants a developer with ideas for a mixed-use community space. 

Development applications will be accepted through the end of October. Property values in Woodlawn are increasing in advance of the Obama Presidential Center and construction is set to get underway on the facility next year in Jackson Park. The University of Chicago is also about to begin construction on a student dorm complex.
Minnesota- Gov. Mark Dayton's Housing Task Force has issued recommendations to combat the growing lack of affordable housing in the state. More than 500,000 Minnesotans are struggling to afford a home, and the state is calling on private builders to undertake projects to keep up with demand. The task force is recommending exploring incentives and public-private partnerships to help developers build 300,000 new homes by 2030. It also calls for a short term push for the construction of 50,000 of those homes in the next five years. 

It is projected that the state will lose 2,000 affordable units this year due to sale or renovation, therefore the task force is pushing for expansion of the state's rental assistance program and strengthening protections for renters.
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Missouri- A Lake of the Ozarks soccer complex could be in the works now that a feasibility study is underway in Camdenton. The proposed 12-field soccer complex could be built on the land across from an existing retailer and would act as a boon for the local economy. Historically, fishing and holiday weekends bring thousands to the area, yet a soccer complex could provide for a more consistent year-round stream of visitors to the Lake of the Ozarks. 

The complexes annual economic impact is estimated at $75 million. If the study does recommend the site, a funding mechanism has not yet been identified which leaves the door open for a public-private partnership (P3). The report is expected to be complete by November. If the project is approved a request for proposals should be issued.
Courtesy photo: City of Montauk
Camp Hero
New York- State officials are exploring turning Montuak's Camp Hero, located on a former military installation, into a new camping destination. Due to the popularity of the nearby Hither Hills campground and the cabins at Wildwood State Park, the state Office of Parks, Recreation and Historic Preservation is seeking public-private partnerships to develop this 415-acre site of land. 

Development plans could include everything from traditional camp sites, to a more luxurious glamping experience that would incorporate yurts, cabins or cottages. Camp Hero doesn't have any dedicated staff or infrastructure, so a public-private venture is seen as the most effective avenue. The deadline for submitting proposals is Oct. 4.
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CALENDAR OF EVENTS

Sept. 12 and 13
The Public-Private Partnership Higher Education Summit will take place Sept. 12 and 13 at the Manchester Grant Hyatt in San Diego, Calif. The two-day program will present a series of keynotes, case studies, panels, workshops and diverse networking opportunities designed for attendees to deepen their understanding on the value proposition of P3s. Over 100 leading practitioners will present their firsthand observations of higher education P3 projects of all sizes in different markets around the country. There will also be in-depth roundtable discussions for delegates with interest in discussing specific P3 issues in a more candid and interactive forum.

With over 800+ participating delegates, attendees find the P3 Higher Education Summit to be one of the most effective places on their event schedule to cultivate relationships and network with the industry's most active and influential professionals. Attendees with little experience in the development and operation of the P3 model will benefit from our industry experts presenting their knowledge, and valuable insights into market trends crucial for business decisions. Register for the summit here. View the agenda here.

On Sept. 12 between 7:30-9 a.m., join Mary Scott Nabers, president/CEO of Strategic Partnerships, Inc., for a P3 101 Breakfast. This pre-summit session is designed for those beginning to explore P3s. Start to understand where P3s can be applicable and how they can save money and time when dealing with new facilities, repairs and maintenance. Learn when P3s do or do not make sense, and what major considerations need to be made once choosing this route, including the first steps.
PEOPLE ON THE MOVE

- Ed Simcox, chief technology officer (CTO) of the Department of Health and Human Services (HHS), has been appointed to serve as HHS chief information officer (CIO) on an acting basis. He will lead the department's information technology operations until a permanent CIO is hired. As HHS CTO, Simcox oversees programs related to data management and sharing, technology-related healthcare innovation and public-private partnerships. Former HHS CIO Beth Killoran has moved to the department's Office of the Surgeon General and has been tasked with developing an information systems management strategy for the U.S. Public Health Service Commissioned Corps. 
- Marion Fedrick has been chosen as president of Albany State University (ASU). She will replace outgoing ASU President Art Dunning, who is stepped down on Jan. 31. Fedrick has been serving as the interim president of ASU since Jan. 12. Prior to that appointment, Fedrick served as ASU's interim executive vice president beginning Oct. 16, 2017. 
- The Akron-Canton Airport Authority has hired Renato "Ren" Camacho as the airport's new president and chief executive officer. Camacho is currently chief of planning and engineering for Port Control at the Cleveland Airport System, which oversees Cleveland Hopkins International Airport, Burke Lakefront Airport and Lakefront Harbors. He will join Akron-Canton on Oct. 1. He replaces Rick McQueen, who will retire at the end of December. 
- David C. Chow is the new chief information officer (CIO) at the Department of Housing and Urban Development. He replaces Chad Cowan, who had been serving as acting CIO. Chow spent about eight years in a senior program management role at the National Credit Union Administration before joining HUD. The previous permanent CIO at HUD, Johnson Joy, resigned in March 2018. 
- Sylvia Burns, the chief information officer (CIO) at the Department of the Interior, will be leaving the agency next month. Burns has accepted a new role as the Deputy CIO for Enterprise Strategy at the Federal Deposit Insurance Corporation. Her last day will be Sept. 7. Burns is among the longest-serving CIOs in the federal government. She became Interior CIO in August of 2014, after doing the job in an acting capacity for several months. 
- Former Solon Mayor Susan A. Drucker has become the economic development director for the city of University Heights. Drucker, who was mayor for two terms, was sworn in as mayor in late 2009. This is a newly-formed position for the University Heights. 
- Arthur "Art" Ushijima, the president and CEO of Hawaii's largest hospital system, has announced he is retiring in January 2020 after nearly 30 years on the job at The Queen's Health Systems. Ushijima previously served as executive vice president and chief operating officer of The Queens Medical Center. The Queen's board of trustees has established a search committee and brought on a talent consulting firm to begin the process to select the next CEO. 
- Rich Higgins will assume his new duties on Sept. 1 as the fire chief for the Ames Fire Department in Iowa. He has been serving as interim chief since former chief Shawn Bayouth resigned in April. Bayouth resigned after 10 years with the fire department to join Arkansas State University in Jonesboro, Ark., as an assistant professor of Disaster Preparedness and Emergency Management. Higgins became an Ames firefighter in 2002 after working in the city's Public Works Department since 2000. 
- The city of Mentor has named Kevin Malecek as its new director of economic development, replacing Ronald M. Traub, who retired last month after 29 years of work for the eastern suburb. Malecek starts the job on Sept. 4. He most recently served as senior development officer for the Lakeland Foundation and Lakeland Community College. 
- Central Michigan University (CMU) has named Robert O. Davies as the next president. He starts his new job Sept. 1. Davies has served as president of Murray State University in Kentucky since 2014. He succeeds George E. Ross, who stepped down July 31, after eight years as CMU's president. 
- The Erie Regional Airport Authority has hired Derek Martin as the new executive director. Martin most recently served as vice president of operations and maintenance for the Wayne County Airport Authority, which includes Detroit Metropolitan Airport and Willow Run Airport. Martin replaces George Doughty who resigned in May.
- Robert L. King, the head of the Kentucky Council on Postsecondary Education (CPE), is being nominated by President Donald Trump to a post in the U.S. Department of Education. King is in line for the job of Assistant Secretary for Postsecondary Education at the Department of Education under Secretary Betsy DeVos. He must be confirmed by the U.S. Senate. King has served as the CPE president since January 2009.
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