Volume 11, Issue 8- Wednesday, February 27, 2019
Mary Scott Nabers, President/CEO, Strategic Partnerships, Inc.

President Trump talked a lot about health issues (cancer treatment, HIV research, drug prices, etc.) in his recent State of the Union address. Other elected officials throughout the country are also speaking out about healthcare issues. There is no alternative to providing citizens with healthcare services and government leaders are searching for ways to upgrade, modernize and expand existing facilities while constructing new ones. The country's healthcare infrastructure has definitely attracted national attention and that will stimulate demand for construction services significantly in the next few years. 

Some of the upcoming construction opportunities are huge. The city of Duluth in Minnesota has announced a medical infrastructure project that will likely represent an investment of more than $1.8 billion. City and government leaders will have some public funding but private investment will be required. A public-private partnership will upgrade medical facilities throughout the area. 

As the demand for construction increases though, it is obvious that healthcare construction will change. There will definitely be new considerations and construction firms monitoring trends and needs will have a competitive advantage as construction opportunities increase. 

Medical procedures and practices have evolved dramatically over the past decade. Leading-edge technology, research and training spaces will be required in all healthcare facilities. Digital record-keeping, network security, data analysis and cloud storage planning will be required. New servers, routers and cooling systems will have to be accommodated as construction plans are developed. Old hospitals and clinics that cannot be replaced will need to be redesigned and configured for technology requirements. Public facilities that require immediate attention are likely to need private-sector funding. That means that construction firms that understand public-private partnerships will benefit.  

And, because so many hospitals have been impacted by storms in the past decade, resiliency will be a major consideration in new construction. Massachusetts General Hospital has announced that its $1 billion expansion will be designed to serve staff and patients following any types of future disasters. The construction that will occur there will also be funded in large part by private-sector investors.    

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Washington, D.C.- The U.S. Department of Transportation (DOT) announced up to $902.5 million in available funds through the Infrastructure for Rebuilding America (INFRA) program. INFRA provides federal funding for transportation infrastructure projects aimed at addressing critical issues facing America's highways and bridges. The deadline to apply is March 4, 2019. Instructions for submitting applications can be found here.

The Fixing America's Surface Transportation (FAST) Act of 2015 established the INFRA program, which awarded nearly $1.5 billion to 26 projects in Fiscal Year 2018. During this round of funding, DOT will award both large and small projects with INFRA grant funding. Large projects must be at least $25 million and small projects at least $5 million. Around 10 percent of available funds will be reserved for small projects. Additionally, DOT will award 25 percent of INFRA grant funding to rural projects.
Rhode Island- The Rhode Island Department of Transportation can begin the design phase immediately for the replacement of the Henderson Bridge. An additional $70 million in federal highway funding was received for this structurally deficient bridge which is scheduled for construction in 2025. Rhode Island's share of federal money includes $54.5 million for bridges plus $15.1 million for general highway improvements. 

The rebuilt bridge will be narrower than the current span, known as the "red bridge," and will include bicycle and pedestrian paths. The project is expected to cost $70 million, take a year to design and then two to three years to build. The bridge project, between Providence and East Providence, should free up around 33 acres of land on both sides of the river for new development. Providence and East Providence officials will help the state design a new traffic pattern for the bridge ramps and riverfront areas.
Alabama- U.S. Sen. Richard Shelby, chairman of the Senate Appropriations Committee, announced Tuesday that Auburn University will be receiving $43.3 million in federal funds to construct a new U.S. Department of Agriculture, Agricultural Research Service and National Soil Dynamics Laboratory as part of the agency's capital improvement strategy. The money was provided through the Consolidated Appropriations Act, the final Fiscal Year 2019 appropriations package signed into law on Feb. 15, 2019, which prevented a second government shutdown. 

The research done at the facility will focus on improving the productive and sustainable use of soil and water resources for increased crop and livestock production. The funding will allow for relocation and construction of the new facility, which will take the place of the current laboratory at Auburn.
Florida- The Panama City Marina needs repairs from a combination of erosion due to exposure to salt and damage that remains from Hurricane Michael. A request for proposals (RFP) is due March 26 for repair work to the Marina T-dock bulkhead and anchor system. The project is estimated to cost between $10 million and $30 million. In 2013, the city took out a $12.9 million loan to make repairs to the seawall. Parts of the work have been done, but the T-dock portion of the repairs and more than $7 million of the loan remain. 

Since the storm, the marina has been closed to the public. Much of the road and concrete sidewalks around the edges of the marina and T-dock have buckled. The RFP will address problems to the foundation of the marina, including the demolition of what is in place, earthwork and the construction of new concrete walers, tiebacks, concrete deadman walls, concrete pile cap and aluminum railing.
Kentucky- A campus transformation plan was presented to the University of Kentucky Board of Trustees in December 2018. One of the projects in the plan is to rehabilitate the Reynold Building as the future home of the College of Design. College of Design programs are currently housed in Pence, Bowman, Miller and Funkhouser buildings on the UK's campus. For the first time since the college's creation, all programs will be united under one roof in the 140,000 square-foot facility. 

To start the design phase of the project, the UK Facilities Management will issue a request for qualifications (RFQ) for the architect of record. This will be immediately followed by a request for proposals for the design architect.
Oklahoma- Residents of Sand Springs will vote on March 5 to decide if Sand Springs schools will receive a $33 million bond for projects. Some of the projects include a new 9th Grade Center and Science, Technology, Engineering and Math (STEM) Academy on the Charles Page High School campus. 

The bond will also allow Angus Valley to get a new gym with hardened spaces, which can be used as a storm shelter. Other projects include bleachers for the Garfield gymnasium, new turf for Memorial stadium, additional space for the drama department, District HVAC and roofing maintenance, new school buses and more.

Ohio- The city of St. Clairsville is considering a private operator for its aging water and sewer systems. The city received notices of violations from the Ohio Environmental Protection Agency in 2015 and 2018. The 2018 notice pertained to high water loss, possibly due to waterline leaks. The city needs a new water treatment plant, a new piping system and a midstream water tank of 500,000 gallons of capacity or more. The plan would be for the private operator to make repairs to the water plant until a new one could be built. Construction of the facility is estimated to cost between $10 million and $12 million. 

The current plant can process 600,000 gallons per day. If the city decides to privatize, the entity would guarantee an offer of jobs to all nine of the city's water and wastewater employees. The current plan is to put out a request for qualifications in March to see if any entity would be willing to buy or lease the city's utilities and invest capital to rebuild the systems.
Kentucky- The University of Louisville has announced that it will not pursue the purchase of KentuckyOne Health Inc.'s Louisville assets. Instead, the university will issue a request for proposals (RFP) to solicit offers for a public-private partnership where a party would buy and help manage the KentuckyOne Health assets. The university would add its assets to the partner's portfolio, which include the Jewish Hospital downtown and Saints Mary & Elizabeth Hospital. 

Proposals are due to the university from interested parties by March 8. The RFP process will be managed by a New York City-based health care-focused investment bank.
Maryland- The Maryland Legislature has introduced Senate Bill 175 that would establish the Maryland Technology Infrastructure Program, a funding effort that would support a range of activities, including workforce development programs, research partnerships and physical infrastructure projects. The fund would aim to bolster cybersecurity and life science initiatives. 

The governor has allotted $16 million in initial funding to support the program that will be managed by the Maryland Technology Development Corporation, a state-backed venture funded organization created to support public-private partnership projects throughout the state. Maryland has been inspired by similar programs in other tech hubs across the nation and intends to grow its tech workforce and IT sector that generates $42 billion in economic activity and the life science sector that generates $17.7 billion in economic activity.  
Alaska- Potential budget cuts are threatening Alaska's ferry system. The governor's budget proposal will provide less funding for the Alaska Marine Highway System. The proposal would reduce the budget from $140 million to $44 million and could eliminate long routes, including from Alaska to Bellingham, Wash. Over 30,000 passengers ride the ferry annually. An economic impact study estimates the run generates $4.2 million in revenue annually and employs 32 people in Whatcom County. 

According to highway system administrators, regular service will remain in place through the end of September, but as of now, no vessels in the entire system are scheduled to run starting October 2019 and going through June 2020. The Alaska Department of Transportation intends to hire a marine consultant to identify potential reductions in funding from the state. That could include exploring public-private partnership (P3) opportunities, with a plan being implemented in July 2020.  
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New Jersey- A bill in New Jersey that would establish a retirement savings plan for private-sector workers, has made its way to Gov. Phil Murphy's desk after being approved this week by the Assembly. Workers at businesses with at least 25 employees that don't have a retirement plan would be automatically enrolled, and 3 percent of their pay deducted into an Individual Retirement Account (IRA), unless they opt out or change that level. Smaller businesses could also participate. 

If signed by the governor, the program would then take a year or two to begin operations, during which time it would create a board that would oversee the program and issue a request for proposals for the private firms that will manage the investments. The governor will have until the Assembly's first quorum call after its budget break, probably in early May, to sign or veto the bill.  
Louisiana- Louisiana has issued a request for proposals (RFP) for managed-care companies hoping to serve the state's more than 1.5 million Medicaid members under new contracts beginning in January 2020. Louisiana will award contracts to up to four managed-care companies, down from five insurers today. The new contracts will last for three years with an option to extend for an additional two years. The contracts are worth a total of roughly $12 billion. 

The Louisiana Department of Health wants managed-care companies focused on improving the health of populations while also cutting costs.The department is requesting that health plans find ways to implement value-based payment arrangements with providers in the state. The department said it will accept proposals until April 29 and intends to award contracts on June 28. This is Louisiana's third procurement for its Medicaid program, known as Healthy Louisiana, since it transitioned to a managed-Medicaid model in 2012. 
New York- The city of Ithaca has announced plans to redevelop the Seneca Street Garage. Officials will issue a request for expression of interest (REOI) to find a developer who can define the scope of the project. The old City Hall and other historic buildings were demolished in the original construction of the garage in 1973. The structure has reached the end of its finite lifespan and has begun to show signs of structural issues including beam failures.  

Short term fixes, such as bracing and supports were made to keep the garage operational, but salt water exposure has taken its toll on its structural integrity. The REOI is expected to be released in spring of 2019, and proposals will be evaluated by the end of the year.  
Iowa- State legislators introduced a bill that would expand rules governing regent projects valued more than $100,000. The rules would require more advertising and mandating engineers or architects prepare plans and cost estimates to be distributed to prospective bidders. 

Authors of the bill are hoping to limit the usage of design-build bids, increasingly used by universities, and instead shift more to design-bid-build. The bill has moved out of subcommittee and will receive full committee consideration in a week or two, according to state representatives. 
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Arizona- The city of Phoenix is preparing a request for proposals (RFP) to redevelop a downtown parking garage. The former hotel garage will be converted into a mixed-use development with potential for office, residential or hospitality use. 

Successful respondents will need to replace the more than 500 parking spaces in the 41,000-square-foot garage or find another location in the downtown area to add equivalent parking. City officials said that they hope to issue the RFP by the end of March and that it will be open for 60 days once it is issued. It will likely be more than a year before the redevelopment is approved.
New York- The city of Buffalo has issued a request for proposals (RFP) seeking 20-year power purchase agreements from solar contractors for 32 sites around the city. The solicitation is part of a larger renewable energy initiative led by the city, Erie County and area higher education institutions. 

The RFP states the city seeks a competitive cost when compared to its retail rates. Developers will need to put the new projects online by Dec. 31, 2020. Responses are due on April 5 with awards potentially announced in May.
Oregon- The Portland Police Bureau held its second town hall meeting to get public feedback in on its body camera pilot program. The bureau is preparing a request for proposals to submit to vendors in order to compare different body camera systems. After observing demonstrations, the bureau will choose its top two picks to use in its 6-month pilot test phase. It will involve officers from the central precinct and traffic division. 

After the test period is over, a decision will be made on whether to implement body cameras bureau-wide. Deployment of the cameras would take place in October 2020.
Idaho- The College of Southern Idaho (CSI) is moving forward with a new veterinary technology building at its Twin Falls campus. College administrators were approved to pursue a request for qualifications for architectural and engineering design services for the project. The facility will be located at the northeast corner of the CSI Expo Center. 

College officials anticipate the project will cost about $2 million and money would come from CSI's plant facilities fund. The goal is to bring the program under one roof, instead of having students attend classes in multiple locations. The program is consistently full, with 25 students accepted each year.
Georgia- Cobb County commissioners have been studying the concept of replacing its Flex bus service with a public-private partnership that offers ride-sharing services. The current bus service runs on three fixed routes and charges a fare of $2.50. If the county replaced its buses by partnering with a ride-sharing service, the county would subsidize most of the cost of the ride. This type of ride service could lower costs, grow ridership and fill gaps in the county's transit service. 

Officials would need to decide how to split up the fare, which could run from $7.60 to $12, between the rider and the county. The county wants to expand the service from 17 square miles to 42 square miles. The next steps are to work with the county's legal and purchasing departments to draft a request for proposals.  
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CALENDAR OF EVENTS

March 4-6 / Dallas, Texas
The 7th Annual Public-Private Partnership Conference & Expo will be held March 4-6 at the Sheraton Dallas Hotel. Government Contracting Pipeline readers can use promo code 100GCP to receive $100 off their registration. Register for the event here

Join over 1,250 senior representatives from governments, higher education institutions and leading firms in the global construction and financial markets. The conference attracts professionals from all corners of the industry and provides a valuable opportunity to facilitate new partnerships with industry peers and public sector partners. Attendees will discover new alternative project delivery methods, strategies for implementing successful P3 projects, the nuts and bolts of how deals work, and how to manage risks associated with legal and financial frameworks. Attendees will participate in interactive panels, workshops, and conversations specifically tailored to the needs of public agencies evaluating P3s. The conference is designed for all levels in the market including those beginning to explore P3s and seeking to better understand where alternative and accelerated project delivery methods can be applicable.

Attendees will participate in interactive panels, workshops, and conversations specifically tailored to the needs of public agencies evaluating P3s. The conference is designed for all levels in the market including those beginning to explore P3s and seeking to better understand where alternative and accelerated project delivery methods can be applicable.
PEOPLE ON THE MOVE

Virginia- Javaune Adams-Gaston has been chosen as the next president for Norfolk State University (NSU). She is currently the Ohio State senior vice president for student life and will remain in that position through mid-June. She has been with Ohio State for 10 years. Adams-Gason will replace Melvin T. Stith Sr. who was brought out of retirement and hired as interim president of NSU after Eddie N. Moore Jr. retired in 2017. 
California- James Houpis, dean of academic support and learning technologies at Skyline College in San Bruno, has accepted the offer to become president of Modesto Junior College (MJC). The action is expected to be ratified by the Yosemite Community College District YCCD Board of Trustees at its March 13 meeting. Houpis will replace interim MJC President Steve Collins, whose term ends Feb. 28. Collins stepped in as the interim after Jill Stearns left to become president of Cuesta College in San Luis Obispo. 
New Jersey- Steve Emanuel, who formerly served as chief information officer (CIO) for the state of New Jersey, is now serving in the same role for the city of Newark. He replaces acting CIO Tawana Johnson, who had been serving in the position since the city's former CIO Seth Wainer stepped down in June after five years of service. Before helming internet technology operations for the Garden State between 2011 and 2016, Emanuel formerly served as CIO for Montgomery County, Md. 
Connecticut- Connecticut Gov. Ned Lamont named Renée D. Coleman-Mitchell, currently the executive director for Cougar Health Services at Washington State University, to lead the state's public health office. Coleman-Mitchell's nomination will need approval from the General Assembly before she takes office on April 1. She will succeed former Department of Public Health (DPH) Commissioner Dr. Raul Pino. Coleman-Mitchell previously spent several years at DPH in a variety of roles beginning in 1986. 
Nevada- Nevada Department of Administration Director Patrick Cates is stepping down to become the new Douglas County manager. Cates was appointed to the position by Gov. Brian Sandoval and Gov. Steve Sisolak reappointed him in January. He previously served as deputy director of the Nevada Department of Wildlife from 2009 until 2015. Cates was offered the job earlier in February after Tom Stone, who was hired in January, resigned from the position after a week on the job. Former Nevada Tax Department Director Deonne Contine has been appointed to lead the state's Department of Administration. Contine was appointed to the Tax Department in 2014 and served in the post until February 2018. 
Texas- The city of Seguin has selected Terry Nichols as the new police chief of the Seguin Police Department. Since 2016, Nichols has served as the police chief for the city of Brownwood. Nichols also spent 21 years at the San Marcos Police Department before retiring as commander in 2010. The search for a new police chief began in December following the resignation of former Seguin Police Chief Kevin Kelso in November. 
California- Starla Jerome-Robinson has been selected as the city manager for Menlo Park. She has been serving as the interim city manager since November when former City Manager Alex McIntyre left for the same position in Ventura. Prior to becoming interim city manager, Jerome-Robinson worked for Menlo Park as assistant city manager from 2008 to 2015. In 2015, Jerome-Robinson retired from the city. Prior to her last stint in Menlo Park, Jerome-Robinson was the assistant city manager in Los Altos from 1999 to 2008 and finance director for Atherton from 1996 to 1999. Jerome-Robinson's time as Menlo Park's city manager will begin on April 1. 
New Mexico- Sandoval County Fire Chief James Maxon is retiring after 26 year, 13 of them with Sandoval County, and taking a job as a fire chief in Colorado. Maxon wants to work in fire service for 50 years, with half in New Mexico and half in another state. Deputy Chief Eric Masterson will serve as interim chief while the county conducts a search for Maxon's permanent replacement. 
Wisconsin- Natalie Erdman, director of Madison's Planning, Community and Economic Development Department, is retiring. She was the interim director for five months and then became the director of the department in July 2015. Her last day will be April 26. Erdman replaced Steve Cover, who left the job to take a similar position in Arlington County, Va. Prior to becoming head of the department, Erdman was executive director of Madison's Community Development Authority from 2010 to 2015.  
Massachusetts- Massachusetts Emergency Management Director Kurt Schwartz is leaving his post March 1, ending a nearly nine-year tenure. Schwartz will remain with the Massachusetts Emergency Management Agency through this week, when his successor, Samantha Phillips, is expected to start as the agency's new director. Phillips is the former director of emergency management for the city of Philadelphia and, until October, headed the National Center for Security & Preparedness at the State University of New York at Albany. 
South Carolina- After more than 50 years working at the Columbia Housing Authority, Executive Director Gilbert Walker announced his retirement. His last day is June 30. The housing authority will appoint an interim executive director and will begin a nationwide search for a permanent executive director in the coming weeks. Since the 1960s Walker has worked with the Columbia Housing Authority, becoming the interim and later full-time director in 2000. 
Wyoming- Major General Luke Reiner has been appointed as director of the Wyoming Department of Transportation. Reiner currently serves as Wyoming adjutant general, heading up the Wyoming Military Department. Prior to that Reiner served as a certified public accountant for accounting firms. He'll retire from the Army on March 31. Reiner replaces Bill Panos, who was the prior director.
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