Public-private partnerships (P3s), or collaborative initiatives as they are sometimes called, are becoming more common - so common in fact, that it's hard to find any state where collaborative partnerships that include funding options are not being used to deliver public projects. With limited budgets, public officials are being forced to seek alternative funding sources.

There's an abundance of available investment revenue, and companies that contract with government should be prepared to either offer their own investment revenue for projects they seek or pursue contracting opportunities with an investment partner.

Regional banks, insurance firms, foundations, investment companies, and pension funds are all interested in investing in government projects. Many 501(c)(3)s are now offering revenue at tax free rates. The examples that follow make it clear that all types of contracting opportunities will involve partnerships.

New York
Officials at Metro are prepared to deliver projects through P3 engagements. Two months ago, Metro approved a P3 for the construction of a rail project with a projected cost of $65 million. Planning documents related to the project indicate that it will include the station, two 12-car platforms, a pedestrian overpass, lighting, elevators, and an audio and visual announcement system.

California - A newly released draft environmental impact report details plans by the California High-Speed Rail Authority (CHSRA) to tunnel through the Tehachapi Mountains as part of an $18.15 billion line connecting Bakersfield to Palmdale.

The Bakersfield to Palmdale Project Section is an 80-mile stretch that will provide a high-speed rail connection from the Central Valley to the Antelope Valley and Los Angeles County. It would close the existing passenger rail gap between Northern and Southern California through the Tehachapi Mountains using 9.3 miles of tunnels and 15.8 miles of elevated track.

A new Palmdale Station would be located at an expanded Palmdale Transportation Center. The Bakersfield to Palmdale Project Section also includes plans to build an elevated station in Bakersfield and four maintenance facilities.

This segment is included in the first phase of the 800-mile high-speed rail system connecting Sacramento, the San Francisco Bay area, the Central Valley, Los Angeles, and San Diego. One of the authority's goals is to provide nonstop service between San Francisco and Los Angeles with a travel time of 2 hours and 40 minutes.

After the comment period on the draft report closes on April 13, 2020, staff will prepare and issue the final report and present it to the CHSRA board to consider certification and project approval. The authority is on schedule to complete environmental clearance for the first phase by 2022.

Florida - State transportation officials are gathering public input in advance of a project development and environmental study to widen 37 miles of Florida's Turnpike (SR 91) from Jupiter to Fort Pierce at an estimated cost of up to $1.08 billion.

Costs are projected to be $782.9 million to widen the highway from four lanes to eight lanes by adding general toll lanes. The state anticipates the cost of improving highway cross roads and interchanges will be up to $300.5 million.
Florida's Turnpike is a north-south toll road that runs approximately 313 miles through 11 counties in the Florida peninsula. Florida's Turnpike System is used daily by more than 2 million motorists.

The state identified the need to widen this portion of SR 91 to add capacity that will accommodate future traffic volumes of freight and passenger vehicles linked to the projected growth in population and industry for 2045. Florida's Turnpike also is a major evacuation route for southeast Florida.

Study completion and approval are scheduled for June 2021.

Pennsylvania - Turnpike officials are conducting an environmental review on their plans to build a new road around the Allegheny Tunnel in Somerset County.

Engineers and designers have created three pairs of options to address the tunnel's problems, which include high traffic volumes and accident rates, sharp curves that do not meet design standards, and the fact that hazardous loads are prohibited in the tunnel.

Each proposal includes a new tunnel and a new road. Two options include building a new tunnel and a new road to the north, while a third option involves constructing the tunnel and road to the south. Costs for the tunnels vary from $627.9 million to $761 million, while road costs are estimated at $332.4 million to $384.9 million.

Turnpike officials prefer to build the southern route, which would cut into the mountain about 1,000 feet south of the tunnel. According to the plans, three eastbound lanes would be constructed and the sharp curves approaching from the east would be redesigned.

The agency is still working to identify funding sources.

Washington, D.C. - The Federal Highway Administration (FHWA) will award $653.2 million in emergency relief funds to aid 37 states, Washington, D.C., and U.S. territories to repair roads and bridges damaged by natural disasters and other unexpected events.

The funds help pay for the reconstruction or replacement of damaged highways and bridges along with the arrangement of detours and replacement of damaged safety devices.

This emergency relief funding includes awards to:

• California - $228.85 million for continued repairs to roads and bridges damaged by flooding during winter storms in 2017, as well as by wildfires;
• Alaska - $38.46 million for damages caused by an earthquake and floods;
• New York - $36.14 million, which includes funding for repairs to damage caused by severe winds and flooding;
• Iowa - $30.35 million for damages caused by significant flooding along the Missouri River in 2019;
• South Dakota - $26.2 million for heavy snow, rains, and flooding in 2019;
• Mississippi - $15.93 million for damage due to 2018 and 2019 flooding; and,
• Michigan - $11.4 million for flooding at various locations throughout the state.

Since 2017, the federal government has reimbursed states, territories, federal land management agencies, and tribal governments $4.2 billion for eligible expenses associated with damage from natural disasters or other emergency situations.

Arkansas - Metroplan, a four-county metropolitan planning organization in the Little Rock area, earmarked $55 million in grant funding toward building a regional trail system.

After visiting similar regional multi-use networks in Bentonville, Arkansas, and Greenville, South Carolina, Metroplan board members set a goal to improve mobility in Faulker, Lonoke, Pulaski, and Saline counties through trail expansion rather than make road or bridge improvements.

The regional multi-use path system will integrate existing trails, paths, and sidewalks to make vital connections within the overall regional transportation system. It also will aim for seamless connection with the existing and future transit network.

The investment over 10 years will include a strategic plan integrated into Metroplan's next regional master plan in 2022. As the organization plans further improvements, it will seek public and private partners to help implement its vision for a region linked by a network of trails, paths, and sidewalks.

Michigan - Gov. Gretchen Whitmer signed documents to secure Michigan's position as a global leader in the automotive manufacturing and mobility sectors.

Executive Directive 2020-1 creates the Michigan Office of Future Mobility and Electrification under the Department of Labor and Economic Opportunity (LEO). The office will be responsible for securing Michigan's status as a leader in autonomous, electric, connected, and shared future mobility, which will be achieved through strategic coordination of all mobility-related initiatives involving state government. These include initiatives related to economic and workforce development, as well as infrastructure efforts.

The directive also calls for the designation of a chief mobility officer to lead the office, which will be responsible for building on Michigan's leadership in leveraging public-private partnerships (P3s).

Executive Order 2020-2 abolishes the Council on Future Mobility, and creates the Michigan Council on Future Mobility and Electrification, which also is housed within the LEO. This council will be responsible for advising the LEO, Michigan's governor, and the legislature regarding recommended changes in policies.

Oregon - Hermiston city councilors voted to move forward with the construction of a new city hall building, months after a fire damaged the interior of the current city hall building. The total cost of the project would be approximately $9 million.

Included in the expenses would be about $700,000 worth of renovations to the basement of the Hermiston Public Library, which will be used by city staff as a temporary space during the new building's 18-month construction period. One proposal for these renovations includes shifting or removing many of the basement's walls to make the space more usable.

The remaining costs would go toward constructing the new city hall on the site of the current building. Preliminary designs show a two-story building that includes a basement. Each floor would have a footprint of about 9,200 square feet, and would be much more accessible for city staff.

To pay for the new building, the city could use full faith and credit bonds, with up to a 30-year payment. Additionally, the city could put its $175,000 insurance payout toward the new building.