As Seen At: Presidio Dialogues Season Opener with Mark Bittner

Cybersecurity

Article | March 23, 2022

Taxpayers, citizens, and industry leaders may not be totally familiar with Public Facility Corporations (PFCs), but that should change, especially now since public funding for critical projects is at an all-time low. PFCs are becoming somewhat common in many regions of the country. If the legal entity (PFC) is not familiar, here’s a bit of background. A PFC is a nonprofit corporation created by a sponsoring governmental entity — a city, county, school district, housing authority, or special district. PFCs have broad powers over public facilities, including financing, acquisition, construction, rehabilitation, renovation and repair. A PFC, once created, has the authority to issue bonds on behalf of its sponsoring public entity and once the bonds are funded, the money can be used in numerous ways. This type of legal entity has gained attention because public officials with critical projects are being forced to seek alternative funding sources. In Texas, public facility corporations are allowed the broadest possible powers to finance or provide for the acquisition, construction and rehabilitation of public facilities at the lowest possible borrowing cost. A sponsor — such as a municipality, county, school district or housing authority — may create one or more of nonprofit public facility corporations. Then, the PFC can issue bonds for the construction of public facilities or finance public facilities or even loan the proceeds of the revenue to other entities for specific purposes. A report that was released by The University of Texas School of Law found that a house bill approved during the 2015 legislative session “expands the authority of public facility corporations and allows the corporation to exercise any power that a nonprofit corporation might exercise and/or grant a leasehold or other possessory interest in a public facility owned by the PFC.” Here’s a bit more background of what is happening in Texas and there are numerous similar examples throughout the country. The El Paso Independent School District (EPISD) several years ago created the EPISD Public Facility Corporation to fund construction of central offices through non-voter approved bonds. The corporation issued more than $29 million in bonds. The plan called for the EPISD to repay the bonds with general fund dollars from the district's general fund. The 2019 Texas Legislative Session ended with a $4 million rider added to the state appropriations budget. The money was provided to the city of Port Aransas to build a $36 million apartment complex for affordable housing. Plans call for the 200-unit complex to be operated by the Port Aransas Public Facility Corporation. The corporation will work in partnership with a private company to develop and manage the property. An investment of approximately $14 million came from the private sector partner, and the Texas Department of Housing and Community Affairs provided an additional $18 million in funding. Site work on the project began in July 2020. Many school districts have created public facility corporations for construction projects for schools, and many municipalities have also used PFCs. The revenue from these types of bonds is sometimes called lease-revenue bonds. They do not require voter approval. Public facility corporations do not have the authority to raise tax rates, but it is possible for a school board to approve a property tax increase to make payments on the bonds sold by a PFC. The city of Tioga, located in the Sherman/Dennison region of Texas, constructed a new high school with funding from a public facility corporation. A collaborative initiative was launched with a lease-purchase agreement which allowed the PFC to hold title to the land and facility until the investment was repaid. At that time, the agreement calls for everything to transfer back to the district. Because the current campus was reaching its maximum capacity, a new high school campus had been a priority for the district and this was the funding mechanism selected. The city of Fate in Rockwell County recently embarked on a public-private partnership to develop an affordable seniors housing community. The projected cost is approximately $30 million. To fund the project, the city created a PFC. Plans are for the city to handle the design, construction, and management of the project in collaboration with the PFC. City leaders will appoint board members to the funding corporation which will then operate the development as a nonprofit. The project is anticipated for completion in January 2022. There are similar types of alternative types of funding options in other parts of the U.S. In Utah, for instance, the Park City Board of Education approved a PFC which will allow the district to secure revenue for a number of master plan projects. The projects have a combined projected cost of $122 million. The school district had considered the funding option of general obligation bonds, which would require voter approval, but elected to create a Local Building Authority (LBA). This funding option will allow them to fund an expansion of a high school facility to accommodate ninth-graders and expand another campus to allow for eighth-grade students. Public officials, legislators, government contractors, and taxpayers all should have an interest in watching PFCs as well as other alternative funding sources. Until traditional public funding becomes more available for critical public projects, there will be a need for various types of funding solutions. Mary Scott Nabers is president and CEO of Strategic Partnerships Inc., a business development company specializing in government contracting and procurement consulting throughout the U.S. Her recently released book, Inside the Infrastructure Revolution: A Roadmap for Building America, is a handbook for contractors, investors and the public at large seeking to explore how public-private partnerships or joint ventures can help finance their infrastructure projects.

Emerging Technology, Government Business

Article | October 7, 2022

Another round of funding from by the Federal Aviation Administration (FAA) will guarantee the launch of numerous projects at airports throughout the U.S. This particular grant program provides smaller funding amounts, but the funding can augment projects that are part of larger initiatives. U.S. Secretary of Transportation Elaine Chao announced in July that more than $273 million in airport safety and infrastructure funding has been approved for 184 airports in 41 states and six territories. Program details can be found here for airport safety and infrastructure grants. The bulk of the funding, just over $242 million, is provided through the FAA’s Airport Improvement Program, while $31 million is a result of the recent Coronavirus Aid, Relief, and Economic Security (CARES) Act. This funding provides a 100 percent federal cost share for airport projects that fall into the category of infrastructure and/or safety. Projects of numerous types are eligible, but recently approved ones range from runway and taxiway construction to lighting improvements and master plan studies. And, most of the projects are slated to launch within the next year. Projections for increased airline travel in 2021 are strong, and pent-up demand will result in even more upcoming airport projects of all types. Florida Plans for a major renovation at Punta Gorda Airport are underway and will be enhanced by a grant allocation of $471,305. The FAA funding will cover the design phase for renovating the airport’s 7,193-foot-long runway. Construction is slated to begin in 2021. Punta Gorda Airport is off the Gulf Coast north of Fort Myers. Boca Raton Airport received a $694,444 federal grant to update its master plan. This upfront work will outline and prioritize airport improvement projects and expansion plans for the next two decades. Recent conversations have focused on new additions related to lighting, signage, taxiway and runway drainage, and other improvements. The 243-acre airport is in southern Palm Beach County. While Tampa International Airport didn’t receive funding in the most recent round of FAA grants, numerous upcoming projects have been announced. The projects are listed in the airport’s 2021 Proposed Budget. Among those is an elevator modernization project projected to cost approximately $7.4 million. It is slated for the airport’s main terminal. Another technology project covered by a fiscal year 2021 capital commodity plan has a cost allocation of $1.5 million, and an airside A&C shuttle car and control system replacement project totaling $13.2 million is anticipated in the near future. Miami International Airport is working on the solicitation for a new hotel with a 30- to 50-year lease agreement. As the nation’s second-busiest airport, officials hope to partner with a group to construct a “world-class” 350-room hotel. The plans call for the new hotel to be connected by a pedestrian bridge to Concourse D. Amenities will include a restaurant, business center, 20,000-square-foot meeting space for events, and a fitness center. California A small airport off Interstate 5 in northern California has been notified that it will receive funding for renovations. The Dunsmuir Municipal-Mott Airport was awarded $3.2 million to perform critical renovations to the runway and reconstructing the taxiway. City officials were pleased to announce that the airport runway, which has been in disrepair for some time, will now be completely refurbished and made safer. Arkansas Engineering and design work is nearing completion for a new $13 million terminal for Texarkana Regional Airport. The facility, which is located along U.S. 67 east of downtown Texarkana, received $3.6 million in FAA grant funding. Construction of the new terminal is just one part of a larger $34 million project for the airport. Missouri Columbia Regional Airport will extend one of its runways with the help of a $9.9 million federal grant. The Columbia City Council in March approved extending Runway 2-20 from 6,500 feet to 7,400 feet in order to be able to accept larger aircraft and also increase takeoff and stopping distances. City officials estimated the total cost of construction at $11 million, and the city has budgeted an additional $1.1 million for the runway extension project. This project will be launched in 2021. Louisiana Although airports in the state of Louisiana did not receive grant funding from the FAA, the Louis Armstrong New Orleans International Airport is working to finalize its master plan and has numerous projects already slated for the near future. Once the plan is completed, interested contractors will be able to find numerous and diverse improvement and expansion projects outlined. The airport is just south of Interstate 10 and Lake Pontchartrain. Oregon Hillsboro Airport has a $2.8 million construction project planned for early 2021. Officials have announced that a contractor will be selected to reconstruct almost the full length of Taxiway A and connect it to several other taxiways. The work will be performed in conjunction with the FAA and Port of Portland Operations. Georgia The city of Atlanta is scheduled to release a request for proposals (RFP) for on-call engineering services at Hartsfield-Jackson International Airport. An engineering firm will be selected to provide ground surveys in support of upcoming work that will be handled by the city aviation planning and development department. Atlanta’s airport held the distinction of being busier than any other airport in the U.S. in 2019. More than 110 million passengers passed through the airport either departing on or arriving back from airline flights. Although these most recent grant awards will not fund huge airport projects, the funding will enable the launch of thousands of smaller contracting opportunities. Mary Scott Nabers is president and CEO of Strategic Partnerships Inc., a business development company specializing in government contracting and procurement consulting throughout the U.S. Her recently released book, Inside the Infrastructure Revolution: A Roadmap for Building America, is a handbook for contractors, investors and the public at large seeking to explore how public-private partnerships or joint ventures can help finance their infrastructure projects.

Government Business, Government Finance

Article | July 12, 2022

The biggest IT challenge local governments faced during the COVID-19 pandemic has been scaling existing infrastructure to accommodate many more workers than they had planned for, IT leaders said during a June 17 panel discussion. “Our remote access solution was originally scaled for a major snow day, not for 3,000 to 4,000 remote users,” Charles Gore, IT security manager for Loudoun County, Va., said during a webinar presented by CompTIA’s Public Technology Institute. “We were looking at 500 users remote. We had to spread the scoping across multiple technologies, which we had, but we needed to very quickly adjust to accommodate the new users.”

Article | July 15, 2020

As the country battles to recover from COVID-19, transit leaders are calling for the next federal relief package to appropriate substantial funding to allow public transit to play its critical part in the economy’s recovery. In the interim, many of these transit and mobility authorities throughout the nation are moving forward with capital improvement projects already in the pipeline and in various phases of development. They will soon be announcing large projects, especially in quickly growing regions, and their planning documents list upcoming initiatives that range from mid-size construction projects to sprawling billion-dollar programs that focus on aging infrastructure. The following are just a few examples of upcoming projects from tollway and mobility authorities. California Just east of San Francisco, the Tri-Valley-San Joaquin Valley Regional Rail Authority in late June approved $46.8 million in funding for the next stage in Valley Link, a 42-mile light-rail line. This project will connect a planned train station in North Lathrop to an existing station in Pleasanton. Another $13 million previously dedicated to the project paid for conceptual design work that is near completion. Also, elsewhere in the state, the Transportation Corridor Agencies, in coordination with Caltrans, is proposing a $180 million project to add a direct 241/91 Express Connector linking the northbound 241 Toll Road to the eastbound 91 Express Lanes and the westbound 91 Express Lanes to the southbound 241 Toll Road. The connector will alleviate traffic and improve access to toll lanes in Orange and Riverside counties. Texas The Central Texas Regional Mobility Authority has several forthcoming procurements and will be soliciting bids in early August for the third phase of the 183A extension project. This $180 million project will create a 6.6-mile extension of the busy tollway north from Leander to east of Liberty Hill. Construction is expected to begin in early 2021. New Jersey The New Jersey Turnpike Authority has $24 billion in various road and infrastructure projects in its Proposed 2020 Capital Improvement Program released in March 2020. The authority has outlined 24 projects that provide system solutions and upgrades. One of the largest initiatives is a $2.9 billion project to replace approximately 200 bridge decks. Another large undertaking, projected to cost about $1.4 billion, is described as raising a section of Garden State Parkway above a revised 100-year floodplain. Florida Florida’s 2021 budget earmarks $90 million for an ambitious tollway project spanning hundreds of miles. The Multi-use Corridors of Regional Economic Significance, or M-CORES, plan calls for construction of 340 miles of new toll roads by 2030. M-CORES outlines new road infrastructure for three corridors: the Suncoast Connector from Citrus County to Jefferson County; the Northern Turnpike Connector from the northern terminus of Florida’s Turnpike northwest to the Suncoast Parkway; and the Southwest-Central Florida Connector from Collier County to Polk County. Initiated by a state Senate bill in 2019, this is a $10 billion project. Kansas The city of Overland Park and the Kansas Turnpike Authority are conducting a study that could lead to a $300 million project for U.S. 69. City leaders turned to the Turnpike Authority for help with widening the highway which has become the most congested in the state. The collaborative effort would include widening the highway to six lanes, with two of them being tolled. Illinois The Illinois Tollway Authority is closing its bid filing period for a more than $100 million project to reconstruct a section of Interstate 294, and numerous other projects are slated to occur in the next several years. A project to reconstruct the northbound C-D Road has a cost projection of between $25 and $50 million. Another planned project includes demolishing and rebuilding the Southbound Mile Long Bridge with a cost of more than $100 million. Another interesting project outlined involves building ongoing ramps from 75th Street to Interstate 55 which will also cost approximately$100 million. Pennsylvania The Pennsylvania Turnpike Commission (PTC) released a request for information to determine how best to structure procurements to replace and enhance the commission’s tolling Customer Service Center system and customer service operations. A number of contracting opportunities will result from this initiative. The commission is inviting responses from software application development companies with innovative products in the customer relationship management, customer account management, and customer experience spaces. System integrators and/or software developers with expertise in CRM, customer account management, call centers, customer contact systems and CX, and transactional/financial processing and billing systems also are also encouraged to respond. PTC is also interested in input from customer service firms specializing in the design and integration of innovative customer contact systems with new or existing applications. In addition to construction and engineering projects, numerous tollway authorities are moving toward all-electronic toll collections. The Pennsylvania Turnpike Commission moved from toll collectors to all-electronic this year, and the Bay Area Toll Authority suspended in-person toll collecting in March because of COVID-19. This trend will provide numerous opportunities for IT companies in the near future as transit and mobility authorities search for technology solutions to modernize the driving experience on toll roads. Mary Scott Nabers is president and CEO of Strategic Partnerships Inc., a business development company specializing in government contracting and procurement consulting throughout the U.S. Her recently released book, Inside the Infrastructure Revolution: A Roadmap for Building America, is a handbook for contractors, investors and the public at large seeking to explore how public-private partnerships or joint ventures can help finance their infrastructure projects.