Category Archives: Infrastructure

Release of Trump infrastructure plan may slip past January

Source: Brianna Gurciullo and Lauren Gardner, Politico, January 9, 2018
 
The White House may be pushing back the release of its long-awaited infrastructure package yet again, just a month after saying it would come out by the end of January.  A White House official said Tuesday that there have been “no decisions yet on timing” for the release. Sen. Ben Cardin (D-Md.) separately told POLITICO — after a meeting with Transportation Secretary Elaine Chao and other officials — that administration officials are still deciding whether to publish legislative principles for the plan before or after the president’s State of the Union address Jan. 30. …

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Mixed signals on infrastructure plan emerge from Trump retreat
Source: Josh Dawsey, Washington Post, January 7, 2018
 
President Trump expressed misgivings about his administration’s infrastructure plan Friday at Camp David, telling Republican leaders that building projects through public-private partnerships is unlikely to work — and that it may be better for the government to pursue a different path.  Then on Saturday morning, Gary Cohn, the president’s chief economic adviser, delivered a detailed proposal on infrastructure and public-private partnerships that seemed to contradict the president. He said the administration hoped $200 billion in new federal government spending would trigger almost $1 trillion in private spending and local and state spending, according to people familiar with his comments. Cohn seemed to present the plan as the administration’s approach, although the president had suggested such an approach might not work. …

Why Trump’s Infrastructure Push Might Stall Again
Source: Mark Niquette, Bloomberg Businessweek, January 5, 2018
 
The first year of Donald Trump’s presidency began with hopes for a unified effort to fix U.S. highways, bridges and airports. His second year begins much the same way. There was talk in 2017 about advancing a sustained infrastructure-improvement program, but there was little progress — a reflection of the president’s priorities and the differences between Republicans and Democrats on how to pay for and carry out such an effort. That hasn’t kept Trump from predicting bipartisan agreement on the issue in 2018. …

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Why Virginia Drivers Are Paying a $35 Toll to Drive Into Washington, D.C.

Source: Henry Grabar, Slate, December 7, 2017

Starting Monday, if you want to drive peak-direction on I-66 inside the Beltway, you have two choices: Find a passenger or pay a toll that has soared as high as $40 this week. It is a peek at the future of driving (and more), in which dynamic pricing will offer access to scarce resources. And it made people very, very angry. … It’s one instance in a wave of new dynamic-toll experiments in Virginia and elsewhere. Reluctant Republicans had made a deal with Gov. Terry McAuliffe to allow I-66 tolling in exchange for widening the highway. Now, they say the rates are “unacceptable” and the timing (after the gubernatorial election) suspicious, and they have called on governor-elect Ralph Northam to clean up the mess. But without a paradigm shift in infrastructure spending, a big, thriving city cannot maintain the delicate balance between moving traffic, well-maintained roads, and cheap commuting for solo drivers. … Toll roads have long been a popular choice for public-private partnerships (and with mixed results). But they’ve crept onto interstates too, thanks to congressional carve-outs that allow tolling to add capacity or make bridge repairs. Trump’s infrastructure white paper called for legalizing the tolling of interstates across the board. … This is good news insofar as it hastens the demise of our wasteful, expensive, and environmentally damaging transportation model. … But this trend also poses thorny questions as the culture of the long commute changes. Once the burden of wealthy suburbanites who had fled the city, long car commutes—especially in high-cost metro areas with lots of traffic congestion—are now just as likely to be associated with service workers exiled from central housing markets or others chasing far-flung employment centers. In most cases, that also means they’ve been denied access to mass transit commutes. …

Puerto Rico Still Waits for $4.9 Billion From U.S. Treasury

Source: Rebecca Spalding, Bloomberg, December 8, 2017
 
Over two months after Hurricane Maria devastated Puerto Rico, the island’s government still hasn’t received any of the $4.9 billion of short-term loans promised in the storm aid package Congress passed at the end of October.  Christian Sobrino, the governor’s representative on the island’s federal oversight board, confirmed Friday that no Puerto Rican entity has received any portion of the funds, which were requested for basic functions like making payroll. This week, the Puerto Rican government told the fiscal control board that the electric company, Prepa, and water utility, Prasa, would run out of money in December.  Sobrino said Friday that the island’s fiscal agency was in talks with the U.S. Treasury and Department of Homeland Security about the money and how it would be disbursed. …

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U.S. counters hedge fund’s attack on Puerto Rico oversight board (Abstract)
Source: Jim Christie, Reuters, December 7, 2017
 
The U.S. government defended on Wednesday the federal board overseeing Puerto Rico’s restructuring, countering a bid by a hedge fund that sought to get the U.S. territory’s bankruptcy-like case dismissed by attacking the board’s legality.  The restructuring is taking place under a special federal law known as the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) that provides for proceedings in U.S. District Court akin to those under Chapter 9 municipal bankruptcy. …

Bernie Sanders to unveil a $146 billion ‘Marshall Plan’ for Puerto Rico
Source: Jeff Stein, Washington Post, November 28, 2017

Hurricane Maria destroyed Puerto Rico’s decades-old electrical grid when it made landfall on Sept. 20, rendering millions of island inhabitants without power.  On Tuesday, Sen. Bernie Sanders (I-Vt.) will unveil an ambitious $146 billion Puerto Rico recovery plan he says will allow renewable power sources such as solar and wind to provide about 70 percent of the island’s energy needs within the decade.  The bill, which has the backing of San Juan Mayor Carmen Yulín Cruz, also calls on Congress to consider retiring Puerto Rico’s debt and would give the island billions in additional federal funding for transportation, health care and education in the hopes of stemming a feared mass exodus to the mainland. It would also allocate funds to the Virgin Islands, which were similarly devastated by Hurricane Maria. …

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HUD Secretary Carson launches centers to drive households to self-efficiency

Source: Kelsey Ramírez, Housing Wire, December 7, 2017

U.S. Department of Housing and Urban Development Secretary Ben Carson announced a new initiative to help HUD-assisted families achieve self-efficiency. Carson announced HUD will launch its new EnVision Centers, which will be located on or near public housing developments. HUD explained these centers will be hubs for what it calls the four key pillars of self-sufficiency: character and leadership, educational advancement, economic empowerment and health and wellness. The centers will form partnerships with federal agencies, state and local governments, non-profits, faith-based organizations, corporations, public housing authorities and housing finance agencies. EnVision Centers will utilize public-private resources to impact the community. … Carson previously explained his vision to HousingWire in an exclusive interview with Editor-In-Chief Jacob Gaffney, who wrote: One of Carson’s main initiatives is establishing “envision centers” of learning, especially for teenage mothers who, more often than not, end their educational trajectory once they give birth. New York City is seen as a potential spot for one of the first such centers where young, low-income parents can access day care while learning to code and “balance a checkbook or unclog a toilet,” the secretary told me. … HUD will start by launching ten pilot EnVision Centers across the U.S. …

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America’s public housing crisis may worsen with Trump budget
Source: Lawrence Vale, Associated Press, July 12, 2017
 
… As someone who has spent 25 years researching and writing about the travails of public housing in the U.S., I had this immediate thought: Could the same thing happen here?  Various commentators have pointed out that American regulations require sprinklers and do not permit the use of cladding materials with combustible plastic cores in high-rise structures.  Yet while the facades of American public housing may be less flammable, the system suffers from a toxic convergence of long-deferred maintenance, squeezed budgets and cost-cutting measures. Privatization policies, deeply rooted suspicions about the character of public housing residents and long-term inattention all threaten the capacity of stigmatized low-income families to remain in their homes. …

Ben Carson reckons with proposed HUD budget cuts
Source: Jonathan Easley, The Hill, June 30, 2017

… Now, as HUD secretary, Carson controls the $46 billion government agency that oversees housing for the poor. President Trump’s proposed 2018 budget would cut HUD spending by $6 billion. “We will use whatever resources we have very efficiently,” Carson said. “The other thing to keep in mind is that the traditional view of HUD and government is we ride in on a white horse with a bucket of money … and go off to the next thing,” he continued. “That particular model has led us to the point where we have three to four times as many people in need of affordable housing and it’s getting worse.” Carson, who had no experience in government before becoming HUD secretary, is grappling with decisions about which programs to keep, which to shutter, and how to improve the ones that remain. …

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Whitefish stops work on Puerto Rico power grid over payment dispute

Source: Brandon Carter, The Hill, November 20, 2017
 
Whitefish Energy, which is under scrutiny over how it was selected for work in Puerto Rico, is halting its efforts on the island’s power grid because it says the local power authority owes it millions of dollars.  In an interview with CNN published Monday, Whitefish CEO Andy Techmanski said the company is owed more than $83 million by the Puerto Rico Electric Power Authority (PREPA) and is stopping work because its repeated requests for payment were not fulfilled.  “We stopped because of the financial situation, lack of payment with PREPA has gotten beyond its maximum threshold and what we can sustain as a business,” Techmankski said.  The company’s CEO said that it has employed more than 500 contractors and subcontractors on its work to restore the island’s power grid following the devastation caused by Hurricane Maria. …

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Ricardo Ramos, embattled head of Puerto Rico’s power utility, resigns
Source: Phil McCausland, NBC News, November 17, 2017
 
The embattled head of Puerto Rico’s power utility resigned on Friday, the latest controversy to hit the island as it struggles to bring its electric grid back online. Ricardo Ramos, the executive director of the Puerto Rico Electric Power Agency, submitted his resignation to Puerto Rico’s governor’s office only a few days after he testified before the Senate Energy and Natural Resource Committee over the controversial contract he approved with Whitefish Energy Holdings, a small Montana firm to rebuild Puerto Rico’s electric grid.  A few hours after Ramos resigned, Puerto Rico Governor Ricardo Rosselló recommended the appointment of engineer Justo González as interim director of the public utility.

After Doomed Whitefish Deal, Puerto Rico Asks Congress for $94 Billion
Source: Frances Robles, New York Times, November 14, 2017

The governor of Puerto Rico and the chief executive of its beleaguered electric company faced hours of questioning on Tuesday in Congress, where skeptical legislators questioned whether to give the island an enormous aid package on the heels of a botched high-priced contract to fix its power grid.
Gov. Ricardo A. Rosselló came to Senate and House committees with a huge ask: $94.4 billion to help Puerto Rico “build back better” after Hurricane Maria destroyed or damaged 472,000 homes and knocked out the island’s electricity. He also said that Puerto Rico should have more authority over its own fiscal affairs, and that he had “zero role” in awarding a highly criticized $300 million deal to a small Montana firm to help restore power. …

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New York’s prevailing wage law: A cost-benefit analysis

Source: Russell Ormiston, Dale Belman, and Matt Hinkel, Economic Policy Institute, November 1, 2017

… State prevailing wage laws across the country have increasingly been assailed by those who appeal to lawmakers’ other responsibility—minimizing taxpayer costs—in an attempt to weaken or repeal these policies. These nationwide campaigns are built almost entirely upon a single argument: higher wages must equate to higher taxpayer costs. … And with a recent publication by the Empire Center (McMahon and Gardner 2017), it has become apparent that some in New York will attempt to pitch the same narrative to state lawmakers. There’s one problem. According to the most advanced economic research on state prevailing wage laws, the simple narrative largely isn’t true.

To separate fact from fiction as it relates to New York’s prevailing wage law, this report provides a thorough cost-benefit analysis of state policy relying extensively on independent, peer-reviewed research. As summarized in this report, academic economists from around the country have made prevailing wage laws a research priority over the last 15 years. In study after study, economists have found no evidence that these laws have had any significant cost effects on the biggest drivers of New York’s capital budget: highways and institutional buildings (e.g., schools). …

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New Orleans’ summer of floods revives the threat of privatization

Source: Aviva Shen, ThinkProgress, October 20, 2017
 
This year’s spate of floods prompted sudden scrutiny of the city’s long-neglected infrastructure, but everyone knows the system is not fully prepared to manage the city’s regular downpours. … After the August flooding, the Sewerage and Water Board admitted that at least 14 of the pumps that constantly churn water out of the ground had been offline. Outrage erupted. Several board officials resigned in political sacrifice, and Mayor Mitch Landrieu (D) called for a private company to intervene and potentially take over the agency. … Private firms Veolia and CH2M quickly snapped up no-bid contracts to analyze New Orleans’ systemic failures after the August flood, stoking suspicion that the mayor would quietly transfer power over the water systems to for-profit companies. CH2M and its subcontractors have been tasked with servicing turbines that power the city’s pumps and finding back-up power sources. Veolia, which already manages part of the city’s wastewater system and its entire mass transit system, has been authorized not only to analyze the failings of the stormwater system but to “start taking the right steps to any necessary maintenance efforts.” The cost of fulfilling these contracts is still unclear…..

KC Council picks Edgemoor team for KCI terminal job

Source: Rob Roberts, Kansas City Business Journal, September 21, 2017

A joint meeting of two Kansas City Council committees voted Thursday in favor of selecting a team led by Edgemoor Infrastructure & Real Estate LLC to design, develop and arrange financing for a new airport terminal. … The committee’s decision comes after heavy lobbying and criticism by two other teams pursuing the roughly $1 billion project. … The airport ordinance calls for the city manager to begin negotiating a memorandum of understanding with Edgemoor. At the request of Councilman Jermaine Reed, it also spells out components of a community benefits agreement that must be part of the MOU, requires Edgemoor to institute a local hiring preference and requires negotiation of minority- and women-owned business and workforce participation goals that recognize “the transformative possibilities for disadvantaged businesses and workers that can result from a public infrastructure project of the magnitude of the proposed terminal modernization project.” …

Fleecing America’s builders

Source: Maryam Jameel, Center for Public Integrity, August 21, 2017

… The Wage and Hour Division must enforce at least 14 statutes across the nation’s 29 million businesses with a team of only 929 investigators as of the end of June. Federal agencies, which spent more than $470 billion on contracts during the 2016 fiscal year, are saddled with a flawed system to vet contractors and monitor their compliance with those laws. As a result, contractors’ violations rarely show up in government databases. Subcontractors, which often employ most of the workers on construction projects, get even less scrutiny.

Last year, the federal government spent more than $40 billion on contracts covered by Davis-Bacon. But a Center investigation found that about 70 percent of the businesses caught violating the law in 2016 don’t appear in federal databases designed to track companies’ contracting records. Weak oversight allows subcontractors in particular to shortchange workers on government projects with little fear of being caught or barred from future contracts. Meanwhile, their overseers often maintain clean labor records and continue to win government business. This fiscal year, federal agencies have spent more than $425 million on contractors found to have violated Davis-Bacon in 2016, according to U.S. Treasury and Labor Department records analyzed by the Center. The top spenders: The U.S. Department of Defense and the GSA. …

Taking the P3 Route to Reinvent Downtown

Source: Charles Renner, Public Management, July 27, 2017

… The past decade has seen a steady increase in the use of P3 structures, and 2016 was something of a watershed year with multiple high-profile projects coming online that address a variety of public needs, including a $1 billion water infrastructure project servicing San Antonio, Texas, the site of ICMA’s 2017 Annual Conference. In each case, the public sector identified a future need aimed at supporting the attraction of mobile talent, evaluated the limits of going it alone, engaged a P3 partner, and found leadership to achieve results. …

A Sioux Falls Renaissance … A key part of the updated Downtown 2025 Plan is increasing the CBD’s available commercial and residential real estate. To help accomplish this, Sioux Falls opted for a P3 solution to design, build, operate, and maintain a mixed-use facility with retail, office, and residential uses that will ultimately increase the density of downtown. …

Nebraska Innovation Campus and P3 … Located adjacent to the University of Nebraska-Lincoln, NIC is a research campus designed to facilitate new partnerships between the university community and private businesses. …

San Antonio’s Vista Ridge … As a result, the San Antonio Water System (SAWS) crafted the vision of a 142-mile water pipeline project called Vista Ridge that will deliver enough water for some 162,000 new families by 2020, providing a 20 percent increase in water supply. … SAWS opted for a P3 undertaking in order to engage private equity and much needed development expertise in securing and constructing a resource delivery project that requires roughly $1 billion in investment, thousands of private water commitments, along with the 142 miles of built-to-last water pipeline. …