News summaries
More P3s predicted for airports
Airports may begin seeking more public-private partnership agreements
as financing needs mount and more private investors step forward,
market participants said at a panel here last week. Budgetary pressures
on local governments top the list of factors that could motivate more
airport authorities to pursue P3s, Brian Chase, an associate
specializing in private infrastructure investment at Castalia Advisors,
said during a P3 conference hosted by the American Road and
Transportation Builders Association last week. In addition to revenue
needs, airports may be lured into P3 financing of their infrastructure
by the emergence of public pension funds as infrastructure investors
and by resistance to the "siren song of the municipal market," Chase
said....The Federal Aviation Administration already has a nearly
15-year-old pilot program to help airports enter into P3 arrangements
for airport improvement and development. It allows up to five public
airports to be owned, managed, leased, or developed by private
companies without having to comply with some of the federal rules that
hinder the deals...As of June, the FAA had only four active
applications, from Chicago Midway International Airport, Gwinnett
County Briscoe Field in Georgia, Louis Armstrong New Orleans
International Airport, and Luis Munoz Marin International Airport in
Puerto Rico.
The Bond Buyer ($)
IN: Indianapolis approves plan to sell off water and sewer
The Indianapolis City-County Council has approved a $1.9 billion deal
to sell the city's water and sewer utilities to the nonprofit trust
that provides local natural gas service. The council voted 19-10 Monday
night to endorse the plan proposed by Republican Mayor Greg Ballard.
The proposed purchase by Citizens Energy Group now goes to the Indiana
Utility Regulatory Commission for its review. Ballard says the city
will receive at least $425 million from Citizens, with the company
taking over about $1.5 billion in debt obligations. Ballard plans to
use the money for projects such as street and bridge improvements and
vacant home demolitions. Democratic council minority leader Joanne
Sanders argued the deal gives Citizens too much freedom to sell water
company property and doesn't provide enough public accountability.
The Republic
PA: Pittsburgh residents speak out against parking plan
More than a dozen people spoke out at a city council public hearing
last night to voice their concerns over a proposed parking plan that
could lead to parking rate hikes. Pittsburgh Mayor Luke Ravenstahl is
pushing a proposal to lease all city parking garages and meters to
boost the city's pension fund..Those who oppose the mayor's proposal
say it's the surest way to drive businesses and shoppers out of
downtown. "Selling off parking assets will only ensure two things:
higher parking rates and less revenue for the city long term," one
speaker said at Monday night's hearing. "A lot of people aren't coming
into town and they don't want to pay," another concerned resident
added, "so they're certainly not going to pay $2 an hour. They're gonna
park in front of my house, in front of my neighbor's house, in front of
the hospitals, because they don't want to do it and we have no where to
go and we can't do anything."
KDKA.com
FL: Port Everglades proposes replacing sheriffs with private security
More than 70 Broward Sheriff's Office employees working at Port
Everglades could be replaced with private guards under a cost-cutting
proposal from seaport administrators that union leaders say could
jeopardize security. The port's plan calls for eliminating all of its
Sheriff's Office community service aides -- civilian employees who
staff the four entrance gates, direct traffic and patrol what is on
track to become the world's largest cruise hub. Replacing them with
guards from the private sector could shave about $2.5 million yearly
from the port's budget, said Port Director Phillip Allen....[B]ut the
union representing the community service aides questions whether the
change would expose the port to heightened threats, including
terrorism. The Federation of Public Employees argues that private
guards lack the aides' training and sense of professionalism...Port
administrators also are scrutinizing whether they need 57 deputies
working there as called for by the port's contract with BSO, which
expires Oct. 1. The Sheriff's Office -- security, fire-rescue and
emergency services -- accounts for 34 percent of the port's operating
expenses.
Sun Sentinel
