
Industry News Briefs
June 19, 2008 Headlines
First-ever Private Activity Bonds Fund Interstate Highway Project
Schools Need $20 Billion for Infrastructure
Stimulus Package Would Create Novel Water Infrastructure Bonds
U.S. Still Leads World in Science and Technology
States Face Bridge-Building Funding Squeeze
Industry News
First-ever Private Activity Bonds Fund Interstate Highway Project
U.S. Department of Transportation (06/12/08)
For the first time ever in the United States, tax-exempt private activity bonds have been issued to finance a highway project. The Virginia-based nonprofit Capital Beltway Funding Corporation has issued $589 million in private activity bonds to fund the I-495 Capital Beltway High Occupancy Toll (HOT) Lanes Project in Northern Virginia, part of an estimated $1.9 billion finance package for the 14-mile project that also includes a $589 million direct loan from the U.S. Department of Transportation (DOT) Infrastructure Finance and Innovation Act loan program. The program, enacted as part of the 2005 surface transportation measure, encourages private sector participation in funding highway projects through flexible repayment terms. It allows private companies to borrow up to $15 billion nationwide on a tax-exempt basis to build and operate highways and some freight facilities. Though DOT has authorized the issuance of $5.6 billion in these private-activity bonds for seven projects, this is the first time the bonds have been issued. "This financial transaction represents a historic turning point not only for the way we finance highway projects but also for the thousands of drivers who lose precious time stuck in traffic on one of the nation’s most congested highways," says Transportation Secretary Mary Peters. Under the I-495 expansion plan, two additional lanes on each side of the Beltway will be added by 2012, allowing the conversion of the two existing middle lanes to HOT lanes with tolls changing in accordance with traffic volume. Transurban and Fluor Enterprises, the private companies that will finance, operate, and maintain the express lanes, will use the tolls to repay the private activity bonds and DOT loan.
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Schools Need $20 Billion for Infrastructure
eSchool News (06/01/08) Vol. 11, No. 6, P. 8; Carter, Dennis
A report from the Economic Policy Institute (EPI) in Washington, D.C., calls for a $20 billion school infrastructure upgrade, with a great deal of that funding focused on long-deferred investments in schools sited in low-income areas. Public school buildings have consistently received low grades from the American Society of Civil Engineers, and three years ago schools got a D as a whole, the highest mark since the society started issuing grades a decade ago. EPI report author and 21st Century School Fund Executive Director Mary Filardo says many urban schools have not received funds for technology improvements despite $500 billion in federal spending for such enhancements from 1995 to 2004. She notes that most of the funding went to infrastructure improvements for school districts in high-income areas. The EPI study states that lawsuits have been filed in 31 states where plaintiffs have "challenged the adequacy or equity of public education funding in low-income communities and have made facility conditions an element of their lawsuit." Many schools in low-income urban areas that have bought the latest in classroom technology with the aid of federal funding lack the know-how to use the equipment, according to school technology experts.
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Stimulus Package Would Create Novel Water Infrastructure Bonds
Water Policy Report (06/09/08) Vol. 17, No. 12,
Those who back a bill to enhance investment in water infrastructure are seeing new support for the legislation along with discussion of a possible economic stimulus package for infrastructure projects that could lead to a future hearing on alternative infrastructure funding proposals. One of the goals of H.R. 3986 is to establish an Infrastructure Development Corporation that would supply freshly designed "public benefit bonds" for water and various infrastructure projects. The bill would also set up a new insurance program as part of the corporation that would insure infrastructure-linked assets. More lawmakers are voicing support for adding the measure to a second stimulus bill. The National Association of Regulatory Utility Commissioners (NARUC) also backs the legislation. In a letter to Rep. Rosa DeLauro (D-Conn.), who introduced H.R. 3986, David King, chairman of NARUC's water committee, said the legislation "seeks to resolve what could be a looming national crisis and raises awareness of this issue in Congress and with the public at large." Other water utility groups, however, say their attention is on the approval of legislation reauthorizing clean water and drinking water state revolving loan funds.
U.S. Still Leads World in Science and Technology
AScribe Newswire (06/11/08)
Despite perceptions that the United States is losing its competitive edge, it remains the dominant leader in science and technology, concludes a new RAND Corporation report. The United States accounts for 40 percent of the world's spending on scientific research and development, employs 70 percent of the world's Nobel Prize winners, and is home to three-quarters of the world's top 40 universities, the report says. The flow of foreign students studying sciences, and foreign scientists and engineers, has helped the United States build and maintain its worldwide lead, even as other nations increase research and development spending. The study says that continuing the flow of foreign-born talent is critical to the United States keeping its lead. "Much of the concern about the United States losing its edge as the world's leader in science and technology appears to be unfounded," says report co-author Titus Galama. "But the United States cannot afford to be complacent. Effort is needed to make sure the nation maintains or even extends its standing." Although China has invested heavily in research and development, the majority of world innovation and scientific output is still dominated by the United States, Europe, and Japan, say RAND researchers. However, other nations are rapidly educating their populations in science and technology, with the European Union and China graduating more scientists and engineers every year than the United States. The report suggests establishing a chartered body to periodically monitor and analyze U.S. science and technology performance and the condition of the nation's science and engineering workforce, and making it easier for foreigners with U.S. university degrees in science and engineering to stay indefinitely in the United States and for highly skilled labor to immigrate to the United States.
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States Face Bridge-Building Funding Squeeze
Structural Engineer (06/08) Finley, Craig
The American Road and Transportation Builders Association estimates that the value of construction on domestic bridge projects rose almost 14 percent to $23.2 billion last year, and the association expects that growth will continue this year at around 3 percent, according to Finley Engineering Group managing principal Craig Finley. However, the construction sector faces a distressed economic climate where declines in state government revenue and other factors are causing turmoil. The Rockefeller Institute of Government estimates that state tax revenues throughout the United States fell by 4.3 percent during the fourth quarter of 2007, and the institute's Robert B. Ward remarks that "costs are rising sharply just as revenues falter. The result may be a squeeze on states' ability to fund services." Finley observes that this decline is spurring some state departments of transportation to stretch project budgets over multiple years, resulting in postponed payments to contractors and provoking a skittishness among contractors about bidding on projects. Or contractors may elevate prices to compensate for a potential hit, which reduces competition and raises project costs. This sends a message to the bridge construction industry that "the taxpaying public and their representatives are willing to spend money for safe, functional bridges, but only if we build them in the most economical and efficient manner possible," writes Finley. This in turn is fueling interest in innovative project delivery, which includes public-private partnerships, value engineering, and creative contract terms. Finley concludes that such methods may become de rigueur in the United States.
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Green Megalopolis
Popular Science (07/08) Vol. 273, No. 1, P. 49
By year's end, more than half of the world's population will reside in cities. By 2030, the urban population is expected to increase to 5 billion from the current 3.3 billion. The rise of the megalopolis coincides with growing degradation of the environment, and the foundations for tomorrow's urban landscape are being laid today. Playing a vital role in that landscape are innovative "green" transportation solutions like the two-seater City Car inspired by researchers at MIT that commuters could pull from a stack, much like shopping carts are, near a major hub like a subway entrance, drive, and then park at a depot nearest the destination. The pods would fold up during storage, eliminating parking congestion, and would be powered through rooftop solar panels, pumping excess energy into the electric grid while parked. Picking up the commuters from the City Car depot and taking them to their desired destinations would be driverless buses powered by a mix of biodiesels and electricity that would be guided by a central computer along magnets embedded in dedicated lanes to pick up and drop off passengers. The future could also include highways lined with wind turbines which would generate power for the electric grid as cars drive past. California start-up Unimodal, meanwhile, has already designed an on-demand maglev railways system, called Skytran, that could carry up to 14,400 commuters an hour, giving it the same capacity as a three-lane highway. The system utilizes individual two-seater pods that move along a single high-speed guideway at speeds of up to 150 miles per hour. The system envisioned by Unimodal would cost $10 million a mile to build, just 10 percent of what it costs to build a light-rail equivalent.
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Spotty Rules Govern Crane Industry
Associated Press (06/09/08) Westfeldt, Amy
The rules governing construction cranes differ greatly between cities and states, according to an Associated Press investigation. Many also do not have their own regulations for construction cranes, but instead follow federal guidelines, some as old as 40 years. Federal law requires that inspection records be kept, but not turned in. "There are people who won't do it because they know their machinery will not pass code," says John Alexander, an inspector for Cranetex Services in Austin, Texas. "There are people who will give the excuse that they can't afford it." The federal government recently conceded that new standards would help thwart crane accidents, however, many states do not keep track of their cranes or require training for employees who operate the equipment or the officials who certify them. New York City, where two recent crane accidents left nine people dead, has just four inspectors for its 200-some cranes. The last time crane regulations of the Occupational Safety and Health Administration were revised was in 1971. They call for cranes to be inspected once every year, but most of the inspections never take place. Out of the more than 4 million construction sites in the nation, OSHA inspected 23,000 of them in 2007. A spokeswoman for the Labor Department said modernizing the regulations "is a top regulatory priority," but approving new rules might still take at least one year. Independent inspections are common in California, which has some of the strictest crane regulations in the country, and in Nevada. New York City is now considering third-party inspections.
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A Bridge to Somewhere: Rethinking American Transportation for the 21st Century
Brookings Institution (06/12/08) Puentes, Robert
The Brookings Institution has released a new report aimed at convincing federal policymakers to rethink transportation policy to reflect economic competitiveness, environmental sustainability, and social equity as well as the aging bridge and road infrastructure in the United States and growing traffic congestion in urban areas. The proposed approach is three-pronged. First, it urges the federal government to take the lead in areas where there is a clear need for national uniformity. Second, it encourages the federal government to empower states and cities through direct funding and project selection authority. Finally, it states that the federal government should optimize its own performance and that of its partners to boost metropolitan prosperity. Among the suggestions, the report calls for the consolidation of the various transportation innovation programs being pursued by different agencies. It also calls for the establishment of an infrastructure corporation in place of the existing highway trust fund to identify and fund vital regional and national transportation projects. The full report can be found here.
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Levee Alternative
Civil Engineering (05/08) Vol. 78, No. 5, P. 72; Horvath, John S.
Block-molded expanded polystyrene (EPS) is commonly used as filler in roadway embankments and other transportation projects, but the material, which is reliable and easily transported, could also find use in the construction and reconstruction of levees, according to Manhattan College professor John S. Horvath. Properly designed and specified EPS block boasts a surprising load-carrying capacity, and its light density can reduce stress-dependent settlements and enhance stability. The consideration of stiffness and displacement rather than strength comprises the current state of the practice for assessing and designing lightweight roadway fills that utilize EPS block in their subgrades, and the modeling of a levee that incorporates EPS blocks can be done in much the same fashion as a road embankment. EPS floats readily in water and does not sink with the passage of time thanks to its closed-cell structure and very low density, so the uplift water pressure that might act at the base of the arrangement of EPS blocks during the levee's design life should be calculated and an adequate downward stress supplied atop of the assemblage to balance this, usually by topping the assemblage with soil. There are also alternative proposals to use a vertically oriented tie-down system depending on ground anchors to restrain the assemblage against uplift. Research and experience have demonstrated the need to provide supplemental shear resistance between horizontal block surfaces, at least when seismic and other dynamic loads are anticipated, which would make the presence of mechanical connectors between the EPS blocks advisable. Stiffness parameters for block-molded EPS should not be evaluated by the sole criterion of density, so any design using EPS block should always be performed by initially ascertaining the minimum elastic limit and initial Young's modulus that are needed to meet the anticipated compression stresses on the blocks, after which should follow the development of specifications deriving from the specific project and its necessary performance using proper standards. Experience shows that EPS block geofoam can be used even at hard to reach remote project sites with great ease.
The Future of Incarceration
Architect (06/01/08) Vol. 97, No. 8, P. 66; Dickinson, Elizabeth Evitts
There is a new trend in the field of justice architecture: constructing jails that do not look like jails at all. The New York Department of Design and Construction plans on wrapping a jail in downtown Brooklyn with commercial uses by 2012. Jails in other cities are being built to resemble office buildings. Architects with expertise in building these structures are advocating improved conditions for the incarcerated and correctional personnel. Many are also in favor of situating jails closer to courts in city centers. "You must always ask yourself how you can reduce the time of the stay for the inmate," says Ken Ricci of Ricci Green Associates, who has been active in justice design. Communities are more likely to accept a downtown location of a jail if it is appealing to the eyes. Therefore, jails are transitioning from more conventional, circular or linear models, with cells around the perimeter, to a more pod-like orientation. This new design involves lodging units being built around a central dayroom. A new jail being constructed in downtown Denver will feature inmate quarters that have a view of an outdoor recreation yard. "As a pedestrian on the street, you can't see this, but as an inmate you can access the outside," says Ricci. Justice architects are also aiming to create a direct-supervision model, which situates guards in housing units with the inmates. Direct-supervision structures aim to establish a normative environment, as many believe a "normal" interior will alleviate violence and speed up the rehabilitation process. Dayrooms are designed to direct in sunlight, common areas are filled with movable furniture, floors are carpeted, and windows are made of double-glazed security glass without bars. Guards are stationed in the middle of the unit and take turns making rounds throughout the facility. Normative, direct-supervision designs are further being applied to juvenile detention centers. According to the National Institute of Corrections, the price of constructing a direct supervision facility is no more than building a remote supervision facility.
Private Crossings, New Technology, and Crossing Closures Next Focus of DOT Action Plan to Reduce Highway-Rail Grade Crossing Collisions and Fatalities
Federal Railroad Administration (06/12/08)
The U.S. Department of Transportation (DOT) Highway-Rail Crossing Safety and Trespass Prevention Action Plan aims to lower the number of accidents involving motor vehicles and trains. DOT has already seen some results. Between 2004 and 2007, grade crossing collisions fell 10.8 percent, while grade crossing deaths dropped 9.1 percent. However, 2,746 accidents and 338 fatalities still occurred at the nation's nearly 227,000 grade crossings in 2007. The Federal Railroad Administration (FRA) recently unveiled a comprehensive report that offers suggestions on how safety at private crossings can be improved by establishing a national policy. FRA also plans on introducing a long-term research and development proposal that will focus on grade crossing safety concerns. It will back research into innovative and affordable technologies that update current warning devices, enhance detection of oncoming trains by automobile drivers, and utilize Intelligent Transportation System solutions. By the end of 2008, FRA will release a modernized guidebook to help states and communities shut down or consolidate public grade crossings along rail corridors that no longer serve a purpose or are hardly used; since 2004, more than 18,000 crossings have been closed. The manual will also address how safety can be improved at crossings that are still in operation.
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Case Study and Statistical Analysis of Utility Conflicts on Construction Roadway Projects and Best Practices in Their Avoidance
Journal of Urban Planning and Development (06/01/08) Vol. 134, No. 2, P. 63; Goodrum, Paul; Smith, Adam; Slaughter, Ben
Construction delays on U.S. roadway projects are often caused by utility conflicts and can have a heavy economic impact on state transportation agencies, utility firms, contractors, and the public. Existing underground telecommunications are the most common and most serious utility conflicts on roadway projects. States that must have SUE QL A or B before beginning a project report less severe utility conflicts. However, states that require QL B may not recognize the full amount of utility conflicts, as they do not determine the vertical location of existing utilities. States are taking action to avoid utility conflicts. A large number have adopted one-call systems, which help contractors locate underground utilities before excavation work starts. However, the systems are not always accurate in identifying these locations, which can cause damage and hurt the contractor, utility firm, and local companies financially. Contractor error and design mistakes also contribute to many utility failures. Some utility agencies are concentrating on increasing communication, coordinating more with other utility firms and contractors, and strengthening plan assessments to help thwart utility conflicts.
New Technique Improves Road Maintenance
Construction Bulletin (06/02/08) Chang, Ivy
Mayo Construction of North Dakota has adopted a new method to repair roads: micro-surfacing. "Micro-surfacing is a maintenance technique that does several things: It takes the lumps and bumps out of roads, it takes the ruts and fills them with the slurry, then smoothes the pavement to give it a new surface," explains Greg Mayo, who owns the business along with his brothers Tim and Joe. A slurry is formed when crushed aggregate, water, polymer-modified emulsion, and bulk cement are mixed in a paver. The paver, which can sit on a truck, pours the slurry on to the road. "We didn't have to remove any part of the road because this product goes on top of the existing asphalt pavement," says Greg. The slurry hardens within 30 minutes. "It's faster than using regular asphalt paving technology because we lay down a thinner coat and don't have to use a compactor. The one specialized paver is the only piece of major equipment we need in addition to a loader to load materials and a truck to haul materials. Eight to 10 people work on the project, and the paver travels the road quite fast." Micro-surfacing yields the best results in warm temperatures. "With this mixture, the product hardens because excess water evaporates quickly," says Mayo. However, the method can cost between $30,000 and $40,000, more than traditional asphalt paving.
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