Public-Private Partnerships Get A Look
Should Massachusetts follow some other states in allowing private firms to design, build, operate and maintain bridges, roads and other transportation assets?
We're still far off from the Chicago Skyway, which was leased to a private operator in 2006 for $1.8 billion for 99 years, or New York City, which has done similar deals with some of its bridges.
But with a deeply indebted transportation system, Massachusetts is looking at different ways to meet its infrastructure needs. And a policy expert from MetroWest will be playing a role.
Commission Will Vet Proposals
Jessica Strunkin, deputy director of public policy and public affairs for the Westborough-based 495/MetroWest Partnership – which is itself a partnership of public and private entities – has been appointed to a state commission that will evaluate potential infrastructure projects that private entities would design, build, operate, maintain and possibly even finance, MassDOT announced Monday.
The Public-Private Infrastructure Oversight Commission was created by the same 2009 Transportation Reform Act, the same state law that eliminated the Massachusetts Turnpike Authority and brought several state agencies under the umbrella of the state's transportation department, known as MassDOT.
Strunkin said Monday that the types of proposals the commission will be reviewing would represent a new approach for Massachusetts.
"I'm excited about opportunity this presents for innovative ways to address our transportation needs," Strunkin said.
Patrick's Proposal
Largely because of the infamous Big Dig, the Massachusetts Bay Transportation Authority (MBTA), which falls under the MassDOT umbrella, is more than $5 billion in debt. As a result, it funds operations and maintenance costs through bond financing, and this year faced a budget gap of $161 million.
The state has estimated that it needs $1 billion a year for the next decade to fully meet the system's needs. So far, Gov. Deval Patrick has proposed reducing the sales tax from 6.25 percent to 4.5 percent and increasing the state income tax a percentage point to 6.25 percent, which would bring in $269 million next year if the legislature approves the plan, which is uncertain.
Advocating A New Approach
Following visits from both Patrick and Richard Davey, the state's transportation secretary, the 495/MetroWest Partnership issued a position paper this month saying it supports new revenue collection methods such as a vehicle-miles-traveled tax or an increase in the state's gasoline tax, but only if the revenue collection is more equitable for areas outside of Boston, and only if MassDOT continues to reform the way it does business.
One example of something new MassDOT has tried is called design-build contracts, and an example can be seen at the Burns Memorial Bridge that connects Worcester to Shrewsbury. Instead of bidding out the design work to one firm, then bidding out the construction to another, MassDOT provided initial funding to three firms to come up with designs for a new bridge, and awarded the contract to the company whose proposal it found most suitable. The process allows final design stages to overlap with the initial construction phases, which saves time.
Paul Matthews, executive director of the partnership, said his board of directors – which includes executives from major employers such as Cisco Systems, Staples and Bose Corp. – thinks there is a middle ground.
"No one is saying a private developer should be able to build whatever they want," Matthews said. "But if there is the possibility of incorporating private funding into public infrastructure projects, that should be actively encouraged."
Other arrangements could include advertising rights, which largely went away on the turnpike when MassDOT took over its operation.
Matthews said business owners in the Route 9 area would also simply like better coordination with the state when roadwork is planned. Parts of Route 9 could see widening and other improvements, under Patrick's proposed budget. MassDOT has also issued a preliminary study about major fixes to the intersections of the turnpike and I-495 and the intersection of I-495 and Route 9.
WBJ Web Partners
Most Recent
Most Recent
0 Comments