Public Works Management & Policy recent issues

From the Editor

Little, R. G. — 2009-08-25

The Problem With Being Special: Democratic Values and Special Assessments

Kogan, V., McCubbins, M. D. — 2009-08-25

In the face of voter-imposed tax limitations, local governments have adopted ever-more complex financial mechanisms to balance their budgets. Increasingly, municipalities in California have made use of special assessments to finance local infrastructure improvements and other vital government services. These assessments bill property owners for public goods and services in proportion to the "special benefits" that they receive. Because benefit assessments are constitutionally distinct from taxes, the growth in assessment financing has come partly as a direct response to increased constraints on the ability of local governments to raise general taxes. Our contention is that this growth should prove cause for concern due to the unusual combination of social choice pathologies to which special assessments fall vulnerable. Field interviews with public officials and the consultants they call on to help create these assessments suggest that special assessments can indeed pose special democratic problems.

Rethinking Flood Protection: Options and Opportunities for New Orleans

Gordon, P., Little, R. G. — 2009-08-25

Flood protection is often presumed to be a public good and hence a government responsibility. Unfortunately, the full costs of publicly-funded flood control efforts are often obscured. Moreover, reliance on government protection can create false impressions that individual risks have been minimized, thus encouraging more personal and business investment in disaster-prone regions. Reimbursing these losses after a disaster perpetuates a cycle in which resources spent to protect communities from flood damage can instead increase vulnerability and create a climate of "moral hazard" where people fail to take appropriate actions to reduce risk. As New Orleans continues to rebuild from the damage of Hurricane Katrina, there is a need to consider comprehensive approaches that will provide decision makers at all levels with incentives to manage flood risk more effectively. This paper offers guidance for developing more rational, risk-based government policies for flood protection, approaches that could be less costly and place fewer people and their livelihoods at risk.

Public Collaboration in Transportation: A Case Study

Majumdar, S. R., Moynihan, C., Pierce, J. — 2009-08-25

Rapid population growth, traffic congestion and air pollution from automobiles have made Environmental Protection Agency to designate Denton County as part of the Dallas - Fort Worth 8-hour non-attainment area. In 2001, county residents and elected officials petitioned the Texas Legislature to create the Denton County Transportation Authority (DCTA). In 2002, DCTA was created through a countywide election to provide environment friendly public transportation services. Soon DCTA embarked on a plan for collaboration with the public and various stakeholders. In this case study, efforts have been made to understand the reasons behind DCTA's plan for collaboration, the initiatives it undertook and the public's perception of such collaborative efforts. Based on evidences, it has been concluded that even a well designed plan of interaction can have structural flaws. Such flaws coupled with lack of understanding of local history can impede the establishment of a meaningful partnership with the local community.

Characterization of Network Topology to Support Infrastructure Asset Management

Garland, A., Flintsch, G., Garvin, M. J., Sotelino, E. — 2009-08-25

Recent advances in network theory hold promise for improving how infrastructure managers make decisions about their portfolio of assets. A framework that incorporates contemporary perspectives of networks is presented, which permits modeling the topology of an infrastructure network. The framework is capable of characterizing the components of the overall system and subnetworks and the direct and indirect interactions among these components. This framework is applied to a transportation system, which allows the authors to investigate the importance of the various components as elements of a complex network and use this data to support transportation asset management. The study shows that the links determine how the infrastructure network grows and that problems like congestion can be addressed by analyzing other factors related to topology, such as speed, unit size, and lane width. The proposed methodology appears promising as an asset management tool.

Book Review: Melosi, M. V. (2008). The Sanitary City: Environmental Services in Urban America From Colonial Times to the Present. Pittsburgh, PA: University of Pittsburgh Press

Garvin, M. J. — 2009-08-25

From the Editor

Little, R. G. — 2009-06-22

Demographics, Destiny, and Anticipating the Future of the Transportation System

Coughlin, J. F., Tompkins, C. J. — 2009-06-22

The United States' demographic profile is changing. Tomorrow's America will be older, more ethnically and culturally diverse, experience more immigration both internally and internationally, and have a new generation of better educated women. How will these potentially disruptive demographics affect the future of the transportation system? This article outlines the objectives of a U.S. Department of Transportation, Research and Innovative Technology Administration's University Transportation Centers Program's Spotlight Conference on the Impact of Changing Demographics on the Transportation System, held at the National Academies, Washington, DC, October 2008. Seven of the several papers presented are published here as a special issue to identify key research questions and implications for both policy and practice.

Older Adult Safety and Mobility: Issues and Research Needs

Eby, D. W., Molnar, L. J. — 2009-06-22

In the coming decades, about one in five drivers will be aged 65 or more years in many Western nations. Given the increased fatal crash risk of older adults coupled with the continuing need for effective mobility, the issue of older adult safety and mobility is complex. Indeed, researchers have suggested that this issue has two interdependent, underlying goals for research and programs: to help those who are able to drive safely continue to do so and to identify and provide community mobility support to those who are no longer able to drive. This article briefly discusses the issues and research needs related to older adult safety and mobility including population and driving trends, crash risks, skills needed for safe driving, the effects of medical conditions and medicines on driving skills, screening and assessment, strategies for extending safe driving, and driving cessation and the use of alternative transportation options.

Longevity, Lifestyle, and Anticipating the New Demands of Aging on the Transportation System

Coughlin, J. F. — 2009-06-22

The baby boomers, 77 million people born between 1946 and 1964, are the single largest generation in American history. They have changed the face of the United States while placing new demands on the transportation sector. Today, America's "youth generation" is aging. Although older driver safety is a perennial issue, this article does not address this topic; instead, the focus is on the following: Who are the baby boomers, how are they different from previous generations of older people, and what difference does it make for transportation? What will they be doing in old age? Where will they live, and how will they get around? What role might new technologies play in their mobility? What does their retirement mean for the transportation workforce in both government and industry? This article identifies key transportation research questions, policy issues, and practical implications associated with an aging America.

Immigrants and Travel Demand in the United States: Implications for Transportation Policy and Future Research

Chatman, D. G., Klein, N. — 2009-06-22

Immigrants account for a majority of recent urban population growth in the United States, and for much economic growth as well. This is expected to continue for the next several decades. The foreign-born are much more likely to use transit, carpool, walk, and bicycle, particularly in their first few years of living in the United States. These trends represent challenges and opportunities for transportation and land use planners to increase the environmental sustainability of population growth, use existing transportation systems to their maximum efficiency, and support economic development. But doing so depends on anticipating the travel demands of varying immigrant groups, and those demands in turn depend on their employment and residential location choices. The authors present the most current data available on these trends, summarize research literature, and identify the major research questions needing answers to understand how to accommodate the travel demands of immigration-driven population growth.

Sex Changes Everything: The Recent Narrowing and Widening of Travel Differences by Gender

Crane, R., Takahashi, L. — 2009-06-22

The average U.S. male historically commutes further and longer than his female counterpart. Yet pivotal changes at home, as younger women especially increase their influence on household location and work decisions, and in the labor market, and as women's participation rates and profiles approach men's, strongly suggest that gender's influence on travel might be changing as well. Furthermore, the independent and interactive influence of other demographic factors, not least age and race, remain unclear. This study analyzes national microdata covering the past 20 years to examine both issues. We find sources of both convergence and divergence in travel behaviors by sex. The gender gap in commute length of older workers is growing, even while that of younger workers steadily closes. At the same time, racial differences in mode choice and commute times are becoming less pronounced—both by race and by gender. Thus, gendered elements of travel demand are indeed evolving, if not in predictable directions.

The Safety and Mobility Patterns of Older Women: Do Current Patterns Foretell the Future?

Rosenbloom, S., Herbel, S. — 2009-06-22

The safety and mobility needs of older women are two sides of the same coin. Current generations of older women are extremely mobile because of their access to the car; future generations will be even more dependent on the car for their mobility but may suffer even greater mobility losses when they reduce or cease driving. But if they continue to drive when they should no longer do so, crash and death rates will soar. In order to address their safety and mobility needs we need a three-fold strategy: 1) alter the roadway system to make it safer and easier for older drivers and pedestrians, 2) develop a range of supportive transit and paratransit alternatives, and 3) retrofit the low density communities in which most older will age in place or to which they will move.

Disaggregating Race and Ethnicity: Toward a Better Understanding of the Social Impacts of Transport Decisions

Ward, B. G. — 2009-06-22

This paper provides an overview of the differences in and among ethnic and racial subgroups of the U.S. population and the intersections of these with age, functionality, geography, and so forth. The focus is on system demand, but, suggests some workforce and safety implications. Where racial and ethnic minorities experience lack of access and mobility due to geographic isolation, income, and limited mental and physical functionality, adverse health outcomes may be anticipated. Transport's role in increasing access and mobility may aid in offsetting or mitigating these adverse effects. The survey of conditions among racial and ethnic minorities suggests that greater investments in pedestrian and bicycle facilities and human service and public transport may serve to mitigate some of the conditions. These considerations are critical given the aging and "browning" of the U.S. population.

Demographics Matter: Travel Demand, Options, and Characteristics Among Minority Populations

Contrino, H., McGuckin, N. — 2009-06-22

The United States is in a significant period of change. The significant growth in travel that the US has experienced since the 1960's is a product of demographic and economic changes including increases in vehicle ownership, baby boomers and women entering the workforce, and dramatic growth in personal income. More recently however, data are painting a different picture. The economic slowdown, vehicle saturation, climate change, new immigrant population growth, and the aging population may be contributing to a slowing growth of travel demand in the US (3).

Race and ethnicity do matter in terms of travel choices, needs, and options. Many factors contribute to the differences we see in patterns of travel within population segments. Using data from the US Census Bureau and the National Household Travel Survey Program, this paper examines the demographic characteristics of minority populations and the resulting differences in their travel behavior.

Book Review: Deitz, T., & Stern, P. C. (Eds.). (2008). Public Participation in Environmental Assessment and Decision Making. Washington, DC: National Academies Press

Leuenberger, D. Z. — 2009-06-22

From the Editor

Little, R. G. — 2009-02-17

Improving California's Infrastructure Services: The California Infrastructure Initiative

Dowall, D. E., Ried, R. — 2009-02-17

The article outlines a four step framework for improving infrastructure planning, programming and investment decision-making. It grew out of discussions held between the Governor of California's Office staff and State Assembly and State Senate members in 2008. The purpose of the paper is twofold: first to define an overarching policy framework on performance-based infrastructure; and second to outline how California might launch a series of integrated policy and program initiatives to provide high-quality infrastructure services. While focused on California, the paper is relevant for policy makers in other states and countries who are interested in improving infrastructure delivery and performance.

Alternative Financing Models for Transportation: A Case Study of Land Taxation in Utah

Chapman, J. I., Cornia, G. C., Facer, R. L., Walters, L. C. — 2009-02-17

Recent events have highlighted the consequences of inadequate attention to infrastructure funding. Current funding strategies focus on fuel taxes, transfers from general funds, user fees, toll roads, congestion pricing, and using technology to enhance the fee structure of the current system. This article examines another alternative, a property tax focused on the value of land, known as land tax. A land tax would be economically efficient, in that it would not distort economic decision making. The authors review the feasibility of implementing a land tax and the revenue that could be raised from this tax. They conclude that a land tax is administratively feasible and that it could generate significant revenue to help fund much-needed infrastructure.

A Comparison of Demand-Side Water Management Strategies Using Disaggregate Data

Coleman, E. A. — 2009-02-17

Using data from Salt Lake City, Utah, for the years 1999-2002, a water demand model was developed, and the effects of price and nonprice public policies estimated. The demand for water is found to be price inelastic except in summer months. The effects of a public information campaign to reduce water use were also estimated and found to be moderately effective. The household level panel data used in this study give more accurate estimates of these elasticities than found in previous research.

Cost Plus: Estimating Real Determinants of Water and Sewer Bills

Thorsten, R. E., Eskaf, S., Hughes, J. — 2009-02-17

This article tests the importance of cost, demand, institutional, and geographic factors on the bills that consumers pay for water and sewer service in North Carolina and the pricing signals that utilities send to customers. The authors apply spatial regression models to test whether other factors besides costs drive rate-setting practices. Results indicate that cost factors, operating ratio, temperature, the application of "outside" rates, and utilities' primary importance on affordable rates affect combined water and sewer bills at average levels of residential consumption. The study also finds that bills are significantly and positively correlated to bills paid in nearby utilities. Community income and the percent of customers below the poverty line are weakly associated with combined bills. However, utilities facing higher growth rates and those that value conservation are no more likely to send stronger pricing signals than others.

Asset Management Data Practices for Supporting Project Selection Decisions

Pantelias, A., Flintsch, G. W., Bryant, J. W., Chen Chen, — 2009-02-17

Transportation agencies engage in extensive data collection activities to support their decision processes at various levels, but not all data collected supply useful information. This article summarizes research aimed at formally identifying links between data collection and the supported decision processes, particularly at the level of project selection. The aim was to help transportation agencies optimize their data collection and cut down data collection and management costs. The methodology included a comprehensive literature review that collected information from various academic and industry sources around the world and the development of a Web survey that was e-mailed to specific expert individuals within the 50 U.S. Departments of Transportation and Puerto Rico. The responses obtained from the Web survey were analyzed statistically and combined with the additional resources to extract conclusions about the current state of the practice and develop data collection recommendations in the form of a proposed stepwise framework.

A Hybrid Methodology for Freeway Work-Zone Optimization With Time Constraints

Ning Yang, , Schonfeld, P., Min Wook Kang, — 2009-02-17

To reduce the negative impacts of highway maintenance on traffic, lane-closure schedules, work-zone configurations, and traffic-control strategies should be carefully planned. In this article, optimization techniques are applied to determine the appropriate work-zone plans which can minimize the total costs including agency costs, road-user delay costs and accident costs, subject to working time constraints. A heuristic optimization algorithm, named two-stage modified simulated annealing (2SA), is developed to search for an optimized solution with a hybrid objective function evaluation approach (H2SA). After the decision variables are preoptimized analytically in the first stage, refined optimization is performed based on microscopic simulation models in the second stage. The results of a numerical experiment demonstrate that the H2SA can yield satisfactory solutions, which are close to the best optimization solutions based on simulation (S2SA) but obtained with much less computation time.

The Impact of Directionality on Paint Pavement Marking Retroreflectivity

Rasdorf, W. J., Guanghua Zhang, , Hummer, J. E. — 2009-02-17

This article addresses paint centerline pavement marking retroreflectivity. The authors collect yellow centerline retroreflectivity data on two-lane highways, taking measurements in two directions. A paired t test on the data shows that there are differences and they are statistically significant. A field study is initiated to investigate the relationship between the direction the marking is painted and the retroreflectivity direction. The key result of this study is that paint centerline retroreflectivity values measured in the direction of paint striping are significantly higher than values measured in the opposite direction. Findings indicate that it is the lower retroreflectivity values of yellow centerlines (measured in the opposite direction from paint striping) that should be used to compare with the newly proposed Federal Highway Administration minimum standard because the drivers in that direction experience lower marking retroreflectivity at night. The implications for safety, for policy making, and for transportation asset management are significant.

Introduction to the Symposium

Battaglio, R. P., Kiel, L. D., Watson, D. J. — 2008-11-20

Lessons Learned From Public--Private Partnerships for Infrastructure: Foreword to the Workshop Proceedings

Daniel, D. E. — 2008-11-20

Developing Infrastructure Through the Use of Tax Increment Financing: The Case of the Virginia Beach Town Center Project

Leavitt, W. M., Morris, J. C., Lombard, J. R. — 2008-11-20

The use of tax increment finance (TIF) arrangements to finance capital-intensive infrastructure needs is not a new concept, but it is gaining traction in many states and municipalities. This article presents the case of the Town Center project in Virginia Beach, Virginia, and the use of a TIF to provide infrastructure for the project. The authors find that the success of the TIF is because of a combination of a reduction in public risk, careful planning, and close attention paid to the capabilities of the private sector partners. The authors conclude that the TIF mechanism is an appropriate and attractive means to fund infrastructure needs, provided the trade-offs and pitfalls are carefully considered and understood.

The Risks and Rewards of Private Equity in Infrastructure

Page, S. N., Ankner, Dr. W., Jones, C., Fetterman, R. — 2008-11-20

Many policymakers, operators and developers of public infrastructure (such as highways, airports, water utilities), and academics believe that there is a funding deficit for US infrastructure. Traditional funding sources, such as fuel taxes, are widely deemed inadequate and unlikely to be increased. Tolls and other user fees provide additional funding sources. Coupled with public-private partnership contracting and delivery methods (P3s), these fees can provide new funding sources and ways to reduce delivery costs, as many recent transactions demonstrate, such as the Chicago Skyway and the State of Texas transactions. Private equity is an important component of P3 financing and as much as $80 to $130 billion (B) is available in private equity investment funds (PEIFs). PEIFs impose certain requirements on the projects and companies they finance, most importantly on short duration of the investment, as little as ten years, in some cases, from initial investment to final payback. This causes potential conflicts with new, greenfield projects, which have a three to five year construction period and several years of ramp-up in the early operating years. PEIFs can serve as a useful funding source if: 1) policymakers anticipate this conflict, including anticipating short duration, allowing for novation of private contracts to other parties, are clear about re-gearing issues, seek ways to reduce project development periods and/or if 2) PEIFs can be structured with longer durations and/or PEIF funding partners, especially endowments and pension funds, can make direct, longer duration investments.

The State of the Practice of Value for Money Analysis in Comparing Public Private Partnerships to Traditional Procurements

Morallos, D., Amekudzi, A. — 2008-11-20

Literary sources regarding public—private partnerships (PPPs) often mention the importance of conducting a value for money (VfM) analysis to determine the value of pursuing a project through a PPP versus a traditional procurement; however, few sources detail how agencies actually use this analysis in practice. This article provides a state-of-the-practice review of VfM analysis using examples from Australia, Canada, Europe, Africa, and Asia, focusing particularly on the VfM model used by agencies such as Partnerships Victoria, The United Kingdom's Her Majesty Treasury Department, and Partnerships British Columbia. Despite its growing applications in PPP projects from all different sectors, VfM has faced significant criticisms from academics and practitioners. This article evaluates reviews of VfM, noting the weaknesses and strengths of the methodology. Using the information derived from the evaluation, this article provides a guided reference for public agencies looking to adopt this VfM methodology in their current PPP decision-making framework.

Protecting the Public Interest in Long-Term Concession Agreements for Transportation Infrastructure

Ortiz, I. N., Buxbaum, J. N. — 2008-11-20

Lack of cash has led virtually every U.S. state to explore innovative finance techniques that allow important improvement projects to move forward. Recent long-term concession agreements have inspired a debate over the merits and pitfalls of public—private partnerships (PPPs), particularly whether decision makers are considering and protecting the public interests. The concession approach has many advantages over traditional methods, but there are also many concerns. Very few people have a complete picture of the future implications of concessions. The public concerns include use of up-front payments, concession length, and noncompete clauses, among others. Many of these concerns are legacies from the past that have been rectified as both the public and private sectors have learned and adapted. This article summarizes public concerns related to concessions, describes how PPP procurements have evolved to respond to public reaction, and suggests key issues that need to be considered in the future.

Toll Roads, Politics, and Public--Public Partnerships: The Case of Texas State Highway 121

Battaglio, R. P., Khankarli, G. A. — 2008-11-20

Governments have increasingly relied on market mechanisms to improve the efficiency of public services. This is especially true when it comes to financing the nation's transportation infrastructure system, where enabling legislation at the federal and state level has gradually placed greater reliance on the private sector through collaborative endeavors such as public—private partnerships (P3s). This article examines the process and structure of such collaborative endeavors in the case of the toll road along Texas State Highway (SH) 121. Initially, the state transportation agency entered into an agreement with a private consortium but later withdrew support for the agreement in favor of a public—public partnership (PPuP) with the local toll road authority. State and local politicians withdrew support for the private consortium as public sentiment waned. The article concludes that citizen input and state and local politics have a significant impact on the process and structure used for implementing public—private partnerships.

Public--Private Partnerships: Eight Rules for Governments

Vining, A. R., Boardman, A. E. — 2008-11-20

This article provides eight rules for government concerning the administration of public—private partnerships (P3s). The basis for these rules draws on transaction cost economics. First, however, the article provides some background on alternative modes for the provision of infrastructure and their associated transactions costs. Second, it outlines a positive theory perspective of P3s that takes into account the divergent goals of the partners in a P3 (the profit maximization goals of private sector participants, and the budgetary and political goals of public sector participants). This section throws light on the adoption and outcomes of P3s. Third, it shows that many aspects of the theory are illustrated in the Metronet (the London Underground P3) case, which went bankrupt in 2007. Finally, the article proposes rules that governments should follow in the P3 process if they wish to avoid high transaction costs and poor P3 outcomes.

Assessing the Effectiveness of Infrastructure Public--Private Partnership Programs and Projects

Garvin, M. J., Bosso, D. — 2008-11-20

Public—private partnerships (P3) have emerged as a popular strategy for infrastructure development worldwide. Within the United States, the momentum for P3 arrangements is building as states put enabling legislation in place, public authorities search for expedient solutions for the infrastructure funding gap, and investor capital becomes increasingly attracted by the risk/return profile of infrastructure assets. Proponents of P3's tout advantages whereas detractors claim that the expected benefits rarely materialize, or they are obtained at too great an expense. Thus, the following question arises: Are P3's effective as infrastructure development strategies? A framework, which might serve to both structure and assess P3 programs and projects, is presented. The framework has evolved since its original introduction and is underpinned by the notion that P3 strategies must balance the interests of society, state, industry, and the market for ultimate success. A case study of its application is presented to illustrate its utilization and potential.