Sunday, April 6, 2014

Giant Sucking Sound

That giant sucking sound is the United States drinking, eating and burning Canada’s water. A 2011 report by The Council of Canadians, Leaky Exports: A Portrait of Virtual Water Trade in Canada, identifies the United States as the primary importer of virtual water from Canada.  That virtual water is traded primarily in the forms of agricultural goods, minerals, and energy resources.

Canada is the second highest gross exporter of virtual water (behind the United States), and the second highest net exporter of virtual water (behind Australia). Understandably, Canadian policy makers are concerned about preserving their water resources, especially when interests in their thirsty neighbor to the south have proposed exporting Canadian water (not virtual water, actual water).

Related posts and articles
Virtual Water

Okay, this is a bit dated. I'm catching up on a lot of reading and I have had little time to write for this blog. I appreciate the readers who still follow Infrastructure Watch. I'm looking into ways I can make this an interesting and useful blog with the time constraints I have.

Monday, November 25, 2013

Funding Infrastructure

Crowdfunding

The American Institute of Architects released Crowdfunding Architecture, a report that explored the potential of raising private funds from many people investing, loaning, or donating small sums. Crowdfunding is a growing trend in other areas, especially in the arts and product development.

Of course, public civil infrastructure requires a lot of money. The investors who might be able to put substantial sums into a project will expect a return. This is an issue for other forms of private investment in public infrastructure, often there is no revenue generated by the infrastructure to pay back investors.

What do you think? Does crowdfunding have the potential to be a serious source of funding for public infrastructure?

Related posts and articles

Roads by the Mile

IW has previously written about declining fuel tax revenues. An alternative to fuel taxes is a tax or fee based on miles driven. Oregon is planning to implement a program based on VMT (vehicle miles traveled).

Related posts and articles

Sunday, July 28, 2013

Infrastructure Nexus News

Our infrastructure for water, energy, transportation, and food is all interconnected.  Changes to one have consequences in the others.  Below are links to several articles that explore these interconnections.

Agriculture, Food & Water


Energy & Water


Other


Google

Water: Is There Enough?

Water scarcity is a growing issue worldwide.  There is a lot of water in the world, but issues of location, timing, quantity, quality, and use can lead to serious problems.  Here are links to some recent articles that highlight the issue.





Google

ARRA Still News

Here is a summary of some recent news about the American Reinvestment and Recovery Act.






Google

In Brief


Deposition of Air Pollutants Pollutes Water

Though our pollution control laws are structured around different media, such as air and water, pollutants can move around and have different effects to different degrees in different parts of the environment. The Government Accountability Office (GAO) describes in a report how deposition of air pollutants can affect water quality. In addition, it shows how the media-specific approach to pollution regulation makes it difficult for the Environmental Protection Agency to address this issue.


Coal Here to Stay

GAO published a study of changes coming to coal-fired electrical power generation. Though aging facilities and environmental regulations will be changing it, coal is expected to remain part of the American energy portfolio.

Coal energy is an issue that demonstrates that politics is local. President Obama has faced opposition from his own party for Congressmen and Senators that represent areas that benefit from burning coal for energy (see this article from The Daily Caller).

Senate Committee Hears Navy Energy Nominee

The Senate Armed Services Committee questioned retired Vice Admiral Dennis McGinn as a nominee for Assistant Secretary of the Navy for Energy, Installations and Environment. Naval alternative energy programs were one of the issues of concern.



Government Looks at Milage Fees

IW has posted several items about the dwindling Highway Trust Fund. One idea that has been floated for raising revenues for highways is to switch from fuel taxes to fees on miles driven. GAO studied the concept for Congress. It’s report includes a review of milage fee program in several countries and pilot programs in the United States.

Google

Saturday, July 27, 2013

New Briefs

It’s been a while since I’ve had to post anything on this blog, so some of this news is old. I appreciate those of you who still follow this blog. I hope I can continue to make something worthwhile for you.

Foxx Sworn in As Transportation Secretary

Anthony Foxx has been sworn in as Secretary of Transportation. Foxx was mayor of Charlotte, NC, and has had a career as an attorney and politician.

GAO Critiques Nonpoint Source Program

The Government Accountability Office (GAO) published a report that critiques the Environmental Protection Agency’s (EPA) 319 program. This program (named for the section of the Clean Water Act that authorized it) provides grants to states to undertake activities to reduce nonpoint-source pollution, including subgrants to organizations to implement improvements. They found that the program sometime failed to produce desired results and that EPA’s oversight of the program sometimes was inadequate or produced unintended undesirable results. In addition, a complementary program of the Natural Resources Conservation Service introduces practices that, by themselves, can decrease water quality because their primary intent is soil conservation.

I-5 Bridge Collapse

At this time, IW has no news to add to what has been reported on the I-5 bridge collapse. The collapse of a bridge on I-35 was one of the events that prompted the launch of this blog. IW sends it’s condolences to those affected by this event and wishes the National Transportation Safety Board a fruitful investigation.

Many Highway Projects are Categorical Exclusions for NEPA

GAO published a report on expediting highway projects. One of the interesting things was that many highway projects were considered categorical exclusions for the purpose of review under the National Environmental Policy Act (NEPA). Categorical exclusions are classes of projects that, individually or collectively, have been determined by rule to have no significant environmental impact. These projects receive no or limited NEPA review.

New Appointees to Advisory Committee on Construction Safety & Health

Acting Labor Secretary Seth D. Harris appointed or reappointed eight members to the ACCSH. The new members are

OSHA Extends Deadline for Crane Operator Certification

The Occupational Safety and Health Agency announced its will extend the deadline for certification of crane operators to November 10, 2017. The original rule that was finalized in 2010 established a deadline next year.

Report on Rural Water Infrastructure


The GAO published a report on programs that fund drinking water and wastewater infrastructure in rural areas. In Missouri, agencies that administer the State Revolving Fund (a state-administered EPA-overseen program), Water and Waste Disposal Program (U.S. Department of Agriculture), and Community Development Block Grants Program (a state-administered program overseen by the Department of Housing and Urban Development) coordinate their water funding efforts.

Google

Sunday, March 31, 2013

New Job


I’m starting a new job tomorrow. I’m not sure what this will mean for Infrastructure Watch. I’ve made no secret of the fact that blogging takes a back seat to paying work. Even so, I’d like to keep this blog going even though I anticipate having less time for it.

I don’t know the impact my new position will have on this blog. I anticipate it will mean fewer posts, at least in the short term. Because of the focus of my new position, it may mean focusing more on environmental issues that infrastructure issues. Though Infrastructure Watch has always been a personal blog, it has also always been influence by my professional concerns and interests.

In any case, I hope to continue Infrastructure Watch in some form. I hope it will continue to be a source of useful and interesting information for you.

To those who have followed this blog or it’s Twitter account (@infrastrucwatch): Thanks.

Wednesday, March 20, 2013

In Congress


Continuing Resolution

Because Congress still has resolved budget debates and passed appropriations bills, it will need to pass another continuing resolution by March 27. The bill passed by the House of Representatives (H.R. 933) holds non-defense spending at the levels approved in Fiscal Year 2012.

One consequence of this is, at least for the time being, the increased spending on surface transportation programs included in MAP-21 will not be enacted. Senate leaders indicated that they might add transportation spending increases in that chamber.

Related posts and articles

House, Senate Transportation Bills Differ

Budget proposals from the House of Representatives and the Senate differ greatly on transportation (as well as other issues). Mainly, the House budget cuts transportation funding, and the Senate budget increases it.

Related posts and articles

Senate Questions Interior Secretary Nominee

The Senate Energy and Natural Resources Committee posed questions to Sally Jewell, President Barack Obama’s nominee for Secretary of Interior. As you might expect, questions focused on energy development on federal lands and environmental protection related to such projects. Of particular concern was hydraulic fracturing (fracking) for natural gas production in western states and oil drilling in the Pacific Ocean and Alaska.

Related posts and articles

Thursday, March 7, 2013

Literature Review: Cost Overruns & Delays in Municipal Construction Projects


I occasionally find an old piece of school work that seems suitable for this blog. Previously, I posted a book review I wrote for a class. This piece is a literature review related to cost overruns in municipal construction projects. It was written in 1999, so the references are a bit dated. I made no attempt to update the paper.

Literature Review

Problem Statement

Construction projects commonly suffer delays and cost overruns (Arditi & Patel, 1989; Baldwin, Manthei, Rothbart & Harris, 1971; Kraiem & Diekmann, 1987; Mahid & McCaffer, 1998; Mulholland & Christian, 1999). In projects that often cost millions of dollars, even a relatively small overrun can be very expensive. Likewise, construction delays may cause late delivery of services and loss of revenues related to that service.

Municipal governments construct and maintain a significant public infrastructure. Engineering construction accounts for 20 to 25 percent of the market for new construction, most of which is publicly financed (Clough, 1989). Even small cities will often be responsible for roads, wastewater collection and treatment, drinking water distribution, parks, and public buildings.

Municipal governments often use federal and state grants and loans to finance all or part of construction projects. For instance, the Missouri Department of Natural Resources operates eight grant and loan programs available to local governments for the construction of wastewater facilities, drinking water facilities, parks, and energy efficiency improvements to public buildings (Financial).

The reduction of cost overruns and delays could cause a reduction in the cost of public services, especially at the local level where many services utilize some constructed infrastructure. These savings could result in improved economy of state and federal programs that provide financial assistance to municipalities.

The actors involve in public construction are all levels of government, contractors, architects and engineers, and the public. Local governments directly experience the cost of construction projects. Federal and state agencies are interested in the economy and efficiency of their programs and accountability. Contractors are interested in the availability and profitability of public projects. Architects and engineers are similarly concerned about the amount of public work available and requirements for the management and cost estimation of projects. The public is concerned with the level of taxes and user fees necessary to pay for public services.

Key questions research might address include:
-How common and severe are cost overruns and delays in public works projects?
-What characteristics of local government relate to cost overruns and delays?
-What project characteristics relate to cost overruns and delays?
-Might some sort of intervention reduce the occurrence or severity of cost overruns and delays?

Literature Review

Cost growth and schedule growth are common measures of construction project success (Pocock, Hyun, Liu & Kim, 1996; Pocock, Liu & Kim, 1997; Sanvido, Grobler, Pafitt, Guvenis & Coyle, 1992; Songer & Molenaar, 1997). The Missouri Department of Natural Resources has a great deal of information available on cost and schedule for projects that received loans for the Clean Water State Revolving Fund. This includes contracts that describe the project cost and schedule and change orders that incorporate any cost and schedule changes into the contract. This information may also allow a review to identify owner-initiated changes that increased the cost or lengthened the time to project completion. However, municipalities do not appear to pursue claims as vigorously as other levels of government or private organizations. Therefore, these records may not clearly identify changes with the owner, contractor, engineer, or unforeseen circumstances. A pool of project-level information like this may be useful to this research because of the difficulty of finding measures of comparison at the municipal level (Coe, 1999; Kopczynski & Lombardo, 1999).

Projects funded through the Clean Water State Revolving Fund include the construction of wastewater collection and treatment systems. These are mostly government-owned systems. These projects involve many of the same products and processes as other construction projects. They are comparable to other projects that a municipality may construct.

Many of these questions relate to the owner’s role in the success of a construction project. The owner controls a number of factors that have a significant impact on the success of a construction project. These include a well-defined scope, and understanding of the scope shared with other participants, the owner’s construction sophistication, adequate owner staffing, and an established budget (Sanvido et al., 1992; Songer & Molenaar, 1997).

Because these are mostly skills and practices related to the development and management of projects, it seems reasonable to assume that municipal authorities could be taught these skills. It would be difficult to measure the availability of these skills in a number of cities over a short period, but some indicators may be available. Specifically, form of government and population may indicate the presence of these skills and practices.

Researchers still debate the efficiency of city manager governments relative to mayor-council governments. Stumm & Corrigan 91998) found that city manager cities have, on average, lower property taxes and general fund expenditures than mayor-council cities. Others have found that city manager and mayor-council cities do not differ in expenditures and efficiency (Deno & Mehay, 1997; Hayes & Chang, 1990; Morgan & Pelissero, 1980).

If cities do not differ on the bottom line, city manager and mayor-council governments appear to differ in their approach to capital budgeting and management. In their approaches to budgeting, city managers more often use a program budget while mayor-council governments more often use a zero-base or target-base budget (Poister & McGowan, 1984). City managers tend to spend more on infrastructure, use more sophisticate budgets and more often use separate capital budgets than mayor-council cities (Doss, 1987; Nunn, 1996).

Likewise, city managers often use formal approaches to managing capital. Doss (1987) found that city managers are more likely than mayor-council governments to use formal capital improvement plans and routine inspection programs.

Similarly, large municipalities tend to be more sophisticated. As populations increase, municipalities more often adopt separate capital budgets and make formal use of budget decision models (Doss, 1987; Sekwat, 1996).

In light of this, city manager governments and larger cities would seem to have natural advantages. Because of the use of capital improvement plans and separate capital budgets, city manager governments and larger cities seem more likely to have a well-established budget and well-defined scope for any given construction project.

Professional management is a fundamental of city manager governments. This would seem to give city managers an advantage in construction sophistication and experience, staffing and the ability to work with contractors to develop a common understanding of project scope.

Large cities have a practical need for professional staff, so they may have many of the same advantages as city manager cities. Because of the number of projects large cities can be involved in, they are likely to have staff with previous experience in many types of construction projects.

Previous research links form of government and population to a number of factors that are likely to lead to successful construction projects. Much of this research uses surveys of municipalities, contractors and engineers. While surveys are difficult and expensive, population and form of government information is readily available (Missouri Municipal, 1997; Official Manual, 1996).

Construction projects vary widely in size and complexity. Research that tries to attribute cost and schedule growth to specific factors must account for differences that occur as project increase in size or complexity. This is difficult to judge. However, because estimators attempt to consider these complexities (Clough, 1989), the contractor’s bid may be taken as a reasonable judgment of the size and complexity of a construction project.

A review of the literature leads to the following conclusions. Form of government and population can indicate the likely presence of skills and practices that lead to successful projects. Successful projects are those that have no cost or schedule growth. It is possible to account for project complexity in a comparison across projects and municipalities.

An assumption of this review is that municipal officials can learn the skills and practices that contribute to construction project success. Therefore, if it is found that form of government and population are related to cost and schedule growth, an intervention that increases these skills may decrease cost and schedule growth.

References

Arditi, D., & Patel, B. K. (1989). Impact analysis of owner-directed acceleration. Journal of Construction Engineering Management. 115(1), 144-157.

Baldwin, J. R., Manthei, J. M., Rothbart, H., & Harris, R. B. (1971). Causes of delays in the construction industry. Journal of the Construction Division. 97(CO2), 177-187.

Clough, R. H. (1986). Construction Contracting. 5th ed. New York: John Wiley & Sons.

Coe, C. (1999). Local government benchmarking: Lessons from two major multigovernment efforts. Public Administration Review. 59(2), 110-123.

Deno, K. T., & Mehay, S. L. (1987). Municipal management structures and municipal services in America’s largest cities. Southern Economic Journal. 53(3), 21-26.

Doss, C. B. (1987). The use of public budgeting procedures in U.S. cities. Public Administration Review. 7(3), 57-59.

Financial Assistance Opportunities. Jefferson City, MO: Missouri Department of Natural Resources.

Hayes, K., & Chang, S. (1990). The relative efficiency of city manager and mayor-council forms of government. Southern Economic Journal. 57(1), 167-177.

Kopczynski, M., & Lombardo, M. (1999). Comparative performance measures: Insights and lessons learned from a consortium effort. Public Administration Review. 59(2), 124-134.

Kraiem, Z. M., & Diekmann, J. E. (1987). Concurrent delays in construction projects. Journal of Construction Engineering and Management. 113(4), 591-602.

Mahid, M. Z. A., & McCaffer, R. (1998). Factors of non-excusable delays that influence contractor’s performance. Journal of Management in Engineering. 14(3), 42-49.

Missouri Municipal Officials 1997-98 Directory. (1997). Jefferson City, MO: Missouri Municipal League.

Morgan, D. R., & Pelissero, J. P. (1980). Urban policy: Does political structure matter? American Political Science Review. 26(1), 8-15.

Mulholland, B., & Christian, J. (1999). Risk management in construction schedules. Journal of Construction Engineering and Management. 125(1), 8-15.

Nunn, S. (1996). Urban infrastructure and capital spending in city manager and strong mayor cities. American Review of Public Administration. 26(1), 93-112.

Official Manual 1995-1996. (1996). Jefferson City, MO: Missouri Secretary of State’s Office.

Pocock, J. B., Hyun, C. T., Liu, L. Y., & Kim, M. K. (1996). Relationships between project interaction and performance indicators. Journal of Construction Engineering and Management. 122(2), 165-176.

Pocock, J. B., Liu, L. Y., & Kim, M. K. (1997). Impact of management approach on project interaction and performance. Journal of Construction Engineering and Management. 123(4), 411-418.

Poister, T. H., & McGowan, R. P. (1984). The use of management tools in municipal government: A national survey. Public Administration Review. 123(4), 411-418.

Sanvido, V., Grobler, F., Parfitt, K., Guvenis, M., & Coyle, M. (1992). Critical success factors for construction projects. Journal of Construction and Engineering Management. 123(4), 411-418.

Sekwat, A. (1996). Use of capital budgeting decision models by county governments: A survey. State and Local Government Review. 28(3), 180-192.

Songer, A. D., & Molenaar, K. R. (1997). Project characteristics for successful public-sector design-build. Journal of Construction Engineering and Management. 123(1), 34-40.

Stumm, T. J., & Corrigan, M. T. (1998). City managers: Do they promote fiscal efficiency? Journal of Urban Affairs. 20(3), 343-351.