New NY Bridge Construction (photo: New York State Transit Authority)
Every day, approximately 140,000 vehicles travel an elevated stretch of the Brooklyn-Queens Expressway that runs through Brooklyn Heights between Atlantic Avenue and Sands Street. In addition to being one of New York’s busiest roads, one Brooklyn stretch of the BQE is a feat of engineering—it consists of 21 different overpasses and, for about half a mile, takes on the form of a triple-cantilever structure with two-way traffic and a walkway stacked vertically on three concrete levels.
But in the past decade, the BQE has fallen into disrepair. Deteriorating joints, narrow lanes, and potholes have led to chronic delays and safety issues, according to a briefing released by the New York City Department of Transportation in April. DOT has forecast $1.7 billion in upgrades and repairs to the BQE, which could take until 2026 to complete.
Commissioner Polly Trottenberg, however, has identified a way to save $98 million and shave up to a year off the project. Known as “design-build,” the project delivery method would allow DOT to hire a contractor who is responsible for both design and construction of the project. According to Trottenberg, this would cut time and cost over the traditional “design-bid-build” method in which agencies must sign separate contracts with an architect and contractor, thereby lengthening the process and assuming any unforeseen costs that arise between a project’s design and execution.
“It can shave years off our major projects, it can shave millions of dollars and also greatly cut down on potential disputes, change orders, and litigation,” Trottenberg said in an interview with Gotham Gazette. “If [the architecture firm] and [the construction firm] got together in the beginning, then they would have a design that by nature would probably be more flexible and more buildable.”
Under New York State procurement law, however, the design-build method is off-limits to most public entities including city agencies like DOT. Governor Andrew Cuomo expanded design-build authority as a “pilot” program to a few state agencies in 2011: the Thruway Authority, Department of Transportation, Office of Parks, Recreation and Historic Preservation, Department of Environmental Conservation, and Bridge Authority. The pilot program expired in 2014 and was renewed the following year, but Albany failed to pass a 2015 bill that would have expanded design-build authority to all public entities including in New York City.
A somewhat more modest design-build bill, the New York City Public Works Investment Act, was introduced to the state Assembly and Senate last May by sponsors Michael Benedetto, a Democrat representing the East Bronx, and Andrew Lanza, a Republican representing lower Staten Island, respectively. In its current state, the bill would extend design-build authority only to New York City and certain agencies therein: the Department of Design and Construction, DOT, Department of Environmental Protection, Department of Parks and Recreation, School Construction Authority, and New York City Health + Hospitals.
The bill must pass through committee and each house to reach Gov. Cuomo’s desk. With just a few days left in the current legislative session in Albany, design-build could be among the slew of legislation traditionally passed in the final hours of the session. Cuomo has been an outspoken proponent of design-build, citing it as an example of how he has led the state in what he says are cost-effective major infrastructure projects.
The Assembly’s design-build bill has remained in its cities committee since introduction, but the Senate version has passed through committee and advanced to third reading on the Senate floor. Benedetto, who is also Assembly cities committee chair, said support for design-build continues to grow, though he did say he is continuing to tweak the bill to gain final approval.
Labor unions were initially wary of lower labor costs that design-build might bring about, but a recent effort by city officials to convince unions that the bill would not threaten labor has united advocacy groups, unions, and the public sector, according to Benedetto.
“I told the representatives from the city that you're going to have to be able to convince the members of my chamber that this is not going to have a negative effect on labor,” Benedetto told Gotham Gazette. “Show me the paper. And finally within the last two weeks the papers have been produced and I sent out a packet to my colleagues at the state Assembly...and I attached letters and memos from various leaders in the labor movement.”
One clause of the legislation—meant in part to assuage labor and public employee unions—would make design-build contracts contingent on project labor agreements, which provide bargaining rights to unions before labor can be hired for a project. While opposition to project labor agreements from lawmakers upstate (where unions are less prominent) doomed past efforts to allow design-build statewide, the inclusion of PLAs are less likely to weigh down the New York City-specific bills.
“The construction market has not been that strong [upstate]. It's been very strong down here, and that's why the city is comfortable with PLAs because there's so much work to go around,” New York Building Congress President Richard T. Anderson told Gotham Gazette. “[City contractors] want to make sure they get the best people and they're willing to pay a little more to get that.”
In addition to the Building Congress, varied business and labor interest groups including the Partnership for New York City, the Real Estate Board, the Building and Construction Trades Council of Greater New York, the NYC Central Labor Council, DC 37, and the General Contractors Association have expressed support for the city-specific design-build legislation.
City officials have urged Albany to grant design-build authority, including Trottenberg, DEP Deputy Commissioner Vincent Sapienza, Mayor Bill de Blasio, and city Budget Director Dean Fuleihan. In a statement to Gotham Gazette, a mayoral spokesperson said design-build “increases the accountability of contractors, saves time and money, and streamlines the construction process overall” and that the administration would support proposals “that reduce project delays and enhance delivery methods.”
Largely permitted in 41 states, design-build has also been endorsed by members of the Center for Urban Future, the New York University Rudin Center for Transportation Policy and Management, the Bipartisan Policy Center, and Citizens Budget Commission.
In a report published in March 2015, CBC Vice President Maria Doulis weighed the use of design-build by state agencies against the need for savings displayed by city agencies. While Doulis warned that PLAs tied to design-build could reduce agencies’ ability to hire the most cost-effective labor, she concluded that “New York’s experience demonstrates design-build’s effectiveness in delivering public construction projects on time and on budget.”
But the design-build movement does have some vocal opponents. The New York State Society of Professional Engineers published a statement last June opposing Benedetto’s bill on the grounds that design-build puts engineers in a legal bind. Engineers have less autonomy in design-build contracts, the argument goes, but could still be held legally responsible for subpar designs enacted by the contractors who retain them. Such opponents point to the New York State Education Law, which heavily regulates design standards for projects.
“Design-build puts the engineer in a compromised position where businessmen are making decisions that should be made by a professional,” NYSSPE President Lawrence J. O’Connor told Gotham Gazette. “Where does quality come from in the construction? It comes from a lot of people, but it starts with the design.”
It may be too soon to evaluate long-term architectural quality of design-build projects in New York, but proponents have repeatedly touted their cost-efficiency. Most notably, the New NY Bridge (Tappan Zee), being constructed through the State Thruway Authority with a design-build contract, is projected to cost $1.7 billion less than originally planned and set to be completed 18 months ahead of schedule.
Lowered costs have made design-build contracts especially appealing to city agencies. In a 2014 report, the Center for an Urban Future estimated that the city needed to divert $6.2 billion in funding to repair crumbling infrastructure by 2017, $3.2 billion of which was encompassed by the DOT. Trottenberg said that while design-build would not be used for maintenance like road resurfacing, it could save on engineering-heavy projects such as bridge repairs. A report sent by the DOT to Gotham Gazette highlights nine current bridge projects, including the BQE Triple Cantilever, that will cost $4.63 billion but could be reduced to $4.37 billion using design-build.
Similarly, the city Department of Environmental Protection has estimated that it would save $8 million of an approximate $200 million annual construction budget by using design-build. In a February testimony, Sapienza said such savings would be crucial for DEP in “hardening its wastewater infrastructure to increase resiliency against flood damage.”
As momentum builds and historic resistance from unions fades, Assembly Member Benedetto is confident that his bill will move through the state Legislature. But first, Benedetto said he is in the process of tweaking the bill and considering narrowing the scope of agencies it covers to make it more passable.
“We're adjusting as we go and hopefully this will satisfy people,” Benedetto said. “We have high hopes that this is going to produce projects out there that are going to be done quicker and cheaper, save the taxpayers money and aggravation, and we're keeping our fingers crossed that everybody involved with this is going to be happy.”
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by Aaron Holmes, Gotham Gazette
@GothamGazette
Mayor & Speaker shake on fiscal 2017 budget deal (photo: William Alatriste)
Mayor Bill de Blasio and the City Council announced a deal on an $82.1 billion budget for fiscal year 2017 on Wednesday, marking the earliest date in 15 years that a budget agreement has been reached. De Blasio and City Council Speaker Melissa Mark-Viverito undertook the ceremonial handshake at City Hall after presiding over a press conference announcing the details of the deal, including the significant changes from the mayor’s executive budget plan.
An early budget was largely expected this year. There were few major points of contention for the City Council and the city is currently riding high on strong revenues and large fiscal reserves. The final spending plan is about $100 million less than the proposed executive budget, thanks to new projections and with the administration having responded to the Council’s concerns about additional savings, rainy day funds, and increased spending toward a variety of Council priorities, like library service and summer youth employment.
“We believe in budgets that are responsible, that are honest, that are progressive, and we believe this budget meets those criteria,” said de Blasio at the announcement. He stressed that there had been a “constant effort to find savings and offsets” and that the negotiation with the Council had been collegial even as the administration capitulated to the Council’s concerns in areas that weren’t its priorities.
Heeding the Council, the administration added another $440 million over the next two years to the current Citywide Savings Program, totaling $2.7 billion. The city also increased reserves by another $250 million, which was added to the Retiree Health Benefits Trust fund, for a total of $3.9 billion. The $1 billion General Reserve and $500 million Capital Stabilisation Reserve remained stable. The city is well prepared for an inevitable economic downturn, de Blasio and Council leaders said.
Of the issues and programs the Council had identified after the preliminary budget, the executive budget only included about $62 million in funding. The final plan bumped that up by $393 million for a total of $455 million. This funding will go to investments in city youth, cultural institutions, emergency food assistance, seniors, the offices of the District Attorneys, to name a few.
The budget baselines $39 million for 60,000 slots in the Summer Youth Employment Program, which provides six weeks of paid work to city youth between 14 and 24 years old. Another $21 million is being baselined to maintain six-day service at public libraries, which was first passed last year, though not baselined, and $10 million in additional funding is included for cultural institutions. The five district attorneys will receive $22 million in new city funding.
“This is a smart, responsible budget agreement,” Council Speaker Melissa Mark-Viverito at the announcement. “Not only are we expanding vital city programs...but we’re also strengthening reserves and safeguarding the city’s future.”
While budget monitors and fiscal watchdogs have praised the city’s budgeting and current fiscal health, there have been concerns over the cushion of reserves in the eventuality of a downturn. Comptroller Scott Stringer in particular has warned that the city needs to put more funding aside for the future.
“This budget also plans for the future,” Council Member and finance committee Chair Julissa Ferreras-Copeland reiterated Wednesday. “We now have about about 10 percent of the budget in reserves, and we are building towards 12 percent to be able to withstand any downturn. Today we are proud to shake on a budget that addresses inequality responsibly.” Stringer believes the budget cushion - or savings related to annual expenses - should be 12 to 18 percent. De Blasio said that the city is in great shape, dismissing the notion that reserves are not where they should be when Gotham Gazette referenced Stringer’s recommendations on Wednesday. The mayor said he appreciates that the comptroller is focused on savings, though.
With the “budget handshake” concluded, the final spending plan will head to the Council floor for formal approval at the next Stated Meeting. (There is currently a stated meeting scheduled for June 21 but one could be called at an earlier date to pass the budget.) The new fiscal year begins July 1.
There are still items that need to be worked out, though, particularly the administration’s plan to overhaul the city’s municipal health care system, New York City Health + Hospitals. Speaker Mark-Viverito said the Council would continue its own oversight of the plan and “some of those concerns are still ones that we’re engaging in conversations.”
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by Samar Khurshid, senior reporter, Gotham Gazette
@samarkhurshid @GothamGazette
photo via NYCHA on Flickr
City Council Member Ritchie Torres and colleagues are introducing two new bills aimed at improving conditions and outcomes for residents of the city’s public housing. About half a million people live in New York City Housing Authority (NYCHA) buildings.
Torres, a Bronx Democrat and chair of the Council’s Committee on Public Housing, is hoping to spearhead a citywide expansion of a jobs program offered to residents of NYCHA and also proposing that the city track the health and effects of services provided to those residents.
On Wednesday, Torres and co-sponsors Council Members Rafael Salamanca Jr., Laurie Cumbo, Donovan Richards and Mark Treyger will introduce the two bills at the Council’s full-body Stated Meeting. The first proposes an expansion of JobsPlus, a federal-local partnership program that works with nonprofits to provide site-based career services and ancillary supports to NYCHA residents. Besides job placement and training, the program also provides financial counseling, education, childcare, and transportation services, all aimed at ensuring stable career pathways for residents.
Under the bill, the city’s Center for Economic Opportunity (CEO) would have a year to create a plan that expands JobsPlus from the nine current sites serving specific developments to the entire city. There would be one facility for each geographical zone identified by NYCHA. The plan would include estimated costs and a timeline for implementation and would be submitted to the Council Speaker, the Comptroller, and the Mayor.
“JobsPlus is the most successful workforce development program, the most successful jobs program that you’ve never heard of,” Torres said in a phone interview with Gotham Gazette. “It’s the best kept secret in public housing.”
Torres cited the challenges that public housing residents face and the successes of the JobsPlus program in helping boost opportunity. According to CEO, about 46 percent of working-age residents in the city’s 334 NYCHA developments do not report employment income and about 84 percent of households earn below the city’s median income. A 2010 report by the MDRC found that average earnings for residents in developments targeted with a JobsPlus program increased by 16 percent and those effects stayed strong for three years after the program ended.
The program was first implemented in New York City in 2009 and then expanded to seven additional sites in 2013.
“My goal is to shine a light on the lack of opportunity in public housing and to offer what I believe is the most empirically proven workforce development program in public housing,” Torres said. Comparing it to other such programs, he said JobsPlus is easier to gauge, owing to the division into geographical zones, and it provides the “missing ingredient” of financial empowerment that goes beyond wage increases.
Nonprofit providers who implement the program are, expectedly, excited about Torres’ bill. “It’s an ambitious and commendable aspiration,” said David Garza, executive director of Henry Street Settlement, which implements the program on the Lower East Side.
Garza emphasized that JobsPlus enhances accessibility and the organization’s ability to serve residents. “The ‘Jobs’ is all about employment. The ‘Plus’ is about vital support services to help individuals and families get stable,” he said. These support services can include tax preparation, legal aid, financial advice, among other services.
The key aspect is that it meets needs on-site, at the developments. “JobsPlus in concept and in practice reflects that core element in our program design” of location-based services, Garza added.
“It’s academic, it’s practical, it’s social,” said Bishop Mitchell Taylor, CEO of Urban Upbound, another organization that implements JobsPlus in Astoria, Queens. Taylor said Urban Upbound was an early adopter, informally implementing the program since 2005 before eventually partnering with the city. “It’s a great bite-sized way to get at unemployment in public housing neighborhoods,” he said.
He called Torres a “visionary” and said the bill would be a “great opportunity for people that have been underserved and overlooked for a very long time.” He pointed out that an important aspect of success in the program is neighbor-to-neighbor networking and community relationships.
Kizzie Brown-Duah, program director of JobsPlus at Bedford Stuyvesant Restoration, echoed the sentiment. “It’s about connecting residents with the community and getting the word out,” she said. Her organization has enrolled about 1,600 people in the program since it started three years ago and of those about 580 have received employment. “It’s not just about getting them a job but helping them develop a career pathway and financial stability,” Brown-Duah added. “It’s a model that works.”
The’ second bill Torres and others are introducing would help measure the successes of the program. It requires the city to provide annual reports on the effects of services provides to NYCHA residents, including employment-related services (the number of residents placed into full-time or part-time jobs, for instance), outcomes of educational services and effects of financial assistance. The bill also mandates a survey of the health of public housing residents, determining whether they have access to health insurance and the approximate number of residents suffering from asthma, diabetes, obesity and HIV/AIDS.
[Listen: NYCHA's 'Core Challenge' - a conversation with Council Member Torres]
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by Samar Khurshid, senior reporter, Gotham Gazette
@samarkhurshid @GothamGazette