Lessons learned from the Northwest Corridor project are helping the Georgia DOT plan toll lanes along I-285. Photo credit: Georgia DOT
ATLANTA – The Georgia Department of Transportation first turned to the private sector to help finance a major road-building project with the Northwest Corridor, adding toll lanes a few years ago to Interstate 75 in Cobb and Cherokee counties.
Now, the DOT wants to take the public-private partnership (P3) concept to a new level using its experience with the Northwest Corridor as a guide.
The agency is looking for a private partner interested in shouldering the lion’s share of the cost of a plan to build toll lanes along the Top End of heavily traveled I-285 from just north of its interchange with I-20 East to just north of the I-20 West interchange. Terms of the deal would be set out in a 50-year contract, up from the current 35-year contract governing the Northwest Corridor.
The new form of P3 the DOT has in mind is closer to self-funding than any project the agency has going today, Georgia Commissioner of Transportation Russell McMurry said.
“The private sector will bear the investment costs needed to deliver the project(s), relying solely on the toll revenues generated by the project for their repayment,” he said. “To better enable a private investor to manage that risk, we give them a longer contract term. At the end of the day, we will get more project and more value for less public dollars.”
That “more project” of which McMurry speaks could include adding two barrier-separated lanes along 285 instead of one as originally planned, Meg Pirkle, the DOT’s chief engineer, told members of the State Transportation Board during a recent presentation.
“Barrier separation means greater time-saving benefits and safer trips,” she said[DW1] .
Benita Dodd, vice president of the Georgia Public Policy Foundation, a think tank with a market-oriented approach, said deep-pocketed private investors also could help pay for improved drainage along I-285.
“We’ve seen the Northwest Corridor flood several times because of inadequate maintenance of drains,” she said.
Dodd said the form of P3 the DOT envisions already is in place in other states and across the globe, including Europe, Australia and South Africa.
“I’ve been on the toll roads in South Africa,” she said. “There’s no comparison between the quality of the general-purpose lanes and the toll lanes. It is a superior product.”
But the DOT plan has its skeptics, starting with questions over why the state needs to rely so heavily on private financing.
Neill Herring, a lobbyist for the Georgia chapter of the Sierra Club, pointed to the transportation funding legislation the General Assembly passed in 2015, which pumps about $950 million a year primarily into building roads and bridges. Georgia also is in line for a share of the huge infrastructure bill President Joe Biden is pushing, Herring said.
“What problem are we solving here?” he asked.
But Seth Millican, executive director of the Georgia Transportation Alliance, an affiliate of the Georgia Chamber of Commerce, said the state’s needs in the transportation arena dwarf whatever public funds might become available.
Then-Gov. Nathan Deal launched the state’s Major Mobility Investment Program in 2016, of which the I-285 toll lanes are a part. The 11-project program’s price tag at the time was pegged at $11 billion, but that could go even higher considering the I-285 toll lanes alone are expected to cost $6.1 billion.
“There continues to be a lack of resources to do what we need to do,” Millican said. “We need these big projects, but it’s a lot to bite off.”
Herring said the proposed 50-year contract also is uncomfortable to swallow.
“I’m not aware of any 50-year contracts in government,” he said. “They’re creating a private DOT with a private revenue stream on public property. … Why is that constitutional?”
Indeed, Deal canceled an early version of the P3 contract for the Northwest Corridor out of concern the state would cede too much control over the road to the private sector. The transportation board eventually approved a scaled-back contract that reduced the amount of private investment going into the project and swapped in more public money.
But McMurry said the DOT has gained more experience with the P3 model since then.
“Georgia – and the rest of the P3 industry is more mature,” he said. “Market analysis and strong interest from the private sector tell us this corridor is ripe. … We are ready to embrace this next level.”
Supporters say the key to success will be making sure the contract includes provisions protecting the state’s and the public’s interests.
Transportation board member Kevin Abel, who represents a congressional district in Atlanta’s northern suburbs on the board, said the DOT should insist on capping the private partner’s return on investment from the project.
Abel also suggested building in a guarantee that the project include a transit component. He said investors otherwise might be tempted to leave transit out of the mix because transit riders would take cars off of I-285, reducing the toll revenue.
“Once we sign a 50-year agreement, we’re subject to the whims of the marketplace,” Abel said.
The DOT plans to hold an industry forum later this year to talk about the project with potential bidders.
Georgia Power’s coal-burning Plant Scherer in Monroe County.
ATLANTA – Atlanta-based Southern Co.’s commitment to combating climate change is under fire in an ad campaign launched by the Sierra Club this week.
With a six-figure ad buy in the Atlanta market, the environmental group accuses Southern of failing to deliver on its promise to reach “net zero” carbon emissions by 2050.
Based on the Sierra Club’s “Dirty Truth” report released earlier this year, the ad criticizes Southern Co. and several subsidiaries – including Georgia Power – for continuing to burn coal to generate electricity while building new plants fired by natural gas. The utility also is failing to make significant investments in renewable energy, according to the ad.
“Southern Company operates some of the largest and dirtiest coal plants in the country with no retirement dates in sight while the utility plans to build more plants that burn so-called “natural gas,” a product of fracking that releases methane, a potent greenhouse gas,” said David Rogers, Southeast deputy regional director for the Sierra Club’s Beyond Coal Campaign.”
“Southern’s own material actions prove that its ‘net zero by 2050’ commitment … relies on unproven, expensive technology like carbon capture that will unnecessarily drive up customers’ bills. It’s long past time for ratepayers to understand the true extent of Southern Company’s intransigence against embracing real climate action.”
Georgia Power has reduced its reliance on coal in recent years. Much of the coal Georgia Power was using is being replaced by gas.
“Southern Company is one of the first companies in our industry to set the bold goal of net-zero greenhouse gas emissions by 2050 with an interim goal of a 50% reduction by 2030,” said Southern spokesman Schuyler Baehman. “Since 2007, we have retired or converted 56 coal units across our fleet. … We have significantly transformed the Southern Company system’s electricity generation mix, with coal decreasing from 69% of our generation mix in 2007 to just 17% last year.
“Over that same timeframe, renewables have increased from 1% to 15% of our annual energy mix. Notably, we continue to make significant progress in the absence of any state or federal mandates.”
The Sierra Club also has bought ads in Denver, Phoenix, St. Louis, Salt Lake City and Charlotte, N.C., headquarters for other utilities the organization accuses of dragging their heels in transitioning from fossil fuels to clean energy.
ATLANTA – All 60,000 Georgia preschoolers will be back in the classroom when the 2021-22 term begins later this month.
During the coronavirus pandemic, pre-K providers were given the option of offering classes in-person, virtually or through a hybrid of live and online instruction. The resulting disruption in routine sent statewide enrollment plummeting from more than 80,000 students.
“Research shows that the early education of children from birth to age five is critical to their success in kindergarten and elementary school,” said Amy Jacobs, commissioner of the Georgia Department of Early Care and Learning, the agency that administers the program.
“We believe laying a solid foundation for academic and social emotional success in our youngest learners is also important for the long-term economic growth of Georgia by helping to build a competent and qualified workforce.”
The first day of pre-school will vary based on the local school system and the child-care provider. It starts as early as July 19 in Taliaferro County and as late as the week of Sept. 6 in Murray and Webster counties.
Most Georgia public school systems begin classes during the first week of August.
The pre-K program offers the following first-day tips for parents sending their children to pre-school:
* Send your child to school in clothes they can manage independently in the bathroom.
* Make sure your child’s shoes are comfortable for playtime: No flip-flops or tennis shoes with Velcro.
* Visit the classroom before school starts, so children are familiar with the new surroundings.
* Tell your child’s teacher about any fears she/he may have.
* Discuss any special dietary needs or allergies your child may have with the teacher and ask her/him to explain program policies relating to children’s allergies.
* Complete necessary forms or releases your pre-K provider may require for dispensing medication during the school day.
* Locate the bathroom with your child and determine special bathroom routines the school observes.
* Allow extra time for the first day: Make sure you have time to say good-bye.
* Ask if your child can bring a familiar blanket for rest time: Can they bring a favorite stuffed animal?
* Send a family photo in your child’s backpack in case they get lonely.
Georgia’s lottery-funded pre-K program began in 1992 as a pilot program serving 750 at-risk four-year-olds at 20 locations. Because of the success of the Georgia Lottery, the program was opened in 1995 to all four-year-olds regardless of family income.
Georgia Commissioner of Transportation Russell McMurry
ATLANTA – It will take at least several days to reopen a stretch of Interstate 16 between Macon and Savannah after a bridge over the highway was hit by a dump truck early Thursday.
The incident occurred on Georgia Highway 86 in Treutlen County, forcing heavily traveled I-16 to be closed in both directions between exits 71 and 78.
“We are very grateful that there were no injuries or fatalities as a result of this incident,” Georgia Commissioner of Transportation Russell McMurry said Thursday during a news conference with Gov. Brian Kemp at the state Capitol.
“I would like to extend a sincere thank you to [the] Georgia State Patrol, local law enforcement and our local [Georgia Department of Transportation] District 2 staff, who mobilized quickly this morning to ensure traffic was safely diverted from I-16.”
The DOT is working to reopen one lane of I-16 westbound by Sunday. One lane of I-16 eastbound is expected to open by Monday.
While the damaged bridge will be removed during that time, there is no timetable for replacing it, McMurry said.
A signed detour is in place, but motorists are encouraged to find an alternate route, if possible, given the anticipated traffic volumes.
ATLANTA – Georgia’s unemployment rate fell to 4% last month, the lowest since the coronavirus pandemic began in March of last year and 8.5% below the April 2020 pandemic peak of 12.5%.
“We have gained back 76% of the jobs lost in the pandemic,” state Commissioner of Labor Mark Butler said Thursday. “Several job sectors are already breaking all-time highs as we continue to see Georgia’s economy recover.”
Topping the record-setting job sectors in Georgia is trade, transportation and utilities with a workforce of 952,000. Professional and business services account for 731,700 jobs across the state.
First-time unemployment claims in Georgia fell significantly last week, declining by 5,286 from the previous week to 14,475.
More than 193,000 jobs are listed online at Employ Georgia. In many cases, employers are willing to train quality applicants and help them get additional credentials.
The labor department has processed nearly 5 million jobless claims since March of last year and paid out more than $22.8 billion in state and federal unemployment benefits.
