Public-Private Partnerships in the News
FOR IMMEDIATE RELEASE:
May 10, 2010

CONTACT:
Lisa Marie Burcar
Ryan Endean
916-446-0400

PECG LAUNCHES CAMPAIGN OPPOSING WASTEFUL,
NO-BID P3 PROJECT CONVERSION

P3 PROPOSAL ABANDONS COMPETITIVE BIDDING,
DOUBLES COST, RESULTS IN LOST JOBS, TAKES
MONEY AWAY FROM OTHER PROJECTS

SACRAMENTO - The Professional Engineers in California Government (PECG) today launched a paid radio campaign opposing the conversion of the Presidio Parkway Project into a wasteful no-bid public private partnership (P3).

The PECG radio ads encourage listeners to call the California Transportation Commission (CTC) by May 19 (the date of the vote on the conversion) and urge them to vote no on this taxpayer rip-off because it:

  • Abandons Competitive Bidding and Doubles the Cost of the Project
  • Will Cost the Bay Area 15,000 Jobs
  • Piles Millions of Dollars in new Debt on California Taxpayers
  • Takes Money Away from Other Transportation Projects for the Next 30 Years

The radio ads can be heard on the PECG website at www.pecg.org.

The Presidio Parkway Project is the replacement for Doyle Drive, the south approach to the Bay Bridge. Construction has already started on the competitively bid contracts 1 to 4 (phase one). According to the San Francisco Chronicle and other news reports, $80 million has been saved by competitive bidding the first phase of construction. And though phase two (contracts 5 to 8) of construction is currently fully funded with federal, state and local funds, the San Francisco County Transportation Authority (SFCTA) has sought CTC approval to convert the second phase to a P3 project.

The SFCTA proposal:

  • Abandons competitive bidding that has saved taxpayers millions, for a best value, no-bid contract in which highly subjective factors - not cost - determine who receives the contract.
      
  • At a minimum, doubles the cost from the California Business, Transportation and Housing Agency estimate of $473 million in construction, which would likely be lower due to the favorable bidding environment. The SFCTA Presidio Parkway Project P3 will cost taxpayers nearly $1.1 billion in construction costs alone over thirty years.
     
  • Would result in a loss of jobs by wasting a minimum of $500 million. Dollars that would not be available for other transportation projects, projects that would create a total of 15,000 jobs according to Federal Highway Administration estimates.
     
  • Diverts money from other transportation projects for 30 years. Under the public-private partnership proposal, $35 to $41 million annually will go to pay the no-bid contract winner for 30 years (2013/2043). That is $35 to $41 million that will not be available in each of the next 30 years for safety and congestion relief projects throughout California.

ABOUT PECG

PECG represents the 13,000 state-employed engineers and related professionals responsible for designing and inspecting California’s highways and bridges, ensuring that schools and hospitals are safe during earthquakes, and protecting our air, water and beaches from polluters.

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