HCA Holds its Annual Forecast Luncheon 2016
Friday, March 11, 2016
Posted by: Jeff Nielsen
The Houston Contractors Association held their eleventh annual construction forecast presentation at the January luncheon. This popular event always draws a large crowd and this year was no exception with an estimated 300 attendees turning out for this, the first luncheon of the year. The attendees got to hear presentations from various representatives of regional public entities give their construction projections for 2016. The list of speakers was as follows; from the Texas Department of Transportation we had the Deputy District Engineer, Eliza Paul. Speaking for Harris County PID was John Blount, Director of Operations for the Public Infrastructure Department, Architecture & Engineering Division. Attending from Harris County Flood Control was the Deputy Director of Engineering, Alan Black. Also present was the Assistant Director of Maintenance & Traffic Engineering for the Harris County Toll Road Authority, Quinton Alberto. Mr. Alberto was followed by Richard Stolleis, Fort Bend County Engineer. The next presenter was the Deputy Director of Public Works for the City of Houston, Mr. Daniel Menendez. He was followed by the Deputy Assistant Director, Office of Business Opportunities, Houston Airport System Jason McLemore. We also had the Assistant Director of Public Works for the City of Pasadena, Mr. Mark Gardemal. City Engineer, Mr. Christopher Steubing with the City of Sugar Land was the next speaker followed by Andrea Brinkley, Projects Manager for the City of Pearland. Next was Robert Upton, Assistant Director of Public Works for Missouri City followed by Frank Simoneaux, Director of Public Works for the City of Baytown. Next was Brock Lewis, Chief Construction Manager for the Port of Houston, and finally Larry Horst, Project manager with Planning, Engineering & Construction for Metro.
Highlights of the presentations
Eliza Paul with TxDOT stated that highway funding in the past has been uncertain, but that changed starting with the passage of proposition one last November. Proposition one gave TxDOT $1.74 billion in additional money for 2015. 2016 will see about $1.13 billion and 2017 will be about $600 million according to estimates. The Texas Legislature has also changed the diversion money from the Texas Highway fund and now TxDOT is getting it back $650 million annually that used to be taken out for uses other than highway construction. A third thing that happened was the passage of Prop. 7, which will add another $2.5 billion starting in 2018 and will increase to $3 billion annually by 2021. This is allowing TxDOT to do a lot of additional work around the state.
John Blount with Harris County PID stated that the County is projecting $338 million worth of work for 2016, which is about a 5% increase over last year’s projections. This year the County will also have a lot more road and bridge projects where 2015 they had more building construction including the $100 million joint processing center and the joint radio shop with the City of Houston. This does not anticipate any bond funds that were approved, those projects should begin to be let out in 2017. Mr. Blount concluded by saying that 2016 should be a very robust year for the county.
Alan Black with Harris County Flood Control stated that through the good governance of the Harris County Commissioner’s Court, Flood Control again has an annual budget of $60 million. This has been a consistent level of funding that the department expects to continue. Flood control has a total of $108 million worth of projects forecast to be bid this year, some of which are funded and some that are awaiting future funding. As an example there is a $15 million project on the south belt storm water detention basin along with some channel projects and a $10 million willow water hole control project.
Quinton Alberto with Harris County Toll Road Authority was next and said that they are very excited about the projects that they have coming out this year. He stated that they are finishing up on the Hardy Tollway and planning on starting up on the southeast side of the Sam Houston tollway with about $188 million worth of work. This will tie into TxDOT’s work on the Tomball parkway up into Montgomery County which will be about $150 million project. There will also be an additional $20 million worth of maintenance work that will be spread out through the rest of the year.
The next speaker was Fort Bend County Engineer, Richard Stolleis. Mr. Stolleis stated that they have about $75 million worth of work for 2016. Mr. Stolleis said that they are doing work all over the county with the Bellaire project being an important east west connector. The Cane Island project from FM1463 to I-10 will bring some relief to 1463. The big project will be a local let for the next phase of the 1093/Westpark corridor extension that will be a $36 million project.
Dan Menendez with the City of Houston began his comments with a reference to Mayor Turner’s pothole program saying that the pothole initiative is inspiring to the community and shows that Public Works is able to respond when people bring issues to their attention. Mr. Menendez stated that there were some improvements within the department that they had been working on to work better with the contractors include posting a rolling two month look-ahead on their web site so that contractors know what is coming up to bid on at the City. There is also the 60%, 90% and final plan sets that are open for comment and review. The City is also using technology to track change orders and RFI’s so that information is easy to access and address. Mr. Menendez stated that over the next 18 months the City will bid over $1.1 billion worth of work and have 134 different projects to bid. Compared to last year’s chart you will see a continued incremental increase in the storm and street programs because the Rebuild Houston funding is continuing to grow. There has also been a gradual change away from repairing major thoroughfares in favor of local streets. The water and wastewater is combined program and its funding has remained consistent. He also noted that there is a design build project for the expansion of the northeast water plant that will be over a billion dollars and will be needing subcontractors to complete that project.
Next up was Jason McLamore with the Houston Airport System. Mr. McLamore stated that over the next 18 months the airport has about 22 projects worth just over $200 million, not including the work that will be done on terminal D at Bush Intercontinental Airport, which is still in the design phase. United Airlines is currently building the B North terminal that is going to be a $140 million project, but so far they have only procured about half of the work.
Mark Gardemal with the City of Pasadena stated that they have about $20 million worth of work that they intend to bring to bid in the next 18 months and all of it is water and sewer. There are about 15 total projects and they are looking to get them all out for bid over the coming year.
Christopher Steubing with the City of Sugar Land was the next presenter. Sugar Land has approximately $78 million worth of projects to put out for bid over the next 12 to 14 months. There will be $14.7 million worth of drainage work to be performed on the 2016 schedule. Mr. Steubing stated that there are $8.9 million worth of work on the municipal side, all related to the CMAR work being performed by Linbeck Construction on their indoor concert venue. Sugar Land has $22.6 million in street projects, $5.8 million in parks projects, $4.1 million in wastewater, $6 million in water projects and $17.4 million in surface water projects.
Andrea Brinkley with the City of Pearland stated that Pearland has $89 million worth of capital improvements that they will be bidding out this year. They start the year with a 4 mgd plant expansion of the Reflection Bay water facility with an estimated cost of $44.5 million. In the second quarter there is a $7.3 million expansion of Max road, and in the third quarter there is a $4 million extension of Fite road. In the fourth quarter there are some park projects and some vertical work including a library expansion and improvements to city hall. Mrs. Brinkley stated that in the five year CIP, the City of Pearland is budgeting $481 million with $121 million going into design in 2016 which means a ramp up for construction over the next several years. $50 million of that is in streets and $36 million is in wastewater projects.
Robert Upton with the city of Missouri City said that Missouri City is about 25 square miles with 70,000 residents. They have an annual transportation budget between $5 and $7 million and a utilities budget that runs around $9 to $11 million. The City has a $40 bond program that was approved in 2014 that they will begin letting out jobs over the next five to seven years. Missouri City alternates between design and construction years with this being a design year. Glenn Lakes bridge, Adams street and Ashmont drive are all in design and will be up for construction in 2017. Looking at the 2014 bond program, there is $22 million set aside for road, bridge and general transportation. Under utilities there will be a$6 to $8 million expansion of the waste water treatment plant. There is also an expansion of the regional water treatment facility estimated at $12 to $14 million. There will also be $6.5 million in drainage and $5.7 million in facility improvements.
Frank Simoneaux with the City of Baytown was next and stated that Baytown will have a bond election coming up in November. Mr. Simoneax said that the Baytown Area Water Authority is building a new 6 mgd surface water treatment plant with an estimated cost of $40 million. On the wastewater side there are five projects with an estimated cost of almost $9 million, and there are two street projects with an estimated cost of $6.2 million.
Brock Lewis with the Port of Houston said that in 2016 there are ten projects at the Bayport Terminal. The largest jobs are a rail spur project with an estimated cost between $10 and $15 million and a wharf expansion that will be a $40 to $50 million project. At the Barbours Cut terminal there is a $10 to $15 million 12.47 kV electrical distribution system project and the repaving of the C-1 middle yard that will be a $40 to $50 million project. At the Turning Basin Terminal there are twelve total projects and at the Woodhouse Terminal there are an additional five projects.
Larry Horst with Metro was the last presenter of the day and stated that they do not have a lot of construction coming up with the completion of the rail project. There are a total of ten projects this year with most focusing on the construction of new bus shelter/bus stop improvements and HOV improvements. There are also some transit center and park and ride improvements that are slated for 2017 for construction.
For a copy of the handout for this event please go to your HCA web page and download a copy. www.houstoncontractors.org
Join us Friday, April 1, 2016 at the Westside Sporting Grounds located at 10120 Pattison Rd. Katy, TX. 77493 for the annual HCA Sporting Clay Shoot. Registration begins at 8:00 a.m. with the main event starting at 10:00 a.m. Lunch will be served at 1:00 p.m. followed by the awards ceremony and a raffle. Cost is $145.00 per shooter, four shooters per team. Price includes golf cart, lunch, shells and prizes. For more information go to www.houstoncontractors.org.