Great Lakes Dredge and Dock Moving Corporate HQ to Houston From Chicago

Great Lakes Dredge and Dock is moving its corporate headquarters to Houston from Oak Brook, Illinois. Oak Brook is a western suburb of Chicago.

Company that Dredged West Fork

Great Lakes spent more than a year dredging the San Jacinto West Fork in 2018 and 2019 for the Army Corps of Engineers.

The Great Lakes dredge that liberated River Grove Park from a sandbar more than 10 feet high and a quarter mile long.

The company has many other interests in the Houston Area and the central Gulf Coast from Corpus Christi to Louisiana. The move puts the company closer to key customers and growing markets, especially along the Gulf Coast and Mississippi River. The company already has regional offices in Jacksonville, FL and Staten Island, New York.

The company deepens ports, maintains waterways, renourishes beaches and restores barrier islands.

About the Houston HQ

The Houston headquarters, scheduled to open in early 2021 with its executive leadership team, will be staffed gradually over the next 12 months. It is initially searching for 20,000 square feet of office space in the Energy Corridor, between the Galleria and Beltway 8. The company will maintain a business and operations support center in the Oak Brook area.

The company said the move also will allow it to leverage long-term relationships with the Center for Dredging Studies at Texas A&M University, Louisiana State University and other universities that feature coastal resilience and natural infrastructure initiatives.

Landmark Projects Throughout US

Great Lakes has been involved in the development and construction of many well-known landmarks. In the Great Lakes’ region, that has included Chicago’s Navy Pier and Michigan Avenue Bridge; straightening and reversing the flow of the Chicago River; Northerly Island, a 91-acre peninsula along Chicago’s Lake Michigan; and the deepening the St. Lawrence Seaway between the U.S. and Canada.

Elsewhere, it has completed deepening projects in almost every port in the country and worked on important infrastructure projects, such as the massive container terminals in the ports of Los Angles and Long Beach and the Fort McHenry Tunnel that carries interstate traffic underneath the Baltimore Harbor. 

Recent Texas and Louisiana Projects

Among its recent projects in Texas and neighboring states: deepening the Corpus Christi Ship Channel from the Gulf of Mexico to Harbor Island; maintenance dredging of Houston Ship Channel; dredging for liquefied natural gas facilities in Corpus Christi and Cameron Parish, La.; restoring Louisiana’s Whiskey Island, which helps protect Terrebonne and Lafourche parishes from storm surge; restoring barrier islands to protect coastal Mississippi; and building the barrier berms that protected Louisiana from the Deepwater Horizon oil spill.

Works in Almost Every Port in County

Elsewhere, it has completed deepening projects in almost every port in the country and worked on important infrastructure projects, such as the massive container terminals in the ports of Los Angles and Long Beach and the Fort McHenry Tunnel that carries interstate traffic underneath the Baltimore Harbor. 

The company is the largest provider of dredging services in the US. It has a fleet of more than 200 vessels.

Welcome to Houston!

It will be good to have such a valuable resource in Houston. Especially as sediment builds up in our rivers and lakes to the point where it can no longer be ignored. Great Lakes’ expanded presence will make the Houston dredging market even more competitive.

For more information on Great Lakes Dredge and Dock, visit their website.

Posted by Bob Rehak on 10/24/2020

1152 Days since Hurricane Harvey

New Tropical System Has 90% Chance of Developing in Gulf

A tropical depression or tropical storm is likely to form over the NW Caribbean Sea. However, at THIS TIME, it poses no threat to southeast Texas.

Could Become Tropical Storm Zeta

Jeff Lindner, Harris County Meteorologist says, “A slow moving tropical wave over the NW Caribbean Sea is becoming better organized. A tropical system will likely form in the next 24 hours. The system will move generally slowly toward the NW over the next 48 hours and into the southeastern Gulf of Mexico.”

Conditions currently favor some development, but upper level winds over the Gulf of Mexico may become hostile for additional development by early to mid next week. The overall track is in the general direction of the central or eastern Gulf of Mexico over the next 4-5 days. 

Too Early To Predict Landfall

It’s too early to tell where this will make landfall. But NOAA’s satellite images show it definitely becoming better organized.

This shows circulation starting to form. Note the bands of clouds starting to dance around each other.

The National Hurricane Center gives this system a 90 percent chance of becoming a tropical depression or storm in a day or two. If it becomes a storm, it would be Zeta.

Most models currently take the storm east of us.

What Climatology Says

This is a reminder that we still have five weeks left in the 2020 hurricane season.

At this time of year, storms are most likely to track toward Florida, but as you can see above, the western Gulf is also a likely target.

Posted by Bob Rehak on October 24, 2020 with thanks to Jeff Lindner and the NHC

1152 Days since Hurricane Harvey

Disaster Recovery Disaster: Part 1

After Harvey, the US Department of Housing and Urban Development (HUD) made $1.3 billion in disaster recovery funds available for housing assistance to the City of Houston through the Texas General Land Office (GLO). The City kicked off several disaster recovery programs with great fanfare in January of 2019. However, in almost two years, the City has only helped 1.4% of eligible applicants for assistance and an estimated 0.5% of those who flooded without insurance. The second figure includes flooded homeowners who could have applied, but didn’t.

City of Houston Housing and Community Development on January 14, 2019. Mayor Turner said, “Thousands of Houstonians who were affected by Hurricane Harvey have been waiting for this day.” Most are still waiting.

Programs Announced in January 2019 Quickly Fall Behind Schedule

The programs were primarily designed to repair and reconstruct single- and multi-family homes, and to reimburse owners for repairs they made. However, almost from the outset, the program failed to reach its own goals and has fallen progressively farther behind.

A HUD audit in November of 2019 panned the City for failure to staff the program adequately. It also expressed concerns about the City’s lack of transparency, not posting plan documents online, not bidding contracts competitively, failure to follow HUD rules, and failure to meet objectives.

GLO Attempts to Help Rebuffed by City

The GLO, which is responsible for overseeing the program and ultimately for the money itself, sent a “strike force” to assist the City, train employees and get the programs back on track. However, the Director of the City’s Housing and Community Development Department, which conducts these programs, told the GLO’s strike team they were not welcome and told them to leave the Department’s office, according to Brittany Eck, a GLO spokesperson.

As the City fell further behind schedule in 2020, the GLO tried to take over some of the programs. Eck says GLO wanted to help the City focus on those where it had more success. However, the City also rebuffed those efforts. The City filed a lawsuit to prevent the GLO from taking back the programs. Ultimately, HUD stepped in and approved an “Action Plan Amendment” that resulted in cancelation of the City’s contract.

The City still pushed back. The Mayor claimed the program was on track to achieve its objectives, despite a rapidly approaching December 31, 2020 deadline for the reimbursement program.

Other programs for reconstruction, repair and rehab expire in 2024. But it takes time to design, permit, bid and construct homes. And it takes even more time to get approvals through the City, GLO and HUD. So…

According to the GLO, even the 2024 deadline is in jeopardy at this time.

Reimbursement Program May Come Back to City

The GLO reportedly may give the reimbursement program back to the City. With only two months left before the deadline, GLO doesn’t have time to get program changes approved through HUD, transfer files, and still reimburse flood victims who paid out of pocket for reconstruction.

But it’s unclear whether the City will commit to meeting all of the GLO’s performance benchmarks and deadlines. No one at the City will comment publicly. Eck said no commitments had yet been made, but might come as early as the end of today.

Reasons for Clawback of Some Programs

We’ve all heard the news reports about the City’s performance or lack thereof. But aside from the small number of homes completed, reports don’t go into much detail. Eck, the GLO’s spokesperson, spent hours explaining the complexities behind published numbers.

First, let me say, it’s difficult to compare the State’s numbers with the City’s. The two entities refer to programs differently. And they sometimes reflect different time periods or different stages of completion.

Plus, the City generally reports numbers for itself that are higher than the GLO’s numbers for the City. However, the differences are so small in the grand scheme of things that they get lost in rounding. So to eliminate charges of political bias, I have simply accepted the City’s numbers in almost all cases for the analysis below, except where the City does not supply numbers.

High-Level Findings

The deeper you dig, the more several things become clear:

Let’s address the first point and cover the others in later posts.

Application Process Started with Pre-qualification Survey

First, you need to understand the two-step application process. First, the City conducted a survey to screen applicants. Second, those who appeared to qualify were invited to apply for aid.

21,156 households took the survey. Of those, the City estimated 16,651 qualified for some kind of aid. See the screen capture below taken from the City’s website.

Many Still Waiting for Invite to Submit Application

Many families who qualified are still waiting to be invited to submit an application. The last “situation and pipeline” report posted on the City’s website shows 6,541 households “Pending invitation” as of 8/31/2020 (see page 6).

City’s Self-Reported Results

The City claims that it reimbursed 82 households a total of $1.455 million. That works out to $18,903 per household. Neither the total nor the household numbers seem large for a program almost 2 years old and a disaster as large as Harvey. $1.5 million is less than a third of the $5 million that the City is paying vendor ICF for “Outreach , Intake and Case Management Services.”

On the right side of the diagram above, the City also says that it sent out “Notices to Proceed with Construction” for another 149 homeowners. Those notices covered almost another $32 million. Those average $214,765 per household. But construction has not yet finished on all of those.

How Grants to Date Compare With Need

Here’s a link to Harris County Flood Control’s final report on Hurricane Harvey. On Page 13, it says:

  • 154,170 homes flooded in the county
  • 64% did not have flood insurance
  • So that’s roughly 100,000 homes without flood insurance (a major qualification for HUD grants). 

The City has half the population of the county. So, let’s assume that approximately 50,000 households flooded in the City that could have theoretically applied for assistance. But according to the City graphic above, only 21,000 households took the survey. And the City says 16,651 of those were eligible (about a third of flooded homes without insurance). 

But regardless, if you accept the City numbers, they have helped 231 families so far (82 + 149) out of 16,651 eligible survey respondents. And that doesn’t even include another 30,000 families that didn’t take the survey!

So, in almost two years, the City has only helped 1.4% of eligible survey respondents. And roughly 0.5% of those who flooded without insurance.

Calculated from data supplied by City of Houston and Harris County Flood Control District

$800 Million in Disaster Relief Remains Uncommitted At This Point

When you add in the number of projects in the pipeline (identified and under contract), the percentages look somewhat better. However, that cannot obscure the fact that the reimbursement program will expire in two months, and almost $800 million remains uncommitted (see circle diagram below). Now the City did not allocate all of that for reimbursing people who fixed their own homes. But they did allocate more than $400 million for homeowner assistance (see table on right below).

This PDF shows a summary status report dated 10/15/2020. It provides additional insight into the various types of programs on the right.

City Has Awarded Less than 10% of Projections It Made 16 Months Ago

HUD approved the GLO’s third-amended state-action plan on June 13, 2019.

By the City’s own projections at the time, it should have expended $261 million by now ($1.275 billion minus $1.014 billion). However, the GLO says the City has only drawn down $24.6 million, according to Eck. That’s less than 10% of the projection the City made 16 months ago.

STATE ACTION PLAN, PAGE 254

The GLO says that the City has pushed deadlines back month after month, always using the excuse that they’re right on the cusp of turning over a large number of applications for approval.

Future Aid At Stake

Sources familiar with how HUD works indicate that non-performance on this contract could jeopardize future HUD aid to the City.

Meanwhile, I know one applicant for reimbursement who completed the City’s survey the very first day it was available. Her application still has not been processed. But, she says, the City hopes to work on it soon! That’s better than the 6,541 people still waiting for the City to invite them to submit an application.

Posted by Bob Rehak on 10/23/2020

1151 Days after Hurricane Harvey

The thoughts expressed in this post represent opinions on matters of public concern and safety. They are protected by the First Amendment of the US Constitution and the Anti-SLAPP Statute of the Great State of Texas.