Category Archives: Infrastructure

Save the Date: Transportation Asset Management Council’s Fall Conference

Posted on by

Michigan’s Transportation Asset Management Council will be having their annual fall conference in Marquette on October 5th.This conference presents critical information for League members and we encourage all of those that are able to take advantage of this fantastic opportunity.

A full agenda and registration information will be be coming soon. For additional information about hotel reservations, contacts and presentations, please click here for the Save the Date flyer.

John LaMacchia is the Assistant Director of State and Federal Affairs for the League handling transportation, infrastructure, energy and environment issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

Local Infrastructure Report Released by National League of Cities

Posted on by

The National League of Cities released a new report Paying for Local Infrastructure in a New Era of Federalism.  Declining funding, increasing mandates and misaligned priorities at the federal and states levels have put responsibility for infrastructure on local governments. But what ability do cities have to take up this call? The authority of cities to meaningfully address growing infrastructure challenges is bound by levers authorized to them by their states. The report finds that cities are limited in the number and scope of tools they are authorized to use, and that access to these tools is highly uneven in states across the country.

Summer Minnick is the Director of External Relations and Federal Affairs. She can be reached at 517-908-0301 or sminnick@mml.org.

Urge Your Representative to Vote NO on HB 5016

Posted on by

Here is an urgent action alert we’ve sent to our members this morning:

We need your help! The Michigan House is currently working on legislation, HB 5016, that could be voted on this week that the Michigan Municipal League strongly opposes. The bill would require municipalities to reimburse a telecommunications provider a portion of relocation costs if a community fails to notify the provider at least one year in advance of a project that will require relocation of their lines.

Additionally, communities will no longer be able to charge for a permit fee, inspection fee, or survey cost, when a relocation is required. The bill also fails to provide any protection to the municipality if the provider installs or relocates their lines in an area other than allowed by the permit or causes construction delays.

If passed, municipalities would be required to pay a private for-profit company for moving their telecommunication lines within the public right-of-way. Communities are already prohibited from denying the telecommunications access to these public spaces they get to occupy for free. This proposed legislation sets a terrible precedent in this state and could lead to other utility providers, i.e. gas and electric companies, to seek the same deal.

Relocation costs can be very expensive. If communities are required to shoulder a portion of those costs it could result in projects being delayed, scaled back, or even eliminated as a result of this unnecessary, one-sided legislation.

The League encourages you to contact your representative TODAY and tell them to oppose HB 5016 and protect our taxpayers from paying these costs. Go here to get the contact info for your legislators.

John LaMacchia is a Legislative Associate for the League handling transportation, infrastructure, and energy issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

Legislation Attempts to Shift Broadband Relocation Costs to Communities

Posted on by

Legislation recently introduced in the House attempts to shift broadband relocation costs to communities and we urge you to reach out to your legislator to defeat it. HB 5016 would require cities and villages to reimburse an entity holding a license under the Michigan Telecommunications Act, or a franchise under the Uniform Video Services Local Franchise Act, for relocation costs if both of the following apply:

  1. The city, village, township, or county, or the state transportation department, did either of the following: Requested the entity to temporarily or permanently relocate its facilities, or requested the entity to temporarily or permanently relocate its facilities to protect those facilities due to construction or other activity by the city, village, township, or county, or the state transportation department.
  2. The entity invests money in broadband infrastructure in this state.
If a city or village requests an entity to relocate facilities, the community would also be required to waive any permit fees or inspection fees.
If a city or village requests an entity to conduct any survey or study related to relocating facilities, the community must reimburse the entity for those survey or study costs.
A reimbursement of relocation costs by the government agency to an eligible entity shall be made as follows:
  • 100% reimbursement for relocation costs, if the entity’s facilities were placed in the public right-of-way less than five years before the date of the request to relocate
    those facilities.
  • 75% reimbursement for relocation costs, if the entity’s facilities were placed in the public right-of-way five years or more but fewer than nine years before the date of the request to relocate those facilities.
  • 50% reimbursement for relocation costs,if the entity’s facilities were placed in the
    public right-of-way nine years or more but less than 12 years before the date of the
    request to relocate those facilities.
  • 25% reimbursement for relocation costs, if the entity’s facilities were placed in the public right-of-way 12 years or more but less than 15 years before the date of the
    request to relocate those facilities.

The METRO Act requires telecommunication providers to pay the Metro Authority an annual maintenance fee for access to and use of municipal public rights-of-way. The Act also provides that they receive an annual property tax credit equal to the funds/costs paid in annual maintenance fees. The receipt of this tax credit results in the telecom provider paying little or no annual costs for access to and use of municipal public rights-of-way. The METRO Act provides that the tax credit shall be the sole method of recovery for the costs required under the act.

Additionally, Section 4.10 of the METRO Act permit agreements requires “…If a Municipality requests Permittee to relocate, protect, support, disconnect or remove its Facilities because of street or utility work, or other public projects, Permittee shall relocate, protect, support, disconnect, or remove its Facilities, at its sole cost and expense…”

The League believes the transfer of these cost to our communities makes them unfairly shoulder the costs and is in direct conflict with the METRO Act. We urge you to reach out to your legislator and let them know that municipalities should not be responsible for these costs and to vote no on this legislation. This bill could be voted on the first week of December when the Legislature returns from Thanksgiving break. They need to hear from you if we are going to be successful in defeating this bill.

John LaMacchia is a Legislative Associate for the League handling transportation, infrastructure, and energy issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

Act 51 Compliance Requirements Due September 30th

Posted on by

Act 51 compliance requirements are due September 30th as a result of changes that were made to the compliance requirements of Public Act 51 of 1951, Section 18j, MCL 247.668j related to funding from the Michigan Department of Transportation for roadways within local units of government.

To comply, by September 30, 2015, a certificate regarding the compensation plans for your local transportation employees must be completed, signed, submitted to the State Department of Transportation and posted on your municipal website. MDOT has summarized the compliance requirements in FAQ form.

If this form is not submitted by September 30th MDOT may withhold Act 51 funding for non-compliance.

John LaMacchia is a Legislative Associate for the League handling transportation, infrastructure, and energy issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

After Serious Negotiations It Is Back To The Drawing Board On Transportation Funding

Posted on by

Legislators spent the majority of the week once again trying to find a way to invest more money in Michigan’s roads. Talks began with the most serious negotiations of the summer and at one point there was some belief that a deal was close. At the end of the day though a final compromise was unable to be reached and the Governor and legislative leaders are back to the drawing board.

The potential deal was a plan based around increasing road funding by $1.2 billion, with $600 million coming from new revenue and $600 coming from existing revenue. The new revenue would come from a combination of gas taxes and registration fee increases. The $600 million in cuts to existing revenue remained undefined and was one of the major sticking points with many legislators.

Talks have already begun on finding a way to solve this problem but further action will not take place until after Labor Day at the earliest. The League has continued to voice our concerns over the use of a significant amount of unidentified existing revenue, the need to invest in transit, and that any solution should not put an unnecessary amount of new reporting requirements on our members

The League will be working hard to ensure our voice is heard as we move closer to a deal. We will continue to update you on any new details and how you can engage members of the Legislature in the coming weeks.

John LaMacchia is a Legislative Associate for the League handling transportation, infrastructure, and energy issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

Save the Date: Transportation Asset Management Conference

Posted on by

The Transportation Asset Management Council will we holding there Fall Conference on October 15, in Marquette. The theme of this years conference will be investing in our future with data driven solutions.

For more information, contact Frank Kelley, Asset Management Coordinator at 517-373-2111 or kelleyf@michigan.gov, or visit us on the Web at: www.michigan.gov/tamc.

To register, contact the Michigan Local Technical Assistance Program (LTAP) at the Center for Technology & Training at 906-487-2102 or ctt@mtu.edu.

For a copy of the Save the Date flyer please click on the following link. 2015 FALL TAMC Save the Date

John LaMacchia is a Legislative Associate for the League handling transportation, infrastructure, and energy issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

Transportation Asset Management Council Policy for Collection on Roadway Condition Data on (Paved) Non-Federal Aid Eligible Roads and Streets

Posted on by

Since 2009, the Transportation Asset Management Council (TAMC) has been working with local road agencies to collect PASER data on the paved non-federal aid system. In 2009, the TAMC began a policy to annually budget to reimburse agencies for data collection of PASER data on up to one third of the State’s paved non-federal aid road system. Many local road agencies have taken part in this reimbursement program to the extent funds allowed. The TAMC is also aware of many local road agencies that periodically collect PASER data on the paved non-federal aid system without reimbursement from the TAMC.

The TAMC would like to request submission of paved non-federal aid PASER data that agencies may have collected for their own purposes. If a local road agency is currently collecting paved non-federal aid PASER data without TAMC reimbursement; the TAMC would like to kindly request submission of that data annually. Your submission of paved non-federal aid data, with or without reimbursement, allows the TAMC to have a better indication as to the status of the State’s paved non-federal aid road system. Data submitted before December 15th of each year can be included in the TAMC Annual Report.

For more information please click the following link. TAMC – Paved Non-Federal Aid

John LaMacchia is a Legislative Associate for the League handling transportation, infrastructure, and energy issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

Senate Passes Road Plan with $700 million in Unspecified General Fund Cuts

Posted on by

Last night the Senate voted out a road funding plan that could ultimately raise $1.5 billion for roads, with two of the main pieces of legislation in the plan coming to a tie on the chamber floor.

The plan generates roughly $822 million by increasing the gas tax 15 cents and $700 million from unspecified General Fund budget cuts.

Eight bills — SB 0414, HB 4610, HB 4611, HB 4612, HB 4613, HB 4614, HB 4615 and HB 4616 — were passed through the Senate, but two of the main pieces of legislation were only moved after Lt. Gov. Brian CALLEY broke the tie.

Under HB 4615, the gas tax would go up 19 cents to 23 cents on Oct. 1, 2015; to 27 cents on Jan. 1, 2016, and 34 cents on Jan. 1, 2017, raising $475 million more for the roads in Fiscal Year (FY) 2016, $733 million in FY 2017 and $822.1 million in FY 2018, according the Senate Fiscal Agency (SFA).

The also also creates a lock box directing seven cents of the 15-cent gas tax increase to a fund controlled by the Department of Treasury that could only be spent after approval is given by joint resolutions of the House and Senate.

Under SB 414, a $350 million General Fund allocation would be made toward roads in Fiscal Year (FY) 2017 and a $700 million special roads allocation that would take place going forward until FY 2033.

The bill also includes a mechanism that would roll back the state’s income tax if General Fund revenue exceeds the rate of inflation. Every .1 percent that is rolled back from the state’s 4.25 percent income tax would equate to an additional $230 million reduction in the the state’s General Fund.

HB 4613 would require warranties, where possible, on all road projects over one million dollars. Additionally, this bill contain 23 new reporting requirements that local units of government must provide to MDOT.

The bottom line is that this plan does not provide a long-term sustainable solution to address Michigan’s deteriorating infrastructure. Additional earmarks from the General Fund and only allowing the General Fund to grow by inflation could severely affect the ability of the state to prioritize investment in communities that desperately need it. It could result in future cuts to revenue sharing, K-12, higher education, community colleges, economic development, PILT, fire protection grants, or state police.

The League will be working hard to ensure our voice is heard on the potential long-term negative impacts this proposal could have on our communities. We will continue to update you on the advancement of this proposal and how you can engage members of the Legislature in the coming days.

John LaMacchia is a Legislative Associate for the League handling transportation, infrastructure, and energy issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

 

Senate Republican’s Release Road Funding Plan, Vote It Out of Committee

Posted on by
A fire truck makes an emergency run over crumbling roads in Macomb County.

A fire truck makes an emergency run over crumbling roads in Macomb County.

Late yesterday afternoon the Senate Republican’s released their road funding plan and immediately voted it out of committee on a party line vote. The plan consists of a mix of new revenue and rededicating General Fund money for a total of approximately $1.5 billion in funding for roads and bridges when fully implemented.

Beginning October 1, 2015, this plan would increase the gas tax by 5 cents. It would increase an additional 5 cents on January 1, 2016 and January 1, 2017, for a total of a 15 cent increase. Tax rates on diesel would be adjusted so they are equal to the tax paid on gas by the end of that three year period. Beginning in 2018 gas and diesel taxes would be tied to inflation. This will generate roughly $820 million in new road dollars that will flow through the full Act 51 funding formula, providing an increase to the Comprehensive Transportation Fund which supports public transportation, rail, and ports. Beginning in 2033 the gas tax would be eliminated.

The plan earmarks $350 million of existing income tax revenue in 2016 and $700 million each year from 2017 to 2032 solely for roads and bridges. These redirected dollars would circumvent the full Act 51 formula, bypassing the Comprehensive Transportation Fund (CTF).

State General Fund spending would be capped at current spending levels and only allowed to grow by the rate of inflation. Any growth over inflation will result in a reduction to the income tax rate by the same amount. There is no identified floor on the rollback so hypothetically income taxes could be rolled all the way back to zero.

Similar to the House plan this proposal would eliminate the Earned Income Tax Credit, require competitive bidding on all MDOT and local road projects over $100,000, require MDOT and local road agencies to secure warranties for projects over $1 million, and allow townships contributing greater than 50% to a road project over $50,000 to require competitive bidding. MDOT must also create a 50 Year Roads Task Force where their goal will be find a way to build roads that last at least 50 years and to be able to build them for half the cost.

The bottom line is that this plan does not provide a long-term sustainable solution to address Michigan’s deteriorating infrastructure. Additional earmarks from the General Fund and only allowing the General Fund to grow by inflation could severely affect the ability of the state to prioritize investment in communities that desperately need it. It could result in future cuts to revenue sharing, K-12, higher education, community colleges, economic development, PILT, fire protection grants, or state police.

We would encourage all of our members to reach out to their State Senator and explain that we are thankful that this proposal has new revenue included but this proposal will severely limit the flexibility of the state’s General Fund. The lack of flexibility could have a long-term negative affect on communities. Please ask that they do not pass this legislation this without significant changes that will protect the state’s ability to invest much needed resources into communities.

John LaMacchia is a Legislative Associate for the League handling transportation, infrastructure, and energy issues. He can be reached at jlamacchia@mml.org or 517-908-0303.