SB-0879, As Passed Senate, November 30, 2016

SUBSTITUTE FOR

SENATE BILL NO. 879

A bill to amend 1951 PA 51, entitled

"An act to provide for the classification of all public roads,

streets, and highways in this state, and for the revision of that

classification and for additions to and deletions from each

classification; to set up and establish the Michigan transportation

fund; to provide for the deposits in the Michigan transportation

fund of specific taxes on motor vehicles and motor vehicle fuels;

to provide for the allocation of funds from the Michigan

transportation fund and the use and administration of the fund for

transportation purposes; to promote safe and efficient travel for

motor vehicle drivers, bicyclists, pedestrians, and other legal

users of roads, streets, and highways; to set up and establish the

truck safety fund; to provide for the allocation of funds from the

truck safety fund and administration of the fund for truck safety

purposes; to set up and establish the Michigan truck safety

commission; to establish certain standards for road contracts for

certain businesses; to provide for the continuing review of

transportation needs within the state; to authorize the state

transportation commission, counties, cities, and villages to borrow

money, issue bonds, and make pledges of funds for transportation

purposes; to authorize counties to advance funds for the payment of

deficiencies necessary for the payment of bonds issued under this

act; to provide for the limitations, payment, retirement, and

security of the bonds and pledges; to provide for appropriations

and tax levies by counties and townships for county roads; to

authorize contributions by townships for county roads; to provide

for the establishment and administration of the state trunk line

fund, local bridge fund, comprehensive transportation fund, and

certain other funds; to provide for the deposits in the state trunk

line fund, critical bridge fund, comprehensive transportation fund,

and certain other funds of money raised by specific taxes and fees;

to provide for definitions of public transportation functions and

criteria; to define the purposes for which Michigan transportation

funds may be allocated; to provide for Michigan transportation fund

grants; to provide for review and approval of transportation

programs; to provide for submission of annual legislative requests

and reports; to provide for the establishment and functions of

certain advisory entities; to provide for conditions for grants; to

provide for the issuance of bonds and notes for transportation

purposes; to provide for the powers and duties of certain state and

local agencies and officials; to provide for the making of loans

for transportation purposes by the state transportation department

and for the receipt and repayment by local units and agencies of

those loans from certain specified sources; and to repeal acts and

parts of acts,"

by amending sections 1h and 1i (MCL 247.651h and 247.651i), section

1h as amended by 2008 PA 501 and section 1i as added by 2001 PA

259.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 1h. (1) The department shall develop and implement a

life-cycle cost analysis for each project for which the estimated

total pavement costs exceed ~~$1,000,000.00~~ $1,500,000.00 funded in

whole , or in part , with state funds. The department shall design

and award paving projects utilizing material having the lowest

life-cycle cost. All pavement design life shall ensure that state

funds are utilized as efficiently as possible.

(2) As used in this section and section 1i, "life-cycle cost"

means the total of the cost of the initial project plus all

anticipated costs for subsequent maintenance, repair, or

resurfacing over the life of the pavement.

(3) Except as otherwise provided in this section, life-cycle

cost shall compare equivalent designs and shall be based upon

Michigan's actual historic project maintenance, repair, and

resurfacing schedules and costs as recorded by the pavement

management system, and shall include estimates of user costs

throughout the entire pavement life.

(4) For pavement projects for which there are no relevant

Michigan actual historic project maintenance, repair, and

resurfacing schedules and costs as recorded by the pavement

management system, the department may use ~~actual~~ either of the

following as a substitute for the requirements listed in subsection

(3):

(a) Actual historical and comparable data for reasonably

equivalent designs from ~~states~~ geographic locations with similar

climates, soil structures, or vehicle traffic.

(b) The department may determine appropriate estimated

maintenance, repair, and resurfacing schedules for a project by

using preliminary results from a demonstration project described in

section 1i(1) that is underway at the time of the project. The

schedules described in this subdivision shall be determined using

appropriate engineering analysis techniques and shall be approved

by the chief engineer of the department. The temporary schedules

described in this subdivision shall be superseded by actual

performance data as it is developed.

Sec. 1i. (1) Notwithstanding section 1h, the department may

conduct ~~not more than 4~~ pavement demonstration projects ~~each year~~

to evaluate new construction methods, materials, or ~~design.~~ designs

that do not have actual Michigan historical project maintenance,

repair, or resurfacing schedules or costs recorded by the pavement

management system. The department may ~~offer or~~ conduct a pavement

demonstration project that may be all or a portion of that project

using either concrete or asphalt as determined by the department.

Each demonstration project shall include measurable goals and

objectives for determining the success of that project. The

department shall measure the interim success of each demonstration

project each year and make a final report for each demonstration

project following the demonstration life of the project, which may

be shorter than the actual pavement life of the material used for

the project, that assesses the cost-effectiveness and performance

of the pavement materials and design used in the project and

compares the results to the pavement material identified under the

department's standard pavement selection process.

(2) A demonstration project shall not be conducted without the

approval of the department. If a proposed demonstration project is

rejected, the department shall provide an explanation of the reason

for the rejection to the person that proposed the demonstration

project. Demonstration projects shall be selected using any of the

following criteria:

(a) Pavement designs intended to increase pavement life

expectancy in a manner that will result in lowered life-cycle

costs.

(b) Pavement designs intended to improve performance,

including, but not limited to, friction, surface stress, reduction

of noise, and improvement of ride quality.

(3) ~~The~~ If the difference between the total cost of contracts

awarded for demonstration projects under this section using asphalt

and concrete ~~shall not exceed a difference of more than 20% between~~

~~the respective paving materials in any 2-year period.~~ in any

contiguous 3-year period is more than, or is anticipated to be more

than, 25%, the department shall submit a detailed letter of

explanation to the chairs of the senate and house of

representatives transportation committees, the senate majority

leader, and the speaker of the house of representatives explaining

why there is a difference and recommendations on how the department

will reduce the difference to below 25% over the next 3 years. As

used in this subsection, "total costs" means the initial engineer's

estimated costs of the pavement design portion of the project.

Nothing in this subsection requires that any individual

demonstration project be duplicated with both asphalt and concrete.

(4) The director shall provide an annual report, not later

than ~~February~~ July 1 of each year, to the senate and house of

representatives transportation standing committees and the senate

and house of representatives appropriations subcommittees on

transportation regarding the status of each demonstration project.

(5) A lack of Michigan actual historic project maintenance,

repair, and resurfacing schedules and costs as recorded by the

pavement management system does not preclude the department from

conducting a pavement demonstration project under this section.

(6) The department shall strive to reduce the equivalent

uniform annual cost of demonstration projects described in this

section by 5% over the 10-year period following the effective date

of the amendatory act that added this subsection.