Asset Management Legislation Passes Senate Committee

Posted on May 10, 2018 by John LaMacchia

The Senate Transportation Committee unanimously passed a three bill package that would create the Michigan Infrastructure Councils as recommended by the 21st Century Infrastructure Report and prioritizes the use of asset management for roads and water systems throughout Michigan.

The Michigan Infrastructure Council created under House Bill 3553 would do all of the following

  • Develop a multiyear program, work plan, budget, and funding recommendation for asset management, with an emphasis on coordination and integration across asset classes and regions
  • Prepare an annual report on the current statewide asset management assessment that tracks progress on established performance goals
  • Undertake research and advise on matters related to asset management, including financing models, best practices, impediments to delivery, emerging technology, information technology advancements, opportunities for greater coordination and collaboration, right-sizing and cost-efficiencies, and aligning state incentives to asset performance improvement goals.

House Bill 5406 would amend the Natural Resources and Environmental Protection Act to create the Water Asset Management Council within the Department of Environmental Quality (DEQ) and to specify its membership and duties. It would consist of a 9 member broad that would have significant local government representation including a direct appointment by MML. It requires only those water suppliers that have a asset management plan as part of their permit to submit that plan to the Council and the Council could not ask for any additional information beyond what was required in the permit.

By October 1, 2019, the council would have to develop a template for an asset management plan for use by drinking water, wastewater, and stormwater agencies submitting asset management plans to the council for approval. The template must ensure that local asset management plans include the following components:

  • An asset inventory
  • A level of service analysis
  • A risk of failure analysis
  • Anticipated revenues and expenses
  • A performance outcomes analysis
  • A description of plans to coordinate with other asset owners to reduce duplication of effort regarding infrastructure maintenance
  • Proof of acceptance, certification, or adoption of the local asset management plans by the jurisdiction’s governing body

Finally, House Bill 5408 modifies the Transportation Asset Management Council. The council will continue to operate in the fashion it does today and local road agencies will continue to be required to submit the data they collect on their road conditions. Additionally, communities with 100 or more miles of of roads will be required to submit their asset management plans for roads and bridges and what our anticipated performance goals will be. If performance goals are not met, funding received from Act 51 would not be able to be transferred between major and local roads.This would only take affect if the local road agency could not cure the issue after six months and been given an opportunity to meet with the Council.

The League worked with the Country Road Association, Michigan Association of Counties, Michigan Townships Association and the Administration to address a number of concerns. Though these conversations our concerns have been addressed and the League supports the passage of these bills.

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 [email protected] or 517-908-0303.

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