Nov. 22, 2022

Potholes, Roads and the Future of a Michigan Rustbelt Town

Potholes, Roads and the Future of a Michigan Rustbelt Town
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We discuss how the roads got so bad and how to fix the problem with road and infrastructure expert Dr. John Daly. 

Michigan has a significant problem with its roads and bridges. The state has one of the highest numbers of structurally deficient bridges in the country, and many of its roads need repair. This problem has been exacerbated by years of neglect and insufficient funding.

One of the main issues is the lack of funding to maintain and repair the roads and bridges properly. Michigan has relied heavily on gas tax revenues to fund infrastructure projects. Still, these revenues have been declining due to more fuel-efficient vehicles and the increased use of electric vehicles. Additionally, the state has not increased its gas tax since 1997, leading to a significant shortfall in funding.

The state has also struggled with inadequate funding for road maintenance, leading to a backlog of repairs that grows yearly. This has resulted in a significant portion of the state's roads being in poor condition, causing damage to vehicles and creating a safety hazard for drivers.

Furthermore, Michigan's harsh winter weather can also contribute to the deterioration of its roads and bridges. The constant freeze-thaw cycles and heavy snowfall can cause significant damage, compounded by the lack of proper maintenance.

To fix these problems, Michigan needs to invest in its infrastructure by increasing road and bridge maintenance and repair funding. This could involve increasing the gas tax or finding alternative funding sources, such as tolls or user fees. The state also needs to prioritize infrastructure projects and allocate funding more efficiently, focusing on the most pressing needs first.

In conclusion, Michigan's problems with its roads and bridges are multifaceted and require a comprehensive approach to fix. The state must address these issues in a timely manner to improve the safety and quality of life for its citizens.


Fixing aging roads and bridges in cities like Flint, Michigan, needs creative solutions for its hollowed-out city with blocks and blocks of vacant homes. While a vacant house can be torn down, the near-bankrupt municipality must maintain the aging paved roads in front of those houses. Is the answer to downsizing or shrinking the city? How difficult is that to do?   Get some answers to these questions and others.

Please share your thoughts with us by email or voice message.

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Transcript
WEBVTT

00:00:05.280 --> 00:00:07.040
Hello, this is Arthur Busch.

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You're listening to Radio Free Flint.

00:00:08.560 --> 00:00:09.919
Thank you for joining us today.

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How do we fix the roads in an aging rust belt city?

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That's the subject of our podcast: potholes, roads, economic development, and the future of Flint.

00:00:20.640 --> 00:00:23.199
Our podcast guest today is John Daly.

00:00:23.199 --> 00:00:34.719
John is a wealth of experience as a former director of the Genesee County Road Commission, as well as the former director of transportation for the city of Flint.

00:00:34.719 --> 00:00:41.039
John now works as the manager director of the Lapeer County Road Commission.

00:00:41.039 --> 00:00:42.960
How do we get ready for a winter?

00:00:42.960 --> 00:00:55.200
How do we fix the dam roads and get rid of those big potholes that ruin our cars, that make our travel difficult, and also make it difficult for Flint and Genesee County to attract jobs.

00:00:55.200 --> 00:00:56.799
So where do we go from here?

00:00:56.799 --> 00:00:59.439
That's the subject of this podcast.

00:00:59.439 --> 00:01:01.039
I hope you enjoy it.

00:01:01.039 --> 00:01:07.760
And today's guest is John Daley.

00:01:08.400 --> 00:01:09.680
So it's a pleasure to have you.

00:01:10.159 --> 00:01:10.799
Thanks, Art.

00:01:10.959 --> 00:01:14.959
Yeah, you and I have worked together over the years uh in the county.

00:01:14.959 --> 00:01:16.719
I'm a big fan of yours.

00:01:16.719 --> 00:01:19.359
You've lived in Flint 20 some odd years.

00:01:19.599 --> 00:01:22.000
Well, I've lived in Genesee County for 20 years.

00:01:22.000 --> 00:01:25.599
I've lived in Flint for about 10, but I've worked in Flint for all the time.

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You've been able to sort of assess the culture of the city.

00:01:29.599 --> 00:01:39.920
Uh I guess look overall looking at it, if if I was to ask you and I met you at the airport in Tampa, and I said, What's this place, Flint, Michigan, all about?

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How do you describe that?

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I mean, what is this town?

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Do you have a short answer for that?

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I'd say my my elevator speech for what Flint is, is that it's a neglected combination that can that can lead to very profitable outcomes, given the right leadership.

00:01:57.359 --> 00:01:59.040
And the leadership issue is key.

00:01:59.359 --> 00:02:02.239
Is there any one word that you could describe Flint as?

00:02:02.239 --> 00:02:07.280
And I'm talking about the Flint area too, Wimbled, but what how would you describe the Flint area?

00:02:07.680 --> 00:02:08.400
More promising.

00:02:08.879 --> 00:02:17.439
As you look at Flint and its culture, some people describe it, describe themselves with strong identity to the place.

00:02:17.439 --> 00:02:19.439
I mean, it's it's remarkable.

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My wife is a Viking.

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She's a Viking.

00:02:22.639 --> 00:02:25.360
Well, my question to you is, are you a Flintstone?

00:02:25.599 --> 00:02:28.719
I'm a Flintstone by marriage and by choice.

00:02:28.960 --> 00:02:31.840
And if you're a Flintstone, what does that mean?

00:02:32.159 --> 00:02:39.280
It means, first of all, that I put am especially concerned about the needs of the community, the residents thereof.

00:02:39.280 --> 00:02:48.000
And then the second thing is that I recognize that there's kind of a gestalt in, if you would, in the community that makes it different.

00:02:48.000 --> 00:02:49.680
This community is different.

00:02:49.680 --> 00:02:51.039
That doesn't mean it's easy.

00:02:51.039 --> 00:02:52.159
It just means it's different.

00:02:52.159 --> 00:02:54.800
In some aspects, it's significantly harder.

00:02:54.800 --> 00:02:56.000
It's resilient.

00:02:56.000 --> 00:03:02.800
I mean, most communities today, if they have been through what we've been through, I think would have collapsed.

00:03:02.800 --> 00:03:09.520
There is an inner resilience in the residents of Flint that they want to see this community move forward.

00:03:09.520 --> 00:03:11.599
And that's going to require leadership.

00:03:11.599 --> 00:03:12.879
It won't be easy.

00:03:12.879 --> 00:03:17.120
The path needs to be realistic, and it's one that needs to be shared.

00:03:17.520 --> 00:03:22.080
You think that the history of Flint has much to do with that resilience?

00:03:22.400 --> 00:03:22.800
It does.

00:03:22.800 --> 00:03:24.719
It's, you know, it comes, it starts.

00:03:24.719 --> 00:03:28.159
There was a Flint before it was the birthplace of General Motors.

00:03:28.159 --> 00:03:29.360
And there'll be a Flint.

00:03:29.360 --> 00:03:32.479
General Motors will always have a present in Flint.

00:03:32.479 --> 00:03:38.400
I mean, clearly its impact will change just as the automobile industry's changed.

00:03:38.400 --> 00:03:46.400
If we learn one lesson that has come out of the situation we've been in, I think is don't be too dependent on any one thing.

00:03:46.719 --> 00:03:49.599
Tell our audience about your background.

00:03:49.919 --> 00:03:53.520
I've came to Genesee County in '99.

00:03:53.520 --> 00:03:56.560
This is the longest I've ever been any place in my life.

00:03:56.560 --> 00:04:08.319
And I went to high school in Corpus Christi, Texas, graduated from there, and then went to uh college for my undergraduate work at Texas AM University at College Station.

00:04:08.319 --> 00:04:12.719
I went into the Marine Corps after graduation, became a pilot.

00:04:12.719 --> 00:04:15.360
I spent 22 years in the Marine Corps.

00:04:15.360 --> 00:04:20.480
Uh, did two tours in uh Vietnam, retired from the Marine Corps as a lieutenant colonel.

00:04:20.480 --> 00:04:31.040
In 1996, went to the uh city of Three Rivers in Michigan, just south of Kalamazoo, as their city manager, and I was there for a little over three years.

00:04:31.040 --> 00:04:39.120
In December of 99, I came to the Road Commission as the manager director, where I stayed until oh April of 18.

00:04:39.360 --> 00:04:45.120
Did you ever have any road experience before you went to the Road Commission other than as a city manager?

00:04:45.519 --> 00:04:48.639
Not exactly as roads, runways, yes.

00:04:48.639 --> 00:04:55.360
One of my jobs, I've been a commanding officer of a squadron that was in charge of airfield maintenance.

00:04:55.360 --> 00:05:01.120
So we maintained the airfield side, and so we were responsible for maintaining roads and taxiways.

00:05:01.519 --> 00:05:04.399
But you had tons of management experience for sure.

00:05:04.720 --> 00:05:06.480
Well, that was the thing they were looking for.

00:05:06.480 --> 00:05:15.600
In fact, I can remember uh when I was interviewing at the road commission, in fact, I told them flat eye, I said, you know, I'm not a manager, or I'm not an engineer, I'm a manager.

00:05:15.600 --> 00:05:19.839
And the response I got from John Austin at the time was, Well, we're looking for a manager.

00:05:19.839 --> 00:05:24.399
We have several engineers around here, but we need to have a good manager to put things together.

00:05:24.399 --> 00:05:33.519
I was happiest about during my tenure there for 19 years, and that's kind of unusual for a manager in the public sector to be there, or almost 19 years.

00:05:33.519 --> 00:05:40.319
You know, I got to see not only my ideas that I had get implemented or started, but implemented.

00:05:40.319 --> 00:05:44.000
And it was kind of interesting I found out that not all my ideas were that great.

00:05:44.000 --> 00:05:45.839
Luckily, things kind of self-correct.

00:05:45.839 --> 00:05:47.600
Why were you even interested in Flint?

00:05:47.600 --> 00:05:49.759
I really didn't know that much about Flint.

00:05:49.759 --> 00:05:57.199
At the time, frankly, I was more interested in the in the position at the Road Commission as a road commission.

00:05:57.199 --> 00:06:01.360
As you know, uh road commissions are unique to Michigan.

00:06:01.360 --> 00:06:11.519
Before they were established in 1927, and before that county system, the roads all belonged to the county or to the township.

00:06:11.519 --> 00:06:25.839
And so one of the things that I found interesting was that this passed not only by uh legislation uh by the state government out of Lansing, but also by public vote in Genesee County.

00:06:25.839 --> 00:06:38.720
I've been in governance long enough to know that when you have something new is established and they take something from somebody and give it to someone else, both by legislation and by popular vote.

00:06:38.720 --> 00:06:41.519
That's a really interesting situation to look into.

00:06:41.519 --> 00:06:47.279
It was like most positions, they don't tell you the bad stuff that happened before you got here until after you're there.

00:06:47.600 --> 00:06:49.040
And so you landed in Flint.

00:06:49.040 --> 00:07:00.240
I'm not going to tell the people that if they're if their ropes were full of potholes and your car fell into uh that this is a guy that really you got you to yell at and asked that happens anyway.

00:07:00.399 --> 00:07:14.560
I mean, one of the things I did like your point about, you know, that most of my predecessors had been either active politicians or people that were retired looking for transition and to, I believe, to enhance their retirement.

00:07:14.560 --> 00:07:23.199
One of the things I came in the door with was that if I was going to be successful in Genesee County, that the Road Commission had to be a political.

00:07:23.199 --> 00:07:31.040
That took two years, uh, pretty much to do, and it was not without some pretty strong disagreements.

00:07:31.040 --> 00:07:34.480
And at that time I had a three-person board that I worked for.

00:07:34.480 --> 00:07:40.240
And of course, they're they were appointed by the county board, so they're coming at it from a political perspective.

00:07:40.240 --> 00:07:47.920
And I'm looking at it from a trying to manage the resources, which the roads in Michigan are underfunded now.

00:07:47.920 --> 00:07:51.439
They have been for the last 30 years and we're paying the price.

00:07:51.439 --> 00:07:58.959
But that was one of the things that I was happiest about was in the road commission when I was there, the politics stopped at my desk.

00:07:58.959 --> 00:08:03.759
Yeah, that we didn't fix things because of who was there or who wanted them fixed.

00:08:03.759 --> 00:08:08.800
We fixed them because it was the right fix at the right time and it would get the job done.

00:08:08.800 --> 00:08:17.199
I've always tried to remember that the money that we're using isn't my money, it's money that has really been loaned to me by the taxpayers.

00:08:17.519 --> 00:08:28.879
John, you were responsible for uh the roads, which means potholes and so on, maintenance of the roads, but you were also responsible for the overall management.

00:08:29.120 --> 00:08:29.439
Yes.

00:08:29.680 --> 00:08:41.600
I have a memory of some township that decided they didn't like it, fix the roads correctly, you know, maintain them correctly, said they didn't want to pay and so decided you can just take your road back.

00:08:41.600 --> 00:08:44.320
They tore the road up, and that was the end of that.

00:08:44.320 --> 00:08:45.919
Do you recall any of that?

00:08:46.159 --> 00:08:46.960
I recall that.

00:08:46.960 --> 00:08:50.480
That really happened just before I got to the road commission.

00:08:50.480 --> 00:09:04.799
One of the great myths in uh local politics with roads is that if you take that hard surface road and convert it back to a gravel road, that somehow over time it's going to save you money.

00:09:04.799 --> 00:09:07.360
The reality is that sounds good, but it's not correct.

00:09:07.759 --> 00:09:08.960
Why isn't it correct?

00:09:09.279 --> 00:09:18.960
You have to look at the reason the road was paved in the first place, and that's because it had enough of a volume of traffic on the road that a gravel road can't sustain it.

00:09:18.960 --> 00:09:27.039
The second thing is that the conversion of the road or from a hard surface road to a gravel road is not inexpensive.

00:09:27.039 --> 00:09:36.559
You're looking at probably a price, I'd guess today, of somewhere around for a mile of that would probably be close to $200,000 to make that conversion.

00:09:36.559 --> 00:09:48.960
And then the second thing is, and this is kind of the joker in the deck, is that a hard surface road does not require the level of maintenance, especially in the first uh 10 years, that a gravel road does.

00:09:48.960 --> 00:09:51.039
A gravel road is maintenance intensive.

00:09:51.039 --> 00:10:01.039
You have to be out there restoring the gravel, regrading every 10 uh every at least two, possibly three times a year, depending on the location in the county.

00:10:01.039 --> 00:10:07.919
And about the only thing it does, really, is it does reduce the level of risk in the organization.

00:10:08.320 --> 00:10:09.120
The lawsuit.

00:10:09.279 --> 00:10:09.600
Yep.

00:10:09.840 --> 00:10:17.840
Is it likely the city of Flint could decommission roads because it has an abundance of infrastructure that's underutilized?

00:10:18.159 --> 00:10:21.679
I think the way we're looking at this is you have to look at two things.

00:10:21.679 --> 00:10:43.039
If you look at a blood vessel, you look at you can look at the length of the blood vessel, and you can look at the dimensions of the uh blood vessel itself, and we're doing a lot of that already, where we have reduced volume of traffic on some roads, and we're taking, say, for instance, a four-lane road and reducing it to two to three lanes, two travel lanes and a turn lane.

00:10:43.039 --> 00:10:48.960
So we're actually we are, in fact, reducing the size of the infrastructure that we maintain.

00:10:49.200 --> 00:10:54.960
So Flint has 600 miles of roads, was designed for a much larger city today.

00:10:54.960 --> 00:10:55.600
That's true.

00:10:58.000 --> 00:10:59.039
That's a fair way to look at it.

00:10:59.039 --> 00:11:06.799
And that's not just the roads, that's also applies to other infrastructure like water distribution and wastewater collection.

00:11:06.799 --> 00:11:21.200
The difficulty in dealing with roads, as you know, is that once a property owner is granted the right to join to access a public road system from his property, we can't take that away from the property owner.

00:11:21.200 --> 00:11:22.799
We have to maintain that access.

00:11:23.200 --> 00:11:27.600
Only way to do that is to compensate that person for his access.

00:11:27.919 --> 00:11:28.559
Exactly.

00:11:28.559 --> 00:11:41.039
And if you effectively, if if you eliminate the access of private provid property to the roadway, how do how does that property ever get used if it is going to be used?

00:11:41.039 --> 00:11:47.360
Use that land that I could see would be you'd have to merge it with another piece of property that had public access.

00:11:47.360 --> 00:11:51.279
The problem with it is you no longer have public access to the roads.

00:11:51.279 --> 00:11:54.639
So that means no mail delivery, no delivery of goods.

00:11:54.639 --> 00:11:58.559
You don't eat you're not even entitled to come onto the road from your property.

00:11:58.799 --> 00:12:11.600
I talked to some experts who thought that the best way to approach this problem, and they feel that Flint may be off on the wrong track, that they're really doing it, you know, on a plical demand basis, or lack of a better term.

00:12:11.600 --> 00:12:19.679
And it's like how the road commission was run until you showed up, which was a guy like me calls and says, Hey, we got a pothole over here, guys.

00:12:19.679 --> 00:12:24.879
We need the ditch dug out, but he likes the he likes the flowers he planted out there.

00:12:24.879 --> 00:12:32.720
And there's this jostle goes on over the management of the road, and it's based on the the squeaky wheel gets the grease theory.

00:12:32.720 --> 00:12:36.480
Would you agree that happened at the road commission before you showed up?

00:12:36.480 --> 00:12:39.360
I mean, I'm sure it continues absolutely.

00:12:39.519 --> 00:12:55.840
One of the things that I've worked on for going on 20 years now to change that is I'm very a very staunch advocate of what they call infrastructure asset management, which is been is being implemented here in Michigan now as we speak.

00:12:56.559 --> 00:12:59.679
How we fix Flint is what I'm really asking the question.

00:12:59.919 --> 00:13:03.759
What would the approach the very first thing you have to do?

00:13:03.759 --> 00:13:18.559
You have to remember, and you're sure, I'm sure, will appreciate this is that in order to do virtually anything in Michigan, while your cities are quote home rule cities, you have to have enabling legislation that allows you to do it from the state.

00:13:18.559 --> 00:13:32.240
The way in which road commissions and cities and villages can spend road money is very tightly controlled under Act 51, public Act 51 of 1951.

00:13:32.240 --> 00:13:39.679
For example, if I get X amount of money that comes from the state as a result of fuel taxes and registration fees.

00:13:39.679 --> 00:13:53.120
They tell me how much of that money I can spend on local roads, how much of that money I can spend on major streets, how much money I can spend for overhead, how much they could they really structure that budget.

00:13:53.120 --> 00:14:05.120
I would much rather have the latitude to say, okay, hold give me this amount of money, hold me accountable for the overall condition of the road system, and let me spend that money where I need to.

00:14:05.440 --> 00:14:08.879
How would you assess the the overall flint areas?

00:14:09.279 --> 00:14:20.799
I would say the the infrastructure, okay, let's use like a rating system of A through F, A being excellent and F being failure.

00:14:20.799 --> 00:14:25.840
And failure means not that it's difficult to get through, failure means that it's impossible.

00:14:25.840 --> 00:14:33.519
So I would rate most of our infrastructure, you know, individually at the probably the C and D level.

00:14:33.519 --> 00:14:40.399
There's some of it that is up at the B level, especially if it's associated with interstate directly with interstate commerce.

00:14:40.399 --> 00:14:49.919
The interstates around I-75, 475, 69, US-23, they're all, I think, in pretty good condition.

00:14:49.919 --> 00:14:50.960
Are they perfect?

00:14:50.960 --> 00:14:51.360
No.

00:14:51.360 --> 00:14:51.840
Okay.

00:14:51.840 --> 00:15:02.799
If you look at the amount of money that flows into Michigan's coffers for roads, it's like seven and a half cents per gallon of gasoline.

00:15:02.799 --> 00:15:10.000
People have asked me, I've had a couple of people that have come back from tours in Germany and they say, why can't we have roads like they have like the Autobahn?

00:15:10.000 --> 00:15:23.840
Well, the answer is because the German fuel tax, when I last looked at it about two years ago, they were paying $1.2.15 in tax per liter, which is about $200 uh $2.30 a gallon, more or less.

00:15:24.240 --> 00:15:26.639
So we pay and we pay seven cents and they pay.

00:15:27.200 --> 00:15:28.240
We pay seven cents.

00:15:28.240 --> 00:15:34.399
Our fuel taxes in Michigan are lower than they are for the uh states around us.

00:15:34.399 --> 00:15:51.120
And I'm not suggesting that's necessarily the only criteria you should use in raising the fuel tax, but that's certainly a point you should be looking at is okay, why are they willing to cash the political capital in order to bring that money into uh fix the roads?

00:15:51.120 --> 00:15:56.720
Again, you come back to the road problem has been postponed and delayed.

00:15:56.720 --> 00:16:07.519
It's now become it's become extremely expensive, and it's gonna be expensive not only from a financial perspective, but also from a political perspective.

00:16:07.519 --> 00:16:13.039
Because if you get it, once you start talking distribution of funds, now you're gonna have winners and losers.

00:16:13.039 --> 00:16:14.960
I'm a roads guy, okay?

00:16:14.960 --> 00:16:18.320
You want to know what it's gonna take to fix it, I can talk to you about that.

00:16:18.320 --> 00:16:21.039
You want to know how long it's gonna take, I can talk to you about that.

00:16:21.039 --> 00:16:24.080
We can talk about the type of traffic that's gonna be on there.

00:16:24.080 --> 00:16:30.799
But when you start talking about getting that type of funding, you've now reached a political issue.

00:16:30.799 --> 00:16:32.960
And that's in the hands of the politicians.

00:16:32.960 --> 00:16:43.919
And I uh while I'm not while I'm very sensitive to this, I would say that that's I can't really assess the political impact of the political cost that that's going to be.

00:16:43.919 --> 00:16:46.080
That's that's gonna be the big stumbling block.

00:16:46.080 --> 00:16:48.639
I mean, that's the reason this we're in this position.

00:16:48.639 --> 00:17:04.240
In the 10 years after World War II, there was a significant expansion of infrastructure, and now we're into a position where at a national level we've got more infrastructure that we can support, which brings us back to the key question of how do you do that?

00:17:04.240 --> 00:17:08.640
And most of the questions are not technical, they're not engineering.

00:17:08.640 --> 00:17:13.359
Uh, they're to some degree management, but the answers are largely political.

00:17:13.680 --> 00:17:22.319
Well, they're also financial because you said it your choice is between fixing them up or or tearing them apart and abandoning them.

00:17:22.799 --> 00:17:27.119
That's the financial fix, but the the obstacle to implementing that is political.

00:17:27.359 --> 00:17:29.359
Uh I mean Flint has a lot of assets.

00:17:29.359 --> 00:17:33.440
I mean, you're a road guy, but you're also a guy that knows the community.

00:17:33.440 --> 00:17:34.720
So you've been here on time.

00:17:34.720 --> 00:17:36.880
I mean, we have sale points.

00:17:36.880 --> 00:17:41.119
You know, people are always talking about our our negatives, some environmental issues.

00:17:41.119 --> 00:17:43.440
We've got a lot of unemployment, other things.

00:17:43.440 --> 00:17:48.799
But there are some who perceive Flint as a place that's dying and that it's gonna die.

00:17:49.279 --> 00:17:50.319
I don't see that.

00:17:50.319 --> 00:17:55.359
I see that there's with the right leadership, there is the opportunity for rebirth.

00:17:55.359 --> 00:18:02.559
Go back and you look at the reasons that brought people to Flint originally, and frankly, they were largely transportation.

00:18:02.559 --> 00:18:10.079
We're if you look at our our overall transportation systems that we have, we're a nexus of transportation.

00:18:10.079 --> 00:18:16.000
Rail, air, and uh surface are all all across in Flint.

00:18:16.000 --> 00:18:18.319
And the only thing we don't have is port.

00:18:18.319 --> 00:18:27.680
There's tremendous opportunities there to emphasize what I call transportation, but that transportation option or infrastructure.

00:18:28.079 --> 00:18:43.119
So wherever this all goes, Flint still has, I mean, they do have some world-class infrastructure because they have they have supported world-class manufacturing these uh and that hasn't really dissipated.

00:18:43.119 --> 00:18:44.480
I mean, it hasn't gone away.

00:18:44.480 --> 00:18:47.200
It's it's right now it appears in a state of decay.

00:18:47.920 --> 00:18:51.759
It's in a state of decay, and but it it can it can be reused.

00:18:52.640 --> 00:18:56.720
People from Flint, they're pretty optimistic people for the most part.

00:18:56.720 --> 00:19:04.319
You look at what's happened in the national media with the water crisis and a few other problems, not the least of which are crime and unemployment.

00:19:04.319 --> 00:19:10.400
In spite of all that, there's optimism for what the future of this of this region might be.

00:19:10.400 --> 00:19:12.160
Do you share that optimism?

00:19:12.480 --> 00:19:13.359
Yes, I do.

00:19:13.839 --> 00:19:14.240
Why?

00:19:14.720 --> 00:19:21.359
As I indicated earlier, we are in a very strong position just simply because of our location.

00:19:21.359 --> 00:19:23.279
What's the key issue in real estate?

00:19:23.279 --> 00:19:24.960
Location, location, location.

00:19:24.960 --> 00:19:27.039
We score points on that right away.

00:19:27.039 --> 00:19:32.559
We're a nexus for a fairly significant educational capability.

00:19:32.559 --> 00:19:49.920
You have uh U of M Flint, you have Kettering, you have Mott Community College, and several other private uh colleges around the area, or trade school type technical schools around the area, all of which can provide skills and education to workers.

00:19:49.920 --> 00:19:59.759
And that's that's one of the things is the economy is moving into a uh almost a fifth generation with the incorporation and fusion of digital.

00:19:59.759 --> 00:20:03.680
Technology at a baseline level, and it's going to happen.

00:20:03.680 --> 00:20:16.000
We need to have a workforce that's prepared to do that and can consistently provide training to the existing workforce on new processes and new equipment coming in.

00:20:16.319 --> 00:20:19.279
And you believe Flint has the ability to deliver on that?

00:20:19.680 --> 00:20:22.319
I believe that Flint has the ability to deliver on that.

00:20:22.319 --> 00:20:31.920
When you look at the capabilities, particularly of U of M Flint, Kettering, and Mott Community College, those abilities are there to do that.

00:20:31.920 --> 00:20:41.839
The linkage between what industry needs and what the academic world can produce probably should be better and needs to be worked on.

00:20:41.839 --> 00:20:52.319
But I believe that it's there to provide that quality training to a workforce that will be able to work on fifth-generation uh manufacturing items.

00:20:52.319 --> 00:20:59.759
One of the things in local roads, our majors in uh in majors are pretty good, in pretty good condition.

00:20:59.759 --> 00:21:04.160
I'm saying that guardedly, that's relative to the communities around us.

00:21:04.160 --> 00:21:11.359
American Society of Civil Engineers just came out with a report card, and nationwide they gave roads a D minus.

00:21:11.359 --> 00:21:14.960
But the local roads, the residential streets, are the ones that are really suffering.

00:21:14.960 --> 00:21:20.000
And the problem is under the constraints of Act 51, I can't get money through.

00:21:20.000 --> 00:21:26.400
The city of Flint is going to receive $99 million, more or less, over two years.

00:21:26.400 --> 00:21:29.599
There's a provision in there, none of that can be spent on roads.

00:21:29.599 --> 00:21:41.839
If you look at the American Jobs Act that just came out, $4 trillion over 15 years, about $657 billion, I believe, is going to be spent on infrastructure.

00:21:41.839 --> 00:21:51.359
That includes things like roads and bridges, certainly, but it also includes marine ports, airports, and electric vehicles, railroads, and everything.

00:21:51.359 --> 00:22:01.680
And if you look at the amount of money that's actually going into roads and bridges, again over 15 years, we're now down to $157 billion nationwide.

00:22:01.680 --> 00:22:08.960
None of that money is going to go to the quote local streets, the residential streets, because they're not eligible for federal aid.

00:22:09.039 --> 00:22:14.480
So if we look at the city of Flint, what would it take to bring it to a desirable level?

00:22:15.200 --> 00:22:19.039
The asset management system has a rating system called the PACER system.

00:22:19.039 --> 00:22:20.880
Goes through one to five.

00:22:20.880 --> 00:22:23.359
The lower you are, the bet the worse you are.

00:22:23.359 --> 00:22:29.519
So if we're talking, what would it take to put the roads at twos and threes, between two and three?

00:22:29.519 --> 00:22:31.200
One's new construction.

00:22:31.200 --> 00:22:41.759
My hip pocket estimate, we've never done a formal estimate on it, but my hip pocket estimate is about probably close to 8.3 million over four years.

00:22:41.759 --> 00:22:43.920
What would it take to bring it to the best?

00:22:43.920 --> 00:22:46.960
One, the best is defined as new construction.

00:22:46.960 --> 00:22:52.799
So if you're going to bring it to the best under that scale, you've got to re reconstruct every road in the city.

00:22:52.799 --> 00:22:54.319
There's not enough money for that.

00:22:54.799 --> 00:22:58.240
Well, if we did it to the just give me an idea what that would be.

00:22:58.640 --> 00:23:02.400
My own personal estimate is you're probably talking $25, $30 million.

00:23:02.960 --> 00:23:09.119
And so you're saying your estimate is somewhere under $10 million would fix Flint's road.

00:23:09.519 --> 00:23:10.799
There's two hooks in that.

00:23:10.799 --> 00:23:26.000
The first is that after that construction period is over, you're going to have adequate ret revenues to maintain those roads in the condition they can through their service life, which for a road generally is between 20 and 25 years.

00:23:26.000 --> 00:23:35.359
Second thing is you spread that money over uh at least three to four years so that you can spend that money and get the best value out of it.

00:23:35.680 --> 00:23:37.839
Is there an escrow fund for these things?

00:23:38.160 --> 00:23:46.079
You can't put it in escrow because the the legislators in Michigan, they knew they were underfunding the roads.

00:23:46.079 --> 00:23:52.160
That, for instance, is why there's a requirement for a local match at for local roads.

00:23:52.160 --> 00:24:00.559
Under Act 51, is they really expect you to spend all of your money each year on road and not carry over.

00:24:00.880 --> 00:24:06.079
So if we look at Flint, $7 million just buys us a mid-range rating.

00:24:06.319 --> 00:24:06.559
Right.

00:24:06.799 --> 00:24:14.799
Does that fixing them to the mid-range position have say anything about these roads, essential streets and abandoned by the public?

00:24:14.799 --> 00:24:19.039
I mean, the houses don't exist, so there's not obviously there can't be much traffic.

00:24:19.359 --> 00:24:25.119
But again, you're dealing with an asset's asset that's got a service life of over 20 years.

00:24:25.119 --> 00:24:33.440
So when you're making that decision, you've got to look not only at the day, but what's going to be the utilization of this property over the over that span.

00:24:33.759 --> 00:24:36.880
How many miles of roads does the city of Flint need?

00:24:37.119 --> 00:24:45.680
That I don't know because you get into this trap of where I've got a house that's sitting in it at the end of the road.

00:24:45.680 --> 00:24:50.160
I have to put that road down and incur the cost of putting the road down for the house.

00:24:50.160 --> 00:24:52.400
I mean, you can look at several alternatives.

00:24:52.400 --> 00:25:05.039
When I was at the road commission, we had a bridge that was out by uh Bishop International Airport that had been down, was in need of reconstruct, had been on the list for like 15 years before I got there.

00:25:05.039 --> 00:25:06.799
We finally got it funded.

00:25:06.799 --> 00:25:10.880
And there was one house on the other side of the road of the bridge.

00:25:10.880 --> 00:25:15.039
That was the reason we were putting the bridge in, was ostensibly for that to support the house.

00:25:15.039 --> 00:25:26.240
We were seriously considering buying the house and the property and just demolishing the house and restoring the property and give it, resell it, or give it to the airport.

00:25:26.240 --> 00:25:36.799
The reason we didn't was because when they did the extension runway extension, the fire department needed to have that bridge in order to access that far that southern end of the runway.

00:25:36.799 --> 00:25:41.440
So we went ahead and redid the bridge because we had the funding, but we do think like that.

00:25:41.440 --> 00:25:43.119
That's always a consideration.

00:25:43.119 --> 00:25:50.640
But again, you're talking about the property use drives the roads, not the roads in the long term.

00:25:50.640 --> 00:25:52.559
Not the roads drive the property.

00:25:52.559 --> 00:25:56.480
In the short term, that may be true, that the roads drive the property.

00:25:56.480 --> 00:26:07.599
When you say we're going to deny access or we're going to restructure the road, you're making a decision that's going to affect the use and value of that property over the next 20 years.

00:26:08.000 --> 00:26:08.319
Exactly.

00:26:08.319 --> 00:26:22.079
What I'm saying is that at some point that you're going to have whole tracts of land in Flint uninhabited, slow bleed or this slow process of devolution of those neighborhoods in Flint are expensive.

00:26:22.079 --> 00:26:23.039
They're dangerous.

00:26:23.039 --> 00:26:23.839
Absolutely.

00:26:23.839 --> 00:26:25.839
They're dangerous to public health.

00:26:25.839 --> 00:26:31.440
They're dangerous to the economic stability and solvency of the city of Flint, Michigan.

00:26:31.440 --> 00:26:34.000
When do we get around to start thinking about this?

00:26:34.000 --> 00:26:39.039
We think about it, but again, when do we get around to a plan to solve that problem?

00:26:39.119 --> 00:26:44.000
That's well, the first thing you've got to do before you have a plan, yes, have a goal.

00:26:44.000 --> 00:26:48.559
And then we've got to have before we craft the plan, we've got to have the tools.

00:26:48.559 --> 00:27:01.519
The major problem that I keep running into over 20 years, because I've spent some time thinking about this, is continually the restrictions that the state has put upon the use of funding.

00:27:01.519 --> 00:27:08.400
For instance, if in the scenario you're describing, it doesn't matter whether the house is unoccupied.

00:27:08.400 --> 00:27:10.400
The question is who owns the property.

00:27:10.400 --> 00:27:17.039
And as long as there's an owner to the property and access has been granted, you can't take that away from it without paying for it.

00:27:17.279 --> 00:27:21.440
I mean, this problem is going to meet a resolution at some point.

00:27:21.440 --> 00:27:22.720
It's inevitable.

00:27:22.720 --> 00:27:32.559
Whether that resolution is in a bankruptcy court or whether that resolution is by the people and their representatives sitting down at a table figuring out what's the best public policy.

00:27:32.559 --> 00:27:35.119
It's not about politics, it's about finance.

00:27:35.440 --> 00:27:46.799
I agree with you, but I thought that first of all, the legislature, if they've ever applied creativity, it's in finding ways to kick the can down the road to keep from having to deal with this issue.

00:27:46.799 --> 00:27:54.000
And every time I think that, you know, for instance, when they had the bridge collapse in Minneapolis, I thought, oh, this is going to be it.

00:27:54.000 --> 00:28:04.880
This is going to be the hallmark event that's going to cause us to take a real look at how we fund roads, not just in Michigan, but across the United States, didn't work.

00:28:04.880 --> 00:28:07.200
The impact lasted for about three months.

00:28:07.200 --> 00:28:09.440
And then we went back to business as usual.

00:28:09.440 --> 00:28:16.559
And the problem the legislatures don't realize is that it's a very short-sighted approach in kicking the can down the road.

00:28:16.559 --> 00:28:24.720
Every time you do that, and I'm talking about delaying solving the problem, your options get fewer, and the ones that remain become more expensive.

00:28:24.960 --> 00:28:28.240
I get it that the legislature has a bad system right now.

00:28:28.240 --> 00:28:32.079
It's basic hamstring of any creative activity.

00:28:32.079 --> 00:28:39.200
But you have the state of Michigan who really is exerting an undue amount of its sovereignty over the city.

00:28:39.200 --> 00:28:46.559
And Michigan has a whole collection of these cities from coast to coast, mostly in the urban areas where they've been hollowed out.

00:28:47.039 --> 00:28:49.680
We're going to have to do some really innovative things.

00:28:49.680 --> 00:28:53.519
The solution is we need to go back and look at our strategy.

00:28:53.519 --> 00:28:58.240
Most of the streets in Michigan in Flint, the street mileage is local road.

00:28:58.240 --> 00:29:00.240
And that's where most of the problem.

00:29:00.240 --> 00:29:03.279
But the locals, we're going to have to have support and help.

00:29:03.279 --> 00:29:12.559
I don't believe there's sufficient funds available, property tax and income tax in the city of Flint to fix those roads without supplemental funding, the local roads.

00:29:12.799 --> 00:29:14.640
We had a governor that ran on roads.

00:29:14.640 --> 00:29:16.000
Isn't all that unusual?

00:29:16.000 --> 00:29:21.839
A politician talks about roads at the local, but at the state level, she made it her top priority.

00:29:21.839 --> 00:29:23.759
Obviously, it's knocked her off that game.

00:29:23.759 --> 00:29:25.759
But her strategy is to fix the damn roads.

00:29:26.000 --> 00:29:26.880
That was her slogan.

00:29:27.200 --> 00:29:29.279
I'm not sure what that meant exactly.

00:29:29.279 --> 00:29:35.039
Uh, fix whose roads, how many roads, and uh move aside that, or and with what money.

00:29:35.039 --> 00:29:37.359
Has Michigan made any progress?

00:29:37.759 --> 00:29:47.359
The first thing is I've learned that when you're dealing with the state and roads and they talk about Michigan's roads, you have to be really careful and understand exactly what they're talking about.

00:29:47.359 --> 00:29:54.240
Are they talking about all of the public roads in Michigan, or are they talking about the state trunk line system?

00:29:54.240 --> 00:29:57.920
Because they'll use that term Michigan Roads to mean both things.

00:29:57.920 --> 00:30:00.960
So you have to be very clear what you're talking about.

00:30:00.960 --> 00:30:04.799
I'll go back to the asset management strategy.

00:30:04.799 --> 00:30:12.480
There is now a organization, the Michigan Infrastructure Council, that I've been on, uh I'm a charter member of.

00:30:12.480 --> 00:30:15.119
I mean, I'm serving my second term on there.

00:30:15.119 --> 00:30:27.599
That's task is to develop a statewide asset management strategy for not only roads and bridges, but for several different forms of infrastructure, including water, wastewater, electricity.

00:30:27.599 --> 00:30:29.359
The problem is a funding issue.

00:30:29.359 --> 00:30:30.720
It's not a strategy issue.

00:30:30.720 --> 00:30:32.160
The strategy issue is there.

00:30:32.160 --> 00:30:33.119
The goals are there.

00:30:33.440 --> 00:30:35.039
What are the goals of that task force?

00:30:35.359 --> 00:30:51.279
That task force is to develop a 30-year asset management plan that will provide sustainable infrastructure for Michigan's residents in the areas of roads, bridges, water, wastewater, railroads, and electricity.

00:30:51.279 --> 00:30:54.079
And I think those are the ones we're chartered to do deal with.

00:30:54.079 --> 00:30:57.119
So the strategies are starting to develop or in place.

00:30:57.119 --> 00:30:59.119
Again, the problem is the funding mechanism.

00:30:59.440 --> 00:31:06.559
Is there a different strategy for uh these communities that are distressed, like Flint, uh Highland Park, Daginaw?

00:31:07.039 --> 00:31:18.480
The state that provides the overall umbrella for the strategy, the development of a strategic plan within that becomes the responsibility of each community or each business.

00:31:19.039 --> 00:31:21.359
Strategic plan is being developed locally?

00:31:21.599 --> 00:31:23.200
Yes, from the bottom up.

00:31:23.440 --> 00:31:28.480
Is there any overall arching uh concept that we might see a plan develop?

00:31:29.039 --> 00:31:30.079
That's gonna come.

00:31:30.079 --> 00:31:34.000
The the difficulty, of course, is it all comes down to funding.

00:31:34.000 --> 00:31:40.880
You can have the best plan in the world, and if you don't have a supporting funding mechanism, you don't execute.

00:31:41.279 --> 00:32:03.599
You pointed a finger really a lot at the not just the government itself as being an impediment toward building a future, Flint and other towns like it, but it seems like you've also pointed a finger at leadership in a very broad way, saying that until they see this is about public policy and not politics, not likely to make any progress.

00:32:03.599 --> 00:32:04.240
Right.

00:32:04.480 --> 00:32:23.359
One of the things that comes that comes out when you implement an asset management strategy, when you're looking at where you're going to place the money, where you get the most return on investment, is that your initial investment in whatever infrastructure system you're talking about is not in the worst first category.

00:32:23.359 --> 00:32:34.880
And that's a difficult position for the politicians, frankly, because you're asking them for money to fix roads that are in better condition than the ones that their constituents are complaining about.

00:32:34.880 --> 00:32:49.279
And the reason you have to do that, though, is so that you can start saving the money so you can use it, you can accrue money, as we talked about earlier, to go back in three or four years and start fixing those more doing those more expensive fixes.

00:32:49.599 --> 00:32:53.599
Do we have any kind of a trust fund for roads like they do for air?

00:32:54.160 --> 00:33:02.640
No, it's funded by the amount of money that comes in every year uh from your tax at the state level from the taxes and the roads and bridges.

00:33:02.960 --> 00:33:04.720
Would a trust fund help Michigan?

00:33:04.720 --> 00:33:06.720
Is that a potential well?

00:33:07.039 --> 00:33:08.799
The devil's always in the detail.

00:33:09.200 --> 00:33:16.079
Now you're describing an environment in Michigan where local leadership becomes really paramount.

00:33:16.079 --> 00:33:17.519
Is that what I'm hearing you say?

00:33:18.079 --> 00:33:18.559
Absolutely.

00:33:18.559 --> 00:33:31.279
It becomes paramount and it also becomes paramount for the public to understand that the importance of fixing the system, especially the importance economically.

00:33:31.680 --> 00:33:33.440
What are the chances that's going to happen?

00:33:33.759 --> 00:33:38.079
Here, if you're talking about the chances will it happen tomorrow morning, not very good.

00:33:38.079 --> 00:33:48.400
My hope is that the steps that we're taking uh right now in developing a statewide asset management base are going to be very helpful.

00:33:48.400 --> 00:33:51.440
It's very easy to promise something about roads.

00:33:51.440 --> 00:34:00.799
I heard this one saying that I thought was great, and that's the when I was a child, the fairy tales started with uh once upon a time, now they start with once I'm elected.

00:34:00.799 --> 00:34:05.440
And it's very easy to grab onto roads and be in a political platform.

00:34:05.440 --> 00:34:11.360
But what you find out is delivery of that promise when you take office is extremely difficult.

00:34:11.360 --> 00:34:18.719
There is a reason why this has this political issue been kicked down the road for the last 20 years.

00:34:18.719 --> 00:34:32.159
And the reason is because it's extremely difficult, and it will be extremely costly to address these things, not just from a financial point of view, but also from a political point of view.

00:34:32.159 --> 00:34:35.840
Uh there's a couple of things that I would really want to take a look at.

00:34:35.840 --> 00:34:38.239
One is I think you've got to look at it.

00:34:38.239 --> 00:34:41.599
This is a problem that's not just a roads and bridges problem.

00:34:41.599 --> 00:34:43.440
It's an infrastructure problem.

00:34:43.440 --> 00:34:59.280
It's the the symptoms that I've described to you affect not only uh roads and bridges, they affect uh water lines, distribution systems, wastewater collection, electrical utilities, railroads, airports.

00:34:59.280 --> 00:35:10.159
I mean, we're organized structurally very much the way we were in the 1890s with the boundaries of villages, the cities, uh what they can do, what they can't do.

00:35:10.159 --> 00:35:17.360
That really hasn't changed that much since that time, where the population density and what it's doing has changed.

00:35:17.599 --> 00:35:20.960
John, John, thank you for joining me on this podcast.

00:35:21.280 --> 00:35:22.400
Thank you very much, Archie.

00:35:22.559 --> 00:35:27.039
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00:35:27.039 --> 00:35:27.920
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00:35:27.920 --> 00:35:30.880
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00:35:30.880 --> 00:35:32.960
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00:35:32.960 --> 00:35:35.920
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