P.O. BOX 30728 • LANSING, MICHIGAN 48909-8228 www.michigan.gov/treasury • 517-373-3227

RICK SNYDER GOVERNOR

STATE OF MICHIGAN

DEPARTMENT OF TREASURY LANSING

NICK A. KHOURI STATE TREASURER

Michigan Infrastructure Council Meeting 3

Ottawa Building – Upper Level – Room #3 Thursday, October 11, 2018

9:00am – 4:00pm

AGENDA

I. Welcome/Introductions 9:00 – 9:10 am John Weiss, Chairperson

II. Approval of September 20, 2018 Meeting Minutes (attmt#1) 9:10 – 9:15 am

John Weiss, Chairperson

III. Approval of the Agenda 9:15 – 9:20 am John Weiss, Chairperson

IV. Public Comments 9:20 – 9:30 am

V. Budget/Reimbursement 9:30 – 9:45 am John Weiss, Chairperson

VI. Standing Reports 9:45 – 10:00 am o Executive Director Report o TAMC Report

Culvert Study Press Release

o WAMC Report Meeting – October 18, 2018

o MPSC Report

VII. MCAN Update 10:00 – 10:30 am Therese Empie

VIII. Break – Headshots 10:30 – 11:00 am

IX. Work Plan Discussion (attmt #2) 11:00 am – Noon Michigan Infrastructure Council

4425 (Rev. 04-15)

Page 2

X. Lunch Noon – 12:30 pm

Page 3

XI. Guest Facilitator – Gareth Lifton, KPMG 12:30 – 3:45pm • Looking Back: Review and Evaluation - 21st Century Infrastructure

Commission and Infrastructure Asset Management Pilot • Looking Forward: Creating a Culture of Asset Management Break – As Needed

• Best Practices • Aspirational Goals • Structural Barriers • Next Steps

XII. Closing Remarks 3:45 – 4:00 pm Michigan Infrastructure Council

XIII. Adjournment 4:00 pm

John Weiss, Chairperson Next Meeting: Thursday, November 8, 2018 1:00 – 4:00 pm Aeronautics Building – 2nd Floor – Commission Conference Room

1 | P a g e

MICHIGAN INFRASTRUCTURE COUNCIL Meeting Minutes

September 20, 2018, 2:00 p.m. – 4:00 p.m. Richard H. Austin Building

1st Floor, State Treasurer Board Room Lansing, Michigan

Attendance:

Voting Members Non-Voting Members

Name Present Absent Name Present Absent

John Weiss, Chairperson X Sharon Schafer for Keith Creagh, MDNR

X

Kathleen Lomako, Vice Chair

X Eric Swanson for Dave DeVries, DTMB

X

Marco Bruzzano X Joanna Johnson, TAMC X

John Daly, III X Amy Epley for Aaron Keatley, MDEQ

X

Daniel Fredendall X Kenneth McFarlane X

Jon Kangas X

Polly Kent for Laura Mester, MDOT X

Erin Kuhn X Larry Steckelberg, Treasury X

Palencia Mobley X Ryan Laruwe for Sally

Talberg, MPSC X

David Wresinski X* Kelly Green, WAMC

Representative X

*Via Telephone

Support Staff Present: Therese Empie, Governor’s Office Senior Strategy Advisor Jessica Moy, MIC Executive Director Gloria Strong, MDOT/TAMC Support Angela Dempkowski, Treasury Support

**Public Present: Doug LaFave, City of Grand Rapids Erika Marzorati, Attorney General’s Office Keith McCormick, HRC Brad Morton, Attorney General’s Office Rob Surber, DTMB/CSS Brian Vilmont, Prein & Newhof Anne Wohlfert, Treasury Allison Wood, MWEA Kelly Green, MDEQ Carrie Cox, OCWRC

**Some members of the public that were present at this meeting did not sign in.

Attachment #1

2 | P a g e

CALL-TO-ORDER

The meeting was called to order at 2:02 p.m.

AGENDA 1. Welcome/Introduction of Council Members and Meeting Attendees: Everyone present was introduced and welcomed to the meeting by J. Weiss, MIC Chair. 2. Open Comments: Allison Wood, from MWEA, spoke in support of Keith McCormick for the Water Asset Management Council position. Keith McCormick from Hubble, Roth & Clark, Inc. wanted to introduce himself as one of the candidates nominated for a position on the Water Asset Management Council. J. Weiss introduced K. Green as the WAMC coordinator for MDEQ. J. Weiss stated that it is important to have the input of all members, including non-voting members, as it is important to get everyone’s knowledge, guidance, and leadership.

3. Approval of the September 6, 2018 Meeting Minutes (Attachment 1) (Action Item): J. Weiss suggested a couple of minor changes to the meeting minutes. D. Fredendall requested a couple of minor changes along with significant changes to item agenda #8 - Bylaws. G. Strong read item #8 in its entirety for all attendees for the record. Motion: D. Fredendall made a motion to accept the changes made by himself and J. Weiss and substitute the language in item #8 as amended; P. Mobley seconded the motion to accept the changes made to the meeting minutes. The motion was approved by all members present.

4. Approval of the Agenda (Action Item): Motion: J. Daly made a motion to approve the agenda as provided; J. Kangas seconded the motion. The motion was approved by all members present.

REVIEW OF THE OPEN MEETINGS ACT/FREEDOM OF INFORMATION ACT 5. Open Meeting Act (OMA)/Freedom of Information Act (FOIA) Presentation – Erika Marzorati, State Attorney General’s Office: E. Marzorati, gave an overview of the Open Meetings Act and Freedom of Information Act (exempt and non-exempt information) as it relates to the MIC. A copy of each Act was provided in each Council member’s binder for future reference. Any FOIA requests or questions should be given to J. Moy, Executive Director of MIC. It is important that MIC members and support staff are aware that group and personal emails (on business and/or personal computers) are subject to FOIA.

E. Marzorati also spoke on Standards of Conduct. The State of Michigan and department policies specifically state that Council members must maintain high standards of conduct in public. Avoid conflicts

Attachment #1

3 | P a g e

of interest or the appearance of conflict of interest. Council members and staff are not allowed to accept gifts or divulge any confidential Council information. Council members should be careful when giving your own personal opinion(s). When giving your own personal opinion, make it clear that it is your opinion and not the opinion of the Council. All media requests should be sent to J. Moy. Council members do have legal governmental immunity. Council members have authority to work in a certain capacity and as long as the Council members are working within that authority, they have governmental immunity.

T. Empie spoke briefly on FOIA “Terrorist” exemptions. That is the right to deny requested information if it is felt it may be an endangerment to our state or the public. This will be discussed more at the October 11, 2018, meeting under Data Sharing.

MIC BYLAWS

6. Bylaws Review and Adoption – Dan Fredendall and Jessica Moy (Attachment 2): D. Fredendall and J. Moy have been collaborating on creating MIC bylaws. Some members have recently submitted comments and they have been incorporated into the draft. A draft of the Bylaws of the Michigan Infrastructure Council, version 2.0, was provided to the Council for review and comment. During today’s meeting, there was extensive discussion and several comments were made and noted by D. Fredendall and J. Moy for further revisions to the bylaws. Discussion/comments on establishing committees, committee chairs, voting at committee meetings and selecting subject matter experts. D. Fredendall and J. Moy will prepare another draft version of bylaws, based on discussion at today’s meeting (placing the date of each draft on each page), for review and further discussion at the October 11, 2018 meeting. K. Lomako feels it is important that the MIC pull together a plan that will give a full understanding of what the MIC will be tasked with and not just referencing Public Act 323. Motion: A motion was made by J. Daly to table the bylaws until the October 11, 2018 meeting and E. Kuhn seconded the motion. The motion was approved by all members present.

WAMC APPOINTMENTS 7. WAMC Appointments – Discussion – J. Weiss (Attachment 3) (Action Item):

Water Asset Management Council (WAMC) appointees representing (1) a regional drinking water, wastewater, or stormwater authority, (2) a water infrastructure association, (3) drinking water, wastewater, or stormwater asset management experience, and (4) a region will be selected at today’s meeting. J. Weiss led the discussion on choosing members for WAMC. He stressed the importance of the MIC to choose people that will provide a geographic balance. Geographic and economic diversity are important factors to consider.

There was discussion about consultants serving on the Council. There is value in their expertise and also important to note that several small communities leverage consultants rather than full-time staff, but there is also concern about consultants participating for financial gain. Need to note potential conflicts of interest and recuse as necessary.

A specific charge of the Council is to create asset management templates for all storm water, wastewater, drinking water agencies and to report back to the legislature on how things are going for the assets.

People wishing to be considered for the WAMC were required to submit their resumes by September 14, 2018. The request for candidates for the WAMC was sent out through many avenues in order to reach as

Attachment #1

4 | P a g e

many candidates as possible. J. Daly submitted a resume today, September 20, 2018, for consideration as a potential WAMC member, but withdrew the nomination as it was not received by the September 14, 2018 deadline. The majority of the Council members agreed that the application be withdrawn.

Council members agreed to consider appointments one at a time based on the “group” being represented.

Voting Calculations:

One member representing a regional drinking water, wastewater, or storm water authority

Name Title/Organization Vote (MIC use only)

Carrie Cox* Chief Engineer/Oakland County 3

Sue McCormick CEO/GLWA 4

Blair Selover* Contract Operations Group Manager, Sr. Associate/FVOP

-

Brian Steglitz*

Water Treatment Services Manager/City of Ann Arbor

1

One member representing a water infrastructure association

Name Title/Organization Vote (MIC use only)

David Bluhm* Division Manager & Associate/F&V - -

Jody Caldwell* Asset Management Director/GLWA 3 2

Carrie Cox* Chief Engineer/Oakland County 3 6

Molly Maciejewski* Public Works Manager/City of Ann Arbor - -

Blair Selover* Contract Operations Group Manager, Sr. Associate/FVOP

- -

Keith McCormack* Vice President & Partner/ Hubble, Roth, & Clark 1 -

Attachment #1

5 | P a g e

One member with drinking water, wastewater, or storm water asset management experience

Name Title/Organization Vote (MIC use only)

Richard Benzie Retired - - -

David Bluhm* Division Manager & Associate/F&V - - -

Jody Caldwell* Asset Management Director/GLWA 2 2 -

Carrie Cox* Chief Engineer/Oakland County - - -

Tim Drews Vice President/Abonmarche - - -

Doug LaFave Asst. City Manager & Director of Public Works/City of East Grand Rapids

2 3 5

Molly Maciejewski* Public Works Manager/City of Ann Arbor

- - -

Keith McCormack* Vice President & Partner/ Hubble, Roth, & Clark

1 - -

Jim Nankervis* Supervisor/Ishpeming Township 1 - -

Randy Scott Engineer/C2AE - - -

Sam Smalley Asset Manager/City of Detroit Water and Sewerage Department

2 3 3

Brian Steglitz*

Water Treatment Services Manager/City of Ann Arbor

- - -

Brian Vilmont* Senior Project Manager/Prein&Newhof

- - -

Attachment #1

6 | P a g e

One member representing a region

Name Title/Organization Vote (MIC use only)

Carrie Cox* Chief Engineer/Oakland County -

Jane Fitzpatrick Programs Manager/EMCOG 7

Amy Mangus Deputy Executive Director/SEMCOG 1

Jim Nankervis* Supervisor/Ishpeming Township -

Randy Scott Engineer/C2AE -

Brian Vilmont* Senior Project Manager/Prein&Newhof -

Attachment #1

7 | P a g e

Voting Members Roll-Call Vote

Name Regional Drinking,

Waste, and Storm Water

Authority Rep.

Water Infrastructure Association

Representative***

Experienced Water Asset Management Representative***

Member Representing

a Region

Marco Bruzzano

Absent Absent Absent Absent

Jon Kangas Carrie Cox C. Cox C. Cox J. Caldwell J. Caldwell

D. LaFave J. Fitzpatrick

Erin Kuhn Sue McCormick

K. McCormack

C. Cox D. LaFave D. LaFave D. LaFave J. Fitzpatrick

Palencia Mobley

Carrie Cox J. Caldwell J. Caldwell

S. Smalley S. Smalley S. Smalley J. Fitzpatrick

David Wresinski

Sue McCormick

C. Cox C. Cox J. Caldwell J. Caldwell

D. LaFave J. Fitzpatrick

Dan Fredendall

Carrie Cox J. Caldwell J. Caldwell

K. McCormack

D. LaFave D. LaFave J. Fitzpatrick

Kathleen Lomako

Sue McCormick

J. Caldwell C. Cox S. Smalley S. Smalley S. Smalley A. Mangus

John Weiss Sue

McCormick B. Steglitz C. Cox D. LaFave D. LaFave D. LaFave J. Fitzpatrick

John Daly III B. Steglitz C. Cox C. Cox J. Nankervis S. Smalley S. Smalley J. Nankervis

Totals: 4 3 1 3 3 1 1 6 2 2 2 2 1 1 3 3 2 5 3 7 1

***Tie breaker vote(s) for the Water Infrastructure Association Representative and the Experienced Water Asset Management Representative positions were conducted. Final selections are bolded in the final column.

WAMC Appointees and Term Limits:

To comply with Public Act 324, the Council drew names for initial terms for the appointments. Three slips for each term (1-year, 2-year, 3-year) were put into a bowl. Each WAMC appointee name was read and then a slip was drawn to establish his/her corresponding term.

1. Water Infrastructure Association Representative: Carrie Cox, 3-year term. 2. Michigan Transportation Association: Cameron Van Wyngarden, 3-year term. 3. Drain Commissioners, Evan Pratt, 3-year term. 4. Regional Drinking Water, Wastewater, and Storm Water Authority Representative:

Sue McCormick, 2-year term. 5. Michigan Municipal League Representative: Scott House, 2-year term. 6. Michigan Association of Counties, Scott Noesen, 2-year term

Attachment #1

8 | P a g e

7. Representative with Drinking Water, Wastewater, or Storm Water Asset Management Experience: Doug LaFave, 1-year term.

8. Region Representative: Jane Fitzpatrick, 1-year term. 9. Department of Environmental Quality, 1-year term.

Thank you letters will be sent to everyone that applied for a position.

NEXT MEETINGS

8. Proposed Meeting Schedule – J. Moy/J. Weiss (Attachment 4): The Council meeting schedule was discussed. The Council meetings will be held on the second Thursday of each month unless changes per the Council are necessary. A draft schedule was shared. Council members prefer half day meetings to be held in the afternoon.

Motion: Erin Kuhn made a motion to approve the meeting schedule as provided; Kathleen Lomako seconded the motion. The motion was approved by all members present. 9. Closing Remarks: J. Johnson, TAMC Chair, sent a letter on behalf of the TAMC to local agencies advising them about the Asset Management Plan requirements in Public Act 325. TAMC has received a lot of questions regarding Public Act 325 so sent the letter to clarify what the requirements are and the schedule the local agencies must meet. J. Johnson also informed MIC that the final Culvert Pilot Project Report has been completed and will be sent to MIC in the near future. An announcement was made that the Department of Technology Management and Budget is doing a one-day event that looks at innovation and technology. They have looked at initiatives that were performed across the state and one of the awards is going to be given to members of the Asset Management Infrastructure Pilot. MIC Logistics – J. Moy, MIC Executive Director:

• J. Moy is working with support staff on getting state badges for MIC members. • Support staff has pulled together binders for each Council member to use in each meeting. • J. Moy is keeping track of all publicity, news outlets, and speaking engagements regarding the

MIC. At the end of this year MIC will have to submit a report describing MIC outreach. If any Council members speak publicly, they are requested to provide a summary to J. Moy including who you spoke to, when you spoke to them, how many people were present, and what you spoke on. T. Empie is creating a generic MIC presentation for members to use when responding to speaking requests.

• Lunch will be provided to Council members for all full day MIC meetings. Please inform J. Moy of any special dietary needs.

Attachment #1

9 | P a g e

ADJOURNMENT

10. Adjournment: The meeting adjourned at 4:03 pm. The next MIC meeting will be held, Thursday, October 11, 2018, 9:00 a.m. – 4:00 p.m. in the Richard H. Austin Building, 1st Floor State Treasurer Board Room, Lansing. Lunch will be provided.

Attachment #1

Attachment #2

Michigan Infrastructure Council Workplan and Timeline

Last Updated: October 8, 2018

Overall Michigan Infrastructure Purpose: Coordinated and Integrated Asset Management • Multi-Year Program• Work Plan• Budget/Funding Recommendations

180-Day Report and Initial 3-year Strategy for establishing a statewide integrated asset managementsystem

I. Evaluate the regional infrastructure asset management pilot program and findings of the 21satCentury Infrastructure Commission (NOTE: the evaluations are an assigned responsibility, but nofurther requirements are specified in the legislation)

II. Develop and Publish a 3-year strategy (multi-year program, work plan, budget, and fundingrecommendations) Note: sets the stage for “how” we are going to achieve the multi-yearprogram, work plan, budget and funding recommendation, not the “what” details that are either1) responsibility of WAMC/TAMC or 2) uncertain at this early stagea. How do we want to interface with WAMC/TAMC regarding:

1. appropriate assets within asset classes2. data standards and definitions for each asset class3. data needs, collection, updates, storage, security, accuracy, etc.4. coordinated training and education

b. How do we want to identify and designate a process to plan, analyze, and coordinate assetmanagement across assets and asset owners at the regional level?

a. How do we want to interface with regional planning agencies, the regionalprosperity initiative regions, or another approach, which may vary among regions,that ensures all areas of the state are included and efforts are consistent with stateand federal requirements? Noting that, “Regions shall be responsible formaintaining and managing the statewide database at a regional level.”

c. What information do we need to arrive at ongoing funding recommendations and how dowe intend to get this information?

d. How do we want to coordinate planning efforts and promote collaboration (e.g. portal toupload projects of all asset types, cross-representation on the various councils, cross-representation at speaking engagements, etc.)?

e. What should our performance metrics be and what information is needed to evaluate ourprogress?

f. Are there other activities/functions of the MIC that are required to develop a consistent andcoordinated state department/TAMC/WAMC asset management plan?

III. Briefing Document to the New Administration Note: This is not legislatively mandateda. Are there items that should be highlighted and/or added to the initial strategy for the new

administration?

Attachment #3

Annual Report – Due September 30

I. Annual update with yearly refinement a) Determine appropriate assets within the asset classes b) Establish consistent data standards and definitions for each asset class c) Identify and designate a process to plan, analyze, and coordinate asset management across

assets and asset owners at the regional level. i) Implement through regional planning agencies, the regional prosperity initiative regions, or

another approach, which may vary among regions, that ensures all areas of the state are included and efforts are consistent with state and federal requirements. Regions shall be responsible for maintaining and managing the statewide database at a regional level.

d) Establish procedures for data storage, collecting, updating, and reporting e) Provide recommendations related to the appropriate level of financial support for local asset

data collection, local development of asset management plans, regional review and collaboration, and participation in an integrated statewide asset management system.

f) Develop a process to coordinate planning efforts with TAMC/WAMC/MPSC/MEDC with regard to state-required asset management planning requirements (Note: Demonstrate and document efficiencies and unnecessary duplication of efforts)

g) Develop a process to coordinate with TAMC/WAMC with regard to training/education i) Asset management principles/plan development ii) Use of statewide database iii) State department asset management requirements

h) Develop statewide performance goals appropriate for assets within each asset class and identify regional and statewide progress (Note: Progress will be noted in annual reports)

i) Establish protocols to ensure data security and accuracy at the local, regional, and state levels j) Develop a consistent and coordinated state department/TAMC/WAMC asset management plan

(Note: These components will be refined in the annual reports and become the foundation for the 30-year plan) i) Asset inventory, condition assessment, and uniform data ii) Performance goals iii) Revenue structure, investment strategy, and capital improvement plans iv) Asset criticality and risk analysis v) Public engagement and transparency vi) Self-assessment of asset management maturity vii) Reports

(1) Asset owner (2) Regional (3) Statewide

viii) Resolution by governing body ix) Certification

II. Status and progress toward performance goals III. Research and Advise on matters relating to asset management

i) Funding and financial models ii) Best practices

Attachment #3

iii) Information technology advancements iv) Emerging technology to advance smart systems v) Right sizing and cost-efficiencies vi) Impediments to delivery vii) Opportunities for greater coordination across asset classes and owners viii) Alignment/links to state incentives to asset performance improvement goals, including, cost

control, asset management, operational efficiency, and cost-effective regional solutions

At 3 Years – Phase II – Asset Management Implementation I. Predictive analytics to forecast asset condition II. A public dashboard of state, regional, and local system performance across asset classes, including

the appropriate and secure level of geospatial data and aggregated reporting III. Develop and publish a 30-year integrated infrastructure strategy, updated every 5 years

a) Current statewide condition assessment and infrastructure priorities across asset classes, tracked progress on established goals, and net changes in asset value

b) Investment needs to reach targeted overall systems ratings and performance goals, with a goal of leveling annual investments to long-term predictable amounts

c) Network intelligence in asset management planning and monitoring

Attachment #3

TAMC - Highlights I. Advise MIC on statewide transportation asset management strategy and the processes and tools

needed to implement that strategy II. Promote and oversee implementation of recommendations from the regional infrastructure asset

management pilot program on a statewide level as it relates to roads, bridges, and related transportation

III. October 1, 2019 – Template for an Asset Management Plan a) Asset inventory – location, material, size, and condition in a format that allows for digital

mapping b) Performance goals c) Risk of failure analysis d) Anticipated revenue/expenses e) Performance outcomes analysis f) Description of plans of the asset owner to coordinate with other entities g) Proof of acceptance

IV. October 1, 2019 - Manage 3-year schedule and review of asset management plans (abbreviated) a) Multiyear program b) Projects

V. Annual report to MIC, State Transportation Commission, the legislature, and the transportation committees in House and Senate by May 2

WAMC - Highlights

I. Advise MIC on statewide water asset management strategy and the processes and tools needed to

implement that strategy II. Promote and oversee implementation of recommendations from the regional infrastructure asset

management pilot program on a statewide level as it relates to drinking water, wastewater, and storm water

III. October 1, 2019 – Template for an Asset Management Plan a) Asset inventory – location, material, size, and condition in a format that allows for digital

mapping b) Level of service analysis c) A risk of failure analysis d) Anticipated revenue/expenses e) Performance outcomes analysis f) Description of plans of the asset owner to coordinate with other entities g) Proof of acceptance

IV. October 1, 2019 - Manage 3-year schedule and review of asset management plans (abbreviated) VI. Annual report to MIC regarding asset condition and investment, summary of plans, metrics, and

recommendations regarding drinking water, wastewater, and storm water. Note: there is no legislated due date for report

VII. Annual report to MIC and the legislature regarding activities of the preceding and the succeeding year by May 2.

Attachment #3