UPDATE: Sunday, Dec. 17

Bay City officials have pulled the bridge proposal from Monday's agenda in order to allow for more input on the issue.

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Jacob Hamilton | MLive.com

By Andrew Dodson | MLive.com

BAY CITY, MI — The Bay City Commission has one meeting left this year and it's a big one.

At its 7:30 p.m. meeting Monday, Dec. 18, the commission votes on a proposal to privatize Independence and Liberty bridges. The decision would relieve the city of a multi-million dollar liability, but would see a private company charge a toll for motorists to cross those bridges.

While this issue has been reported on and discussed over the past year, several questions were asked across MLive and on social media on Thursday, Dec. 14, concerning the deal.

We've done our best to answer those and more:

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Courtesy United Bridge Partners

What is the proposal?

United Bridge Partners is proposing to purchase Independence and Liberty bridges from the city for $1 million.

The company would then demolish the existing Independence Bridge and construct a 125-foot tall, non-moveable, concrete bridge as its replacement. It would feature four, 12-foot lanes (the existing bridge has 10-foot lanes), in addition to 10-foot shoulders and a 10-foot shared-use path with overlooks. The existing Independence Bridge has a 6-foot unprotected sidewalk.

The company would also take over Liberty Bridge, make appropriate repairs to the span and find ways to make it more efficient.

All of this would be done at zero expense to the city.

But in order for the company to pay off its investment and eventually see a return, it would charge motorists a toll to cross in both directions. That toll would vary depending on where a motorist lives and the size of the vehicle.

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What are the tolls?

Final amounts would still have to be negotiated.

But as proposed, residents who live in Bay City’s corporate limit, wouldn’t have to pay a toll for the first three years. After that, the toll would increase to about 50-cents per pass.

Residents who live outside of Bay City’s limits would pay a higher toll. As proposed today, non-city residents would pay $2 per pass.

Semi-trailer trucks and other larger vehicles would pay an even higher toll.

Emergency vehicles on runs, all city vehicles and Bay City Public School buses would be allowed to pass free of charge.

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Shouldn't Bay County residents receive a discount on tolls like city residents?

That's kind of a tough question, so we'll answer it with a few other questions:

• Should all county residents pay a tax for bridges that are owned and maintained by Bay City?

• Should the Bay City Commission also keep the interests of county residents in mind when voting on issues? Or should they only focus on city residents who they were elected by and represent?

• Would United Bridge Partners be able to make the financials work and see a return on investment by opening that discount to more people?

The same question could be asked for several other scenarios. For example: Bay City residents drive on Bangor Township roads. While city residents' taxes help fund the Bay County Road Commission, which fixes and maintains roads countywide, if Bangor wanted to pass a separate road millage, shouldn't Bay City residents also chip in for that, because they likely drive on those roads, too?

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Gavin McIntyre | MLive.com

Won't tolls cause a backup on those bridges?

No. Tolls would be paid using an electronic user fee system that keeps traffic flowing. Motorists would need a transponder in their vehicles in order to designate if they are a city resident and to automatically bill them for crossing a bridge. Vehicles without the transponders would be billed to the address registered to their license plate.

Liberty Bridge would remain a moveable span, so you can still expect the normal backups from freighter and boat traffic.

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How much is a transponder?

That’s not specifically laid out in the proposal, but based on United Bridge Partners' other projects, motorists would purchase a transponder for some amount — let’s say $35 — and that money would be applied to your tolls. Based on their other projects, the company will likely offer some sort of annual pass that would be cheaper to purchase in the long run, as opposed to paying individually for each pass over a bridge.

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Tori Schneider | MLive.com

What about pedestrians and bicyclists?

No tolls for those people. And on Independence Bridge, they’ll have a wider, safer sidewalk to walk and ride on.

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Courtesy Photo

What does the city get out of this?

The biggest thing for the city is that it would no longer have to worry about those two bridge liabilities. Officials have said that money not spent on bridges would go into fixing local roads.

Per the proposal, the city would also receive 10-cents per pass from the company. They estimate that would be as much as $700,000 per year in revenue.

The company has also agreed to contract city workers for snow removal on the bridges during the winter.

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Jacob Hamilton | MLive.com

Why is this option to privatize and toll the bridges even being looked at?

Here’s the short answer: The two bridges that Bay City is responsible for maintaining are in terrible shape and the city doesn’t have the funds to pay for all of the repairs.

Talks with United Bridge Partners started in the fall of 2016. After several public meetings, many city officials feel it’s the best solution financially and from a safety standpoint.

Commissioner Kerice Basmadjian, 7th Ward, said, “The idea that honestly, one of these bridges could fall in over the next five years is scary. That could happen if we don’t do something drastic.”

City officials estimate that nearly $9 million in repairs need to take place over the next five to seven years on both bridges.

The 2017-2018 adopted budget allocated $2.2 million for the operation and maintenance of the two bridges.

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Couldn't they put this out for a countywide millage?

That’s another option, but it would involve convincing voters from Frankenlust Township to Gibson Township that they should pay taxes to repair and maintain bridges in Bay City. Bay County Executive Jim Barcia has previously said it would be a tough sell to pull off a millage.

Commissioner Jesse Dockett, 1st Ward, however, doesn’t believe the city has done a good enough job at communicating with the county on the issue and feels it could still be a viable option.

Commissioner President Andrew Niedzinski, 3rd Ward, put blame on the Bay County Board of Commissioners for not acting on getting a millage question passed.

“If this bridge deal does pass, it’s all on them,” he said. “We could have avoided this with a millage.”

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What other options are there?

Here’s what the city can do at this point and what some commissioners have recommended doing:

1) Have more talks with the county and try and get a millage to pass.

2) If a millage doesn’t pass, close one or both bridges at some point and save money until there’s enough for repairs. If you close both bridges, things could get interesting a few years down the road. In 2020, the state is reconstructing Lafayette Bridge. That work is expected to close the span for up to two years. Three of the four bridges in the city could potentially be closed.

3) Bond out and add debt. (Commissioner John Davidson, 6th Ward, who’s in favor of privatizing the bridges, said if the city didn’t have its existing sewer debt on the books right now — it’s slated to come off in 2022 — he would be open to bonding out for the bridges.)

4) Keep lobbying the state to take over Independence and then focus funds on Liberty. The city has tried this on several occasions. The state isn’t interested.

5) Raise city taxes? That’s more difficult than it seems because state law limits cities to how much they can tax. There are a handful of cities that have levied an income tax. Saginaw, for instance, has a 1.5 percent income tax for its residents and 0.75 percent for nonresidents. Jackson, Flint and Port Huron levies 1 percent for residents and 0.5 percent for nonresidents.

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Were there any other proposals?

The commission was also presented with a proposal from Florida Drawbridge Inc. that would see the city agree to pay a negotiated annual fee for the company to handle all repairs and long-term contracts for things like bridge tenders and engineering assessments. That proposal didn't include a toll for motorists.

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Couldn't this company pitch the city initially on the lower tolls of 50-cents for residents and $2 for non-residents, and then just decide to increase those tolls whenever they want?

City Manager Dana Muscott said the company would have to come to a long-term agreement with the city on tolls. They would likely increase over time, but the company cannot simply raise the rate whenever they feel like it. If they want to do something outside of the negotiated rates in the future, they would have to go back to the table with the city, Muscott said.

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Jacob Hamilton | MLive.com

Would there be a toll on Veterans Memorial and Lafayette bridges?

No. Those bridges are owned and maintained by the state and aren’t part of the proposal.

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Won't people just use those bridges instead of the toll bridges?

That’s very likely. Officials with United Bridge Partners anticipate a 30 percent drop in average daily traffic once the tolls are implemented.

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Well, isn't the city concerned about that?

If the city approves the proposal, the bridges really aren't their problem anymore. It would be United Bridge Partner’s problem.

They might have concerns about traffic at Veterans Memorial and Lafayette bridges, though.

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Jacob Hamilton | MLive.com

Isn't the city concerned that Veterans and Lafayette bridges would just see more traffic and and experience more wear and tear?

Not entirely from a financial standpoint because the state maintains those bridges.

Roads off those bridges, however, might see extra wear if a signifiant amount of vehicles opt to cross those other bridges.

Now, those bridges will one day have to be replaced, and the city has to pay a portion of the cost. The Lafayette Bridge reconstruction mentioned above is going to cost the city about $675,000. That’s a lot of money, but the state is paying for the remaining $41.9 million for the project.

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What happens if no one uses the bridges and the company doesn't make any money?

Per the agreement, the city would receive the newly built Independence Bridge and repaired Liberty Bridge at no cost. Of course, they would have to then maintain that newly built bridge and go back to maintaining Liberty, but there isn’t this massive financial liability for the city if United Bridge Partners' business plan doesn’t work out.

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MLive Graphic

How many people use those bridges today?

Independence Bridge, which averages about 989 openings per year to accommodate Saginaw River traffic, averages 23,780 vehicles in daily traffic.

Liberty Bridge, which opens 942 times per year, averages 16,849 vehicles per day.

Some quick math: With a 30 percent reduction, those daily traffic numbers would drop to 16,646 for Independence and 11,795 for Liberty.

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Jacob Hamilton | MLive.com

You mentioned how many times the bridges open for boats and freighters. Can't the city charge a toll to those people instead?

The Saginaw River is a federal navigable waterway. That waterway was there before any bridges were built. So, that's not an option.

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Andrew Dodson | adodson@mlive.com

Does Bay City really need four bridges? Have they talked about that?

Yes they have. In August 2016, Bill Bohlen, who was then the city’s public works director, told the commission the city’s two bascule bridges were facing nearly $6 million in repairs over the next five years. Additionally, the city is on the hook for about $675,000 when the state reconstructs Lafayette Bridge in 2020.

At that time, Commissioner John Davidson, 6th Ward, who is in favor of privatizing Independence and Liberty, said, “I’m not afraid to close one of those bridges down if we have to.”

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How many homes and businesses will be displaced by the construction of a new Independence Bridge?

According to the proposal, no existing homes or businesses would be impacted by the new construction.

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What are the chances this proposal passes on Monday night?

City Manager Dana Muscott said a majority of the commission has come to her in favor of the proposal. Based on those conversations, she believes it will pass.

There is a group of commissioners who are against it, however. Expect a long meeting on Monday night.

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Jacob Hamilton | MLive.com

If it's approved, what happens next?

Monday night’s vote is an acquisition agreement. If approved, United Bridge Partners would then pay the city $1 million and acquire both bridges and then work to start construction. They would still need to come back for a contract approval, but the acquisition agreement would make things pretty solid, Muscott said.

“There would be no going back,” she said.

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