To the Editor:

This letter is written to clarify the actions taken by the Michigan Department of Transportation (MDOT) to restore accountability to the Mackinac Bridge Authority (MBA). An August 25 St. Ignace News article describing the most recent meeting of MBA did not include the facts and business justifications that have precipitated the actions taken by MDOT in recent years, including the following:

1. The MBA board voted to hire a private investment firm to manage the $25 million of funds that will be used for a future reconstruction of the bridge’s road surface. The board had been advised by the Attorney General’s Office that only the State Treasurer had legal authority to manage the bridge’s investments. The Authority’s contract with this private company would pay this firm about $62,500 per year. MDOT and the State Treasurer determined that the State Treasurer – which invests more than $50 billion for all state agencies – could provide the same services for only $15,000 per year, a considerable savings over the board’s private firm. Ten months after this change was made, several MBA board members have publicly stated that they are pleased with the State Treasurer’s management of bridge investments.

2. The MBA board recently ordered Mackinac Bridge to hire a risk management firm to perform a $24,000 study to identify business risks at the bridge and determine insurance needs. The vendor selected by the board was suggested by one of the insurance brokers currently selling $250,000 of insurance coverage to the MBA. The board made no effort to determine if the price quoted for the study was reasonable, and there was no effort to competitively bid out this study. Subsequently, MDOT retained the Michigan Department of Management and Budget (DMB) at a cost of $2,000 to complete a thorough study of the risks the bridge faces and the insurance coverage the bridge should have, saving the Mackinac Bridge $22,000 of taxpayer funds.

3. The MBA board has been spending about $250,000 annually for insurance at the bridge. The results of the DMB review described above concluded that the bridge was paying for $4,500 of redundant and unnecessary insurance, paying $10,000 too much for auto insurance protection, and paying $130,000 for insurance coverage that should be self-insured to achieve additional savings (like all other State of Michigan agencies do). Rather than waste toll revenue on unnecessary insurance costs, MDOT implemented its cost savings plan to responsibly reduce the bridge’s insurance costs and to keep tolls low.

4. The MBA board entered into an annual bridge inspection contract with a private engineering firm. The MBA had not been following standard state contract procedures and has been overpaying this firm by $15,000 per year. MDOT is in the process of recovering these overpayments and has instituted new procedures at the bridge to prevent future overpayments.

Some additional elements of the August 25 article require clarification as well. First, the article stated that the Mackinac Bridge is completely self-sufficient and does not receive any state funds. In fact, the bridge has received substantial state support over the years, including more than $62 million currently in loan repayment assistance that the state provided. Without this state assistance, bridge tolls would be substantially higher today than the low tolls which users of the bridge enjoy.

The article also referenced access to bridge inspection reports. Mackinac Bridge inspection reports show the bridge is well maintained and is in excellent condition, especially for a 50-year-old structure. Following the terrorist acts of September 11, 2001, major bridges in the U.S. have elected to keep their inspection reports confidential, because they contain useful information for terrorists. Generally speaking, the detailed findings of the report are no longer discussed in public. General observations and conclusions about bridge conditions are still discussed in public settings. This practice has been followed at the Mackinac Bridge to protect the bridge from acts of terrorism, consistent with how other similar bridges operate.

The MDOT has taken a more active role in overseeing the operations and finances of the Mackinac Bridge and that role will result in the anticipated saving of almost $4 million in taxpayer funds over the next 15 years. Additionally, business practices have become more efficient, transparent, and consistent, and security measures have been updated to meet the realities of the potential threats that confront major transportation assets nationwide.

The Mackinac Bridge is Michigan’s premier transportation asset. MDOT remains committed to working with the MBA and the Michigan Legislature to ensure the Bridge retains its pre-eminent status and that the MBA continues to be accountable to Michigan taxpayers.

Leon E. Hank, CPA

MDOT Chief Administrative Officer

Let Them Know How You Feel

To the Editor:

I want to commend Commissioner Joe Durm and his fellow commissioners on the job they are doing in running the county. I have been to a few of the many meetings Commissioner Durm referred to in his letter to the editor of August 24 regarding medical insurance, and it is a challenge to continue to provide the same benefits to employees as insurance costs continue to rise. It would seem to me that the commissioners are fulfilling their oath of office, in which they pledged to “faithfully perform the duties of the office of County Commissioner, according to the best of my ability.”

Unfortunately, he apparently missed the point of my letter to the editor on August 17. According to the Mackinac County expenditures for 2004, commissioners salaries totaled $21,102. Additionally, they received payments for “regular” meetings totaling $6,480, and payments for “special” meetings totaling $17,520. The County’s share of payroll taxes on the above listed commissioners’ wages totaled $4,084. In addition, in 2004, $10,388 was paid into a retirement program for the commissioners. That totals $59,574 in compensation paid to or for the benefit of commissioners in 2004 (not including health insurance premiums in 2004).

On top of that, listed in the 2005 budget, they anticipate $40,494 in health insurance costs to be paid for the benefit of three commissioners. That totals over $100,000 in anticipated expenditures to compensate five commissioners, which of course averages out to over $20,000 per commissioner in 2005.

I have received many positive comments regarding my letter of August 17, to which I replied every time, “Thank you, but if you don’t let your commissioner, a commissioner, or the whole commission know how you feel, nothing will change.” I again say, thank you in advance, but I ask you that if you feel that this represents perhaps more expense than a county the size and wealth of Mackinac can afford, please make that call.

Robert Winkelman

St. Ignace

Camp Interaction Was Inspirational

To the Editor:

I had the pleasure of volunteering at Camp Quality (a camp for children with life threatening diseases) last week. Lani Johnson Fettig, Mandi Johnson, and Randi Johnson were also volunteers, and have been for several years. I just want St. Ignace to know that they have three wonderful representatives of our community. Their interaction with the kids at this camp was inspirational. I have never seen three girls who gave so much of themselves as these young women. They were upbeat, cheerful, and excellent role models for all of us every day at camp.

I am looking forward to helping next year.

Beverly Schmidt

St. Ignace