May 22, 2019

CT Construction Digest Wednesday May 22, 2019

Working draft of the Transportation Infrastructure Investment proposal
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Lamont leaves tolls for special session

Gov. Ned Lamont conceded Tuesday that the 2019 session of the General Assembly will end June 5 without a vote on highway tolls, recasting his focus for the final weeks to delivering a budget that will provide a reliable fiscal blueprint for Connecticut for the next two years.
“My first priority is to get an honestly balanced budget done on time,” Lamont said. “That was a promise I made during that campaign. I heard from every superintendent of schools and mayors. ‘Even if I don’t get all the money I want, get it to me on time, so I can plan accordingly.’”
Lamont made his comments a day after meeting with legislative leaders, when it became clear to administration officials that a special session would offer the governor his best chance of convincing the General Assembly to accept a comprehensive system of highway tolls as the most reliable way finance overdue improvements to the state’s transportation infrastructure.
Later Tuesday, Lamont released a working draft of a tolls bill, An Act Concerning the Sustainability of Connecticut’s Transportation Infrastructure, that he intends to propose during the special session.  In the bill, Lamont yields oversight of tolls to a Connecticut Transportation Commission composed of six lawmakers, six administration officials or appointees and the state treasurer. It would be considered a legislative agency.
The bill was the work of the administration and the co-chairs of the legislature’s Transportation Committee.
Lamont suggested Tuesday that his acceptance of a special session on tolls was a reaction in part to a suggestion by the Senate Minority Leader Len Fasano, R-North Haven, and House Minority Leader Themis Klarides, R-Derby, that the administration has yet to full articulate a schedule and budget of transportation improvements.
“If Len and Themis think they need a little more time to think about our transportation infrastructure, I’m willing to give them a little more time,” Lamont said. “We’re going to have [Transportation Commissioner] Joe Giulietti there. We’re going to open the doors, answer every question they’ve got. So, at least we can’t have them say ‘I can’t make my mind up because I don’t have enough information.’”
But the GOP minority is not his target for votes, nor his problem. With Republicans categorically opposed to a significant system of tolls, Lamont needs to win over 76 of 91 House Democrats and at least 18 of 22 Senate Democrats, the bare minimums necessary for passage.
Republicans have offered to dedicate more of the state’s borrowing to transportation, an approach Lamont says will raise too little money while adding too much to the state’s indebtedness.
The governor is casting his plan to install tolls on the Merritt Parkway and Interstates 84, 91 and 95 as a crucial step toward economic growth, which he says is inextricably linked to an adequate system of highways and trains. The special session also would consider economic development measures.
“We’re stuck in an economic rut,” he said. “We haven’t added new jobs in a generation. Transportation is so key to our economic future, so don’t duck the vote.”
The bill released Tuesday would establish toll rates of 4.4 cents a mile for peak travel and 3.5 cents for off-peak, with authority for the Department of Transportation to vary the rates by 30 percent above or below the published rates to comply with any congestion-pricing agreement struck with the Federal Highway Administration.
Tolls are generally prohibited on interstates constructed or maintained with federal highway feds, but Connecticut is one of the states permitted to negotiate with the Federal Highway Administration over tolls aimed at reducing congestion with variable pricing,  based on peak and an off-peak travel.
Pricing would be frozen for three years, then fall under the control of the Connecticut Transportation Commission. The bill requires discounts for state drivers and creates a mechanism for lowering fuel taxes, should fiscal conditions allow.
The measure lists nine projects that would have to be funded, including the replacement of the Gold Star Memorial Bridge in New London, the I-84 viaduct in Hartford, improvements to I-95 and the reconstruction of various exits that are now chokepoints.
Senate President Pro Tem Martin M. Looney, D-New Haven, said the draft was a work in progress, subject to negotiation once the special session begins.
Fasano said he was open to a special session, but he saw no circumstance in which Republicans would support tolls. “Bring everyone in? Who am I to say no,” Fasano said. “And then we go from there.”
House Speaker Joe Aresimowicz, D-Berlin, said he had the votes for some version of tolling, but not one acceptable to the Senate or governor. He declined to identify differences between the chambers or the governor.
Lamont laughed when asked about those differences, saying, “I never have any differences with the speaker.”

Tolls headed to special session as no deal likely to be reached
Ken Dixon
HARTFORD — The clock will run out on the General Assembly in a couple of weeks without a deal on highway tolls, sending the issue into legislative overtime.
House majority leaders on Tuesday said they have enough support for a plan with 50 toll gantries and discounts for state residents, but admitted there doesn’t seem to be a unified agreement with Senate Democrats and Gov. Ned Lamont. Lamont released a working draft of the legislation on Tuesday afternoon, following discussions with legislative leaders.
So after the current session ends June 5, the General Assembly will slip into special session to hammer out toll-related legislation.
“The Senate Democratic caucus remains committed to developing a responsible, long-term plan to invest in Connecticut's transportation infrastructure and broad-based economic development,” Senate President Pro Tempore Martin M. Looney said Tuesday afternoon. “I am hopeful that a special session will allow for us to find a bipartisan solution to solving Connecticut’s transportation infrastructure problems and thereby promote economic development.”
House Minority Leader Themis Klarides, D-Derby, said that a special session won’t change the minds of her 60-member caucus. “There is no need for a special session if the intent is to vote on a transportation plan that includes tolls — don’t waste the taxpayer dollars,” she said. “I’ll give our vote now. It’s a no, as it has been from day one.”
Democrats need 76 votes out of their 91 members to pass a toll bill.
Speaker of the House Joe Aresimowicz told reporters Tuesday that his majority caucus is ready to vote on any bill that could then pass the Senate and get a signature from Lamont. He hinted that parts of a Republican plan to approve some long-term borrowing for more-pressing infrastructure issues could eventually become part of a bill.
An analysis of the recent GOP funding alternative issued Tuesday by nonpartisan legislative staff indicates that the $21.7 billion would cost taxpayers more than $35 billion in debt service over 30 years.
“Their whole plan is confusing me,” said Aresimowicz, D-Berlin. “They need to make a decision whether they believe infrastructure improvements in the state are important and willing to do, or it’s not. We’re hoping we come up with that balance, it passes our caucus, passes the Senate and gets the governor’s signature.”
Removing tolls from the legislative focus in the last two weeks of the session will give lawmakers a chance to possibly finish a new two-year $43 billion budget. “I would guess that there is no way he would want a budget to go into special session, too,” Aresimowicz said.
“If we’re able to get that done within the next seven to 10 days, on time, balanced, giving municipalities predictability, it would be a very good accomplishment here for all of us,” said House Majority Leader Matt Ritter, D-Hartford.
“I’ve also met with Republican leadership and I have invited them to the table in our special session,” Lamont said. “They agree that the current state of our infrastructure system should not be a partisan problem, and I welcome and encourage their participation in this special session.”
On Tuesday the Connecticut Business & Industry Association said while an income source is important to develop for transportation infrastructure, the organization could not endorse tolls.
“Today, to its everlasting shame, the Connecticut Business & Industry Association surrendered its role as a representative of Connecticut’s business community,” said Sen. Cathy Osten, D-Sprague, co-chairwoman of the budget-setting Appropriations Committee. “It is not representing its members’ wishes.”
She was referring in part to an interview CBIA president Joseph Brennan gave on Fox 61 on April 7, in which he said, “When we poll our members...usually a slight majority says yes. But like anything else, usually the devil is in the details.”
Later in April, Brennan and the CBIA board were criticized by Joe McGee of the Fairfield County Business Council, a proponent of returning highway tolls, for failing to state a position.
Hearst columnist Dan Haar contributed to this story

Dan Haar: Borrowing instead of tolling could cost $35 billion, or nothing
Dan Haar
The toll-vs.-borrow debate had an infusion of fuel for both sides Tuesday as new figures from the legislature’s nonpartisan budget office showed the cost of borrowing $21.7 billion to pay for roads and bridges over the next 31 years.
And the answer is: Either $35.4 billion, or zero, or something in between those numbers.
Democrats, including the office of Gov. Ned Lamont, pointed to that huge number as proof the state needs tolls. Borrowing requires interest payments, of course, and that’s how the Office of Fiscal Analysis arrived at the $35.4 billion figure, over time, for the Republican’s “Prioritize Progress” plan.
To raise the same amount of money through tolls, Connecticut residents would have to pay only about $500 million a year, or about $15.5 billion over the full 31 years from now until 2050. That’s because out-of-state drivers and interstate trucks would pay the rest, including the cost of running the toll program.
That’s not how Senate Minority Leader Len Fasano, R-North Haven, sees it. He sent a corrected version of the Republican transportation bill to the fiscal analysis office — changing the wording from referring to “bond authorizations” to “bond issuance” — and presto! The total fiscal cost dropped to zero in a separate OFA note.
The reason: If the GOP plan doesn’t push bond authorizations up, but rather relies on bonds that were authorized for something else, then the added cost to taxpayers is zilch.
“OFA says no fiscal impact,” Fasano declared, pointing to a note the office issued on May 17.
Here’s another twist: Last week, the Republicans declared the state can get by with just $375 million a year in extra spending, at least for a while. A Federal infrastructure bill — don’t hold your breath — could keep Connecticut’s costs down permanently.
There’s no fiscal analysis on that smaller amount of spending but you can pretty much cut the figures in half and use the same logic.
Democrats called the zero figure a ridiculous ploy. Borrowing money costs money, period.
“The cost of the Republican proposal to even begin fixing our backlog of necessary road and bridge repairs is so outrageously expensive as to be a non-starter,” said Sen. Cathy Osten, D-Sprague, as strong tolling advocate. “That’s nearly $3,400 in interest charges alone for every man, woman and child in Connecticut. For a family of four, that’s more than a year of tuition, room and board at a Connecticut state university.”
Republicans oppose tolling because it adds a new tax on top of the burdens we already have, and would keep rising. Democrats oppose new borrowing because — as Republicans often say in other debates — it locks our children and their children into big payments for decades.
“We continue to believe - and the ratings agencies agree - that borrowed money isn’t free,” Lamont strategist and spokeswoman Colleen Flanagan Johnson said in an email. “In what twilight zone do we find ourselves in when it’s the Republicans suggesting that the state take out billions of dollars on the state’s already maxed out credit card?”
Fasano argues the state can cut borrowing in many ways, to save the $375 million and still remain under the statutory borrowing cap of $1.9 billion a year. Less for new schools, less for housing, less for economic development and on and on.
Many Democrats in the General Assembly disagree and say we shouldn’t stop investing in the state. Funny thing, though — Lamont agrees with Republicans, and his “debt diet” does just that.
We’re going to have a special session sometime after June 6 for the tolls debate. Why not the best of all plans: Cut bonding as lean as possible. Toll instead of borrowing for all needed new spending on highways and bridges. And make deep tax cuts — or better yet, at least $200 million a year in credits against the state income tax — part of the package.
That’s the cheapest route for Connecticut taxpayers. Don’t bet on it happening, but it should.
 
Press StaffDURHAM — Work is slated to begin next week two road projects in town, which will ongoing into autumn: Higganum Road and the Coe Road Bridge.Higganum Road improvements include hot mix asphalt wedge paving areas, overlay and full depth replacement areas, culvert replacement, guide rail replacement, signage, and stormwater drainage system improvements. This project is partially funded by the Local Transportation Capital Improvements Program, according to a press release from First Selectman Laura Francis.
Contractor Empire Paving of North Haven will be on site Memorial Day week, close the road at Fowler Brook about 1,000 feet east of Cherry Lane on the week of June 3, and reopen the road the week of Sept. 16.
The Coe Road project is partially funded by the state Department of Transportation Local Bridge Program, the release said. TradeMark Contractors of Bristol will take over the site Memorial Day week, close the road the week of June 3, and reopen it the week of Oct. 14, the release said.
For notifications, sign up for the Everbridge SaferDurham Emergency Notification. Those with questions may contact the Office of the First Selectman at 860-349-3625 or email at lfrancis@townofdurhamct.org.
 
Joe Wojtas   Stonington — A pending state Senate bill that would provide up to $10 million in grant money to the Town of Stonington for infrastructure and other improvements would be solely used for the proposed Smiler’s Wharf project in downtown Mystic and not for other town initiatives, according to First Selectman Rob Simmons.
Since a column about the bill introduced by state Sen. Heather Somers, R-Groton, recently was published in The Day, some residents wondered if some of the money would be used for various projects in town, such as sewage diversion from the Mystic treatment plant to the borough plant, long awaited sidewalks along Route 1 in Pawcatuck or funding for the Mystic River Boathouse park project.
The bill, which would allocate up to $10 million in bonding, does not specifically mention the Smiler’s Wharf project being proposed for the Seaport Marine property off Washington Street in downtown Mystic.
Instead, the text of the bill states the proceeds of the bonding would be used by the state Department of Economic and Community Development to provide a grant to the town for “infrastructure, waste water management, opening public access and economic development along the Mystic River.”
The bill was referred to the legislature’s Finance, Revenue and Bonding Committee in January and no further action has been taken on it since. The legislature is scheduled to wrap up its business on June 5.
On Tuesday, Simmons said that while he supports the Smiler’s Wharf project, neither he nor town Director of Planning Jason Vincent had anything to do with Seaport Marine seeking the bonding to help with the redevelopment of the site.
He said marina owner John Holstein and co-manager Harry Boardsen had submitted a request to DECD last year to provide funding for bulkhead and public access improvements. Simmons said if the grant is approved, DECD requires that the town administer the grant for the state.
Simmons wrote a letter to DECD Deputy Commissioner David Kooris last October supporting the request and confirming the town would administer the funds if they were approved.
Simmons said the bulkhead would help minimize the flooding risk for downtown Mystic properties due to sea level rise. Improving the town’s coastal resiliency and collaborating with private entities to do so are among the recommendations of the town’s Climate Change Task Force.
Simmons said that half of the structures at risk are considered historic properties.      
“We are hopeful that this grant will leverage private investment along the bulkhead, and in doing so enhance this highly-valued public access, to be enjoyed by the community and the many visitors that are attracted to this beautiful neighborhood,” Simmons wrote to Kooris.
Last week, the Stonington Economic Development Commission voted unanimously to endorse the Smiler's Wharf project after Boardsen and his team again outlined plans to demolish much of the 11.5-acre site and redevelop it with a second restaurant, a marine services building, a 50-room boutique hotel and a mix of 47 apartments, townhouses and single-family homes.
Plans also call for a large boat basin and bulkhead to accommodate additional docking space and an 800-foot-long public-access boardwalk, event building, plaza and kayak pavilion. The plan has no retail space.
Opponents, many of whom live in the Washington Street area, maintain the project does not conform to the town’s Plan of Conservation, damages the character of the village, would increase traffic and does not have enough parking, which means cars would end up in front of their homes. They also charge that many of the residential units will become short-term rentals and be marketed through Airbnb and VRBO.
The Stonington Planning and Zoning Commission has scheduled a public hearing on a master plan application for May 28 at 7 p.m. at Mystic Middle School. 

Officials to tackle thorny issue of infrastructure funding
Kevin Freking, The Associated Press
WASHINGTON (AP) ” Reality has set in during the three weeks since President Donald Trump and Democratic congressional leaders agreed to work together on a $2 trillion package to invest in roads, bridges and broadband.
Republican leaders in Congress have shown little enthusiasm for the price tag, and even less for the idea of raising the federal fuel tax to help pay for upgrading the nation’s infrastructure. Trump himself has suggested that Democrats are somehow setting a trap to get him to go along with a tax increase.
Trump and Democratic lawmakers will meet at the White House on Wednesday for Round 2 of their infrastructure talks.
House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer said after their last White House meeting in late April that there was a consensus on one aspect of infrastructure: The agreement would be big and bold. But funding is a different matter. Democrats emerged saying they would return to hear Trump’s suggestions on how to pay for infrastructure.
But Trump expressed wariness in a Fox News interview that aired Sunday, saying he thought the White House was “being played by the Democrats a little bit. You know, I think what they want me to do is say, ‘Well, what we’ll do is raise taxes,’ and we’ll do this and this and this, and then they’ll have a news conference, see, ‘Trump wants to raise taxes.’”
Senate Majority Leader Mitch McConnell, R-Ky., dismissed the potential for a sweeping plan or for raising the gas tax at a recent Senate GOP lunch with Vice President Mike Pence, according to those familiar with the meeting.
And House Minority Whip Steve Scalise, R-La., said that it was unrealistic to place the funding decision with the president. Democrats will need to make suggestions, too.
“You don’t ask the president, ‘Show me how to pay for it,’” Scalise said. “The president doesn’t pass the bill that pays for it. Ultimately, it has got to go through the House and Senate. We, Republicans and Democrats in Congress, have to come to an agreement, working with the White House, on how to pay for it. Those negotiations haven’t really started in earnest.”
The White House released a letter Tuesday night that Trump sent Pelosi and Schumer in advance of the meeting letting them know his preference for Congress taking up the proposed U.S. trade deal with Mexico and Canada before other issues.
“Once Congress has passed USMCA, we should turn our attention to a bipartisan infrastructure package,” Trump said.
Trump also requested that Pelosi and Schumer provide more specifics about how much they would like to dedicate to the various priorities they want an infrastructure bill to cover, such as airports, ports and local wastewater systems.
“Your caucus has expressed a wide-range of priorities, and it is unclear which ones have your support,” he said.
Trump also complained that he had hoped to work out the priorities following a meeting in late April at the White House, “but you cancelled a scheduled meeting of our teams, preventing them from advancing our discussions. Nevertheless, I remain committed to passing an infrastructure bill.”
Shortly after the release of Trump’s letter, Pelosi and Schumer issued their own statement, promising to continue “to insist on our principles: that any plan we support be big, bold and bipartisan; that it be comprehensive, future-focused, green and resilient; and that it be a jobs and ownership-boost with strong Buy America, labor, and women, veteran and minority-owned business protections.”
Business and trade groups have been meeting with White House officials to emphasize the importance of shoring up the Highway Trust Fund, which pays for road improvements and transit systems. Federal fuel taxes supply most of the money that goes into the trust fund, but the purchasing power of the gas tax has declined as vehicles have become more fuel efficient.
Some 30 states have enacted fuel tax increases to raise money for local roads and bridges over the past six years, but Congress has not approved a fuel tax increase since 1993. It now stands at 18.3 cents a gallon for gasoline and 24.3 cents a gallon for diesel.
The advocacy groups are trying to make the case that state politicians supportive of gas tax increases have not been punished at the ballot box.
“The political playbook has changed. People will vote for infrastructure even if it means new user fees,” said Linda Bauer Darr, president & CEO of the American Council of Engineering Companies.
However, the White House has been reluctant to provide any details of what the president will support.
Rep. Earl Blumenauer, D-Ore., introduced a bill Tuesday that would raise the fuels tax by 5 cents a year over five years and allow it to rise at the rate of inflation thereafter. It also would establish that Congress intends to replace the fuel tax with a more equitable, stable source of funding within 10 years. Blumenauer supports taxing vehicles ” including electric ones ” based on miles traveled.
“It is past time that we get real about funding our infrastructure needs,” Blumenauer said. “We can’t afford inaction any longer.”
The U.S. Chamber of Commerce, the AFL-CIO and the American Trucking Associations voiced support for Blumenauer’s bill. That’s a rare mix of support on a major issue before Congress.
But some conservative groups are urging Congress to resist any gas tax increases. The Charles Koch-funded Americans for Prosperity said lawmakers should streamline the permitting process for construction on highways and other infrastructure, a move that could alienate many Democratic lawmakers.
“Congress has money to improve roads and bridges. They just need to spend it smarter,” said Russ Latino, a vice president at Americans for Prosperity.