WEBVTT 00:00:01.000 --> 00:00:05.000 align:middle line:84% Welcome to Module 1 of the Michigan Local Agency Pavement Warranty 00:00:05.000 --> 00:00:08.433 align:middle line:84% Program workshop for local decision makers. 00:00:08.433 --> 00:00:13.566 align:middle line:84% This 5-part workshop will help officials from cities, villages, townships, and counties 00:00:13.566 --> 00:00:17.366 align:middle line:84% understand the Michigan Local Agency Pavement Warranty Program 00:00:17.366 --> 00:00:21.000 align:middle line:84% and comply with legislation that created this program. 00:00:21.000 --> 00:00:21.033 align:middle line:84% 00:00:21.033 --> 00:00:26.133 align:middle line:84% The workshop is prepared and presented by Michigan’s Local Technical Assistance Program 00:00:26.133 --> 00:00:29.533 align:middle line:84% with support from the State Transportation Innovation Council, 00:00:29.533 --> 00:00:31.833 align:middle line:84% also known as the “STIC” for short. 00:00:31.833 --> 00:00:35.833 align:middle line:84% The Local Agency Pavement Warranty Program advisory panel 00:00:35.833 --> 00:00:40.266 align:middle line:84% provided support, expertise, and direction to help prepare this workshop, 00:00:40.266 --> 00:00:43.666 align:middle line:84% associated guidance, and operational documents. 00:00:43.666 --> 00:00:48.100 align:middle line:84% Module 1 is a 15 minute pre-recorded webinar. 00:00:48.100 --> 00:00:52.100 align:middle line:84% After completing module 1, you will understand what warranties are 00:00:52.100 --> 00:00:55.333 align:middle line:84% in the context of the pavement warranty program. 00:00:55.333 --> 00:01:00.100 align:middle line:84% You will be able to plan for compliance and potential warranty use 00:01:00.100 --> 00:01:04.733 align:middle line:84% and inform others in your agency what steps must be taken to be compliant. 00:01:04.733 --> 00:01:08.100 align:middle line:84% You’ll be able to articulate some of the benefits and 00:01:08.100 --> 00:01:12.533 align:middle line:84% challenges of pavement warranties to your agency and constituents. 00:01:12.533 --> 00:01:17.666 align:middle line:84% And you’ll have a plan for meaningful participation in remaining modules. 00:01:17.666 --> 00:01:20.233 align:middle line:84% You can get more info on these modules, 00:01:20.233 --> 00:01:22.933 align:middle line:84% the Local Agency Pavement Warranty Program, 00:01:22.933 --> 00:01:25.666 align:middle line:84% and Michigan’s LTAP by visiting 00:01:25.666 --> 00:01:28.900 align:middle line:84% MichiganLTAP.org/pavement-warranties 00:01:28.900 --> 00:01:33.166 align:middle line:84% This is module 1 of a 5-module workshop that helps agencies understand 00:01:33.166 --> 00:01:36.133 align:middle line:84% whether to implement pavement warranties under the 00:01:36.133 --> 00:01:39.133 align:middle line:84% new Michigan Local Agency Pavement Warranty Program, 00:01:39.133 --> 00:01:41.566 align:middle line:84% and how to do so if they choose. 00:01:41.566 --> 00:01:45.833 align:middle line:84% Modules 1 - 4 are recorded, independent study modules. 00:01:45.833 --> 00:01:50.400 align:middle line:84% Module 5 is a live, interactive presentation with subject matter experts 00:01:50.400 --> 00:01:52.900 align:middle line:84% online for questions and answers. 00:01:52.900 --> 00:01:57.300 align:middle line:84% As you progress through the modules and have questions, you may e-mail them to 00:01:57.300 --> 00:02:00.900 align:middle line:84% LTAP@mtu.edu for a response during the 00:02:00.900 --> 00:02:03.266 align:middle line:84% module 5 live presentation. 00:02:03.266 --> 00:02:07.500 align:middle line:84% You may also ask your questions in person during module 5. 00:02:07.500 --> 00:02:11.500 align:middle line:84% The Local Agency Pavement Warranty Program was included in the 2015 00:02:11.500 --> 00:02:15.500 align:middle line:84% Michigan transportation bill in order to help the state, local agencies, 00:02:15.500 --> 00:02:19.900 align:middle line:84% and contractors work in a uniform pavement warranty environment. 00:02:19.900 --> 00:02:24.266 align:middle line:84% The Local Agency Pavement Warranty Program rules and guidelines 00:02:24.266 --> 00:02:27.500 align:middle line:84% were developed through work by representatives of large and small 00:02:27.500 --> 00:02:31.933 align:middle line:84% counties and cities, the Michigan Department of Transportation (MDOT), 00:02:31.933 --> 00:02:35.500 align:middle line:84% Federal Highway Administration (FHWA), 00:02:35.500 --> 00:02:38.433 align:middle line:84% industry, and professional associations. 00:02:38.433 --> 00:02:42.166 align:middle line:84% Public Act 175 of 2015, also known as 00:02:42.166 --> 00:02:46.800 align:middle line:84% Michigan Compiled Laws (MCL) 247.662 00:02:46.800 --> 00:02:49.200 align:middle line:84% and 247.663, 00:02:49.200 --> 00:02:53.200 align:middle line:84% requires all local agencies to participate in the Local Agency 00:02:53.200 --> 00:02:55.666 align:middle line:84% Pavement Warranty Program. 00:02:55.666 --> 00:02:59.333 align:middle line:84% Let’s take a look at what’s necessary to comply with the law. 00:02:59.333 --> 00:03:04.000 align:middle line:84% While participation in the Local Agency Pavement Warranty Program is mandatory, 00:03:04.000 --> 00:03:08.066 align:middle line:84% this is not a requirement to use warranties on any projects. 00:03:08.066 --> 00:03:11.333 align:middle line:84% Participation in the program means you are only required to 00:03:11.333 --> 00:03:13.700 align:middle line:84% consider using pavement warranties. 00:03:13.700 --> 00:03:17.633 align:middle line:84% While your agency is not required to use warranties on any projects, 00:03:17.633 --> 00:03:23.900 align:middle line:84% your agency is required to report to the state legislature on certain road construction projects. 00:03:23.900 --> 00:03:27.733 align:middle line:84% To participate in the program your agency shall adopt the 00:03:27.733 --> 00:03:31.900 align:middle line:84% Michigan Local Agency Pavement Warranty Program through a formal resolution 00:03:31.900 --> 00:03:33.700 align:middle line:84% passed by your board. 00:03:33.700 --> 00:03:38.100 align:middle line:84% Your agency should establish policies and guidelines for when it will, and will not, 00:03:38.100 --> 00:03:42.266 align:middle line:84% use warranties, and refer to those policies in your resolution. 00:03:42.266 --> 00:03:46.266 align:middle line:84% The Michigan Local Agency Warranty Program is the only program approved 00:03:46.266 --> 00:03:51.466 align:middle line:84% to meet the requirements of PA175 of 2015. 00:03:51.466 --> 00:03:55.066 align:middle line:84% Your warranty use policies will guide your agency’s choice 00:03:55.066 --> 00:03:58.533 align:middle line:84% to use or not use warranties on projects. 00:03:58.533 --> 00:04:02.400 align:middle line:84% Your policies should also give specific guidance for projects 00:04:02.400 --> 00:04:07.833 align:middle line:84% that meet the warranty consideration threshold of two million dollars in paving items. 00:04:07.833 --> 00:04:11.233 align:middle line:84% While the law requires you to participate in the program, 00:04:11.233 --> 00:04:14.100 align:middle line:84% it is only a legal structure for your contracts. 00:04:14.100 --> 00:04:19.400 align:middle line:84% The state of Michigan does not enforce the warranty terms between you and your contractors, 00:04:19.400 --> 00:04:25.166 align:middle line:84% and your agency is ultimately responsible for all negotiations and warranty claims. 00:04:25.166 --> 00:04:29.700 align:middle line:84% Public Act 175 of 2015 requires agencies 00:04:29.700 --> 00:04:33.166 align:middle line:84% to consider warranties on large projects that have over 00:04:33.166 --> 00:04:35.533 align:middle line:84% two million dollars in paving items. 00:04:35.533 --> 00:04:40.233 align:middle line:84% Paving items include things like the asphalt or concrete used in the pavement, 00:04:40.233 --> 00:04:45.733 align:middle line:84% the gravel base under the pavement, and the work associated with placing those materials. 00:04:45.733 --> 00:04:49.866 align:middle line:84% Demolition, excavation, street signs, and sidewalks 00:04:49.866 --> 00:04:53.166 align:middle line:84% are examples of non-paving items that may be included 00:04:53.166 --> 00:04:57.766 align:middle line:84% in a road paving project, but not count toward the paving item threshold. 00:04:57.766 --> 00:05:01.766 align:middle line:84% The Act requires local agencies to report to the Michigan Legislature 00:05:01.766 --> 00:05:05.766 align:middle line:84% on the warranty status on large projects whether or not the agency 00:05:05.766 --> 00:05:07.933 align:middle line:84% decides to use a warranty. 00:05:07.933 --> 00:05:11.933 align:middle line:84% All warranty reporting is done through the Investment Reporting Tool, 00:05:11.933 --> 00:05:16.133 align:middle line:84% also known as the IRT. Reporting warranties through the IRT 00:05:16.133 --> 00:05:19.500 align:middle line:84% to the Michigan Transportation Asset Management Council 00:05:19.500 --> 00:05:23.566 align:middle line:84% will be part of your agency’s regular annual IRT reporting. 00:05:23.566 --> 00:05:27.566 align:middle line:84% Your reasons for using pavement warranties should align with the policies and 00:05:27.566 --> 00:05:30.900 align:middle line:84% procedures established in your warranty program resolution, 00:05:30.900 --> 00:05:36.900 align:middle line:84% which we will cover in more detail later in this module and in the following modules. 00:05:36.900 --> 00:05:40.900 align:middle line:84% One of the goals of establishing a warranty program was to provide all 00:05:40.900 --> 00:05:44.900 align:middle line:84% agencies and contractors with a common framework for pavement warranties. 00:05:44.900 --> 00:05:48.900 align:middle line:84% The Local Agency Pavement Warranty Program should provide contractors 00:05:48.900 --> 00:05:52.900 align:middle line:84% and owners with a consistent working environment for all pavement warranties 00:05:52.900 --> 00:05:56.900 align:middle line:84% regardless of agency or project size, and may give you more 00:05:56.900 --> 00:06:00.100 align:middle line:84% opportunities to use warranties on any project. 00:06:00.100 --> 00:06:04.100 align:middle line:84% You shall report warranty status in the Investment Reporting Tool 00:06:04.100 --> 00:06:07.633 align:middle line:84% for all projects with more than two million dollars in paving items 00:06:07.633 --> 00:06:10.500 align:middle line:84% and funding from federal or state sources, 00:06:10.500 --> 00:06:13.300 align:middle line:84% and reporting warranty status for all other projects, 00:06:13.300 --> 00:06:15.300 align:middle line:84% while not required by law, 00:06:15.300 --> 00:06:18.266 align:middle line:84% will help assess warranty program outcomes. 00:06:18.266 --> 00:06:22.000 align:middle line:84% The same exceptions apply to both small and large projects: 00:06:22.000 --> 00:06:26.466 align:middle line:84% If your project funds come only from local millages, special assessments, 00:06:26.466 --> 00:06:29.166 align:middle line:84% donations, or other local sources, 00:06:29.166 --> 00:06:32.466 align:middle line:84% and no federal or state funds are used to fund the project, 00:06:32.466 --> 00:06:35.966 align:middle line:84% then you do not have to consider using a warranty, 00:06:35.966 --> 00:06:39.966 align:middle line:84% Now that we have covered the reasons for the Local Agency Pavement Warranty Program 00:06:39.966 --> 00:06:42.933 align:middle line:84% and the requirements for meeting legislative mandates, 00:06:42.933 --> 00:06:47.166 align:middle line:84% we shall talk more about what warranties are and why you may or may not want 00:06:47.166 --> 00:06:50.100 align:middle line:84% to use pavement warranties on your projects. 00:06:50.100 --> 00:06:53.600 align:middle line:84% Here are important concepts regarding warranties: 00:06:53.600 --> 00:06:58.133 align:middle line:84% Pavement warranties have been widely used in Michigan and beyond for many years. 00:06:58.133 --> 00:07:02.933 align:middle line:84% Warranties provide for recourse when warrantied materials or work are defective. 00:07:02.933 --> 00:07:07.466 align:middle line:84% Defects are not the same as failures due to normal use or damage. 00:07:07.466 --> 00:07:11.566 align:middle line:84% A defect must be due to reasons within the contractor's control. 00:07:11.566 --> 00:07:15.766 align:middle line:84% For example, defects caused by failing to follow proper procedures 00:07:15.766 --> 00:07:18.133 align:middle line:84% for placing the specified materials 00:07:18.133 --> 00:07:20.800 align:middle line:84% may be covered by the warranty program. 00:07:20.800 --> 00:07:24.400 align:middle line:84% Warranties require specific administrative and technical steps 00:07:24.400 --> 00:07:28.800 align:middle line:84% throughout project planning, contracting, implementation, and monitoring, 00:07:28.800 --> 00:07:33.033 align:middle line:84% but these steps do not replace existing inspection and quality assurance 00:07:33.033 --> 00:07:35.733 align:middle line:84% or quality control activities. 00:07:35.733 --> 00:07:39.100 align:middle line:84% Warranties can help manage constituent expectations. 00:07:39.100 --> 00:07:43.600 align:middle line:84% They are available to all agencies regardless of project or agency size, 00:07:43.600 --> 00:07:46.200 align:middle line:84% and even though warranties have many benefits, 00:07:46.200 --> 00:07:49.533 align:middle line:84% they are not for everyone or every project. 00:07:49.533 --> 00:07:52.333 align:middle line:84% Agencies that are not familiar with pavement warranties 00:07:52.333 --> 00:07:55.000 align:middle line:84% may not have considered them previously, 00:07:55.000 --> 00:07:59.233 align:middle line:84% or they may have passed up the opportunity to use warranties on their pavements 00:07:59.233 --> 00:08:03.666 align:middle line:84% because they did not feel like they could develop and manage a program on their own. 00:08:03.666 --> 00:08:07.666 align:middle line:84% Michigan’s Local Agency Pavement Warranty Program can help overcome some of 00:08:07.666 --> 00:08:11.066 align:middle line:84% the reasons that agencies have for not using warranties, 00:08:11.066 --> 00:08:15.666 align:middle line:84% and may open up opportunities for improving constituent satisfaction 00:08:15.666 --> 00:08:17.366 align:middle line:84% and managing costs. 00:08:17.366 --> 00:08:20.033 align:middle line:84% Some of the benefits of warranties include: 00:08:20.033 --> 00:08:22.633 align:middle line:84% Warrantied materials and work 00:08:22.633 --> 00:08:27.033 align:middle line:84% are defined in the program and can lead to prompt correction of defects. 00:08:27.033 --> 00:08:31.033 align:middle line:84% The Local Agency Pavement Warranty Program establishes a process 00:08:31.033 --> 00:08:35.033 align:middle line:84% of identifying defects and remedies, so agencies do not need to 00:08:35.033 --> 00:08:38.600 align:middle line:84% develop their own processes for many of the warranty steps. 00:08:38.600 --> 00:08:43.633 align:middle line:84% Overall project maintenance costs can be controlled by ensuring that defects are limited. 00:08:43.633 --> 00:08:47.633 align:middle line:84% A warrantied project should have fewer defects, leading to improved 00:08:47.633 --> 00:08:51.633 align:middle line:84% road user experiences such as a smoother ride. 00:08:51.633 --> 00:08:51.700 align:middle line:84% 00:08:51.700 --> 00:08:54.800 align:middle line:84% Citizens will see prompt defect correction, 00:08:54.800 --> 00:08:59.466 align:middle line:84% potentially improving overall satisfaction with your agency. 00:08:59.466 --> 00:09:03.466 align:middle line:84% Warranties can provide many benefits, but reasons remain why you might 00:09:03.466 --> 00:09:07.100 align:middle line:84% choose to forego warranties on some projects. 00:09:07.100 --> 00:09:11.333 align:middle line:84% Those reasons will vary by agency, region, and project, and 00:09:11.333 --> 00:09:14.833 align:middle line:84% should be part of your regular project development process. 00:09:14.833 --> 00:09:20.100 align:middle line:84% Don’t forget that you may be required to document your reasons for not using a warranty, 00:09:20.100 --> 00:09:23.466 align:middle line:84% so it’s worthwhile approaching every project with the option 00:09:23.466 --> 00:09:27.466 align:middle line:84% of using a warranty and then carefully weighing and documenting your reasons 00:09:27.466 --> 00:09:32.600 align:middle line:84% for making your choice to use or not use a warranty on each project. 00:09:32.600 --> 00:09:36.100 align:middle line:84% Some of the reasons for not using a warranty include: 00:09:36.100 --> 00:09:40.600 align:middle line:84% You may limit the pool of available and willing contractors and suppliers 00:09:40.600 --> 00:09:44.600 align:middle line:84% because not every contractor may want to offer a warranty. 00:09:44.600 --> 00:09:50.000 align:middle line:84% The initial project cost may be considerably higher than the same project without warranties. 00:09:50.000 --> 00:09:53.733 align:middle line:84% All warranties require additional administrative, technical, 00:09:53.733 --> 00:09:56.900 align:middle line:84% and legal steps throughout the project’s life. 00:09:56.900 --> 00:10:00.900 align:middle line:84% If your agency is not capable or willing to complete inspections 00:10:00.900 --> 00:10:04.900 align:middle line:84% and follow-up documentation, then you may not identify defects. 00:10:04.900 --> 00:10:09.400 align:middle line:84% Only documented defects will be eligible for warranty repairs. 00:10:09.400 --> 00:10:13.400 align:middle line:84% The project design must be warrantable, limiting options for using 00:10:13.400 --> 00:10:18.400 align:middle line:84% experimental or emerging technology, materials, and practices. 00:10:18.400 --> 00:10:21.500 align:middle line:84% To recap, we have covered the basic requirements of the 00:10:21.500 --> 00:10:24.166 align:middle line:84% Michigan Local Agency Pavement Warranty Program, 00:10:24.166 --> 00:10:27.300 align:middle line:84% the required participation in this program, 00:10:27.300 --> 00:10:30.400 align:middle line:84% and the ability your agency has to choose to use 00:10:30.400 --> 00:10:33.200 align:middle line:84% or not use warranties on a project. 00:10:33.200 --> 00:10:37.333 align:middle line:84% Based on the legal requirements, your agency does have to take the following steps 00:10:37.333 --> 00:10:40.133 align:middle line:84% by September 18, 2019: 00:10:40.133 --> 00:10:42.133 align:middle line:84% Your agency must adopt the 00:10:42.133 --> 00:10:45.900 align:middle line:84% Michigan Local Agency Pavement Warranty Program with a resolution. 00:10:45.900 --> 00:10:49.066 align:middle line:84% The resolution should reference the agency’s 00:10:49.066 --> 00:10:53.966 align:middle line:84% policies and processes for using or not using warranties on any project. 00:10:53.966 --> 00:10:56.933 align:middle line:84% You will report pavement warranty activity 00:10:56.933 --> 00:11:00.033 align:middle line:84% on ALL pavement projects over $2 million, 00:11:00.033 --> 00:11:01.933 align:middle line:84% even those without warranties, 00:11:01.933 --> 00:11:05.533 align:middle line:84% using the Investment Reporting Tool (IRT). 00:11:05.533 --> 00:11:09.333 align:middle line:84% The next modules in this series will give you examples of resolutions and 00:11:09.333 --> 00:11:11.833 align:middle line:84% policies for meeting these requirements 00:11:11.833 --> 00:11:16.800 align:middle line:84% and give more details on how to decide whether to use warranties or not. 00:11:16.800 --> 00:11:21.466 align:middle line:84% In this first module, you learned about the Michigan Local Agency Pavement Warranty Program 00:11:21.466 --> 00:11:26.500 align:middle line:84% and what you steps you’ll need to take to comply with legislation that created this program. 00:11:26.500 --> 00:11:31.533 align:middle line:84% You also learned about some of the opportunities and obligations of pavement warranties. 00:11:31.533 --> 00:11:37.066 align:middle line:84% There is much more to know before you can make an informed decision about using pavment warranties. 00:11:37.066 --> 00:11:39.366 align:middle line:84% In the remaining four modules, 00:11:39.366 --> 00:11:43.366 align:middle line:84% you should gain enough knowledge to make a decision about warranty use: 00:11:43.366 --> 00:11:46.900 align:middle line:84% Module 2 will help you understand more program details 00:11:46.900 --> 00:11:50.000 align:middle line:84% and how to make a decision about using warranties. 00:11:50.000 --> 00:11:54.000 align:middle line:84% Modules 2 through 4 will give you more information on what 00:11:54.000 --> 00:11:58.000 align:middle line:84% documents to prepare and how the warranty process works. 00:11:58.000 --> 00:12:01.500 align:middle line:84% In these modules, we will also provide you with templates 00:12:01.500 --> 00:12:04.133 align:middle line:84% for some of the documents that you should prepare. 00:12:04.133 --> 00:12:08.133 align:middle line:84% Module 5 will give you an opportunity to ask questions and get answers 00:12:08.133 --> 00:12:11.066 align:middle line:84% from the pavement warranty advisory panel. 00:12:11.066 --> 00:12:15.333 align:middle line:84% Module 5, a live question and answer session with subject matter experts 00:12:15.333 --> 00:12:19.066 align:middle line:84% from the Local Agency Pavement Warranty Program Advisory Panel 00:12:19.066 --> 00:12:21.233 align:middle line:84% will take place in mid September. 00:12:21.233 --> 00:12:25.133 align:middle line:84% The date will was not finalized at the time of this module’s publication. 00:12:25.133 --> 00:12:29.400 align:middle line:84% You must register for the live session, which will also sign you up for updates 00:12:29.400 --> 00:12:33.500 align:middle line:84% and publication dates for all of the pavement warranty learning modules. 00:12:33.500 --> 00:12:38.433 align:middle line:84% Register at: MichiganLTAP.org/pavement-warranties 00:12:38.433 --> 00:12:43.266 align:middle line:84% E-mail or call if you have questions about the Local Agency Pavement Warranty Program 00:12:43.266 --> 00:12:45.700 align:middle line:84% or anything that LTAP does. 00:12:45.700 --> 00:12:49.700 align:middle line:84% Remember that your questions will be answered in a live session during module 5, 00:12:49.700 --> 00:12:53.400 align:middle line:84% and you may submit them at any time before or during that session. 00:12:53.400 --> 00:12:56.566 align:middle line:84% You must register to participate in the live session. 00:12:56.566 --> 00:12:59.600 align:middle line:84% The live session will be recorded for later review. 00:12:59.600 --> 00:13:03.233 align:middle line:84% Following this 5-part series for elected and appointed officials, 00:13:03.233 --> 00:13:06.866 align:middle line:84% Michigan’s LTAP will present a multi-part workshop 00:13:06.866 --> 00:13:10.666 align:middle line:84% with technical information for engineers and inspectors. 00:13:10.666 --> 00:13:13.333 align:middle line:84% The publication schedule of the technical series 00:13:13.333 --> 00:13:16.000 align:middle line:84% was not prepared at the time of this module’s release. 00:13:16.000 --> 00:13:18.333 align:middle line:84% All future modules will be announced at: 00:13:18.333 --> 00:13:22.166 align:middle line:84% MichiganLTAP.org/pavement-warranties 00:13:22.166 --> 00:13:27.000 align:middle line:84% Michigan LTAP’s email address is LTAP@MTU.EDU 00:13:27.000 --> 00:13:32.533 align:middle line:84% The phone number is 906-487-2102. 00:13:32.533 --> 00:13:37.100 align:middle line:84% Thank you for your attention and participation and we look forward to serving you 00:13:37.100 --> 00:13:42.100 align:middle line:84% for all your local road information and technical assistance needs.