The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us)


STATE OF MICHIGAN

JENNIFER M. GRANHOLM, ATTORNEY GENERAL

HIGHWAYS AND ROADS:

STATE CONTRACTS:

TRANSPORTATION, DEPARTMENT OF:

Requirement of life-cycle cost analysis on state-funded paving projects



Section 1h(1) of 1951 PA 51, as added by 1997 PA 79, which governs state-funded highway projects, requires the Michigan Department of Transportation to develop and utilize a life-cycle cost analysis in designing and awarding paving projects for which paving costs exceed one million dollars.


Opinion No. 7051

April 5, 2000


Honorable Joseph F. Young, Jr.
State Senator
The Capitol
Lansing, MI


You have asked if section 1h(1) of 1951 PA 51, as added by 1997 PA 79, which governs state-funded highway projects, requires the Michigan Department of Transportation to develop and utilize a life-cycle cost analysis in designing and awarding paving projects for which pavement costs exceed one million dollars.

1951 PA 51, MCL 247.651 et seq; MSA 9.1097(1) et seq (Act), among other things, establishes standards for road contracts and provides for the continuing review of transportation needs within the state. In section 1h(1) of the Act, the Legislature has provided as follows with regard to state-funded highway projects where pavement costs exceed one million dollars:

The department shall develop and implement a life-cycle cost analysis for each project for which total pavement costs exceed $1,000,000.00 funded in whole, or in part, with state funds. The department shall design and award paving projects utilizing material having the lowest life-cycle cost. All pavement design life shall ensure that state funds are utilized as efficiently as possible.

(Emphasis added.)

Section 1h(2) of the Act defines the term "life-cycle cost" as follows:

As used in this section, "life-cycle cost" means the total of the cost of the initial project plus all anticipated costs for subsequent maintenance, repair, or resurfacing over the life of the pavement. Life-cycle cost shall also compare equivalent designs and shall be based upon Michigan's actual historic project maintenance, repair, and resurfacing schedules and costs as recorded by the pavement management system, and shall include estimates of user costs throughout the entire pavement life.

The primary aim of statutory interpretation is to ascertain legislative intent. The first reference in determining intent is the specific language of the statute. In re MCI Telecommunications Complaint, 460 Mich 396, 411; 596 NW2d 164 (1999). Every word or phrase of a statute should be accorded its plain and ordinary meaning, taking into account the context in which the words are used. MCL 8.3a; MSA 2.212(1); Western Michigan Univ Bd of Control v State, 455 Mich 531, 539; 565 NW2d 828 (1997). To the extent that a statute's language is plain and unambiguous, it must be read as written, no judicial construction being necessary. Lorencz v Ford Motor Co, 439 Mich 370, 376; 483 NW2d 844 (1992).

The specific language in section 1h(1) of the Act is clear, leaving no doubt as to when a life-cycle cost analysis must be developed and utilized. The Legislature has plainly commanded that "[t]he department shall develop and implement a life-cycle cost analysis for each project for which total pavement costs exceed $1,000,000.00 funded in whole, or in part, with state funds." The word shall generally designates a mandatory provision. Macomb County Road Comm v Fisher, 170 Mich App 697, 700; 428 NW2d 744 (1988). The only stated limitation on the requirement for a life-cycle cost analysis is that it applies only to projects funded wholly, or in part, with state funds.

Under section 1h(1) of the Act, the results of the life-cycle cost analysis are used to select the materials utilized in the paving project, since "[t]he department shall design and award paving projects utilizing material having the lowest life-cycle cost." Because pavement type depends on the material used, the results of the life-cycle cost analysis are used to select pavement type.

It is my opinion, therefore, that section 1h(1) of 1951 PA 51, as added by 1997 PA 79, which governs state-funded highway projects, requires the Michigan Department of Transportation to develop and utilize a life-cycle cost analysis in designing and awarding paving projects for which paving costs exceed one million dollars.


JENNIFER M. GRANHOLM
Attorney General