Residents press commission on Bay City Bridge Partners negotiations as bridge toll controversy persists

Residents and several Bay City commissioners pressed city staff and legal counsel on March 3 over ongoing negotiations with Bay City Bridge Partners (the private partner operating the city bridges) and recent public reports about toll changes.

The issue surfaced repeatedly during the remarks of commissioners and in public comment. Commissioner Andrea Bernie Obershaw asked why the company had reportedly reduced a proposed toll from $30 to $15, suggesting that the company’s action might indicate a contract breach and give the city leverage in negotiations. The mayor and city staff said the matter is in the hands of the city attorney and outside counsel.

Why this matters: public concern centers on whether the private operator violated its contract, whether the city must reimburse the operator if the contract is voided, and who bears the legal costs of litigation or arbitration. Commissioners said that voiding a long-term contract could expose the city to very large claims and that negotiation is the short-term path to preserve the city's fiscal stability.

Public comments and commissioner exchanges:

- Commissioner Andrea Bernie Obershaw raised the change in the toll level and asked whether it meant the operator acknowledged a breach. “If they were going to drop it down to $15 … does that kind of make you think that they know that we better drop this down?” she asked during commission remarks, pressing for clarity on legal strategy.

- Commissioner Steven Prince, who has been active in the negotiations, said the $30 toll never went into effect and defended the city's use of negotiation rather than immediate contract termination. He described the potential financial exposure of voiding the contract, saying the city could face reimbursement obligations on the order of hundreds of millions of dollars and that “there's a reason why we negotiate and not just void the contract.”

- Commissioner Coakley asked whether municipalities or the county had been asked to contribute to legal costs; the mayor and staff said this is being handled through the city attorney and that the city is absorbing current legal costs.

- Members of the public urged the commission to hold firm. Matthew Sylvester, who identified himself as a resident, told the commission he supported Commissioner Overshaw’s Facebook comments and urged elected officials to use all available leverage in negotiations. Jeff Reed, who requested public records on the bridge contracts, urged the city to use the $5 million escrowed contribution from the operator to fund the city’s legal defense and to consider a boycott of toll payments to pressure the operator.

Commission response and finance questions:

City staff confirmed that attorneys for the city and Bay City Bridge Partners are negotiating. Commissioners warned that a court or arbitrator could impose a costly remedy that the city could not afford and said negotiation gives the city more leverage than immediate termination. Commissioner Prince noted that if the city had tried to void the contract it could be required to reimburse the operator’s investment in the bridges, which he estimated could be in the hundreds of millions, and that the general fund (recently cited by commissioners at roughly $25 million) could not absorb such a liability without severe service cuts.

Several speakers asked about a $5 million account connected with the bridge deal and whether it is being invested; the mayor said the city is obtaining interest on that account and the city’s finance staff will provide details.

Ending: Commissioners said they expect continued updates from the city attorney; residents who testified asked that the council preserve transparency and make any negotiated settlement terms public when permitted by law.