HomeMy WebLinkAboutResolutions - 2017.04.26 - 22864MISCELLANEOUS RESOLUTION #1708,a March 26, 2017 BY: Commissioner Philip Weipert, Chairperson, Planning and Building Committee IN RE: DEPARTMENT OF CENTRAL SERVICES — OAKLAND COUNTY INTERNATIONAL AIRPORT — 2017 GRANT PROGRAM ACCEPTANCE — AIRCRAFT RESCUE FIRE FIGHTING (ARFF) TRAINING To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS the County of Oakland is in receipt of Michigan Department of Transportation Grant Contract No. 2017-0365, for State funds in the amount of $2,000 for Aircraft Rescue and Fire Fighting (ARFF) training; and WHEREAS training is provided by a vendor using a mobile fire training unit at the Oakland County International Airport; and WHEREAS the total cost of the training is approximately $8,000; and WHEREAS the remaining $6,000 of the training cost is available in the Fringe Benefit In-Service Training budget; and WHEREAS the Airport Committee has reviewed the project and recommends acceptance of the grant contract; and WHEREAS the grant agreement has completed the Grant Review Process in accordance with the Board of Commissioners Grant Acceptance Procedures. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners accepts the 2017 Aircraft Rescue and Firefighter Training grant contract in an amount not to exceed $2,000. BE IT FURTHER RESOLVED that the Chairperson of the Board of Commissioners is authorized to execute the grant contract and to approve any grant extensions or changes, within fifteen percent (15%) of the original award, which are consistent with the original contract as approved. BE IT FURTHER RESOLVED that acceptance of this grant does not obligate the County to any future commitment. Chairperson, on behalf of the Planning and Building Copifnittee, 1\knove adoption of the foregoing resolution. Ommissibner Philip Weipert, District # 8 hairperson, Planning and Building Committee PLANNING AND BUILDING COMMITTEE Motion carried unanimously on a roll call vote. GRANT REVIEW SIGN OFF — Central Services/Aviation GRANT NAME: 2017 Oakland County International Airport Aircraft Rescue and Firefighting Training Grant FUNDING AGENCY: Michigan Department of Transportation DEPARTMENT CONTACT PERSON: Karl Randall/Patricia Shull/ 248-666-3900 STATUS: Grant Acceptance DATE: March 30, 2017 Pursuant to Misc. Resolution #13180, please be advised the captioned grant materials have completed internal grant review. Below are the returned comments. The captioned grant materials and grant acceptance package (which should include the Board of Commissioners' Liaison Committee Resolution, the grant agreement/contract, Finance Committee Fiscal Note, and this Sign Off email containing grant review comments) may be requested to be placed on the appropriate Board of Commissioners' committee(s) for grant acceptance by Board resolution. DEPARTMENT REVIEW Department of Management and Budget: Approved by M & B. — Lynn Sonkiss for Laurie Van Pelt (3/28/2017) Department of Human Resources: HR Approved (No Committee) — Lori Taylor (3/29/2017) Risk Management and Safety: Approved by Risk Management. — Robert Erlenbeck (3/30/2017) Corporation Counsel: There are no outstanding legal issues concerning this grant. — Joellen Shortley (3/28/2017) CONTRACT NO. 2017-0365 MICHIGAN DEPARTMENT OF TRANSPORTATION OAKLAND COUNTY CONTRACT FOR AIRCRAFT RESCUE AND FIREFIGHTING TRAINING This Contract is made and entered into this date of by and between the Michigan Department of Transportation (MDOT) and Oakland County (SPONSOR) for the purpose of fixing the rights and obligations of the parties in agreeing to the following training at Oakland County International Airport, whose associated city is Pontiac, Michigan. PROJECT DESCRIPTION: Aircraft Rescue and Fire Fighting (ARFF) training provided by a training provider using a mobile fire training unit (TRAINING). The parties agree that: 1. The term "TRAINING COST(S)," as herein used, is defined as the cost of the TRAINING by a training provider. Administrative costs incurred by the SPONSOR are not eligible TRAINING COSTS. 2. The SPONSOR may choose the training provider it will use for the TRAINING. Training providers for the TRAINING include, but are not limited to, Kellogg Community College, Lake Superior College, and ARFF Specialists. Federal Aviation Administration (FAA) Advisory Circular (AC) No. 150/5210-17B provides information on courses and reference materials for the training of ARFF personnel at civil airports, and the FAA recommends that the guidance and specifications in this AC be used for ARFF training programs. 3. The SPONSOR will coordinate with the training provider for the performance of the necessary TRAINING. The SPONSOR will ensure that the TRAINING meets the requirements set forth in 14 CFR Part 139. 4. The SPONSOR will have the SPONSOR' s TRAINING by the training provider approved by MDOT prior to the completion of the TRAINING. 02/01/17 1 FIREFIGHT v7w 5. The SPONSOR will pledge sufficient funds to meet its obligations as outlined in this Contract. 6. The SPONSOR will review and approve for payment invoices for TRAINING COSTS submitted by the training provider. The SPONSOR will forward the approved invoices to MDOT for payment, as set forth in Section 9, upon completion of the TRAINING. The SPONSOR will also send to MDOT, at the same time the TRAINING COST invoices are forwarded to MDOT, a check for the SPONSOR's share of the TRAINING COSTS, as determined in accordance with Section 11. The SPONSOR agrees that the costs reported to MDOT for this Contract will represent only those items that are properly chargeable in accordance with this Contract. The SPONSOR also certifies that it has read the Contract terms and has made itself aware of the applicable laws, regulations, and terms of this Contract that apply to the reporting of costs incurred under the terms of this Contract. 7. With regard to audits and record-keeping: a. The SPONSOR will establish and maintain accurate records, in accordance with generally accepted• accounting principles, of all expenses incurred for which payment is sought or made under this Contract (RECORDS). Separate accounts will be established and maintained for all costs incurred under this Contract. b. Audit and Inspection. The SPONSOR will comply with the provisions of 1951 PA 51; MCL 247.660h. c. The SPONSOR will maintain the RECORDS for at least three (3) years from the date of final payment made by MDOT under this Contract. In the event of a dispute with regard to the allowable expenses or any other issue under this Contract, the SPONSOR will thereafter continue to maintain the RECORDS at least until that dispute has been finally decided and the time for all available challenges or appeals of that decision has expired. d. MDOT or its representative may inspect, copy, or audit the RECORDS at any reasonable time after giving reasonable notice. e. If any part of the work is subcontracted, the SPONSOR will assure compliance with subsections (a), (b), (c), and (d) above for all subcontracted work. 8. In the performance of this Contract, by itself or by anyone acting on its behalf, the SPONSOR agrees that it will comply with all applicable state, federal, and local statutes, ordinances, and regulations and will obtain all permits that are applicable to the entry into and the performance of this Contract. 02/01/17 2 FIREFIGHT v7Tii 9. Upon receipt of invoices for the TRAINING COSTS approved by the SPONSOR and of the SPONSOR's share of the TRAINING COSTS, MDOT will process payment to the training provider. Following payment to the training provider and completion of necessary audits, MDOT will make a final accounting to the SPONSOR. 10. The TRAINING COST participation is limited to the SPONSOR' s TRAINING charges billed by the training provider. The actual MDOT and SPONSOR shares of the TRAINING COSTS will be determined at the time of financial closure of the Contract. 11. The TRAINING COSTS will be met in part by contributions from MDOT. MDOT funds will be applied to the eligible TRAINING COSTS at a rate of ninety percent (90%) of the training provider invoice amount, with the MDOT participation not to exceed Two Thousand Dollars ($2,000.00). Any items of the TRAINING COSTS not funded with MDOT funds will be the sole responsibility of the SPONSOR. MDOT funds in this Contract made available through legislative appropriation are based on projected revenue estimates. MDOT may reduce the amount of this contract if the revenue actually received is insufficient to support the appropriation under which this Contract is made. 12. In the event that an audit performed by or on behalf of MDOT indicates an adjustment to the costs reported under this Contract or questions the allowability of an item of expense, MDOT will promptly submit to the SPONSOR a Notice of Audit Results and a copy of the audit report, which may supplement or modify any tentative findings verbally communicated to the SPONSOR at the completion of an audit. Within sixty (60) days after the date of Notice of Audit Results, the SPONSOR will (a) respond in writing to the responsible Bureau or Office of MDOT indicating whether or not it concurs with the audit report, (b) clearly explain the nature and basis for any disagreement as to a disallowed item of expense, and (e) submit to MDOT a written explanation as to any questioned or no opinion expressed item of expense (RESPONSE). The RESPONSE will be clearly stated and will provide any supporting documentation necessary to resolve any disagreement or questioned or no opinion expressed item of expense. Where the documentation is voluminous, the SPONSOR may supply appropriate excerpts and make alternate arrangements to conveniently and reasonably make that documentation available for review by MDOT. The RESPONSE will refer to and apply the language of the contract. The SPONSOR agrees that failure to submit a RESPONSE within the sixty (60) day period constitutes agreement with any disallowance of an item of expense and authorizes MDOT to finally disallow any items of questioned or no opinion expressed cost. MDOT will make its decision with regard to any Notice of Audit Results and RESPONSE within one hundred twenty (120) days after the date of the Notice of Audit Results. If MDOT determines that an overpayment has been made to the SPONSOR, the SPONSOR will repay that amount to MDOT or reach agreement with MDOT on a 02/01/17 3 FIREFIGHT v7w repayment schedule within thirty (30) days after the date of an invoice from MDOT. If the SPONSOR fails to repay the overpayment or reach agreement with MDOT on a repayment schedule within the thirty (30) day period, the SPONSOR agrees that .MDOT will deduct all or a portion of the overpayment from any funds then or thereafter payable by MDOT to the SPONSOR under this Contract or any other agreement or payable to the SPONSOR under the terms of 1951 PA 51, as applicable. Interest will be assessed on any partial payment schedules based on the unpaid balance at the end of each month until the balance is paid in full. The assessment of interest will begin thirty (30) days from the date of the invoice. The rate of interest will be based on the Michigan Department of Treasury common cash funds interest earnings. The rate of interest will be reviewed annually by MDOT and adjusted as necessary based on the Michigan Department of Treasury common cash funds interest earnings. The SPONSOR expressly consents to this withholding or offsetting of funds under those circumstances, reserving the right to file a lawsuit in the Court of Claims to contest MDOT's decision only as to any item of expense the disallowance of which was disputed by the SPONSOR in a timely filed RESPONSE. 13. Any change in the scope of the TRAINING, MDOT's share of the TRAINING COSTS, or the term of this Contract will be by award of a prior written amendment to this Contract by the parties. 14. Payment of or reimbursement to the SPONSOR of any cost by MDOT will not constitute a final determination by MDOT of the allowability of such cost and will not constitute a waiver by MDOT of any violation of the terms of this Contract committed to by the SPONSOR. MDOT will make final determination as to the allowability of such cost only after final audit of the TRAINING. 15. This Contract will be in effect from the date of award through eighteen (18) months. 16. With regard to non-discrimination requirements: a. In connection with the performance of this Contract, the SPONSOR (hereinafter in Appendix A referred to as the "contractor") agrees to comply with the State of Michigan provisions for "Prohibition of Discrimination in State Contracts," as set forth in Appendix A, dated June 2011. This provision will be included in all subcontracts relating to this Contract. b. During the performance of this Contract, the SPONSOR, for itself, its assignees, and its successors in interest (hereinafter in Appendix B referred to as the "contractor") agrees to comply with the Civil Rights Act of 1964, being P.L. 88- 352, 78 Stat. 241, as amended, being Title 42 USC Sections 1971, 1975a-1975d, and 2000a-2000h-6, and the Regulations of the Department of Transportation (49 CFR Part 21) issued pursuant to said Act, including Appendix B, dated June 2011. This provision will be included in all subcontracts relating to this Contract. 02/01/17 4 FIREFIGHT v7-tv 17. In accordance with 1980 PA 278, MCL 421321 et seq., the SPONSOR, in the performance of this Contract, will not enter into a contract with a subcontractor, manufacturer, or supplier listed in the register maintained by the United States Department of Labor - of employers who have been found in contempt of court by a federal court of appeals on not less than three (3) separate occasions involving different violations during the preceding seven (7) years for failure to correct an unfair labor practice, as prohibited by Section 8 of Chapter 372 of the National Labor Relations Act, 29 USC 158. MDOT may void this Contract if the name of the SPONSOR or the name of a subcontractor, manufacturer, or supplier utilized by the SPONSOR in the performance of this Contract subsequently appears in the register during the performance of this Contract. 18. MDOT's sole reason for entering into this Contract is to enable the SPONSOR to obtain and use MDOT funds to pay for the TRAINING in accordance with Section 11, Any and all approvals, reviews, and recommendations regarding the TRAINING, the TRAINING COSTS, permits, plans, specifications, or documents of any nature, or any inspections of work by MDOT pursuant to the terms of this Contract, are done to assist the SPONSOR in qualifying for available MDOT funds for ARFF training. Such approvals, reviews, inspections, and recommendations by MDOT will not relieve the SPONSOR of its ultimate control or its obligations hereunder and will not be construed as a warranty as to the propriety of the SPONSOR's performance or to mean that MDOT is assuming any liability, ownership, control, or jurisdiction. When providing approvals, reviews, inspections, and recommendations under this Contract, MDOT is performing a governmental function, as that term is defined in MCL 691.1401, that is incidental to the completion of the TRAINING. In any instance of dispute and/or litigation concerning the TRAINING, the resolution thereof will be the sole responsibility of the parties to the contract that is the subject of the controversy. It is understood and agreed that any legal representation of the SPONSOR in pursuing the resolution of any dispute and/or litigation will be the responsibility of the SPONSOR. 19. MDOT and the FAA will not be subject to any obligations or liabilities by contractors of the SPONSOR or their subcontractors or any other person not a party to the contract without their specific consent and notwithstanding their concurrence in or approval of the award of any contract or subcontract or the solicitation thereof. 20. Each party to this Contract will remain responsible for any claims arising out of that party's performance of this Contract as provided by this Contract or by law. This Contract is not intended to increase or decrease either party's liability for or immunity from tort claims. 02/01/17 5 FIREFIGHT v714) This Contract is not intended to nor will it be interpreted as giving either party a right of indemnification, either by contract or by law, for claims arising out of the performance of this Contract. 21. With regard to claims based on goods or services that were used to meet the SPONSOR' s obligation to MDOT under this Contract, the SPONSOR hereby irrevocably assigns its right to pursue any claims for relief or causes of action for damages sustained by the State of Michigan or MDOT due to any violation of 15 USC, Sections 1 - 15, and/or 1984 PA 274, MCL 445.771 - 445.788, excluding Section 4a, to the State of Michigan or MDOT. The SPONSOR shall require any subcontractors to irrevocably assign their rights to pursue any claims for relief or causes of action for damages sustained by the State of Michigan or MDOT with regard to claims based on goods or services that were used to meet the SPONSOR's obligation to MDOT under this Contract due to any violation of 15 USC, Sections 1 - 15, and/or 1984 PA 274, MCL 445.771 - 445.788, excluding Section 4a, to the State of Michigan or MDOT as a third-party beneficiary. The SPONSOR shall notify MDOT if it becomes aware that an antitrust violation with regard to claims based on goods or services that were used to meet the SPONSOR's obligation to MDOT under this Contract may have occurred or is threatened to occur. The SPONSOR shall also notify MDOT if it becomes aware of any person's intent to commence, or of commencement of, an antitrust action with regard to claims based on goods or services that were used to meet the SPONSOR' s obligation to MDOT under this Contract. 22. In case of any discrepancies between the body of this Contract and any exhibits hereto, the body of the Contract will govern. 02/01/17 6 FIREFIGHT v7w 23. This Contract will become binding on the parties and of full force and effect upon signing by the duly authorized representatives of the SPONSOR and MDOT and upon adoption of a resolution approving said Contract and authorizing the signature(s) thereto of the respective representative(s) of the SPONSOR, a certified copy of which resolution will be sent to MDOT with this Contract, as applicable. OAKLAND COUNTY By: Title: MICHIGAN DEPARTMENT OF TRANSPORTATION By: Title: Department Director 02/01/17 7 FIREFIGHT v 7w APPENDIX A PROHIBITION OF DISCRIMINATION IN STATE CONTRACTS In connection with the performance of work under this contract; the contractor agrees as follows: 1. In accordance with Public Act 453 of 1976 (Elliott-Larsen Civil Rights Act), the contractor shall not discriminate against an employee or applicant for employment with respect to hire, tenure, treatment, terms, conditions, or privileges of employment or a matter directly or indirectly related to employment because of race, color, religion, national origin, age, sex, height, weight, or marital status. A breach of this covenant will be regarded as a material breach of this contract. Further, in accordance with Public Act 220 of 1976 (Persons with Disabilities Civil Rights Act), as amended by Public Act 478 of 1980, the contractor shall not discriminate against any employee or applicant for employment with respect to hire, tenure, terms, conditions, or privileges of employment or a matter directly or indirectly related to employment because of a disability that is unrelated to the individual's ability to perform the duties of a particular job or position. A breach of the above covenants will be regarded as a material breach of this contract. 2. The contractor hereby agrees that any and all subcontracts to this contract, whereby a portion of the work set forth in this contract is to be performed, shall contain a covenant the same as hereinabove set forth in Section 1 of this Appendix. 3. The contractor will take affirmative action to ensure that applicants for employment and employees are treated without regard to their race, color, religion, national origin, age, sex, height, weight, marital status, or any disability that is unrelated to the individual's ability to perform the duties of a particular job or position. Such action shall include, but not be limited to, the following: employment; treatment; upgrading; demotion or transfer; recruitment; advertising; layoff or termination; rates of pay or other folios of compensation; and selection for training, including apprenticeship. 4. The contractor shall, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, national origin, age, sex, height, weight, marital status, or disability that is unrelated to the individual's ability to perform the duties of a particular job or position. 5. The contractor or its collective bargaining representative shall send to each labor union or representative of workers with which the contractor has a collective bargaining agreement or other contract or understanding a notice advising such labor union or workers' representative of the contractor's commitments under this Appendix. 6. The contractor shall comply with all relevant published rules, regulations, directives, and orders of the Michigan Civil Rights Commission that may be in effect prior to the taking of bids for any individual state project. 7. The contractor shall furnish and file compliance reports within such time and upon such forms as provided by the Michigan Civil Rights Commission; said forms may also elicit information as to the practices, policies, program, and employment statistics of each subcontractor, as well as the contractor itself, and said contractor shall peimit access to the contractor's books, records, and accounts by the Michigan Civil Rights Commission and/or its agent for the purposes of investigation to ascertain compliance under this contract and relevant rules, regulations, and orders of the Michigan Civil Rights Commission. 8. In the event that the Michigan Civil Rights Commission finds, after a hearing held pursuant to its rules, that a contractor has not complied with the contractual obligations under this contract, the Michigan Civil Rights Commission may, as a part of its order based upon such findings, certify said findings to the State Administrative Board of the State of Michigan, which State Administrative Board may order the cancellation of the contract found to have been violated and/or declare the contractor ineligible for future contracts with the state and its political and civil subdivisions, departments, and officers, including the governing boards of institutions of higher education, until the contractor complies with said order of the Michigan Civil Rights Commission. Notice of said declaration of future ineligibility may be given to any or all of the persons with whom the contractor is declared ineligible to contract as a contracting party in future contracts. In any case before the Michigan Civil Rights Commission in which cancellation of an existing contract is a possibility, the contracting agency shall be notified of such possible remedy and shall be given the option by the Michigan Civil Rights Commission to participate in such proceedings. 9. The contractor shall include or incorporate by reference, the provisions of the foregoing paragraphs (1) through (8) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Michigan Civil Rights Commission; all subcontracts and purchase orders will also state that said provisions will be binding upon each subcontractor or supplier. Revised June 2011 APPENDIX B TITLE VI ASSURANCE During the performance of this contract, the contractor, for itself, its assignees, and its successors in interest (hereinafter referred to as the "contractor"), agrees as follows: . Compliance with Regulations: For all federally assisted programs, the contractor shall comply with the nondiscrimination regulations set forth in 49 CFR Part 21, as may be amended from time to time (hereinafter referred to as the Regulations). Such Regulations are incorporated herein by reference and made a part of this contract. 2. Nondiscrimination: The contractor, with regard to the work performed under the contract, shall not discriminate on the grounds of race, color, sex, or national origin in the selection, retention, and treatment of subcontractors, including procurements of materials and leases of equipment. The contractor shall not participate either directly or indirectly in the discrimination prohibited by Section 21.5 of the Regulations, including employment practices, when the contractor covers a program set forth in Appendix B of the Regulations. 3. Solicitation for Subcontracts, Including Procurements of Materials and Equipment: All solicitations made by the contractor, either by competitive bidding or by negotiation• for subcontract work, including procurement of materials or leases of equipment, must include a notification to each potential subcontractor or supplier of the contractor's obligations under the contract and the Regulations relative to nondiscrimination on the grounds of race, color, or national origin. 4. Information and Reports: The contractor shall provide all information and reports required by the Regulations or directives issued pursuant thereto and shall permit access to its books, records, accounts, other sources of information, and facilities as may be determined to be pertinent by the Department or the United States Department of Transportation (USDOT) in order to ascertain compliance with such Regulations or directives. If required information concerning the contractor is in the exclusive possession of another who fails or refuses to furnish the required infoimation, the contractor shall certify to the Department or the USDOT, as appropriate, and shall set forth the efforts that it made to obtain the information. 5. Sanctions for Noncompliance: In the event of the contractor's noncompliance with the nondiscrimination provisions of this contract, the Department shall impose such contract sanctions as it or the USDOT may determine to be appropriate, including, but not limited to, the following: a. Withholding payments to the contractor until the contractor complies; and/or b. Canceling, terminating, or suspending the contract, in whole or in part. 6. Incorporation of Provisions: The contractor shall include the provisions of Sections (1) through (6) in every subcontract, including procurement of material and leases of equipment, unless exempt by the Regulations or directives issued pursuant thereto. The contractor shall take such action with respect to any subcontract or procurement as the Department or the USDOT may direct as a means of enforcing such provisions, including sanctions for non-compliance, provided, however, that in the event a contractor becomes involved in or is threatened with litigation from a subcontractor or supplier as a result of such direction, the contractor may request the Department to enter into such litigation to protect the interests of the state. In addition, the contractor may request the United States to enter into such litigation to protect the interests of the United States. Revised June 2011 OFFICJ OF AERONAUTICS ktMDOT.. Michigan Department of Transportation - .^*-- • TABLE OF CONTENTS Page Introduction 1 Program Goals and Objectives 3 Program Funding 4 • State Participation • Local Participation • In-Kind/Soft Match • Non-Allowable Project Costs • Statewide Activities Program Areas, Eligibility and Evaluation • Aircraft Rescue and Firefighting • Airport Awareness • Capital Improvement and Equipment • Carrier Recruitment and Retention Call for Projects 12 Application for Air Service Program Funds 12 INTRODUCTION In 1987, the Michigan Air Service Program was developed to address the loss and decline of commercial air service at many Michigan communities. Implementing the first state/local grant in 1988, the program helped stabilize and expand commercial air service by undertaking activities aimed at promoting increased use of services available at local airports. Over the intervening years, the airline industry has matured and many changes have occurred. During this time, Michigan airports have had increases in both services provided and total passengers. Recognizing that quality air service is an essential element of a community's infrastructure and is essential to promote economic expansion, a coordinated state and local effort to promote air service needed to be continued. As a mechanism toward maintaining and improving those services, the Air Service Program was refocused in 1992, with new emphasis on implementing aviation projects that encourage and support economic growth. In 1994, the Michigan Aeronautics Commission (MAC) recognized that Cargo Service Airports have the potential to attain the goals and objectives of the Air Service Program by improving accessibility of commercial, business, and industrial areas. Increasing awareness of a cargo service airport's role in supporting community growth and economic development was deemed essential to meet the program's goals and objectives. Therefore, beginning in October 1994, eligibility for participation in the Air Service Program, Airport Awareness category was expanded to include Cargo Service Airports that lack scheduled passenger service. In 2005, the MAC furthered economic development efforts by expanding eligibility criteria for the Capital Improvement and Equipment category to include cargo service airports that lack scheduled passenger service. As a result, cargo service airports were made eligible for up to $80,000 in state funding for projects approved under this category. In 2012, in response to the need for comprehensive Aircraft Rescue and Firefighting (ARFF) training a component was added to address the safety and security needs of Part 139 airports by offering a matching grant to any airport subject to the training requirement. This primarily included all air carrier airports, but also those general aviation airports maintaining ARFF capabilities. In 2015, the MAC undertook a study of air service in Michigan and subsequently accepted a report focused on the Essential Air Service (EAS) program and its role in supporting access to commercial air service for small communities. This report, published as the 2016 Policy Plan for Michigan Air Service, clearly recognizes the challenges facing Michigan's air carrier airports, particularly those supported through EAS. While viable alternatives are limited, it is clear that this Air Service Program is the most effective tool at the state's disposal to address both facility and system deficiencies. A key to the study effort was the establishment of goals to ensure Michigan Department of Transportation's (MDOT) air service policies align with the State Long Range Plan and address Michigan's current and future air transportation requirements. The policy goals accepted by the MAC as part of the 2016 Policy Plan for Michigan Air Service have been included in these guidelines as the Air Service Program Goals. 1 Michigan Air Service Program Guidelines In addition, the 2016 Policy Plan for Michigan Air Service reaffirmed and supplemented the development considerations and initiatives found in the 2001 Policy Plan for Michigan Air Service (PPMAS). These are now the Air Service Program Objectives. In the context of the study's findings, the MAC recommended the following key factors be considered when implementing new policy recommendations contained in the 2016 Policy Plan for Michigan Air Service into the Michigan Air Service Program Guidelines: 1. The 19 commercial air service airports include one (1) large hub, two (2) small hub, seven (7) non hub and nine (9) EAS facilities. These airports are geographically well situated and meet Michigan service needs within the service threshold of 60 minutes or less surface travel time without the need to add additional airports. 2. While meeting the needs of being geographically well situated, seven of the EAS airports are at risk of in terms of matching the level of service to that which can be profitably supported without the subsidy, Efforts should focus on continued advocacy and support of the EAS Program at the national level maximizing the benefit to Michigan. 3. MDOT should review and update the Air Service Program Guidelines to focus on efficiently maintaining service levels at all 18 air service airports with an emphasis on partnering to effectively leverage available resources and reduce vulnerabilities, particularly at EAS airports. In response to these goals, objectives, and key factors, the Michigan Air Service Program will consider funding for airport-specific projects across four categories listed below in priority order: 1. Aircraft Rescue and Firefighting 2. Airport Awareness 3, Capital Improvement and Equipment 4, Carrier Recruitment and Retention These categories and eligibility requirements are further explained in this document. Projects in these categories will be designed to attain the program goals and objectives identified below. Eligibility will be determined by the following tier system in accordance with that particular program area: Tier 1 Part 139 Certificated Airports enplaning more than 1,500,000 passengers annually. Tier 2 — Part 139 Certificated Airports enplaning 100,000 to 1,499,999 passengers annually. Tier 3 Part 139 Certificated Airports enplaning less than 100,000 passengers annually. Tier 4— Part 139 Certificated Cargo Airports. 2 Michigan Air Service Program Guidelines PROGRAM GOALS AND OBJECTIVES PROGRAM GOALS 1. Stewardship — Preserve transportation system investments, protect the environment, and utilize public resources in a responsible manner. 2. Safety and Security — Continue to improve transportation safety and ensure the security of the transportation system. 3. System Improvement — Modernize and enhance the transportation system to improve mobility and accessibility. 4. Efficient and Effective Operations — Improve the efficiency and effectiveness of the transportation system and transportation services, and expand MDOT's coordination and collaboration with partners. PROGRAM OBJECTIVES 1. Assure the appropriate distribution of air service to support and promote economic development statewide. 2. Assure the appropriate distribution of air service to support quality of life for Michigan residents and visitors by providing access to the national air transportation system. 3. Match a community's air service to the level which it can profitably support. 3 Michigan Air Service Program Ouidelines PROGRAM FUNDING STATE PARTICIPATION State funding for the Air Service Program is provided from State Aeronautics Fund revenues and appropriated specifically for use within the program. The 2017 fiscal year Air Service Program was appropriated $250,000. In order to maximize the use of these funds and to ensure the program meets the established goals and objectives, previous Air Service Program guidelines, including specific maximums for each program category, have been eliminated with the exception of Aircraft Rescue and Firefighting grants, which will be limited to $2,000 in state funds per eligible airport. Due to limited overall program funds, airports should attempt to limit their grant requests to $2,000 for Aircraft Rescue and Firefighting grants and $10,000 for any other grant requests. LOCAL PARTICIPATION All categories of the Program require that project costs be shared between the state and a local sponsor. The local share may be provided by the airport authority, a local unit of government, or a non-profit community support organization such as a chamber of commerce. Contributions from the private sector to the local unit of government are also an acceptable source. IN-KIND/SOFT MATCH Upon request by the airport sponsor, MDOT's Office of Aeronautics (Aero) may consider and approve in advance for use as local In-Kind/Soft Match, engineering and construction costs to be incurred in-house (i.e., force accounting). Costs to be considered by Aero for in-kind match potential will be limited to labor, materials and equipment. These costs will not be eligible as soft match unless prior approvals of estimated cost and the sponsor's request for soft match are approved in advance by Aero. NON-ALLOWABLE PROJECT COSTS The following costs are ineligible for reimbursement for projects approved under the Air Service Program: • Costs incurred prior to agreement execution. • Costs incurred subsequent to agreement expiration (project must be completed by agreement's expiration). • Administrative costs incurred by the airport sponsor (i.e., airport staff time, maintenance fees for website). • Liability insurance costs. • Any costs incurred in connection with raising funds by the sponsor, including interest and premium charges and administrative expenses involved in conduction bond elections and in selling bonds. 4 Michigan Air Service Program Guidelines • Local share required to obtain Air Service Program funds. • Costs incurred in any other state or federal program for airport improvement projects. • Attorney fees. • Alcoholic beverages. • Advertising outside of airport service area or favoring one carrier over another in promotional advertising. • Naming of other airports in any form of media is prohibited. • Interest or late fees. In addition, Aero may (from time to time) augment the above list based upon project request and program experience. STATEWIDE ACTIVITIES In addition to the Air Service Program, under which airports may apply for funding assistance in four categories, the Office of Aeronautics may undertake projects aimed towards achieving additional program goals and objectives. These projects may include development of workshop/forum presentations and materials for statewide use in increasing awareness of air carrier airports and/or cargo service airports supporting and encouraging Michigan's economic growth and job retention. EXCESS FUNDS In the event that excess Air Service Program funds remain available after the initial allocation of funds (as prescribed in these guidelines), the Office of Aeronautics may recommend allocation to statewide activities or to airports requesting additional program funds based on identified need, economic necessity, and public benefit. An additional call for projects may be necessary. Projects chosen to receive excess funds will be selected at the discretion of the Office of Aeronautics and presented to the Commission for approval. (MAC approved January 26, 2017) 5 Michigan Air Service Program Guidelines PROGRAM AREAS, ELIGIBILITY AND EVALUATION AIRCRAFT RESCUE AND FIREFIGHTING Aircraft Rescue and Firefighting Program Area Description The purpose of this category is to address the annual need of certificated Part 139 airports to provide training for aircraft rescue personnel. Under this category, $2,000 in state funds will be made available to airports for ARFF training. Under the program area, registration fees, meals, travel costs, and lodging will be eligible for reimbursement. The actual frequency will depend upon fund availability with a goal for 10% of total program funds to be allocated to this category. Additionally, ARFF Air Service Grants may be provided to airports with a demonstrable need for training devices used to refine training procedures and improve ARFF techniques. Aircraft Rescue and Firefighting Program Area Eligibility Tier 1 Tier 2 Tier 3 Tier 4 Not Eligible 50% State/50% Local 90% State/10% Local 90% State/10% Local Additionally, an eligible airport must be listed in the Michigan Airport System Plan and provide evidence of a current Part 139 Certificate issued by the Federal Aviation Administration. Aircraft Rescue and Firefighting Program Area Grant Evaluation Applications for ARFF projects will be evaluated upon the following criteria: • Number of personnel to be trained • Location of training • Date of training • Cost per participant a Type, use, and replacement cost of a standalone training device Upon completion, the airport must provide certified proof of attendance and an itemized breakdown of costs supported by documentation. AIRPORT AWARENESS Airport Awareness Program Area Description The purpose of this category is to increase public awareness of community airports and available air passenger and air cargo services. Encouraging use of the local airport through education increases awareness of the facility, acceptance of new advanced commuter aircraft and a better understanding of schedules, destinations and fares. The program focus involves increased concentration on educational activities for community awareness and media relations. Impacting these areas through greater involvement with service 6 Michigan Air Service Program Guidelines organizations and local businesses cultivates potential users and increases knowledge of the economic benefits of services provided at the airport. Specific information about the airport facility and its services can be utilized by community leaders to attract new business or industry to the area. It is crucial the media understands the airport's role and its positive economic impact on the local community. Assisting and educating media representatives through forums and workshops results in increased communication and more informed media, important elements in impacting public perception and potentially impacting travel planning decisions for business and discretionary travelers. Increased passenger levels may assist some Michigan airports in achieving the required 10,000 annual enplanements to secure guaranteed federal entitlement funding. The actual frequency of available funds will vary depending on program appropriation and the number of grants requested with a goal of 30% of the total program funds to be allocated to this category. Airport Awareness funds may also be made available to airports currently establishing scheduled air carrier service. Published schedules in the Official Airline Guide (or other source approved by Aero) may be required to obtain funds. Please contact Aero for further information, Airport Awareness Program Area Eligibility Tier! Tier 2 Tier 3 Tier 4 Not Eligible 50% State/50% Local 90% State/10% Local 90% State/10% Local Airport Awareness Program Area Grant Evaluation Applications for airport awareness projects will be evaluated upon the following criteria: • What is the purpose of the proposed projects? Explain how the project(s) could positively impact: a) Passenger/cargo activity — How would the project help stabilize or increase the level of passengers using air or cargo services available? Consider market potential, actual passenger activity, leakage factors, nearest hub airport. b) Role of airport in the community — How would the project increase the public's understanding of the airport's role in the community and positively impact the public awareness of the services available? c) Community economic well-being — How would the project identify the importance of airport services to support he community's existing economic base and job retention? d) Changes in the local business climate — How would the project impact/identify use of airport services to encourage/support community growth and jobs, i.e., new or expanded hotel(s), tourist attractions, industrial parks, manufacturing facilities, new activities? 7 Michigan Air Service Program Guidelines e) Multimodal facilities — How does the project encourage use of multi-modal transportation facilities and distribution services which support airport utilization? f) Passenger travel or air cargo planning decisions — How would the project influence passenger travel or air cargo decisions? What information does it provide to the travel planner/agent? Media rapport — How would the project favorably impact the media to result in positive articles on the airport and airline services available? • Description of the airport's proposed Airport Awareness Activity Plan — An Airport Awareness Activity Plan identifying the airport's proposed use of the total grant funds must be submitted to and approved by Aero prior to the plan's implementation. Development of the plan may be accomplished in-house by airport administration or, if necessary, through a consultant/agency. Costs incurred in-house to develop plans are considered administrative cost and are not eligible for reimbursement, An Airport Awareness Activity Plan should include both a communications and community awareness component. a) Communications Activity Plan — Communications may consist of radio, television, outdoor advertising, newsprint, and targeted electronic marketing activities. Scripts for proposed radio, television, outdoor messages, and electronic marketing must be submitted. Website development is an acceptable use of airport awareness funds, but ongoing maintenance or subscription fees are not eligible. b) Community Awareness Plan — A Community Awareness Plan may include items such as printed brochures, newsletters, and flight schedules. Other acceptable community awareness activities may include media workshops, airline or travel agency forums, materials for civic presentation, airport familiarization tours, airport open houses, and targeted electronic marketing activities. Use of grant funds for air shows is not eligible except where the activity is clearly directed toward information relating to the airport facility or the availability of air service as approved by Aero. Airport Awareness Consultant/Ag_ency Charges If a consultant is used to plan and/or implement airport awareness activities, costs will be eligible as follows: • Preparation of the Airport Awareness Activity Plan — No more than 3% of total grant dollars (total state funds plus local matching funds) may be utilized. No cost incurred prior to grant agreement execution is allowable. • Implementation of Airport Awareness Activity Plan — Consultant/agency fees will be eligible for reimbursement up to 9% of the total grant dollars (total state funds plus local matching funds). Examples of plan implementation include concept development, strategy of implementation, and placement of media messages. No cost will be allowable after expiration of the grant agreement. 8 Michigan Air Service Program Guidelines • Total of all charges and fees for preparation and implementation of plans rendered by consultant/agency shall not exceed 12% of the entire budget for airport awareness activities. CAPITAL IMPROVEMENT AND EQUIPMENT Capital Improvement and Equipment Program Area Description The purpose of this category is to improve airport facilities for passenger acceptance, cargo handling, and airport operations to support air service and economic development. Current federal funding mechanisms (entitlement or discretionary) are unavailable for many types of facility enhancement projects. Consequently, those projects are often delayed or never initiated due to limited funds, pre-set priorities, and program guidelines. This program category will allow Michigan airports another funding mechanism for projects currently not undertaken through existing federal and state improvement programs such as interior terminal modifications, security equipment, flight information centers, defibrillators, ticket areas, ADA accessibility improvements, and cargo handling facilities. The actual frequency of available funds will vary depending on program appropriation and the number of grants requested with a goal of 50% of the total program funds to be allocated to this category. Capital Improvement and Equipment Program Area Eligibility Tier 1 Tier 2 Tier 3 Tier 4 Not Eligible 50% State/50% Local 90% State/10% Local 90% State/10% Local In addition, the airport must be listed in the Michigan Aviation System Plan. Capital Improvement and Equipment Program Area Grant Evaluation Applications for project requests will be evaluated based on the following criteria: • Financial a) Proof of local match. b) Eligibility of the project under an existing federal or state airport improvement program and the probability of project being funded through that program. • Safety a) Projects that improve airport operations, safety, and security and/or enable it to meet current safety requirements will be given greater consideration. • Equal Access a) Projects that enhance access or help meet federal, state, or local equal access laws and the Americans with Disabilities Act will be given greater consideration. • Air Service Program Goals and Objectives a) Projects that directly address the Michigan Air Service Program goals and objectives will be given greater consideration and ensure project consistency. 9 Michigan Air Service Program Guidelines CARRIER RECRUITMENT AND RETENTION Carrier Recruitment and Retention Program Area Description The purpose of this category is to assist in establishing, maintaining or increasing air service levels at Michigan airports which meet eligibility requirements, Appropriate levels of quality air service in Michigan improve accessibility to business and industrial centers, augment the state's tourism industry, encourage development of facilities, and support initiatives for community growth. Coordination of efforts between the local community and the state induces carriers to provide initial or expanded services. Funding in this category is available for the following activities: • Feasibility Studies — Airports which have potential for initial or expanded air service can receive funds for feasibility studies and business plans. The purpose of these studies would be to recruit a carrier to establish or expand existing service. • Risk Sharing — Funding could be available to carrier(s) to minimize risk on certain routes where feasibility studies and community interest support such service. • Incentives — Other inducements to recruit or preserve service could include assistance for airports for waiver of landing fees, baggage handling equipment, other equipment and operational needs as may be required by the airport. The actual frequency of available funds will vary depending on program appropriation and the number of grants requested with a goal of 10% of the total program funds to be allocated to this category. Carrier Recruitment and Retention Program Area Eligibility All projects approved under this category will be available only for a limited time period, as the projects are not intended to provide long term continuing assistance. Airports meeting the following eligibility requirements may apply for assistance: • Airports seeking to improve commercial air service or to retain existing services that are in danger of being lost. • The airport under consideration for carrier recruitment grants should be outside of the service area of an existing air carrier airport, as determined by the Michigan Aviation System Plan and/or Policy Plan for Michigan Air Service. • The airport infrastructure must be able to support takeoffs and landings by the designated aircraft or such improvement must be currently underway or have been committed, • The airport must have a tourism facility or manufacturing plant(s) or business community within 20 miles or a commitment to build such within 20 miles must be evident. 10 Michigan Air Service Program Guidelines • Non air carrier airports with passenger potential for profitable service, and a commitment from a certificated air carrier to start service using a nine-passenger aircraft or larger may be eligible. Please contact Aero for further information. • The Following tier eligibility will also apply to carrier recruitment and retention eligibility: Tier 1 Tier 2 Tier 3 Tier 4 Not Eligible 50% State/50% Local 90% State/10% Local Not Eligible Carrier Recruitment and Retention Program Area Grant Evaluation • Feasibility study grants will be evaluated based on the service improvement requested, justification of requested service improvement, communication with potential air carriers, previously available service, and proposed timeline. • Risk sharing grants will be evaluated base on feasibility study results, resolutions of support from the appropriate local government entities indicating financial willingness to support, evidence of economic viability of proposal, and agreements from airport management that bids for service will be competitively negotiated. • Incentive grants will be evaluated based on the description of the incentive program, an explanation of how the incentive program will attract, improve, or retain service, an examination of competitiveness and fairness with regard to other airports. 11 Michigan Air Service Program Guidelines CALL FOR PROJECTS A "Call for Projects" will be established for submittal of applications for the Michigan Air Service Program. It is anticipated that a call for projects will he conducted annually. APPLICATION FOR AIR SERVICE PROGRAM FUNDS An application form has been developed for use in applying for funds under the Air Service Program. The applicant should attach additional pages providing the specific information requested under the Project Eligibility and Evaluation Criteria listed in this document for each program category. As updates to the form and this document become available, they will be provided to all airports. Applicants are encouraged to provide any further information to assist Aero in the evaluation of project requests. Each proposed project will be evaluated by a team consisting of staff from Aero utilizing the criteria noted in this document. This Air Service Program Guidelines document was approved by the Michigan Aeronautics Commission on November 9, 2016. MicLel G. Trout, Director Michigan Aeronautics Commission 12 FISCAL NOTE (MISC. #17082) April 26, 2017 BY: Commissioner, Thomas Middleton, Chairperson, Finance Committee IN RE: DEPARTMENT OF CENTRAL SERVICES — OAKLAND COUNTY INTERNATIONAL AIRPORT — 2017 GRANT PROGRAM ACCEPTANCE — AIRCRAFT RESCUE FIRE FIGHTING (ARFF) TRAINING To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: Pursuant to Rule XII-C of this Board, the Finance Committee has reviewed the above referenced resolution and finds: 1. The Michigan Department of Transportation Contract No. 2017-0365 awarded Oakland County $2,000 in reimbursement funding for Aircraft Rescue and Fire Fighting (ARFF) training at Oakland County International Airport. 2. The ARFF training is provided by a vendor using a mobile fire training unit at the Oakland County International Airport 3. The total cost of the training is approximately $8,000, with an additional estimated fuel cost of $1,000. 4. The reimbursement funding will be applied to the cost of fuel with the remaining balance to be applied towards the training invoice. 5. Funding is available within the Fringe Benefit Fund In-Service Training budget to cover the remaining cost, approximately $7,000, for Airport Rescue Fire Fighting training. 6. The Airport Committee has reviewed the project and recommends acceptance of the grant contract. 7. Target date for project completion is 18 months from the date of the award. 8. The Michigan Department of Transportation shall act as agent on behalf of the County in the administration of the project. 9. No General fund appropriation is required. Funding is available within the Airport fund and the Fringe Benefit Fund (in-Service Training line item) CoMmissioner Thomas Middleton, District 4 Chairperson, Finance Committee FINANCE COMMITTEE VOTE: Motion carried unanimously on a roll call vote with Fleming absent. Resolution #17083 April 26, 2017 Moved by Berman supported by Bowman the resolutions (with fiscal notes attached) on the Consent Agenda be adopted (with accompanying reports being accepted). AYES: Crawford, Dwyer, Fleming, Gershenson, Hoffman, Jackson, Kochenderfer, KowaII, Long, McGillivray, Middleton, Quarles, Spisz, Taub, Tietz, Weipert, Zack, Berman, Bowman. (19) NAYS: None. (0) A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the Consent Agenda were adopted (with accompanying reports being accepted). HEREOY APPROVE THIS RESOLUTION CHEF DEPUTY COUNTY EXECUTIVE ACTING PURSUANT TO MCL 45,559A (7) STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on April 26, 2017, with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac. Michigan this 26.h day of April, 2017. Lisa Brown, Oakland County