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HomeMy WebLinkAboutResolutions - 1998.07.16 - 25365July 16, 1998 MISCELLANEOUS RESOLUTION #98156 BY: General Government Committee - Nancy Dingeldey, Chairperson IN RE: CENTRAL SERVICES - OAKLAND COUNTY INTERNATIONAL AIRPORT - 1998 GRANT PROGRAM ACCEPTANCE TO THE OAKLAND COUNTY BOARD 07 COMMISSIONERS Chairperson, Ladies and Gentlemen: WHEREAS the County of Oakland is in receipt of Michigan Department of Transportation Grant Contract, Project No. C-26-0079-1698, for Federal funds in a maximum obligation of $90,000, for the development and improvement of Oakland County International Airport; and WHEREAS the project consists of rehabilitation and widening of the northeast taxiway; and WHEREAS the Michigan Department of Transportation has received a grant from the Federal Aviation Administration for airport development projects and shall act as agent on behalf of the County in the administration of the project; and WHEREAS the development project as offered and approved by the Michigan Department of Transportation and Federal Aviation Administration requires a local grant match of $10,000, which is available from the airport fund; and WHEREAS the Airport Committee has reviewed and approved the grant contract subject to ratification by the Oakland County Board of Commissioners and believes it to be in the County's interest to accept the grant contract; and WHEREAS the attached contract has been approved in accordance with the County Executive's review process; and WHEREAS no application was requested from Oakland County, therefore the application provisions of M.R. #95098, do not apply. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners accepts the grant contract in an amount not to exceed $100,000. BE IT FURTHER RESOLVED that the Chairperson of the Oakland County Board of Commissioners or the approved designee is authorized to execute the grant contract and to approve grant modification up to fifteen (15) percent which is consistent with the original grant contract. On behalf of the General Government Committee, I move the adoption of the foregoing resolution. GENERAL GOVERNMENT COMMITTEE General Government Committee Vote: Motion carried unanimously on a roll call vote with Schmid absent. AGREEMENT NO. 98-0656 FED. PROJ. NO. C-26-0079-1698 AGENDA DAB AGREEMENT FOR A FEDERAL/STATE/LOCAL AIRPORT PROJECT UNDER THE BLOCK GRANT PROGRAM THIS AGREEMENT is made and entered into this date of , by and between the Michigan Department of Transportati on, hereinafter referred to as the DEPARTMENT, and the Oakland County Board of Commissioners, hereinafter referred to as the SPONSOR, for the purpose of fixing the rights and obligations of the parties in agreeing to the following undertaking at the Oakland County International Airport whose associated city is Pontiac, Michigan, hereinafter referred to as the PROJECT and estimated in detail on Exhibit 1, dated June 3, 1998, attached hereto and made a part hereof Rehabilitate/Widen NE Taxiway ... as defined in Change Order to Contract No. FM 63-01-C83 as approved by the DEPARTMENT WITNES SETH: WHEREAS, the PROJECT is eligible for federal funding pursuant the Airport and Airway Improvement Act of 1982 as amended and/or the Aviation Safety and Noise Abatement Act of 1979, and WHEREAS, the DEPARTMENT has received a block grant from the Federal Aviation Administration (FAA) for airport development projects, and WHEREAS, the DEPARTMENT is responsible for the allocation and management of block grant funds pursuant to the above noted act, NOW, THEREFORE, it is agreed: 1. The term PROJECT COST, as herein used, is defined in Attachment(s) 1. PROJECT COST shall also include administrative costs incurred by the DEPARTMENT in connection with the PROJECT. Administrative costs incurred by the SPONSOR are not an eligible PROJECT COST. 06/12/98 1 BLOCKGRANT THE SPONSOR SHALL: 2. Enter into a contract with a consultant for each element of the PROJECT which requires such expertise. The consultant shall be selected in conformance with FAA Advisory Circular 150/5100-14. The DEPARTMENT shall select the consultant for each element of the project involving preparation of environmental documentation, The SPONSOR shall select the consultant for all other aspects. All consultant contracts shall be submitted to the DEPARTMENT for review and approval. Any such approvals shall not be construed as a warranty of the consultant's qualifications, professional standing, ability to perform the work being contracted, or financial integrity. The SPONSOR shall not execute a consultant contract nor authorize the consultant to proceed prior to receiving written approval of the contract from the DEPARTMENT. Any change to the consultant contract requires prior written approval of the DEPARTMENT. In the event the consultant contract is terminated, the DEPARTMENT shall be given immediate written notice by the SPONSOR. 3. Make payment to the DEPARTMENT for the SPONSOR's share of PROJECT COSTS within thirty (30) days of the billing date, The DEPARTMENT will not make payments for any PROJECT work prior to receipt of payment from the SPONSOR for the SPONSOR's share of that item of PROJECT work Eligible PROJECT COSTS which are paid by the SPONSOR may be submitted for credit towards the SPONSOR's share of the PROJECT COST provided it is submitted within 180 days of the date the costs were incurred or 180 days of execution by both parties of this agreement, whichever is later. Documentation of payment of PROJECT COST shall include copies of the invoices and copies of both sides of the cancelled checks. The amount of the SPONSOR billing will be reduced by the amount of the eligible credit, based on documentation submitted, provided it is submitted prior to the date of the billing. Should it be determined that the SPONSOR has been given credit for payment of ineligible items of work, the SPONSOR will be billed an amount to insure that the SPONSOR share of PROJECT COSTS are covered. The SPONSOR hereby pledges a sufficient amount of funds to meet its obligations. 4. Upon written notice from the DEPARTMENT, repay any disallowed items of cost previously disbursed by the DEPARTMENT. Deficiencies billed to the SPONSOR shall be paid within sixty (60) days of the billing date. If the SPONSOR has not made arrangements to make payment within sixty (60) days, the DEPARTMENT may withhold monies from present or future contracts and may pursue any other remedy to recover such deficiencies. 5. a. 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 Agreement, said records to be hereinafter referred to as the "RECORDS". Separate accounts shall be established and maintained for all costs incurred under this Agreement. 06/12/98 2 I3LOCKGRANT b. Maintain the RECORDS for at least six (6) years from the date of final payment of Federal Aid made by the DEPARTMENT under this Agreement. In the event of a dispute with regard to the allowable expenses of any other issue under this Agreement, the SPONSOR shall 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. c. Allow the DEPARTMENT, or its representative, to inspect, copy, or audit the RECORDS at any reasonable time after giving reasonable notice. d. If any part of the work is subcontracted, the SPONSOR shall assure compliance with subsections (a), (b), and (c) above for all subcontracted work. 6. Provide, and will require its subcontractors to provide, access by the DEPARTMENT or its representatives, to all technical data, accounting records, reports, and documents pertaining to this Agreement. Copies of technical data, reports, and other documents shall be provided by the SPONSOR or its subcontractors to the DEPARTMENT upon request. The SPONSOR agrees to permit representatives of the DEPARTMENT to inspect the progress of all PROJECT work at any reasonable time. Such inspections are for the exclusive use of the DEPARTMENT and are not intended to relieve or negate any of the SPONSOR'S obligations and duties contained in this Agreement. All technical data, reports, and documents shall be maintained for a period of six (6) years from the date of final payment. 7. In the performance of the PROJECT herein enumerated, by itself, by a subcontractor, or by anyone acting in its behalf, agree that they will comply with any and all state, federal, and applicable local statutes, ordinances, and regulations. The SPONSOR further agrees to obtain all permits that are applicable to the entry into and the performance of this Agreement. In addition, the SPONSOR agrees to comply with the Assurances contained in Appendix "E" (PP-A-1) and the Special Conditions set forth in Appendix "F" attached hereto and made a part hereof THE DEPARTMENT SHALL: 8. Bill the SPONSOR for the SPONSOR's share of estimated PROJECT COST. The DEPARTMENT will bill the SPONSOR for the SPONSOR's share of additional estimated PROJECT COST for changes approved in accordance with Section 1 1 at the time of execution of the amendment for approved work. 9. Upon receipt of payment request approved by the SPONSOR, make payment for eligible PROJECT COSTS. The DEPARTMENT will seek reimbursement from the FAA, through the block grant issued to the DEPARTMENT, for funds expended on eligible PROJECT COSTS. 06/12/98 3 BLOCKGRANT The DEPARTMENT will not make payments for any PROJECT work prior to receipt of payment from the SPONSOR for the SPONSOR's share of that item of PROJECT work. 10. Make final accounting to the SPONSOR upon completion of the PROJECT, payment of all PROJECT COSTS, and completion of necessary audits. Any excesses or deficiencies will be returned to or billed to the SPONSOR. IT IS FURTHER AGREED: 11. The PROJECT COST participation is estimated to be as shown below and as in the attached Exhibit 1. Exhibit 1 is to be considered an estimate. The actual DEPARTMENT, FAA, and SPONSOR share of the PROJECT COST will be determined at the time of financial closure of the FAA grant. Federal share $90,000 Maximum DEPARTMENT share SPONSOR share 10,000 Estimated PROJECT COST $100,000 12. The PROJECT COST shall be met in part with federal funds granted to the DEPARTMENT by FAA through the block grant program and by DEPARTMENT funds. Upon final settlement of costs, the federal funds will be applied to the eligible items of PROJECT COST at the rate of 90 percent up to the maximum obligation shown in Section 11 or as revised in the Budget Letter discussed in Section 14, The DEPARTMENT funds will be applied to the balance of the PROJECT COST at a rate of 50 percent for those items eligible for state participation up to the maximum obligation shown in section 11 or as revised in the Budget Letter. Any items of PROJECT COST not funded with FAA or DEPARTMENT funds will be the sole responsibility of the SPONSOR, 13. The SPONSOR hereby agrees the costs reported to the DEPARTMENT for this Agreement shall represent only those items which are properly chargeable in accordance with this Agreement. The SPONSOR also hereby certifies that it has read the Agreement terms and has made itself aware of the applicable laws, regulations, and terms of this Agreement that apply to the reporting of costs incurred under the terms of this Agreement. 14. The PROJECT COSTS shown in Section 11 are the maximum obligation of DEPARTMENT and federal funds under this Agreement. The maximum obligation of DEPARTMENT and federal funds may be adjusted to an amount less than the maximums shown in Section 11, through a budget letter issued by the DEPARTMENT. A Budget Letter will be used when updated cost estimates for the PROJECT reflect a change in the amount of funds needed to fund all PROJECT COSTS. The Budget Letter will be signed by the Administrator of the Airport Development Division of the Bureau of Aeronautics. 06/12/98 4 BLOCKGRANT A Budget Letter shall also be used to add or delete work items from the PROJECT description provided the costs do not exceed the maximum obligation of section 11. If the total amount of PROJECT COSTS exceeds the maximum obligation shown in Section 11, the PROJECT scope will have to be reduced or a written amendment to this Agreement to provide additional funds will have to be executed by both parties before the work is started. 15. In the event it is determined by the DEPARTMENT that there will be either insufficient funds or insufficient time to properly administer such funds for the entire PROJECT or portions thereof, the DEPARTMENT, prior to advertising or authorizing work performance, may cancel the PROJECT, or any portion thereof, by giving written notice to the SPONSOR. In the event this occurs, this Agreement shall be void and of no effect with respect to the cancelled portion of the PROJECT. Any SPONSOR deposits on the cancelled portion, less PROJECT COST incurred on the cancelled portions, will be refunded following receipt of a letter from the SPONSOR requesting excess funds be returned, or at the time of financial closure, whichever comes first. The DEPARTMENT shall not participate in the PROJECT COST incurred on the cancelled portions of the PROJECT and Sections 11 and 12 shall not be construed to require the DEPARTMENT's participation in the cancelled portion. Reimbursement of any costs pursuant to this section shall not constitute a final determination by the DEPARTMENT of the allowability of such costs and shall not constitute a waiver by the DEPARTMENT of any violation of the terms and conditions of this Agreement committed by the SPONSOR. 16. In the event that an audit performed by or on behalf of the DEPARTMENT indicates an adjustment to the costs reported under this Agreement, or questions the allowability of an item of expense, the DEPARTMENT shall 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 the Notice of Audit Results, the SPONSOR shall: (a) respond in writing to the responsible Bureau of the Department indicating whether or not they concur with the audit report, (b) clearly explain the nature and basis for any disagreement as to a disallowed item of expense and, (c) submit to the DEPARTMENT a written explanation as to any questioned or no opinion expressed item of expense, hereinafter referred to as the "RESPONSE". The RESPONSE shall be clearly stated and 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 the DEPARTMENT. The RESPONSE shall refer to and apply the language of the Agreement. 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 the DEPARTMENT to finally disallow any items of questioned or no opinion expressed cost, 06/12/98 5 BLOCKGRANT The DEPARTMENT shall 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 the DEPARTMENT determines that an overpayment has been made to the SPONSOR, the SPONSOR shall repay that amount to the DEPARTMENT, or reach agreement with the DEPARTMENT on a repayment schedule, within thirty (30) days after the date of an invoice from the DEPARTMENT. If the SPONSOR fails to repay the overpayment or reach agreement with the DEPARTMENT on a repayment schedule within the thirty (30) day period, the SPONSOR agrees that the DEPARTMENT shall deduct all or a portion of the overpayment from any funds then or thereafter payable by the DEPARTMENT to the SPONSOR under this Agreement, 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 payments or repayment 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 the DEPARTMENT 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 the DEPARTMENT's decision only as to any item of expense the disallowance of which was disputed by the SPONSOR in a timely filed RESPONSE. 17. This Agreement shall be in effect for a period of thirty-six (36) months from the date of execution, 18. Failure on the part of the SPONSOR to comply with any of the conditions in this Agreement may be considered cause for placing the SPONSOR in a state of non-compliance thereby making the SPONSOR ineligible for future federal and/or state funds until such time the non- compliance issues are resolved. In addition, said failure may constitute grounds for cancellation of the PROJECT, and/or repayment of all grant amounts on a pro rata basis, if the PROJECT has begun. In this section, pro rata means proration of the cost of the PROJECT over twenty (20) years, if the PROJECT has not yet begun. 19. Any approvals, reviews, and inspections of any nature provided by the DEPARTMENT shall not be construed as a warranty or assumption of liability on the part of the DEPARTMENT. It is expressly understood and agreed that any such approvals are for the sole and exclusive purposes of the DEPARTMENT, which is acting in a governmental capacity under this Agreement and that such approvals are a governmental function incidental to the grant which is the subject of this Agreement. Any approvals, reviews, and inspections provided by the DEPARTMENT will not relieve the SPONSOR of its obligations hereunder, nor are such approvals, reviews, and inspections provided by the DEPARTMENT to be construed as a warranty as to the propriety of the SPONSOR's performance, but are undertaken for the sole use and information of the DEPARTMENT. 06/12/98 6 BLOCKGRANT 20. In connection with the performance of PROJECT work under this Agreement, the parties hereto (hereinafter in Appendix "A" referred to as the "contractor") agree to comply with the State of Michigan provisions for "Prohibition of Discrimination in State Agreements", as set forth in Appendix "A", attached hereto and made a part hereof. The parties further covenant that they will comply with the Civil Rights Act of 1964, being P.L. 88-352, 78 Stat. 241, as amended, being Title 42 U.S.C. Sections 1971, 1975a-1975d and 2000a-2000h-6 and the Regulations of the United States Department of Transportation (49 C.F.R. Part 21) issued pursuant to said Act, including Appendix "B", attached hereto and made a part hereof, and will require similar covenants on the part of any contractor or subcontractor employed in the performance of this Agreement. 21. In accordance with 1980 PA 278; MCL 423.321, et seq; MSA 17.458(22), p_t_m, the SPONSOR, in the performance of this Agreement, shall not enter into a contract with a subcontractor, manufacturer, or supplier listed in the register maintained by the State of Michigan, Department of Labor, of employers who have been found in contempt of court by a FAA court of appeals, on not less than three (3) 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 U.S.C. 158. The DEPARTMENT may void this Agreement if the name of the SPONSOR or the name of a subcontractor, manufacturer, or supplier utilized by the SPONSOR in the performance of this Agreement subsequently appears in the register during the performance period of this Agreement. 22. In any instance of dispute and/or litigation concerning the PROJECT, the resolution thereof shall be the sole responsibility of the parties to that Agreement which is the subject of the controversy. It is understood and agreed that any legal representation of the SPONSOR in any dispute and/or litigation shall be the financial responsibility of the SPONSOR. 23. In addition to the protection afforded by any policy of insurance, the SPONSOR agrees to indemnify and save harmless the State of Michigan, the Michigan State Transportation Commission, the Michigan Aeronautics Commission, the DEPARTMENT, the FAA, and all officers, agents, and employees thereof: a. from any and all claims by persons, firms, or corporations for labor, materials, supplies, or services provided to the SPONSOR in connection with the SPONSOR's performance of the project assignments, and b. from any and all claims of injuries to, or death of, any and all persons, and for loss of or damage to property and environmental damage or degradation, response and clean up costs and from attorney fees and related costs arising out of, under, or by reason of the SPONSOR's performance of the project assignments under this Agreement, except claims resulting from the sole negligence of said indemnitee, its agents or employees. 06/12/98 7 BLOCKGRANT 24. The DEPARTMENT and the FAA shall not be subject to any obligations or liabilities by contractors of the SPONSOR or their subcontractors or any other person not a party to this Agreement without its specific consent and notwithstanding its concurrence in or approval of the award of any contract or subcontract, or the solicitation thereof. 25. It is expressly understood and agreed that the SPONSOR shall take no action or conduct which arises either directly or indirectly out of its obligations, responsibilities, and duties under this Agreement, which results in claims being asserted against or judgments being imposed against the State of Michigan, the DEPARTMENT, the FAA, the Michigan State Transportation Commission, and/or the Michigan Aeronautics Commission. In the event that the same occurs, for the purposes of this Agreement it will be considered as a breach of this Agreement thereby giving the State of Michigan, the DEPARTMENT, the FAA, the Michigan State Transportation Commission, and/or the Michigan Aeronautics Commission a right to seek and obtain any necessary relief or remedy, including, but not by way of limitation, a judgment for money damages. 26. In case of any discrepancies between the body of this Agreement and any Exhibit hereto, the body of the Agreement shall govern. 06/12/98 8 BLOCKGRANT 27. This Agreement shall become binding on the parties hereto and of full force and effect upon the signing thereof by the duly authorized officials for the parties hereto, and upon the adoption of the necessary resolution approving said Agreement and authorizing the signatures thereto of the respective officials of the SPONSOR, a certified copy of which resolution shall be attached to this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. OAKLAND COUNTY BOARD OF COMMISSIONERS BY: TITLE: MICHIGAN DEPARTMENT OF TRANSPORTATION BY: TITLE: Department Director 06/12/98 9 BLOCKGRANT ADMINISTRATION DEPARTMENT-AERO EXHIBIT 1 OAKLAND COUNTY INT'L AIRPORT PONTIAC, MICHIGAN Project No. C-26-0079-1698 03-Jun-98 Federal State Local Total $900 $0 $100 $1,000 $900 $0 $100 $1,000 ENGINEERING $15,300 $0 $1,700 $17,000 AERO - Design $2,250 $0 $250 $2,500 Consultant - Design $5,400 $0 $600 $6,000 AERO - Const Supv $2,250 $0 $250 $2,500 Consultant - Const Supv $5,400 $0 $600 $6,000 CONSTRUCTION Rehab/Widen NE Taxiway (Change Order to C83) $70,200 $0 $7,800 $78,000 $70,200 $0 $7,800 $78,000 CONTINGENCIES $3,600 $0 $400 $4,000 $3,600 $0 $400 $4,000 TOTAL PROJECT BUDGET $90,000 $0 $10,000 $100,000 July 16, 1998 FISCAL NOTE (M.R. #98156) BY: FINANCE COMMITTEE, SUE ANN DOUGLAS, CHAIRPERSON IN RE: CENTRAL SERVICES - OAKLAND COUNTY INTERNATIONAL AIRPORT - 1998 GRANT PROGRAM ACCEPTANCE TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: Pursuant to Rule XII-F of this Board, the Finance Committee has reviewed the above referenced resolution and finds: 1. Oakland County has received a Michigan Department of Transportation Grant Project #C-26-0079-1698, for Federal funds in the maximum obligation of $90,000 for the development and improvement of Oakland County International Airport. 2. The project consists of the rehabilitation and widening of the northeast taxiway . 3. The project as offered and approved by the Michigan Department of Transportation and Federal Aviation Administration requires a local match in the amount of $10,000. 4. The required match is available in the Airport Fund balance. 5. The Airport Committee has reviewed and approved the grant, subject to ratification by the Oakland County Board of Commissioners. 6. The following amendment be made to the FY 1998 Adopted Budget: 13-137201-00050-8005 Estimated Profit or Loss $(10,000) 13-137201-00050-2872 Grant Match 10.000 $ _Q. FINANCE COMMITTEE Finance Committee Vote: Motion carried on unanimous roll call vote Resolution #98156 July 16, 1998 Moved by Dingeldey supported by Kaczmar the resolution be adopted. AYES: Douglas, Garfield, Gregory, Hoffman, Holbert, Huntoon, Jacobs, Johnson, Kaczmar, Kingzeft, Law, McCulloch, McPherson, Millard, Moffitt, Obrecht, Palmer, Schmid, Taub, Wolf, Amos, Coleman, Devine, Dingeldey. (24) NAYS: None. (0) A sufficient majority having voted therefor, the resolution was adopted. STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Lynn D. Allen, 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 July 16, 1998 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 16th day of July 1998. OLOPEEL___ D. Allen, County Clerk