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HomeMy WebLinkAboutResolutions - 2004.03.30 - 27390April 1, 2004 REPORT (MISC. #04081) BY: PLANNING & BUILDING COMMITTEE, CHARLES E. PALMER, CHAIRPERSON 7 RE: DEPARTMENT OF CENTRAL SERVICES — OAKLAND COUNTY INTERNATIONAL AIRPORT — 2004 GRANT PROGRAM ACCEPTANCE — CONSTRUCTION OF NORTH HANGAR AREA To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: The Planning & Building Committee having reviewed the above referenced resolution on March 23, 2004 Reports to the Board with the recommendation the Resolution be adopted. Chairperson, on behalf of the Planning & Building Committee, I move the acceptance of the foregoing report. PLANNING & BUILDING COMMITTEE Planning & Building Committee Vote: Motion carried on unanimous roll call vote with Coleman absent I ' MISCELLANEOUS RESOLUTION #04081 April 1, 2004 BY: General Government Committee, William R. Patterson, Chairperson IN RE: DEPARTMENT OF CENTRAL SERVICES — OAKLAND COUNTY INTERNATIONAL AIRPORT — 2004 GRANT PROGRAM ACCEPTANCE — CONSTRUCTION OF NORTH HANGAR AREA 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. 2004-0162, for State funds in the amount of $1,386,700 for the development and improvement of Oakland County International Airport; and WHEREAS the project consists of construction of a north hangar area; and WHEREAS the Michigan Department of Transportation 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 requires a local grant match of $199,300, which is available from the airport fund; and WHEREAS the Airport Committee has reviewed the project and recommends acceptance of 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 $1,586,000. BE IT FURTHER RESOLVED that the Chairperson of the Oakland County Board of Commissioners is authorized to execute the 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 on a roll call vote with Hatchett absent. Pam Worthington From: Greg Givens [givensg@co.oakland.mi.us ] Sent: Tuesday, March 23, 2004 9:20 AM To: Wedell, Harvey; Randall, Karl Cc: Pohlod, Michael; Smith, Laverne; Frederick, Candace; Worthington, Pam; Shortley, JoeIlen Subject: REVISED - CONTRACT REVIEW— Central Services / Aviation REVISED - CONTRACT REVIEW - Central Services / Aviation GRANT NAME: Construction of North Hangar Area - Oakland County International Airport FUNDING AGENCY: Michigan Department of Transportation - Bureau of Aeronautics DEPARTMENT CONTACT PERSON: Patricia Shull / 248/666-3900 STATUS: Acceptance DATE: March 23, 2004 (original sign-off March 16, 2004) Pursuant to Misc. Resolution #01320, please be advised the captioned grant materials have completed internal contract review. Below are the comments returned by review departments. 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 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. Corporation Counsel has provided comment. No contract amendment is needed at this time.. Department of Management and Budget: Approved.- Laurie Van Pelt (3/4/2004) Personnel Department: Approved. - Ed Poisson (3/9/2004) Risk Management and Safety: Approved by Risk Management. - Julie Secontine (3/13/2004) Corporation Counsel: I am working with Karl Randall to resolve a concern I have with the above grant. MDOT has our concerns and should be responding to Karl in the next few days. We hope to have this resolved prior to the GG meeting on Monday. - Joellen Shortley (3/16/2004) Revised Comment: As we discussed, I have a problem with the following language in Attachment 7, 3(i) of this grant: " The SPONSOR, upon presentation of the contract documents by the DEPARTMENT,...will execute and return the appropriate documents on or before a date to be set by the DEPARTMENT in accordance with the DEPARTMENT's applicable "General Provisions for Construction of Airports". The grant requires the County (the SPONSOR) to include several requirements in the contract with the vendor. MDOT (the DEPARTMENT) writes the contract with the Contractor and under the provision above requires the County to sign the contract with the Contractor. There is no opportunity for the County to object to any of the terms in the contract prepared by MDOT. What if MDOT had a provision in the contract with the Contractor that was unacceptable to the County? The contract prepared by MDOT with the Contactor makes no reference to the grant or the requirements in the grant that the County agrees to make the 1 responsibility of the Contractor. I proposed the following language as a substitute for the current section 3(i): The DEPARTMENT shall prepare the contract required under this grant with the Contractor to perform the services contemplated under this grant. The SPONSOR shall cooperate with the DEPARTMENT and the Contractor in the completion of the contracted services as reasonably requested and shall return the appropriate documents on or before a date set by the DEPARTMENT. I understand that you are under a tight deadline with this grant. It is my understanding that MDOT told you they are willing to work with the County on amending the grant language for future grants. MDOT has made changes in their contracts for us in the past and I trust that you will get them to work with us on this issue. I do not object to your plan of asking the Board to approve this grant as currently written with the understanding that you will work to have MDOT resolve this for the next grant. - Joellen Shortley (3/22/2004) CONTRACT NO. 2004-0162 AGENDA: DAB CONTRACT FOR A STATE/LOCAL AIRPORT PROJECT THIS CONTRACT is made and entered into this date of by and between the Michigan Department of Transportation, hereinafter referred to as the "DEPARTMENT," and 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 Oakland County International Airport, whose associated city is Pontiac, Michigan, hereinafter referred to as the "PROJECT," described in detail in Exhibit 1, dated February 25, 2004, attached hereto and made a part hereof. PROJECT DESCRIPTION: Construction of a north hangar area (Part A). WITNESSETH: NOW, THEREFORE, the parties agree that: 1. The term "PROJECT COST," as herein used, is defined in Attachment(s) 7, attached hereto and made a part hereof. PROJECT COST will also include administrative costs incurred by the DEPARTMENT in connection with the PROJECT. Administrative costs incurred by the SPONSOR are not eligible PROJECT COSTS. THE SPONSOR WILL: 2. Pledge sufficient funds to meet its obligations as outlined in this Contract. 3. 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, said records to be hereinafter referred to as the "RECORDS." Separate accounts will be established and maintained for all costs incurred under this Contract. b. The SPONSOR will comply with the provisions of 1951 PA 51; MCL 247.660h; MSA 9.1097 (10i). 1 PUBLIC STATELOC v4w 2/25/04 t • c. The SPONSOR will maintain the RECORDS for at least three (3) years from the date of final payment made by the DEPARTMENT 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. The DEPARTMENT 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. 4. Provide and will require its subcontractors to provide access by the DEPARTMENT or its representatives to all technical data, reports, and documents pertaining to this Contract. Copies of technical data, reports, and other documents will 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 Contract. All technical data, reports, and documents will be maintained for a period of three (3) years from the date of final payment. 5. In the performance of the PROJECT by itself, by a subcontractor, or by anyone acting on its behalf, the SPONSOR agrees that it 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 Contract. THE DEPARTMENT WILL: 6. Make final accounting to the SPONSOR upon completion of the PROJECT, pay of all PROJECT COSTS, and complete all necessary audits. Any excesses or deficiencies will be returned to or billed to the SPONSOR. PUBLIC STATELOC v4w 2/25/04 2 1,- IT IS FURTHER AGREED: 7. 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 and SPONSOR shares of the PROJECT COST will be determined at the time of financial closure of the PROJECT. Dollar Amount Maximum DEPARTMENT share $1,386,700.00 SPONSOR share $199,300.00 Estimated PROJECT COST $1,586,000.00 8. The PROJECT COST will be met in part by contributions from the DEPARTMENT. The DEPARTMENT funds will be applied to the PROJECT COST at a rate of 87% for those items eligible for state participation, in an amount not to exceed the maximum obligation shown in Section 7. Any items of PROJECT COST not funded with DEPARTMENT funds will be the sole responsibility of the SPONSOR. DEPARTMENT funds in this Contract made available through Legislative appropriation are based on projected revenue estimates. The DEPARTMENT may reduce the amount of this contract if the revenue actually received is insufficient to support the appropriation under which this contract is made. 9. The SPONSOR agrees the costs reported to the DEPARTMENT 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. 10. Any change in scope of the PROJECT, the DEPARTMENT's share of the PROJECT cost, or the term of this Contract will be by award of a prior written amendment to this Contract by the parties. 11. 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 Contract will be void and of no effect with respect to the canceled portion of the PROJECT. Any SPONSOR deposits on the canceled portion less PROJECT COST incurred on the canceled 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 will not participate in the PROJECT COST incurred on the canceled portions of the PROJECT, and Section 8 will not be construed to require the DEPARTMENT's participation in the canceled portion. PUBLIC STATELOC v4w 2/25/04 3 ' 12. Payment of or reimbursement to the SPONSOR of any cost by the DEPARTMENT will not constitute a final determination by the DEPARTMENT of the allowability of such cost and will not constitute a waiver by the DEPARTMENT of any violation of the terms of this Contract committed by the SPONSOR. The DEPARTMENT will make final determination as to allowability only after final audit of the PROJECT. 13. All agreements and/or contracts or supply requisitions involving DEPARTMENT funds will comply with Title 49, CFR Part 18, incorporated herein by reference as if the same were repeated in full herein. 14. In the event that an audit performed by or on behalf of the DEPARTMENT indicates an adjustment to the costs reported under this Contract or questions the allowability of an item of expense, the DEPARTMENT 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 the Notice of Audit Results, the SPONSOR will (a) respond in writing to the responsible Bureau of the Department 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 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 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 the DEPARTMENT. 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 the DEPARTMENT to finally disallow any items of questioned or no opinion expressed cost. The DEPARTMENT 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 the DEPARTMENT determines that an overpayment has been made to the SPONSOR, the SPONSOR will 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 will deduct all or a portion of the overpayment from any funds then or thereafter payable by the DEPARTMENT 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 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 PUBLIC STATELOC v4w 2/25/04 4 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. 15. This Contract will be in effect for a period of twenty (20) years from the date of award. 16. Any approvals, reviews, and inspections of any nature by the DEPARTMENT will 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 Contract, and that such approvals are a governmental function incidental to the grant that is the subject of this Contract. Any approvals, reviews, and inspections 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. 17. In connection with the performance of PROJECT work under this Contract, the parties (hereinafter in Appendix A referred to as the "contractor") agree to comply with the State of Michigan provisions for "Prohibition of Discrimination in State Contracts" 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. Section 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 Contract. 18. In accordance with 1980 PA 278; MCL 423.321 et seq; MSA 17.458(22), 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 State of Michigan, Department of Labor, of employers who have been found in contempt of court by a federal court of appeals on not less that 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 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 period of this Contract. 2/25/04 PUBLIC STATELOC v4w 19. In any instance of dispute and/or litigation concerning the PROJECT, 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. 20. The DEPARTMENT 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. 21. 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. This Contract is not intended to nor will it be interpreted as giving either party a right of indemnification, either by contract 'or at law, for claims arising out of the performance of this Contract. 22. With regard to claims based on goods or services that were used to meet the SPONSOR's obligation to the DEPARTMENT 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 the DEPARTMENT due to any violation of 15 USC, Sections 1 - 15, and/or 1984 PA 274, MCL 445.771 - .788, excluding Section 4a, to the State of Michigan or the DEPARTMENT. The SPONSOR will 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 the DEPARTMENT with regard to claims based on goods or services that were used to meet the SPONSOR's obligation to the DEPARTMENT under this Contract due to any violation of 15 USC, Sections 1 - 15, and/or 1984 PA 274, MCL 445.771 - .788, excluding Section 4a, to the State of Michigan or the DEPARTMENT as a third- party beneficiary. The SPONSOR will notify the DEPARTMENT 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 the DEPARTMENT under this Contract may have occurred or is threatened to occur. The SPONSOR will also notify the DEPARTMENT 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 the DEPARTMENT under this Contract. PUBLIC STATELOC v4w 2/25/04 6 23. In case of any discrepancies between the body of this Contract and any Exhibit(s) hereto, the body of the Contract will govern. 24. 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 the DEPARTMENT 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 the DEPARTMENT with this Contract, as applicable, and with the approval of the State Administrative Board. IN WITNESS WHEREOF, the parties have caused this Contract to be awarded. OAKLAND COUNTY BOARD OF COMMISSIONERS BY: Title: MICHIGAN DEPARTMENT OF TRANSPORTATION BY: Title: Department Director 2/25/04 7 PUBLIC STATELOC v4w ADMINISTRATION Local $150 $150 DEPARTMENT-AERO Federal $0 $0 Total $1,500 $1,500 State $1,350 $1,350 EXHIBIT 1 OAKLAND COUNTY INT'L AIRPORT PONTIAC, MICHIGAN 2003 State/Local February 25, 2004 $0 ENGINEERING CONSTRUCTION Construct north hangar area (Part A) Consultant - Const Supervision AERO - Const Supervision CONTINGENCIES Funding contingency $0 $0 $1,341,025 $0 $1,209,514 $0 $128,361 $0 $3,150 $0 $44,325 $0 $44,325 $0 $193,778 $179,166 $14,262 $350 $5,372 $5,372 $0 $1,534,803 $1,388,680 $142,623 $3,500 $49,697 $49,697 TOTAL PROJECT BUDGET $0 $1,386,700 $199,300 $1,586,000 1- I ATTACHMENT 7 SUPPLEMENTAL PROVISIONS FOR STATE/LOCAL CONTRACTS INVOLVING CAPITAL IMPROVEMENTS FOR WHICH THE DEPARTMENT OPENS BIDS AND AWARDS THE CONTRACT 1. The term PROJECT COST shall include the cost of the physical construction necessary for the completion of the PROJECT, including the costs of preliminary, design and construction engineering and supervision, airport layout plan updates relating to the PROJECT and the cost of advertising for and receiving bids. 2. The Sponsor shall select a consultant to perform each element of the PROJECT which requires such expertise. All consultant contracts shall be between the SPONSOR and the consultant. 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. The DEPARTMENT is authorized by the SPONSOR, pursuant to this Contract, to advertise and to award the contract for the construction work, in the name of the SPONSOR, in accordance with the following: a. Prequalification of bidders shall be determined by the DEPARTMENT in accordance with the "Administrative Rules Governing the Prequalification of Bidders for Highway and Transportation Construction Work." b. Prior to advertising the construction work for receipt of bids, the SPONSOR may delete any portion or all of the PROJECT work. c. If after receipt of bids for the construction work the SPONSOR gives notice of circumstances which affect its ability to proceed, the DEPARTMENT, on behalf of the SPONSOR, shall reject the bids. d. In the event of the rejection of all bids, any costs incurred by the DEPARTMENT shall be deemed to be PROJECT COST. 1 of 5 4 e. Upon receipt of bids, the DEPARTMENT, on behalf of the SPONSOR, will select the most responsive bidder in accordance with the DEPARTMENT's applicable "General Provisions for Construction of Airports". The DEPARTMENT will then prepare a "Recommendation to Award': and submit it to the SPONSOR. The DEPARTMENT will forward the contract documents to the contractor and then the SPONSOR for execution. f. The DEPARTMENT is authorized to receive, hold, and return proposal guarantees on behalf of and in the name of the SPONSOR pursuant to the requirements enumerated in the DEPARTMENT's applicable "General Provisions for Construction of Airports". In the event of the forfeiture of a proposal guaranty, in accordance with the DEPARTMENT's applicable "General Provisions for Construction of Airports" and upon receipt of a request from the SPONSOR, the DEPARTMENT will forward to the SPONSOR the forfeited proposal guaranty. h. The DEPARTMENT is authorized to receive performance and lien bonds and certificates of insurance on behalf of and in the name of the SPONSOR pursuant to the requirements enumerated in the DEPARTMENT's applicable "General Provisions for Construction of Airports". The SPONSOR, upon presentation of the contract documents by the DEPARTMENT, and subject to the possible implementation of the exceptions provided in paragraph b & c, above, will execute and return the appropriate documents on or before a date to be set by the DEPARTMENT in accordance with the DEPARTMENT's applicable "General Provisions for Construction of Airports". Upon receipt of the executed contract documents from the SPONSOR, the DEPARTMENT will award the contract. Any such approvals shall not be construed as a warranty of the subcontractor's qualifications, professional standing, ability to perform the work being subcontracted, or financial integrity. 4. The DEPARTMENT is authorized by the SPONSOR pursuant to this Contract to approve subcontracts between the prime contractor and the subcontractor on behalf of the SPONSOR. Any such approvals shall not be construed as a warranty of the subcontractor's qualifications, professional standing, ability to perform the work being subcontracted, or financial integrity. 5. Should termination of a construction Contract pursuant to Section 80-09 of the DEPARTMENT's applicable "General Provisions for Construction of Airports" occur, the DEPARTMENT shall be given immediate written notice by the SPONSOR. g. J. 2 of 5 1 • 6. Any changes to the PROJECT plans and specifications made after receipt of bids require prior written approval of the DEPARTMENT. The SPONSOR or their representatives may request such changes by initiating a change order to the construction contract in accordance with the "General Provisions for Construction of Airports" and the DEPARTMENT's "Project Engineers Manual" for airport construction. Any change orders that increase the maximum DEPARTMENT share, or determined to be significant by the DEPARTMENT, shall require a prior written amendment to this Contract. In the event that during the course of PROJECT construction, it becomes necessary to exceed estimated quantities of materials or labor and it is not reasonable to obtain prior consent from the DEPARTMENT without interrupting an ongoing construction activity, the SPONSOR's on-site supervisor may approve such overruns and the DEPARTMENT may share in the costs of such overruns only if all of the following conditions are met: a. The construction, including such overruns, remains in conformity with the PROJECT plans and specifications as revised. b. Such overruns do not exceed ten percent (10%) of that category within the PROJECT plans and specifications as revised. c. The SPONSOR or their representative immediately notify the DEPARTMENT of such overruns and the estimated cost thereof. d. That such on-site approval is necessary for the continuity in construction and that obtaining approval prior to proceeding would cause a material interruption in the PROJECT resulting in a significant increase in costs. ' 7. The SPONSOR will be billed by the DEPARTMENT following execution of this Contract. The amount of the billing will be as shown as local share on the attached Exhibit 1. The DEPARTMENT will bill the SPONSOR for the SPONSOR's share of additional estimated PROJECT COST for changes approved by the DEPARTMENT at the time of execution of the amendment or change order for approved work. The SPONSOR shall make payment to the DEPARTMENT within thirty (30) days of the billing date. 8. 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. 3 of 5 4 9. Payment of all PROJECT COST incurred after the date of this Contract will be made by the DEPARTMENT, upon receipt of payment requests approved by the SPONSOR. The DEPARTMENT will not make payment for any PROJECT work prior to receipt of payment from the SPONSOR for the SPONSOR's share of that item of PROJECT work. 10. The SPONSOR shall operate and maintain in a safe and serviceable condition the Airport and all facilities thereon and connected therewith which are necessary to serve the aeronautical users of the Airport other than facilities owned or controlled by the United States or the State of Michigan, for a period of twenty (20) years from the date of this Grant Contract, and will not permit any activity thereon which would interfere with its use for airport purposes; provided that nothing herein shall be construed as requiring the maintenance, repair, restoration, or replacement of any structure or facility which is substantially damaged or destroyed due to any act of God or other condition or circumstances beyond the control of the SPONSOR. The airport shall be maintained in full operating condition on a year-round basis in accordance with general utility licensing requirements set forth by the Michigan Aeronautics Commission rules and regulations. During this period, the Airport shall not be abandoned or permanently closed without the express written permission of the DEPARTMENT. Failure to comply with this section shall constitute grounds for forfeiture of the PROJECT and/or repayment of PROJECT COSTS on a pro rata basis. 11. Should the SPONSOR desire to abandon, close, sell or otherwise divest itself of the airport or any portion thereof, the SPONSOR agrees to also provide to the DEPARTMENT a prior written notice of any such intent giving the DEPARTMENT, for a period of one hundred eighty (180) days after receipt of such notice, a first right to purchase at fair market value the airport and all facilities thereon. Fair market value shall be determined by an independent appraisal of such properties. The notice of intent and first right to purchase shall be provided via registered or certified mail, return receipt, postage prepaid, addressed to the Deputy Director of the Multi- Modal Transportation Services Bureau (Aeronautics), Michigan Department of Transportation. 12. The SPONSOR will, either by the acquisition and retention of easements or other interests in or rights for the use of land or airspace, or by the adoption and enforcement of zoning regulations, prevent the construction, erection, alteration, or growth of any structure, tree or other object in the approach areas of the runways of the Airport, which would violate the conditions of the Michigan Aeronautics Commission Policy 3600.08. 4 of 5 • - • For a period of twenty (20) years, the SPONSOR will make the airport available, as an airport, for public use, to all types, kinds and classes of aeronautical use on fair and reasonable terms and without unjust discrimination. Rates charged to aeronautical users will be determined on the basis of the cost to the SPONSOR of providing the facility. In any agreement, contract, lease, or other arrangement under which a right or privilege at the airport is granted to any person, firm, or corporation to conduct or engage in an approved non-aeronautical activity, the SPONSOR will charge fair market value for the right to conduct such activity. During this period, all revenues generated by the airport, for either aeronautical or non-aeronautical activities, will be expended for the capital or operating costs of the airport; the local airport system; or other local facilities, which are owned or operated by the SPONSOR and directly and substantially related to the actual air transportation of passengers or property. 5 of 5 I - 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 Act No. 453, Public Acts of 1976, the contractor hereby agrees not to discriminate against an employee or applicant for employment with respect to hire, tenure, terms, conditions, or privileges of employment, or as a matter directly or indirectly related to employment, because of race, color, religion, national origin, age, sex, height, weight, or marital status. Further, in accordance with Act No. 220, Public Acts of 1976 as amended by Act No. 478, Public Acts of 1980 the contractor hereby agrees not to discriminate against an 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 shall 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 insure that applicants for employment and employees are treated without regard to their race, color, religion, national origin, age, sex, height, weight, marital status or a 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, upgrading, demotion or transfer, recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. 4. The contractor will, 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 his collective bargaining representative will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice advising the said labor union or workers' representative of the contractor's commitments under this appendix. 6. The contractor will comply with all relevant published rules, regulations, directives, and orders of the Michigan Civil Rights Commission which may be in effect prior to the taking of bids for any individual state project. * 1; IN 7. The contractor will 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 himself, and said contractor will permit access to his books, records, and accounts by the Michigan Civil Rights Commission and/or its agent, for purposes of investigation to ascertain compliance with this contract and relevant with rules, regulations, and orders of the Michigan Civil Rights Commission. 8. In the event that the Civil Rights Commission finds, after a hearing held pursuant to its rules, that a contractor has not complied with the contractual obligations under this agreement, the Civil Rights Commission may, as part of its order based upon such findings, certify said findings to the Administrative Board of the State of Michigan, which 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, and including the governing boards of institutions of higher education, until the contractor complies with said order of the 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 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 Civil Rights Commission to participate in such proceedings. 9. The contractor will include, or incorporate by reference, the provisions of the foregoing paragraphs (1) through (8) in every subcontract or purchase order unless exempted by the rules, regulations or orders of the Michigan Civil Rights Commission, and will provide in every subcontract or purchase order that said provisions will be binding upon each subcontractor or seller. March 1998 I' I PI 61 Appendix B (A er onaut ic s) CIVIL RIGHTS ACT OF 1964, TITLE VI -49 CFR PART 21 CONTRACTUAL REQUIREMENTS During the performance of this contract, the contractor, for itself, its assignees and successors in interest (hereinafter referred to as the "contractor") agrees as follows: 1. Compliance with Regulations. The contractor will comply with the Regulations relative to nondiscrimination in federally assisted programs of the Department of Transportation (hereinafter "DOT") Title 49, Code of Federal Regulations, Part 21, as they may be amended from time to time (hereinafter referred to as the Regulations), which are herein incorporated by reference and made a part of this contract. 2. Nondiscrimination. The contractor, with regard to the work performed by it during the contract, will not discriminate on the grounds of race, color, or national origin in the selection and retention of subcontractors, including procurement of materials and leases of equipment. The -contractor will not participate either directly or indirectly in the discrimination prohibited by section 21.5 of the Regulations, including employment practices when the contract covers a program set forth in Appendix B of the Regulations. 3. Solicitation for Subcontracts, Including Procurement of Materials and Equipment. In all solicitations either by competitive bidding or negotiation made by the contractor for work to be performed under a subcontract, including procurement of materials of leases of equipment, each potential subcontractor or supplier will be notified by the contractor of the contractor's obligations under this contract and the Regulations relative to nondiscrimination on the grounds of race, color, or national origin. 4. Information and Reports. The contractor will provide all information and reports required by the Regulations or directives issued pursuant thereto and will permit access to its books, records, accounts, other sources of information, and its facilities as may be determined by the Sponsor or the Federal Aviation Administration (FAA) to be pertinent to ascertain compliance with such Regulations, orders, and instructions. Where any information required of a contractor is in the exclusive possession of another who fails or refuses to furnish this information, the contractor will so certify to the sponsor of the FAA, as appropriate, and will set forth what efforts it has 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 sponsor will impose such contract sanctions as it or the FAA may determine to be appropriate, including, but not limited to: a. Withholding of payments to the contractor under the contract until the contractor complies, and/or 1 of 2 • w b. Cancellation, termination, or suspension of the contract, in whole or in part. 6. Incorporation of Provisions. The contractor will include the provisions Of paragraphs I through 5 in every subcontract, including procurement of materials and leases of equipment, unless exempt by the Regulations or directive issued pursuant thereto. The contractor will take such action with respect to any subcontract or procurement as the sponsor or the FAA may direct as a means of enforcing such provisions including sanctions for noncompliance. Provided, however, that in the event a contractor becomes involved in, or is threatened with, litigation with a subcontractor or supplier as a result of such direction, the contractor may request the Sponsor to enter into such litigation to protect the interests of the sponsor and, in addition, the contractor may request the United States to enter into such litigation to protect the interests of the United States. 2 of 2 • • FISCAL NOTE (MISC. 104080 April I, 2004 BY: FINANCE COMMITTEE, CHUCK MOSS, CHAIRPERSON IN RE: DEPARTMENT OF CENTRAL SERVICES - OAKLAND COUNTY INTERNATIONAL AIRPORT - 2004 GRANT PROGRAM ACCEPTANCE - CONSTRUCTION OF NORTH HANGAR AREA 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. Oakland County has received Michigan Department of Transportation Grant No. 2004-0162, for State funds in the amount of $1,386,700 for Oakland County International Airport. 2. The project is for construction of a north hangar area. 3. The Airport Committee has reviewed the project and recommends acceptance of the grant contract. 4. The funding period of the grant is 36 months from the date of the award. 5. The total cost for the project is $1,586,000, with $1,386,700 (87%) of the cost from State funds, and $199,300 (13%) from the Airport Fund for the grant match. 6. The Michigan Department of Transportation shall act as agent on behalf of the County in the administration of the project. 7. No General Fund appropriation is required. 8. No budget amendment is necessary. FINANCE COMMITTEE FINANCE COMMITTEE Motion carried unanimously on a roll call vote with Webster absent. /dliMet//01--k- G. William Caddell, County Clerk -1 I V Resolution #04081 April 1, 2004 Moved by Potter supported by Zack the resolutions on the Consent Agenda, be adopted (with accompanying reports being accepted). Vote on resolutions on the Consent Agenda: AYES: Coulter, Crawford, Douglas, Hatchett, Jamian, Knollenberg, KowaII, Law, Long, McMillin, Middleton, Moffitt, Moss, Palmer, Patterson, Potter, Rogers, Scott, Suarez, Webster, Wilson, Zack, Bullard. (23) NAYS: None. (0) A sufficient majority having voted therefore, the resolutions on the Consent Agenda were adopted (with accompanying reports being accepted). APPROVE THE FOREGOING RESOI.UTION / 0 STATE OF MICHIGAN) COUNTY OF OAKLAND) I, G. William Caddell, 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 1, 2004 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 1st day of April, 2004.