HomeMy WebLinkAboutResolutions - 2023.02.16 - 37970
AGENDA ITEM: Interlocal Agreement Between Suburban Mobility Authority for Regional
Transportation (SMART) and Oakland County for Countywide Public Transportation Services
DEPARTMENT: Economic Development
MEETING: Board of Commissioners
DATE: Thursday, February 16, 2023 6:00 PM - Click to View Agenda
ITEM SUMMARY SHEET
COMMITTEE REPORT TO BOARD
Resolution #2023-2594 _ 23-25
Motion to adopt the attached suggested resolution.
ITEM CATEGORY SPONSORED BY
Interlocal Agreement Yolanda Smith Charles
INTRODUCTION AND BACKGROUND
POLICY ANALYSIS
This is a request for the approval of an Interlocal Agreement and an appropriation of funds to the
Suburban Mobility Authority for Regional Transportation (SMART) to provide public transit services
for the residents of Oakland County (OC). The appropriation of funds will be in the amount not to
exceed $41,700,000 from the Oakland County Public Transportation Millage. With the passage of
the OC Transportation Millage in 2022, millage funds will be disbursed to SMART to support and
improve transportation services for all residents in the County through the creation and extension of
new routes, increase hours of operation and frequency, and fund related capital improvements (See
Exhibits B-E).
Corporation Counsel has negotiated and approved the three-year Interlocal Agreement and the
terms of payment will be negotiated on an annual basis. SMART will be responsible for the
administration of all contractual arrangements necessary to provide transit services and payment to
contractors. The Oakland County Department of Economic Development will serve as the
administrator for the interlocal agreement and will submit quarterly reports to the Economic
Development and Infrastructure Committee that includes ridership, expenses, and other relevant
information associated with the interlocal agreement. On final approval, the Board Chair is
authorized to execute the Interlocal Agreement on behalf of the County. The FY 2023 budget shall
be amended as reflected in the attached Schedule A – Budget Amendment.
BUDGET AMENDMENT REQUIRED: Yes
Committee members can contact Michael Andrews, Policy and Fiscal Analysis Supervisor at
248.425.5572 or andrewsmb@oakgov.com, or the department contact persons listed for additional
information.
CONTACT
Hilarie Chambers, Deputy County Executive II
ITEM REVIEW TRACKING
Yolanda Smith Charles, Created/Initiated - 2/16/2023
David Woodward, Board of Commissioners Approved - 2/16/2023
Hilarie Chambers, Executive's Office Approved - 2/21/2023
Lisa Brown, Clerk/Register of Deeds Final Approval - 2/28/2023
AGENDA DEADLINE: 02/16/2023 6:00 PM
ATTACHMENTS
1. OC_Transit - Interlocal Agreement with SMART_Sch. A
2. SMART Agreement 2.4.23 FINAL v2
3. SMART ExhibitA 2.9.23 FINAL
4. SMART ExhibitB 2.4.23 FINAL v2
5. SMART ExhibitC 2.4.23 FINAL
6. SMART ExhibitD 2.4.23 FINAL
7. SMART ExhibitE 2.4.23 FINAL
COMMITTEE TRACKING
2023-02-08 Economic Development & Infrastructure - Recommend and Forward to Finance
2023-02-08 Finance - Recommend to Board
2023-02-16 Full Board - Adopt
Motioned by: Commissioner Michael Gingell
Seconded by: Commissioner Penny Luebs
Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Kristen
Nelson, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson,
Janet Jackson, Gary McGillivray, William Miller III, Yolanda Smith Charles, Charles Cavell, Ajay
Raman (17)
No: None (0)
Abstain: None (0)
Absent: Christine Long, Brendan Johnson (2)
Passed
February 16, 2023
RESOLUTION #2023-2594 _ 23-25
Sponsored By: Yolanda Smith Charles
Economic Development - Interlocal Agreement Between Suburban Mobility Authority for
Regional Transportation (SMART) and Oakland County for Countywide Public Transportation
Services
Chair and Members of the Board:
WHEREAS voters passed the Oakland County Public Transportation Millage in 2022 to be levied at a
maximum rate of .95 mills (95 cents per $1,000 in taxable value) for a period of 10 years extending
through 2031 and replaces the local Oakland County Public Transportation Authority millage; and
WHEREAS an estimated $66,163,000 will be collected in Fiscal Year 2023 that has been allocated
towards supporting and expanding countywide public transportation services; and
WHEREAS millage funds will be disbursed to support current public transportation services in
Oakland County, create and extend new routes to connect local communities, increase hours of
operation and frequency, fund related capital improvements, and improve transit opportunities for
Transportation disadvantaged individuals.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby
approves the attached Interlocal Agreement between Oakland County and Suburban Mobility
Authority for Regional Transportation and authorizes an appropriation in an amount not to exceed
$41,700,000 from the Oakland County Public Transportation Millage.
BE IT FURTHER RESOLVED that SMART shall be responsible for the administration of all
contractual arrangements necessary to provide transit services including oversight of contracted
work, inspections, enforcement, resolution of any disputes with contractors and payment to
contractors for work that has been completed and approved in conformance with federal, state, and
local legal requirements, Oakland County policies and procedures, and millage obligations.
BE IT FURTHER RESOLVED that the Oakland County Department of Economic Development shall
serve as the administrator for the interlocal agreement.
BE IT FURTHER RESOLVED the Department of Economic Development shall submit quarterly
reports to the Economic Development and Infrastructure Committee as a communication that
includes ridership, expenses, and other relevant information associated with the interlocal agreement.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners authorizes the
Chairperson of the Board to execute the Interlocal Agreement on behalf of Oakland County.
BE IT FURTHER RESOLVED that the FY 2023 budget shall be amended as reflected in the attached
Schedule A – Budget Amendment.
Chair, the following Commissioners are sponsoring the foregoing Resolution: Yolanda Smith
Charles.
Date: February 16, 2023
David Woodward, Commissioner
Date: February 21, 2023
Hilarie Chambers, Deputy County Executive II
Date: February 28, 2023
Lisa Brown, County Clerk / Register of Deeds
COMMITTEE TRACKING
2023-02-08 Economic Development & Infrastructure - Recommend and Forward to Finance
2023-02-08 Finance - Recommend to Board
2023-02-16 Full Board - Adopt
VOTE TRACKING
Motioned by Commissioner Michael Gingell seconded by Commissioner Penny Luebs to adopt the
attached Interlocal Agreement: Interlocal Agreement Between Suburban Mobility Authority for
Regional Transportation (SMART) and Oakland County for Countywide Public Transportation
Services.
Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Kristen Nelson,
Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson, Janet
Jackson, Gary McGillivray, William Miller III, Yolanda Smith Charles, Charles Cavell, Ajay Raman
(17)
No: None (0)
Abstain: None (0)
Absent: Christine Long, Brendan Johnson (2)
Passed
ATTACHMENTS
1. OC_Transit - Interlocal Agreement with SMART_Sch. A
2. SMART Agreement 2.4.23 FINAL v2
3. SMART ExhibitA 2.9.23 FINAL
4. SMART ExhibitB 2.4.23 FINAL v2
5. SMART ExhibitC 2.4.23 FINAL
6. SMART ExhibitD 2.4.23 FINAL
7. SMART ExhibitE 2.4.23 FINAL
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
February 16, 2023, 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 Circuit Court at
Pontiac, Michigan on Thursday, February 16, 2023.
Lisa Brown, Oakland County Clerk / Register of Deeds
Oakland County, Michigan
OAKLAND TRANSIT, OAKLAND COUNTY TRANSIT DIVISION - INTERLOCAL AGREEMENT BETWEEN SURBURBAN MOBILITY AUTHORITY FOR REGIONAL TRANSPORTATION AND OAKLAND COUNTY FOR LOCAL PUBLIC TRANSPORTATION
SERVICES
Schedule "A" DETAIL
R/E Fund Name Division Name
Fund #
(FND)Cost Center (CCN) #
Account #
(RC/SC)
Program #
(PRG)Grant ID (GRN) #
Project ID #
(PROJ)
Region
(REG)
Budget
Fund
Affiliate
(BFA)
Ledger
Account
Summary Account Title
FY 2023
Amendment
FY 2024
Amendment
FY 2025
Amendment
R Oakland Transit Oakland County Transit FND58800 CCN1090801 RC601637 PRG172155 610000 Property Tax Levy $41,700,000 $-$-
Total Revenues $41,700,000 $-$-
E Oakland Transit Oakland County Transit FND58800 CCN1090801 SC730373 PRG172155 730000 Contracted Services 41,700,000 --
Total Expenditures $41,700,000 $-$-
Page 1 of 13
INTERLOCAL AGREEMENT
OAKLAND COUNTY EXECUTIVE, DAVID COULTER
PUBLIC TRANSPORTATION AGREEMENT
BETWEEN
SUBURBAN MOBILITY AUTHORITY FOR REGIONAL TRANSPORTATION
AND
OAKLAND COUNTY
THIS PUBLIC TRANSPORTATION AGREEMENT ("Agreement") is made this ______day
of February, 2023, by and between the Suburban Mobility Authority for Regional
Transportation ("SMART”), 635 Griswold, Suite 600, Detroit, Michigan. 48226, a public
transportation authority created pursuant to 204 P.A. 1967, and Oakland County, (the
"County"), 1200 North Telegraph, Pontiac, Michigan 48341, a Municipal and Constitutional
Corporation, operating under Act 139 of 1973 (referred to collectively as the “Parties”). The
term of this Agreement is set forth in the Term of Agreement section, being Article XX, Section
20.8, below. As expressed in Article 2.2, the Parties anticipate that this Agreement shall
represent an ongoing partnership between the Parties, who will work collaboratively and in
good faith to effectuate the expansion and efficiency of Transportation Services for the benefit
of Oakland County Communities and businesses.
WHEREAS, Oakland County recognizes a growing need to provide safe, affordable and
reliable public transportation for workers to reach jobs, patients to access health care, students
to connect to colleges and universities and for seniors, the disabled and the general public to
have more transportation options; and
WHEREAS, Oakland County has historically been actively engaged in support of public
transportation, having two members on the SMART Board of Directors; and
WHEREAS, on November 8, 2022, Oakland County put forth a Transportation Millage
for the purpose of funding public transportation services in Oakland County, including
operating, maintaining, improving and expanding transit services, creating and expanding new
fixed routes for bus service connecting local communities, expanding transportation services
for seniors, veterans and people with disabilities, and providing transportation to get
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INTERLOCAL AGREEMENT
OAKLAND COUNTY EXECUTIVE, DAVID COULTER
employees to jobs, patients to healthcare, students to colleges and universities and for related
purposes authorized by law; and
WHEREAS, on November 8, 2022, the citizens of Oakland County approved a millage
for the above purpose to be levied at a maximum rate of .95 mills for a period of 10 years
beginning in 2022 and ending in 2031; and
WHEREAS, it is anticipated that the millage from the ballot proposal will generate
$66,163,000 in the first year; and
WHEREAS, the principal provider of public transportation services in Oakland County is
SMART. Other providers of public transportation services in Oakland County include: Western
Oakland Transportation Authority (WOTA), North Oakland Transportation Authority (NOTA)
and the Rochester Hills-Oakland-Rochester Older Persons' Commission (OPC); and
WHEREAS, SMART desires to provide certain public transportation services to the
County as described more particularly in this Agreement and the exhibits/attachments hereto
("Transportation Services"); and
WHEREAS, the County and SMART wish to enter into an agreement to provide
transportation services in furtherance of the goals and objectives of the November 8, 2022
millage; and
WHEREAS, as consideration for the Transportation Services, the County, through its
Board of Commissioners, will make payments to SMART as described more particularly in this
Agreement.
NOW THEREFORE, in consideration of the mutual covenants and agreements contained
herein, the Parties agree as follows:
ARTICLE I
DEFINITIONS
1.1 “Communities" mean cities, villages, townships or other political subdivisions
located within Oakland County
1.2 “County” shall mean Oakland County.
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INTERLOCAL AGREEMENT
OAKLAND COUNTY EXECUTIVE, DAVID COULTER
1.3 “Exhibits” to this Agreement, as referenced herein and as made a part of this
Agreement shall be as follows:
Exhibit A, Scope of Transportation Services (“Service Plan”)
Exhibit B, SMART Budget
Exhibit C, Performance Audit and Report
Exhibit D, Protocol for Implementing Service Changes
Exhibit E, Insurance
1.4 “Performance Audit and Report” refers to a report prepared using all available
metrics and methods adopted by other agencies and regulatory bodies such as the National
Transit Database, USDOT, MDOT, SEMCOG, Oakland County and the RTA, for the purpose of
evaluating whether Transportation Services are and have been provided in a sound,
economical and efficient manner, in compliance with the Service Plan.
1.5 “SMART Budget” means the proposed financial budget of SMART for each fiscal
year for the provision of Transportation Services, as may be amended by the Parties, included
in the term of this Agreement for the SMART service area.
1.6 “Transportation Services" means the transportation services to be provided
under this Agreement by SMART in support of Oakland County as set forth in Exhibit A, as
amended.
ARTICLE II
TRANSPORTATION SERVICES
2.1 SMART shall undertake and provide the Transportation Services as set forth in
Exhibit (A) attached hereto (the "Service Plan”) in accordance with this Agreement and all
applicable Federal, State and local laws as they may from time to time be amended.
2.2 During the term of this Agreement, the Parties will work collaboratively and in
good faith to effectuate the expansion of Transportation Services to include items such as a
larger geographical service area, a broader array of Transportation Services, an increase in hours
of operation, and/or an increase in ridership. The Parties shall meet at agreed upon intervals to
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INTERLOCAL AGREEMENT
OAKLAND COUNTY EXECUTIVE, DAVID COULTER
review and revise the scope of Transportation Services, Budget and Payment. Any agreed upon
changes shall be set forth in amendments to Exhibits A and B.
2.3 In the event that SMART is subject to local, federal or state operating revenue
reductions below that projected in an applicable SMART budget and which are beyond its
control, service reductions shall be made to the extent minimally necessary in any one SMART
fiscal year to balance SMART's budget. Such service reductions shall be made among the
counties of Oakland Wayne, and Macomb in proportion to the percentages representing the
local contributions of each of the three counties or, if more favorable to Oakland County, as
otherwise approved by the SMART Board of Directors.
ARTICLE III
PAYMENT
3.1 The County shall pay SMART for the provision of Transportation Services in
accordance with the terms and conditions set forth in Exhibit (B).
3.2 Payments shall be subject to a final reconciliation and payment once Oakland
County makes its final reconciliation.
3.3 Notwithstanding anything to the contrary contained in this Agreement, in no
event may the County withhold payments as set forth above due to non-compliance by SMART
with the Service Plan unless SMART has been previously notified by the County of such
noncompliance. Once substantial compliance has been achieved, the County shall promptly
remit the installments withheld.
ARTICLE IV
SERVICES
4.1 SMART shall perform the Transportation Services for the costs identified in
Exhibit (B).
4.2 Exhibit (B) shall, among other things, provide services for Oakland County of a
value of not less than the "allowable percentage" of total SMART revenues attributable to local
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INTERLOCAL AGREEMENT
OAKLAND COUNTY EXECUTIVE, DAVID COULTER
funding provided to SMART by the County. As used herein, the term "allowable percentage" shall
mean the percentage of SMART’s local revenues attributable to the local contribution provided
by the County, determined on a reasonable basis acceptable to the County, less five percent (5%)
(as the stipulated, maximum deviation factor).
4.3 The amount owing to SMART under this agreement shall not, in any event, be in
excess of any “Not to Exceed” amount, without prior approval from the County through its
Board of Commissioners
ARTICLE V
PERFORMANCE REPORT
5.1 SMART, at its expense, shall provide the County with a quarterly Performance
Audit and Report of SMART’s operations which addresses the parameters set forth in Exhibit C.
ARTICLE VI
FINANCIAL STATEMENT AUDIT
6.1 SMART shall provide the County with SMART's most recent audited financial
statements, prepared in accordance with generally accepted accounting principles ("GAAP") by
SMART’s auditor (the "Financial Statements").
6.2 SMART will provide to the County, within sixty (60) days after the end of each fiscal
quarter of SMART, quarterly interim compiled financial statements prepared in accordance with
GAAP (provided that any notes may be omitted). The interim financial statements shall indicate
variances between actual and budgeted amounts for the quarter at the Financial Statement level.
6.3 The County reserves the right to conduct further, independent audits of the
expenditure of revenue from the Transportation Millage consistent with the oversight
responsibilities of the Oakland County Board of Commissioners as established by the November
8, 2022 ballot language.
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INTERLOCAL AGREEMENT
OAKLAND COUNTY EXECUTIVE, DAVID COULTER
ARTICLE VII
PERFORMANCE OF THE TRANSPORTATION SERVICES
7.1 SMART shall commence, perform, and complete the Transportation Services in a
sound, economical and efficient manner, and in compliance with the Service Plan. Amendments
to the Service Plan shall be implemented in accordance with the Protocol for Implementing
Service Changes, attached as Exhibit D.
7.2 Except as expressly set forth in this Agreement, nothing in this Agreement shall
subject the County to any obligations or liabilities of SMART, its contractors or subcontractors,
or any other person not a party to this Agreement and therefore, no third-party beneficiaries
are created by this agreement, in connection with the performance of any Transportation
Services.
ARTICLE VIII
PROJECT ADMINISTRATION AND MANAGEMENT
8.1 SMART is responsible for administration and management of the Transportation
Services.
ARTICLE IX
RECORD KEEPING, AUDITS, INSPECTION, REPORTS, EVALUATION AND COOPERATION
9.1 Financial records, supporting documentation, statistical records, and all other
records pertinent to the Transportation Services must be retained by SMART and be made readily
available to authorized representatives of the County for the duration of the Agreement.
9.2 SMART shall provide a periodic summary to the County of available grant
opportunities and shall seek input and support from the County, as practicable, for any grants
that could impact the Transportation Services, but which are otherwise not available to SMART.
In addition to and as practicable, SMART shall cooperate and provide input as needed by the
County with respect to any grants available to it. SMART shall provide periodic updates to the
County with respect to the marketing and advertising of the Transportation Services. The Parties
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INTERLOCAL AGREEMENT
OAKLAND COUNTY EXECUTIVE, DAVID COULTER
shall cooperate in elevating the quality, accessibility and level of the Transportation Services and
their equitable distribution and access. The Parties shall meet at least annually to discuss
strategic goals and plans for the following year, to correct deficiencies in performance if found
to exist and to advance the goals and principles set forth in this Agreement, including but not
limited to, maximizing service and equitable inclusion.
ARTICLE X
INSURANCE
10.1 SMART shall purchase and maintain, during the term of this Agreement between
the Parties, types and amounts of insurance which are set forth in Exhibit (E) attached hereto.
The contractual liability insurance as applicable to SMART's obligations herein, shall be
specifically endorsed to include coverage for the indemnity provision required and described in
Article XI below.
ARTICLE XI
INDEMNIFICATION
11.1 To the extent permitted by law, SMART shall hold the County harmless, defend
and indemnify the County, and each of its elected officials, Board of Commissioners, appointed
officials, agents, employees, representatives, attorneys and volunteers from and against any and
all losses, expenses, damages (including loss of use), demands and claims, and shall defend any
suit or action, whether at law or in equity, brought against them or any one or more of them
based on any alleged injury (including death), or damages relating to or arising out of any act or
omission of SMART, its officers, employees, agents, contractors, subcontractors and licensees,
during the performance of this Agreement or in connection with the provision of Transportation
Services, including but not limited to claims made against the County by any third party, and shall
pay all damages, judgments, costs, and expenses, including attorney's fees, in connection with
any demands and claims resulting therefrom. The County shall in no event be liable for any
consequential, incidental, indirect, remote, speculative, punitive, exemplary, liquidated, treble,
Page 8 of 13
INTERLOCAL AGREEMENT
OAKLAND COUNTY EXECUTIVE, DAVID COULTER
or special damages, including but not limited to loss of profit, opportunity, use, revenue, data or
goodwill, whether based in whole or in part in contract, tort, equity, strict liability, under statute
or any other theory of liability, regardless of whether such damages were foreseeable or
contemplated and even if the County was advised or aware of the possibility of such damages.
The obligations under this Article XI shall survive the completion of the Transportation Services
required to be performed hereunder by SMART and any end to this Agreement.
ARTICLE XII
NON-COLLUSION
12.1 SMART warrants that it has not paid and agrees not to pay any bonus,
commission, fee, or gratuity for the purpose of obtaining any approval pursuant to this
Agreement. No SMART officer or employee, or board member shall be permitted to any share
or part of this Agreement or to any material benefit arising therefrom.
ARTICLE XIII
SIGNS AND IDENTIFICATION
13.1 The Parties will not be identified on any vehicles, buildings, stations, equipment
and other items used or acquired by them in connection with the Transportation Services
without the prior written consent of the other Party, excluding SMART’s standard vehicle
branding.
ARTICLE XIV
SEVERABILITY
14.1 If any provision of this Agreement is held invalid for any reason whatsoever, the
remaining provisions shall not be affected thereby if such remainder would continue to conform
to the purposes, terms, and requirements of applicable law.
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INTERLOCAL AGREEMENT
OAKLAND COUNTY EXECUTIVE, DAVID COULTER
ARTICLE XV
ASSIGNMENT AND AGREEMENT
15.1 This Agreement shall not be assigned, transferred, conveyed, sublet or otherwise
disposed of without the prior written consent of SMART and the County.
ARTICLE XVI
AMENDMENT
16.1 Except as otherwise stated herein, the Parties agree that no modification of this
Agreement, or any Exhibits or Attachments hereto, shall be of any force or effect unless such
amendment is dated, reduced to writing, executed by both Parties, and attached to and made
a part of this Agreement. No services shall be commenced, and no costs or obligations incurred
in consequence of any amendment to this Agreement, or any attachments hereto unless and
until such amendment has been executed and made a part of this Agreement.
ARTICLE XVII
TITLES
17.1 The Parties agree that the titles of the articles and paragraphs of this Agreement
are inserted for convenience of identification only and shall not be considered for any other
purpose.
ARTICLE XVIII
ENTIRE AGREEMENT
18.1 The Parties agree that this Agreement, the Exhibits attached hereto, and
documents referred to herein constitute the entire Agreement between the Parties hereto, that
there are no agreements or understandings, implied or expressed, except as specifically set
forth or incorporated by reference in the Agreement and that all prior arrangements and
understandings in this connection are merged into and contained in this Agreement.
Page 10 of 13
INTERLOCAL AGREEMENT
OAKLAND COUNTY EXECUTIVE, DAVID COULTER
ARTICLE XIX
APPLICABLE LAW
19.1 This Agreement shall be governed, interpreted and enforced by the laws of the
State of Michigan, excluding Michigan’s conflict of laws principles. Any action brought to
enforce, interpret or decide any provision of this agreement or any claim arising under this
Agreement shall be brought in the Sixth Judicial Circuit Court of the State of Michigan, the 50th
District Court of the State of Michigan or the United States District Court for the Eastern District
of Michigan, Southern Division, as dictated by the applicable jurisdiction of the Court. Except as
otherwise required by law, venue is proper in the Courts set forth above.
ARTICLE XX
MISCELLANEOUS
20.1 Discrimination. SMART, and its subcontractors under this Agreement, shall not
discriminate against an employee or an applicant for employment in hiring, any terms or
conditions of employment or matters related to employment regardless of race, color, religion,
sex, sexual orientation, gender identity or expression, national origin, age, genetic information,
height, weight, disability, veteran status, familial status, marital status or any other reason that
is unrelated to the person’s ability to perform the duties of a particular job or position, in
accordance with applicable Federal and State laws.
20.2 Flow Down. Any assignment, delegation or subcontract by SMART within
Oakland County must include a requirement that the assignee, designee, or subcontractor will
comply with the terms and conditions of this Agreement. The assignment, delegation or
subcontract shall in no way diminish or impair performance of any term or condition of this
Agreement.
20.3 Survival of Terms and Conditions. The following terms and conditions shall
survive and continue in full force beyond the termination or cancellation of this Agreement (or
any part thereof) until the terms and conditions are fully satisfied or expire by their nature:
Article 1, Definitions; Article 2, Transportation Services; Article 3, Payment; Article 10,
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INTERLOCAL AGREEMENT
OAKLAND COUNTY EXECUTIVE, DAVID COULTER
Insurance; Article 11, Indemnification; Article 19, Applicable Law; Article 20, Miscellaneous.
20.4 Reservation of Rights. This Agreement does not, and is not intended to impair,
divest, delegate or contravene any constitutional, statutory, or other legal right, privilege,
power, obligation, duty or immunity of the Parties.
20.5 Waiver. Waiver of any term or condition of this Agreement must be in writing
and notice given pursuant to the Agreement. No written waiver, in one or more instances, shall
be deemed or construed as a continuing waiver of any term or condition of this Agreement. No
waiver by either Party shall subsequently affect its right to require a strict performance of this
Agreement.
20.6 Cumulative Remedies. Either Party’s exercise of any remedy shall not preclude
the exercise of any other remedies, all of which shall be cumulative. A Party shall have the right,
in its sole discretion, to determine which remedies are to be exercised and in which order.
20.7 Dispute Resolution. All disputes arising under or relating to the execution,
interpretation, performance or nonperformance of this Agreement involving or affecting the
parties shall first be submitted to the Parties’ respective Contract Administrators for possible
resolution.
20.8 Term of Agreement. This Agreement shall begin on the Effective Date and end
on the Expiration Date. The “Effective Date” shall be the date the Agreement is signed by the
last Party to execute the Agreement. The “Expiration Date” shall be 11:59.59 on December 31,
2025. Unless otherwise provided herein, the Parties are under no obligation to renew or extend
this Agreement after the Expiration Date. This Agreement may only be extended by written
amendment.
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INTERLOCAL AGREEMENT
OAKLAND COUNTY EXECUTIVE, DAVID COULTER
20.9 Notice. All notices required under this contract shall be in writing. Notices shall
be effective: a) the next business day, if personally delivered; b) the fifth business day, if sent
by U.S. mail, postage prepaid, return receipt requested; c) the next business day, if sent by a
nationally recognized express courier with a reliable tracking system; or d) the next business
day with a written response or receipt of confirmation, if sent by e-mail or fax. In each case
Notice shall be sent to:
To:
For SMART:
Dwight Farrell, General Manager
Suburban Mobility Authority for Regional Transportation
Attn: General Manager
535 Griswold, Suite 600
Detroit, MI 48226
With a copy sent to:
Office of General Counsel
Suburban Mobility Authority for Regional Transportation
535 Griswold, Suite 600
Detroit, MI 48226
For Oakland County:
Bret Rasegan
Planning Manager
2100 Pontiac Lake Rd, Bldg. 41W
Waterford, MI 48328
With a copy sent to:
Solon Phillips
Corporation Counsel
1200 N. Telegraph Rd, Bldg. 14E
Pontiac, MI 48341
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INTERLOCAL AGREEMENT
OAKLAND COUNTY EXECUTIVE, DAVID COULTER
Authorization and Completion of Agreement. The Parties have taken all actions and secured all
approvals necessary to authorize and complete this Agreement. The persons signing this
Agreement on behalf of each Part y have legal authority to sign this Agreement and bind the
Parties to the terms and conditions contained herein.
IN WITNESS WHEREOF, Dwight Farrell, General Manager, Suburban Mobility Authority for
Regional Transportation, hereby acknowledges that he/she has been authorized by a resolution
of the Suburban Mobility Authority for Regional Transportation, a certified copy of which is
attached, to execute this Agreement on behalf of Public Body and hereby accepts and binds
Public Body to the terms and conditions of this Agreement.
EXECUTED: ____________________________________ DATE: _______________
Dwight Farrell, General Manager
Suburban Mobility Authority
for Regional Transportation
WITNESSED: ___________________________________ DATE: _______________
Suburban Mobility Authority
for Regional Transportation
IN WITNESS WHEREOF, David T. Woodward, Chairperson, Oakland County Board of
Commissioners, hereby acknowledges that he has been authorized by a resolution of the
Oakland County Board of Commissioners to execute this Agreement on behalf of Oakland
County, and hereby accepts and binds Oakland County to the terms and conditions of this
Agreement.
EXECUTED: ____________________________________ DATE: _______________
David T. Woodward, Chairperson
Oakland County Board of Commissioners
WITNESSED: ___________________________________ DATE: _______________
Oakland County Board of Commissioners
County of Oakland
Page 1 of 5
INTERLOCAL AGREEMENT
OAKLAND COUNTY EXECUTIVE, DAVID COULTER
EXHIBIT A
2023 SUBURBAN MOBILITY AUTHORITY FOR REGIONAL TRANSPORTATION
SCOPE OF TRANSPORTATION SERVICES
Scope of Work Summary:
Current Services
The Suburban Mobility Authority for Regional Transportation (SMART), formerly known as the
Southeastern Michigan Transportation Authority (SEMTA), has been Southeast Michigan's
regional public transportation provider since 1967. SMART offers safe and convenient
transportation for people to connect to work, school, medical appointments, shopping centers,
entertainment and cultural events. SMART provides a variety of transit services including
standard fixed route, FAST (high frequency fixed route), Connector (demand response), ADA
Paratransit, Flex (on-demand microtransit), and Community Partnership Programs. Prior to 2023,
SMART operated in Oakland County under contract with the Oakland County Public
Transportation Authority (OCPTA). Oakland County has two representatives on the SMART Board
of Directors, which governs policies and financial resources and evaluates the General Manager’s
performance.
With Oakland County’s shift to an expanded county-wide millage structure, Oakland County will
continue to provide a foundation of $31.2 million per year to SMART and preserve services that
were in place as of December 31, 2022. SMART will maintain these current services and in 2023
will work to improve the system by evaluating new microtransit Flex Service pilot areas, exploring
upgrades to dispatch software and technology, expanding fixed bus routes, and conducting an
inventory of bus stop amenities throughout the region.
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INTERLOCAL AGREEMENT
OAKLAND COUNTY EXECUTIVE, DAVID COULTER
2023 Service Expansion Utilizing Oakland County Millage Funds
Each SMART service expansion will comply with Federal Transportation Administration
requirements and may come online at different times during the 2023 calendar year. Utilizing an
additional $10.1 million, SMART will endeavor to undertake the following expansions in 2023:
• Provide ADA Paratransit service as required with any new fixed route expansion, which
will utilize approximately $2.5 of the $10.1 million.
• Improve current routes 450/462 by providing continuous fixed route service along
Woodward Avenue in Bloomfield Hills (remove the non-stop area), which may include
adding 14 stops and 1 FAST stop at appropriate northbound and southbound locations.
• Extend current route 305 on Grand River from Farmington Hills through Novi to Wixom
and add appropriate stops.
• Extend current route 740 on 12 Mile Road from Farmington Hills through Novi to Wixom
and add appropriate stops.
• Extend current route 851 on Orchard Lake Road north from West Bloomfield through
Orchard Lake, Keego Harbor and Sylvan Lake.
• Extend current route 805 west from Farmington Hills to Novi.
• Modify current route 790 to better serve Pontiac and Auburn Hills.
• Create new fixed route service on Rochester Road north from Troy to downtown
Rochester and continue west on Walton Blvd through Auburn Hills.
• Create new fixed route service from Auburn Hills through Pontiac and continue west
through Waterford Township and a portion of White Lake Township.
In addition to the above service expansions, SMART will be a full partner with Oakland County,
NOTA, WOTA and OPC in identifying mid-term and long-term improvements to the regional
transportation system including leveraging state and federal grants and planning for necessary
capital improvements over the ten year period of the millage.
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INTERLOCAL AGREEMENT
OAKLAND COUNTY EXECUTIVE, DAVID COULTER
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INTERLOCAL AGREEMENT
OAKLAND COUNTY EXECUTIVE, DAVID COULTER
2023 SMART OAKLAND COUNTY ROUTE MAP
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INTERLOCAL AGREEMENT
OAKLAND COUNTY EXECUTIVE, DAVID COULTER
2023 SMART EXPANSION MAP
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INTERLOCAL AGREEMENT
OAKLAND COUNTY EXECUTIVE, DAVID COULTER
EXHIBIT B
2023 SUBURBAN MOBILITY AUTHORITY FOR REGIONAL TRANSPORTATION
BUDGET
Oakland County Public Transportation Millage Funds:
Total payment not to exceed $41,700,000 to include $31,600,000 for Baseline Service and
$10,100,000 for 2023 Enhanced Service
Terms of Payment for Services:
Payment for the Scope of Work as described in Exhibit A will be as follows: Oakland County will
distribute an amount not to exceed $41,700,000 (Forty One Million Seven Hundred Thousand
Dollars) in Public Transportation Millage Funds to the Suburban Mobility Authority for Regional
Transportation (SMART) for the scope of work that is incorporated into this Agreement as
Exhibit A. SMART will receive monthly payments as shown in the table below. The first payment
by the County, after the Agreement is fully executed, will be made within 30 days of receipt of
an invoice from SMART for the amount listed below. Thereafter, SMART shall submit an invoice
for payment on the first day of each month, with the County making payment no later than the
last day of that month. Except as extended, modified or amended pursuant to Article II and/or
Article III of the Agreement, the Terms of Payment set forth herein shall expire on December
31, 2023.
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INTERLOCAL AGREEMENT
OAKLAND COUNTY EXECUTIVE, DAVID COULTER
Payment Schedule:
2023 Baseline Service Enhanced Service
March* $15,800,001 $2,525,001
April $5,266,667 $841,667
May $5,266,666 $841,667
June $5,266,666 $841,667
July $841,667
Aug $841,667
Sept $841,666
Oct $841,666
Nov $841,666
Dec $841,666
Annual $31,600,000 $10,100,000
* This payment incorporates amounts for January-March 2023 and assumes that the Agreement is fully
ratified and executed in February 2023.
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INTERLOCAL AGREEMENT
OAKLAND COUNTY EXECUTIVE, DAVID COULTER
EXHIBIT C
2023 SUBURBAN MOBILITY AUTHORITY FOR REGIONAL TRANSPORTATION
PERFORMANCE AUDIT AND REPORT
SMART shall submit quarterly Performance Reports to the County that contain information on
the following:
• Ridership Summary
• Fixed Route Riders
• Fixed Route Miles, Revenue Miles, and Hours
• Connector Riders
• Connector Hours and Miles
• Fixed Route Operations Report
• Demand Response Report
• SMART Flex Report
• Ridership Charts
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INTERLOCAL AGREEMENT
OAKLAND COUNTY EXECUTIVE, DAVID COULTER
EXHIBIT D
2023 SUBURBAN MOBILITY AUTHORITY FOR REGIONAL TRANSPORTATION
PROTOCOL FOR IMPLEMENTING SERVICE CHANGES
Amendments to the Service Plan shall be implemented in accordance with the following:
1. MAJOR SERVICE CHANGES: SMART shall implement “Major Service Changes”, as
defined in the attached “Major Service Change/Fare Change Policy” dated July 23, 2020
as amended (“Policy”)
2. EXPERIMENTAL SERVICE CHANGES: Experimental Service Changes shall be
implemented by SMART as set forth in the Policy.
3. EMERGENCY SERVICE CHANGES: SMART shall implement Emergency Service Changes
as set forth in the Policy.
4. If SMART determines that a material service change which directly impacts Oakland
County is to be implemented, SMART shall notify the Oakland County Transit Director
of the nature of those service changes at its earliest practical opportunity.
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INTERLOCAL AGREEMENT
OAKLAND COUNTY EXECUTIVE, DAVID COULTER
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INTERLOCAL AGREEMENT
OAKLAND COUNTY EXECUTIVE, DAVID COULTER
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INTERLOCAL AGREEMENT
OAKLAND COUNTY EXECUTIVE, DAVID COULTER
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INTERLOCAL AGREEMENT
OAKLAND COUNTY EXECUTIVE, DAVID COULTER
EXHIBIT E
2023 SUBURBAN MOBILITY AUTHORITY FOR REGIONAL TRANSPORTATION
CONTRACTOR INSURANCE REQUIREMENTS
During this Contract, the Contractor shall provide and maintain, at their own expense, all
insurance as set forth and marked below, protecting the County against any Claims, as defined
in this Contract. The insurance shall be written for not less than any minimum coverage herein
specified. Limits of insurance required in no way limit the liability of the Contractor.
Primary Coverages
Commercial General Liability Occurrence Form including: (a) Premises and Operations; (b)
Products and Completed Operations (including On and Off Premises Coverage); (c) Personal and
Advertising Injury; (d) Broad Form Property Damage; (e) Broad Form Contractual including
coverage for obligations assumed in this Contract;
$1,000,000 – Each Occurrence Limit
$1,000,000 – Personal & Advertising Injury
$2,000,000 – Products & Completed Operations Aggregate Limit
$2,000,000 – General Aggregate Limit
$ 100,000 – Damage to Premises Rented to You (formally known as Fire Legal Liability)
Workers’ Compensation Insurance with limits statutorily required by any applicable Federal or
State Law and Employers Liability insurance with limits of no less than $500,000 each accident,
$500,000 disease each employee, and $500,000 disease policy limit.
1. ☐ Fully Insured or State approved self-insurer.
2. ☐ Sole Proprietors must submit a signed Sole Proprietor form.
3. ☐ Exempt entities, Partnerships, LLC, etc., must submit a State of Michigan form WC-337
Certificate of Exemption.
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INTERLOCAL AGREEMENT
OAKLAND COUNTY EXECUTIVE, DAVID COULTER
Public Transportation Commercial Automobile Liability Insurance covering bodily injury or
property damage arising out of the use of any owned, hired, or non-owned automobile with a
combined single limit of $5,000,000 each accident. This requirement is waived if there are no
company owned, hired or non-owned automobiles utilized in the performance of this Contract.
Commercial Umbrella/Excess Liability Insurance with minimum limits of $10,000,000 each
occurrence. Umbrella or Excess Liability coverage shall be no less than following form of
primary coverages or broader. This Umbrella/Excess requirement may be met by increasing the
primary Commercial General Liability limits to meet the combined limit requirement.
Employee Dishonesty Bond including Third-Party Employee Theft Insurance Coverage will be
required in the minimum amount of the grant with the County of Oakland named as an
additional insured.
Supplemental Coverages – As Needed
1. Cyber Liability Insurance with minimum limits of $1,000,000 per claim and $1,000,000 aggregate
shall be required when the Contractor has access to County IT systems and/or stores County data
electronically.
2. Directors & Officers Liability Insurance with minimum limits of $5,000,000 per claim.
3. Commercial Property Insurance. The Contractor shall be responsible for obtaining and
maintaining insurance covering their equipment and personal property against all physical
damage.
4. Other Insurance Coverages as may be dictated by the provided product/service and
deemed appropriate by the County Risk Management Department.
General Insurance Conditions
The aforementioned insurance shall be endorsed, as applicable, and shall contain the following
terms, conditions, and/or endorsements. All certificates of insurance shall provide evidence of
compliance with all required terms, conditions and/or endorsements.
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INTERLOCAL AGREEMENT
OAKLAND COUNTY EXECUTIVE, DAVID COULTER
1. All policies of insurance shall be on a primary, non-contributory basis with any other
insurance or self-insurance carried by the County;
2. The insurance company(s) issuing the policy(s) shall have no recourse against the County for
subrogation (policy endorsed written waiver), premiums, deductibles, or assessments under
any form. All policies shall be endorsed to provide a written waiver of subrogation in favor
of the County;
3. Any and all deductibles or self-insured retentions shall be assumed by and be at the sole risk of the
Contractor;
4. Contractors shall be responsible for their own property insurance for all equipment and
personal property used and/or stored on County property;
5. The Commercial General Liability and Commercial Automobile Liability policies along with
any required supplemental coverages shall be endorsed to name the County of Oakland and
it officers, directors, employees, appointees and commissioners as additional insured where
permitted by law and policy form;
6. If the Contractor’s insurance policies have higher limits than the minimum coverage
requirements stated in this document the higher limits shall apply and in no way shall limit
the overall liability assumed by the Contractor under contract.
7. The Contractor shall require its contractors or sub-contractors, not protected under the
Contractor’s insurance policies, to procure and maintain insurance with coverages, limits,
provisions, and/or clauses equal to those required in this Contract;
8. Certificates of insurance must be provided no less than ten (10) Business Days prior to the
County’s execution of the Contract and must bear evidence of all required terms, conditions
and endorsements; and provide 30 days’ notice of cancellation/material change
endorsement.
9. All insurance carriers must be licensed and approved to do business in the State of Michigan
along with the Contractor’s state of domicile and shall have and maintain a minimum A.M.
Best’s rating of A- unless otherwise approved by the County Risk Management Department.