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HomeMy WebLinkAboutResolutions - 2024.06.13 - 41287 AGENDA ITEM: Lease Contract with MDOT for the Weather Observation and Data Dissemination System at Oakland/Troy Airport DEPARTMENT: Economic Development - Aviation and Transportation MEETING: Board of Commissioners DATE: Thursday, June 13, 2024 9:30 AM - Click to View Agenda ITEM SUMMARY SHEET COMMITTEE REPORT TO BOARD Resolution #2024-4132 _ 24-47 Motion to adopt the attached suggested resolution. ITEM CATEGORY SPONSORED BY Lease Yolanda Smith Charles INTRODUCTION AND BACKGROUND MDOT has selected Oakland/Troy Airport to receive an update of their Automated Weather Observation System (AWOS) for collection of weather data for the national dissemination and weather briefing system. The AWOS equipment will be located at the airport and in the terminal building and is owned by MDOT and leased to the County at a rate of $10/yr. Maintenance and operational costs will be shared during the 20-year lease term. Either party may terminate the contract with sixty (60) days written notice to the other party. POLICY ANALYSIS This is a request to execute a lease contract with the Michigan Department of Transportation (MDOT) for the lease, operation and maintenance of a Weather Observation and Data Dissemination System (SYSTEM) at the Oakland/Troy Airport. The SYSTEM has three components or subsystems, (a) the Automated Weather Observation System (AWOS), (b) a system to collect the AWOS data for national dissemination (Data Collection System) and (c) a Weather Briefing System. The State is investing in upgrades to all Non-Federal AWOS stations that the Michigan Department of Transportation Office of Aeronautics (MDOT Aero) is under contract to support. Historically, the County has retained ownership of the AWOS and Weather Briefing System, but not the Data Collection System. Under this new contract, the County will retain ownership of the Weather Briefing System only, not the AWOS or Data Collection System. The reason ownership of the AWOS is staying with MDOT is due to the one-time General Fund contribution to finance the upgrades. In exchange, the County will lease the upgraded AWOS from MDOT for $10/year. Cost sharing of the system remains unchanged with the County responsible for 50% of the maintenance and data dissemination and 100% for electrical and communications mediums (phone, internet, etc.). Current maintenance costs are approximately $3860/annually, however, it is anticipated that there will be savings with the upgraded system. The term of the lease has previously been 5 years or less, but at the request of MDOT a 20-year lease is being submitted. Either party may terminate this contract upon sixty (60) days written notice to the other party. BUDGET AMENDMENT REQUIRED: No 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 Cheryl Bush, Manager Aviation & Transportation ITEM REVIEW TRACKING Aaron Snover, Board of Commissioners Created/Initiated - 6/13/2024 David Woodward, Board of Commissioners Approved - 6/13/2024 Hilarie Chambers, Executive's Office Approved - 6/13/2024 Lisa Brown, Clerk/Register of Deeds Final Approval - 6/14/2024 AGENDA DEADLINE: 06/13/2024 9:30 AM ATTACHMENTS 1. 2024AWOS COMMITTEE TRACKING 2024-06-05 Economic Development & Infrastructure - Recommend to Board 2024-06-13 Full Board - Adopt Motioned by: Commissioner Linnie Taylor Seconded by: Commissioner Philip Weipert Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ajay Raman, Ann Erickson Gault, Linnie Taylor (18) No: None (0) Abstain: None (0) Absent: Kristen Nelson (1) Passed June 13, 2024 RESOLUTION #2024-4132 _ 24-47 Sponsored By: Yolanda Smith Charles Economic Development - Aviation and Transportation - Lease Contract with MDOT for the Weather Observation and Data Dissemination System at Oakland/Troy Airport Chair and Members of the Board: WHEREAS the Aviation Division has agreed to enter into a new Lease Contract with the Michigan Department of Transportation (MDOT) for the lease, operation, and maintenance of a new Weather Observation and Data Dissemination System at Oakland/Troy Airport to enhance aviation safety and efficiency; and WHEREAS the System is made up of three components or subsystems, commonly known as (a) the Automated Weather Observation System (AWOS), (b) a system to collect the AWOS data for national dissemination (Data Collection System) and (e) a Weather Briefing System; and WHEREAS the Lease will have a term of twenty (20) years from the date of the award, with annual rent of $10.00; and WHEREAS the Airport Committee and the County's Office of Corporation Counsel have reviewed and agreed to the terms of the Lease. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby approves and accepts the terms and conditions of the attached Lease Contract with the Michigan Department of Transportation (MDOT) for the lease, operation and maintenance of a Weather Observation and Data Dissemination System at the Oakland/Troy Airport. BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners directs its Chair or their designee to execute the attached Lease Contract and all other related documents between the County and MDOT. BE IT FURTHER RESOLVED that a budget amendment is not required as the expense is included in the FY-2024 - FY 2025 Airport Fund (#56500) budget. Chair, the following Commissioners are sponsoring the foregoing Resolution: Yolanda Smith Charles. Date: June 13, 2024 David Woodward, Commissioner Date: June 13, 2024 Hilarie Chambers, Deputy County Executive II Date: June 14, 2024 Lisa Brown, County Clerk / Register of Deeds COMMITTEE TRACKING 2024-06-05 Economic Development & Infrastructure - Recommend to Board 2024-06-13 Full Board - Adopt Motioned by Commissioner Linnie Taylor seconded by Commissioner Philip Weipert to adopt the attached Lease: Lease Contract with MDOT for the Weather Observation and Data Dissemination System at Oakland/Troy Airport. Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ajay Raman, Ann Erickson Gault, Linnie Taylor (18) No: None (0) Abstain: None (0) Absent: Kristen Nelson (1) Passed ATTACHMENTS 1. 2024AWOS 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 June 13, 2024, 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, June 13, 2024. Lisa Brown, Oakland County Clerk / Register of Deeds 1 The SYSTEM is made up of three components or subsystems, commonly known as (a) the Automated Weather Observation System (AWOS), (b) a system to collect the AWOS data for national dissemination (Data Collection System), and (c) a Weather Briefing System; and The AWOS is owned by MDOT and leased to the AGENCY in accordance with the terms of this Contract. The parties agree that: THE AGENCY WILL: CONTRACT NO. 2024-0493 MICHIGAN DEPARTMENT OF TRANSPORTATION COUNTY OF OAKLAND CONTRACT This Contract is made and entered into between the Michigan Department of Transportation (MDOT) and the County of Oakland (AGENCY) for the purpose of setting forth the obligations and intent of MDOT and the AGENCY as they pertain to the lease, operation, and maintenance of a Weather Observation and Data Dissemination System (SYSTEM) at the Oakland/Troy Airport in Troy, Michigan, to enhance aviation safety and efficiency. Recitals: 1. Retain ownership of all components of the Weather Briefing System but not the Data Collection System or the AWOS and its ancillary components. 2. Provide the following: a. For the AWOS component: i. A location within the airport’s boundaries that meets the installation requirements of the current version of Federal Aviation Administration (FAA) Order 6560.20. ii. A location within the terminal building for the AWOS data display. Access by pilots to this location will be available at least during normal business hours and preferably 24 hours a day. b. For the Data Collection System component: 2 i. A location within the terminal building for the computer equipment. ii. One Dynamic Host Configuration Protocol (DHCP) or static internet protocol (static IP) wired internet access port for data dissemination traffic and remote maintenance monitoring. If suitable service cannot be offered, the State of Michigan may provide suitable broadband service for an additional fee. c. For the Weather Briefing System component: i. All necessary hardware, software, and internet service to allow access to the secure website of the weather briefing service provider for an additional fee; or ii. All necessary hardware, software, and internet service to allow access to the FAA’s aviationweather.gov website; or 3. b. Electrical power requirements: i. 240V, 60Hz, 15 amps, or greater circuit dedicated to the AWOS component. ii. 120V, 60Hz, 15 amps, or greater circuit for computer hardware provided by the AGENCY for the Weather Briefing System component and Data Collection System component. iii. Pumps, motors, and similar units must be on a separate circuit. 4. Not charge users for direct or telephone dial-up access to the AWOS, public internet access, or use of the computer provided by the AGENCY for access to the selected website for the weather briefing service (provider service or aviationweather.gov). iii. Public internet access available within the terminal building, publicly displayed, and available 24 hours a day with documents/posters of free apps and internet tools available for pre-flight planning purposes; and iv. A location within the terminal building for the computer hardware that is available to pilots during the terminal building’s normal business hours. Provide one local telephone line and electrical power in accordance with the following: a. The telephone line must be a single party line dedicated to the AWOS component. 3 5. Provide MDOT, its maintenance representative, and/or the Data Collection System service provider (Provider) with access to the SYSTEM upon advance notice for maintenance and for installation, if necessary. 6. Pay one hundred percent (100%) of the operational costs for electrical power usage, the telephone line, and internet service. These costs cannot be applied as credit toward the AGENCY’s fifty percent (50%) share of the maintenance costs and service charges. 7. Pay MDOT fifty percent (50%) of the maintenance costs and SYSTEM service charges incurred by MDOT, including administrative costs and costs of scheduled and unscheduled work performed under this Contract, upon being invoiced by MDOT. (See Attachment 1 for AWOS maintenance costs that could be incurred by MDOT.) Maintenance costs incurred by the AGENCY will not be included in the total costs incurred by MDOT, nor will they be applied as credit toward the AGENCY’s fifty percent (50%) share of the maintenance costs and service charges. 8. Pay one hundred percent (100%) of the costs to repair any damage to the SYSTEM caused by the AGENCY, its workforce, or any subconsultant hired by the AGENCY. If MDOT conducts these repairs, the AGENCY will be invoiced for one hundred percent (100%) of the costs. The AGENCY must pay MDOT directly for reimbursement of these repair costs and may file a claim with its insurance company for reimbursement. (See Section 12 below.) 9. Pay one hundred percent (100%) of the costs to repair damaged underground AWOS cables. If MDOT conducts these repairs, the AGENCY will be invoiced for one hundred percent (100%) of the costs. The AGENCY must pay MDOT directly for reimbursement of these repair costs and may file a claim with its insurance company for reimbursement. (See Section 12 below.) The AGENCY will not be liable for any costs for repairs to any AWOS cable damaged by MDOT. 10. Perform at its sole expense the following maintenance activities: a. Keep the area within one hundred (100) feet of the AWOS mowed to a height not to exceed ten (10) inches. b. Protect the integrity of any underground cables by preventing any trenching, plowing, grading, or tilling over them. c. Protect the area within one thousand (1,000) feet of the AWOS wind sensors by preventing any construction, preventing the storage of large aircraft, clearing those trees identified by MDOT, and controlling the growth of all trees and vegetation in the area, including preventing the growth of any vegetation within the stone pad area around the AWOS and removing any vegetation that grows within this pad. 4 d. Provide assistance to MDOT, the Provider, and the weather briefing service provider for minor troubleshooting, such as checking telephone circuits for dial tone, verifying internet connectivity, making visual inspections of sensors and external wiring, resetting circuit breakers and equipment, making display and equipment checks, replacing units, and resolving telecommunication/internet connection issues. e. Clear snow to allow access to the AWOS, as necessary. 11. Not modify the SYSTEM in any way without the express written consent of MDOT, the FAA, and/or the Provider. 12. The AGENCY or its operators and vendors will maintain, for the duration of this Contract, insurance or governmental self-insurance of the types and amounts provided herein with insurance companies authorized to do business in the State of Michigan. Such insurance will cover all operations under this Contract. The AGENCY will furnish MDOT with (a) certificate(s) of insurance in a form satisfactory to MDOT. The certificate(s) will provide that the policies will not be changed or cancelled until thirty (30) days written notice of change or cancellation is given to MDOT. In the event that a written notice of material change or cancellation is given, MDOT may, at its option, terminate this Contract. Except for governmental self-insurance, the State of Michigan and its departments, agents, boards, commissions, and all employees thereof will be named as additional insureds on all liability policies where permitted by law and/or policy form relating to the providing of services under this Contract. a. Workers’ Compensation Insurance or governmental self-insurance providing coverage consistent with the workers’ compensation statutes and rules for the State of Michigan. Employers’ Liability Insurance with minimum limits of Three Hundred Thousand Dollars ($300,000.00) per occurrence will be provided. b. Comprehensive General Liability Insurance or governmental self-insurance providing limits of Three Hundred Thousand Dollars ($300,000.00) per occurrence and Five Hundred Thousand Dollars ($500,000.00) aggregate will be provided. Property damage limits of at least One Hundred Thousand Dollars ($100,000.00) will be included. A combined single limit policy of Three Hundred Thousand Dollars ($300,000.00) per occurrence and Five Hundred Thousand Dollars ($500,000.00) aggregate may be utilized. Coverage will include minimum personal injury protection and contractual liability. c. Property Insurance providing replacement cost coverage for the systems, including all cabling, that are a part of this Contract. Coverage will be in the amount of One Hundred Seventy-Five Thousand Dollars ($175,000.00) per occurrence. 13. Allow MDOT to review all new construction plans for compliance with current AWOS siting standards as set forth in the latest version of FAA Order 6560.20. 5 14. Comply with any and all federal, state, and local statutes, ordinances, and regulations and obtain all permits that are applicable to the entry into and the performance of this Contract. MDOT WILL: 15. Arrange with the Provider for the installation of the Data Collection System, if necessary. 16. Make arrangements with the weather briefing service provider for access to its secure website, if necessary. 17. Retain ownership of the AWOS and ancillary components. 18. Lease the AWOS to the AGENCY for the life of this Contract. MDOT will invoice the AGENCY a fixed cost of Ten Dollars ($10.00) per year. 19. Install the AWOS, its ancillary components, and the Data Collection System on the airport property at the location(s) selected in accordance with the provisions of Sections 2(a)(i) and 2(b)(i), respectively. 20. Pay all invoices associated with the continued operation and maintenance of the SYSTEM except the invoices for electrical power, the telephone line, and internet service. 21. Bill the AGENCY at least on an annual basis or more frequently for the following: a. For fifty percent (50%) of the service charges and maintenance costs incurred by MDOT for providing management of the SYSTEM and the entire weather network and for conducting scheduled and unscheduled maintenance of the AWOS. (See Attachment 1 for AWOS maintenance costs that could be incurred by MDOT.) b. For one hundred percent (100%) of the costs incurred by MDOT for repairing damage to the SYSTEM caused by the AGENCY, its workforce, and/or any subconsultant of the AGENCY. MDOT will not invoice the AGENCY for costs incurred to repair any SYSTEM component damaged by MDOT. Components that are damaged during normal maintenance practices will be invoiced in accordance with subsection (a) above, as applicable. c. For one hundred percent (100%) of the costs incurred by MDOT for repairing damaged AWOS cables. MDOT will not bill the AGENCY for costs incurred to repair any AWOS cables damaged by MDOT. 6 26. Train AGENCY personnel on proper procedures for conducting preventative maintenance and cleaning tasks as required for satisfactory AWOS operations. 27. Act as the AGENCY’s representative regarding compliance with FAA rules, regulations, advisory circulars, and directives pertaining to the maintenance and operation of the AWOS. 28. Act as the AGENCY’s representative regarding compliance with Federal Communications Commission (FCC) rules and regulations, including modification and renewal of the FCC license for the AWOS transmitter. 22. Perform the FAA-required scheduled and unscheduled maintenance of the AWOS. MDOT will provide the FAA Form 6030-1 logbook for entry of all maintenance activities. 23. Replace defective boards and components with serviceable spare items from MDOT’s inventory of spare items. In addition, MDOT will make necessary arrangements for the purchase of replacement items or for factory repairs when necessary and will pay the factory for those purchases and repairs and for shipping. MDOT will bill the AGENCY for these costs in accordance with Section 21 above. 24. Provide the AGENCY with advance notice of intent to perform scheduled and unscheduled maintenance to allow satisfactory arrangements to be made for access to the SYSTEM. 25. Conduct regular inspections of the siting criteria defined area around the AWOS. MDOT will report any penetrations that may require mitigation promptly to the Airport Manager for mitigation. 29. Discontinue the AWOS operation, AWOS lease, data collection service, and/or weather briefing service and remove the associated components in the event of the following: a. The AGENCY does not comply with the provisions of this Contract; or b. The AGENCY no longer wishes to participate in the program. GENERAL CONDITIONS: 30. The Provider will retain ownership of the Data Collection System. 31. The AGENCY (hereinafter in Appendix A referred to as the “contractor”) will comply with the State of Michigan provisions for “Prohibition of Discrimination in State Contracts,” as set forth in Appendix A, dated June 2011, attached hereto and made a part hereof. This provision will be included in all subcontracts relating to this Contract. 7 32. In accordance with 1980 PA 278, MCL 423.321 et seq., the AGENCY, in performance of this Contract, will not enter into a contract with a subcontractor, manufacturer, or supplier listed in the register maintained by the United States Department of Labor of employers who have been found in contempt of court by a federal court of appeals on not less than three (3) occasions involving different violations during the preceding seven (7) years for failure to correct unfair labor practices, as prohibited by Section 8 of Chapter 372 of the National Labor Relations Act, 29 USC 158. MDOT may void this Contract if the name of the AGENCY or the name of a subcontractor, manufacturer, or supplier utilized by the AGENCY in the performance of this Contract subsequently appears in the register during the performance period of this Contract. 33. 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 give, nor will it be interpreted as giving, either party a right of indemnification, either by contract or by law,, for claims arising out of the performance of this Contract. 34. MDOT will not be subject to any obligations or liabilities by contractors of the AGENCY or their subcontractors or any other person not a party to this Contract without its specific consent and notwithstanding its concurrence with or approval of the award of any contract or subcontract or the solicitation thereof. 35. With regard to claims based on goods or services that were used to meet the AGENCY’s obligation to MDOT under this Contract, the AGENCY hereby irrevocably assigns its right to pursue any claims for relief or causes of action for damages sustained by the State of Michigan or MDOT due to any violation of 15 USC, Sections 1 - 15, and/or 1984 PA 274, MCL 445.771 - 445.788, excluding Section 4a, to the State of Michigan or MDOT. The AGENCY shall require any subcontractors to irrevocably assign their rights to pursue any claims for relief or causes of action for damages sustained by the State of Michigan or MDOT with regard to claims based on goods or services that were used to meet the AGENCY’s obligation to MDOT under this Contract due to any violation of 15 USC, Sections 1 - 15, and/or 1984 PA 274, MCL 445.771 - 445.788, excluding Section 4a, to the State of Michigan or MDOT as a third-party beneficiary. The AGENCY shall notify MDOT if it becomes aware that an antitrust violation with regard to claims based on goods or services that were used to meet the AGENCY’s obligation to MDOT under this Contract may have occurred or is threatened to occur. The AGENCY shall also notify MDOT if it becomes aware of any person’s intent to commence, or of commencement of, an antitrust action with regard to claims based on 8 goods or services that were used to meet the AGENCY’s obligation to MDOT under this Contract. 36. Either party may terminate this Contract upon sixty (60) days written notice to the other party. 37. The parties agree that this Contract constitutes the entire contract between the parties and supersedes any and all prior contracts or oral understandings. 38. This Contract will be in effect from the date of award through twenty (20) years, unless it is terminated by either party in accordance with Section 36. 9 By: Title: Department Director 39. This Contract will become binding on the parties and of full force and effect upon signing by the duly authorized representatives of the AGENCY and MDOT and upon adoption of a resolution approving said Contract and authorizing the signature(s) thereto of the respective representative(s) of the AGENCY, a certified copy of which resolution will be sent to MDOT with this Contract, as applicable. COUNTY OF OAKLAND By: Authorized Signer MICHIGAN DEPARTMENT OF TRANSPORTATION Approved as to Legal Form 4-4-24 J.S. ATTACHMENT 1 Items Included in AWOS Maintenance Expenses That Could Be Incurred by MDOT Scheduled Maintenance Inspections FAA-required annual and two tri-annual inspections in accordance with the FAA- approved AWOS Manufacturer’s Logbook. Expenses include labor and travel. Preventative May include, but is not limited to, such items as testing and servicing of uninterruptible power supply (UPS) and batteries, cleaning aspirator fan and tube, measuring processor and ceilometer battery levels, overall cleaning and checking condition of all components. Expenses may include labor, travel, and materials. Unscheduled Maintenance Outages Includes troubleshooting and repairs and may include replacement of defective components with MDOT serviceable spares. May also include the costs to repair defective items by outside facilities and/or the purchase of new replacement items. Expenses include labor, travel, materials, outside vendor repairs and purchases, and shipping. Administration Involves a share of the oversight of the entire weather network, and includes activities that are not location-specific but are general in nature to all locations. Expenses include, but are not limited to, contract administration and compliance, system monitoring, calibration and repair of required test equipment and standards, items and supplies purchased that will be used for all locations, and time spent to arrange and coordinate inspection schedules with the FAA and to review Miss Dig tickets. APPENDIX A PROHIBITION OF DISCRIMINATION IN STATE CONTRACTS In connection with the performance of work under this contract; the contractor agrees as follows: 1. In accordance with Public Act 453 of 1976 (Elliott-Larsen Civil Rights Act), the contractor shall not discriminate against an employee or applicant for employment with respect to hire, tenure, treatment, terms, conditions, or privileges of employment or a matter directly or indirectly related to employment because of race, color, religion, national origin, age, sex, height, weight, or marital status. A breach of this covenant will be regarded as a material breach of this contract. Further, in accordance with Public Act 220 of 1976 (Persons with Disabilities Civil Rights Act), as amended by Public Act 478 of 1980, the contractor shall not discriminate against any employee or applicant for employment with respect to hire, tenure, terms, conditions, or privileges of employment or a matter directly or indirectly related to employment because of a disability that is unrelated to the individual’s ability to perform the duties of a particular job or position. A breach of the above covenants will be regarded as a material breach of this contract. 2. The contractor hereby agrees that any and all subcontracts to this contract, whereby a portion of the work set forth in this contract is to be performed, shall contain a covenant the same as hereinabove set forth in Section 1 of this Appendix. 3. The contractor will take affirmative action to ensure that applicants for employment and employees are treated without regard to their race, color, religion, national origin, age, sex, height, weight, marital status, or any disability that is unrelated to the individual’s ability to perform the duties of a particular job or position. Such action shall include, but not be limited to, the following: employment; treatment; upgrading; demotion or transfer; recruitment; advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. 4. The contractor shall, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, national origin, age, sex, height, weight, marital status, or disability that is unrelated to the individual’s ability to perform the duties of a particular job or position. 5. The contractor or its collective bargaining representative shall send to each labor union or representative of workers with which the contractor has a collective bargaining agreement or other contract or understanding a notice advising such labor union or workers’ representative of the contractor’s commitments under this Appendix. 6. The contractor shall comply with all relevant published rules, regulations, directives, and orders of the Michigan Civil Rights Commission that may be in effect prior to the taking of bids for any individual state project. 7. The contractor shall furnish and file compliance reports within such time and upon such forms as provided by the Michigan Civil Rights Commission; said forms may also elicit information as to the practices, policies, program, and employment statistics of each subcontractor, as well as the contractor itself, and said contractor shall permit access to the contractor’s books, records, and accounts by the Michigan Civil Rights Commission and/or its agent for the purposes of investigation to ascertain compliance under this contract and relevant rules, regulations, and orders of the Michigan Civil Rights Commission. 8. In the event that the Michigan Civil Rights Commission finds, after a hearing held pursuant to its rules, that a contractor has not complied with the contractual obligations under this contract, the Michigan Civil Rights Commission may, as a part of its order based upon such findings, certify said findings to the State Administrative Board of the State of Michigan, which State Administrative Board may order the cancellation of the contract found to have been violated and/or declare the contractor ineligible for future contracts with the state and its political and civil subdivisions, departments, and officers, including the governing boards of institutions of higher education, until the contractor complies with said order of the Michigan Civil Rights Commission. Notice of said declaration of future ineligibility may be given to any or all of the persons with whom the contractor is declared ineligible to contract as a contracting party in future contracts. In any case before the Michigan Civil Rights Commission in which cancellation of an existing contract is a possibility, the contracting agency shall be notified of such possible remedy and shall be given the option by the Michigan Civil Rights Commission to participate in such proceedings. 9. The contractor shall include or incorporate by reference, the provisions of the foregoing paragraphs (1) through (8) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Michigan Civil Rights Commission; all subcontracts and purchase orders will also state that said provisions will be binding upon each subcontractor or supplier. Revised June 2011