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Muskegon City Commission
Commission Meeting Date: November 7, 2022 Title: Roberts Street MOOT Agreement
Submitted By: Dan VanderHeide Department: Public Works
Brief Summary: Staff is requesting approval of a contract with MOOT for the repaving of Roberts
Street from Sherman Boulevard to Laketon Avenue, and approval of resolution authorizing the
Mayor and Clerk to sign the contract.
Detailed Summary & Background: This is the standard contract that governs construction contracts
that use federal funds and/or are administered through MOOT. The estimated cost of the project is
$1,046,811.25, with $371,340 of that being Category F Transportation Economic Development Fund
(TEDF) grant dollars. The reminder of $675,471.25 is accounted for in the City's FY22 Major Street
fund capital budget. Of the $825,000 budgeted for the project, $31,880.07 has been spent on
engineering and other desigr:, phase services.
The project will be bid this fall and begin construction in the spring ; the exact schedule is not
known at this time but will be communicated to the businesses and residents in the area once
known.
Goal/Focus Area/Action Item Addressed :
Key Focus Area: Sustainability in financial practices and infrastructure.
Amount Requested : $675,471.25 Amount Budgeted: $825,000.00 Requested
$ 31,880.07 Expended
$793,119 .93 Remaining
Fund(s) or Account(s): 202 (Major Streets) Fund(s) or Account(s) : 202 (Major Streets)
Recommended Motion: Approval of the Roberts Street MOOT Contract and a resolution
authorizing the Mayor and clerk to sign the contract.
Approvals: Guest(s) Invited/ Presenting:
Immediate Division Head
■ Information Technology
□ Yes
□
Other Division Heads
□ Communication
□ No
■
For City Clerk Use Only:
Commission Action :
RESOLUTION 2022-96(F)
RESOLUTION FOR APPROVAL OF A CONTRACT AGREEMENT BE1WEEN THE
MICHIGAN DEPARTMENT OF TRANSPORTATION AND THE CITY OF
MUSKEGON FOR ROADWAY RECONSTRUCTION WORK ALONG ROBERTS
STREET FROM BARNEY AVENUE NORTH TO LAKETON AVENUE, INCLUDING
HOT MIX ASPHALT SURFACING, CONCRETE CURB AND GUTTER, AND
PERMANENT PAVEMENT MARKING WORK.
Moved by Vice Mayor German and supported by Commissioner St.Clair the following
Resolution be adopted :
WHEREAS , entry by the City of Muskegon into Contract no. 22-5487 between the
Michigan Department of Transportation and the City of Muskegon for the
Reconstruction of Roberts Street between Barney Avenue and Laketon
Avenue within the City is in the best interests of the City of Muskegon.
RESOLVED, that entry by the City into Contract Agreement Number 22-5487 be and
the same is hereby authorized and approved and the DPW Director and Clerk are
authorized to execute said contract for and on behalf of the City of Muskegon.
Adopted this 7TH day.of November, 202:~ ---
Leo Evans, Director of Public Works
ATTEST ~~ab
Ann Meisch, City Clerk
CERTIFICATION
This resolution was adopted at a meeting of the City Commission, held on
November 7, 2022 . The meeting was properly held and noticed pursuant to the
Open Meetings Act of the State of Michigan , Act 267 of the Public Acts of 1976.
~ y OF M~SKEGON
By ~~' ~
Ann Meisch, City Clerk
TED (F) COM
NON FED Control Section EDF 61000
Job Number 215087CON
Contract No. 22-5487
THIS CONTRACT is made by and between the MICHIGAN DEPARTMENT OF
TRANSPORTATION, hereinafter referred to as the "DEPARTMENT;" and the CITY OF
MUSKEGON, a Michigan municipal corporation, hereinafter referred to as the "REQUESTING
PARTY;" for the purpose of fixing the rights and obligations of the parties in agreeing to the
following improvements, in Muskegon, Michigan, hereinafter referred to as the "PROJECT" and
estimated in detail on EXHIBIT "I," dated October 6, 2022, attached hereto and made a part
hereof:
Hot mix asphalt reconstruction along Roberts Street from Laketon Avenue to Barney
Avenue, including earthwork, aggregate base, concrete curb and gutter, sidewalk and
permanent pavement markings; and all together with necessary related work.
WITNESSETH:
WHEREAS, the State of Michigan is hereinafter referred to as the "State;" and
WHEREAS, the PROJECT has been approved for financing in part with funds from the
State appropriated to the Transportation Economic Development Fund, hereinafter referred to as
"TED FUNDS," qualifies for funding pursuant to PA 231, Section 11(2)(b); Public Act of 1987,
as amended, and is categorized as:
CATEGORY "F" FUNDED PROJECT
WHEREAS, the parties hereto have reached an understanding with each other regarding
the performance of the PROJECT work and desire to set forth this understanding in the form of a
written contract.
NOW, THEREFORE, in consideration of the premises and of the mutual undertakings of
the parties and in conformity with applicable law, it is agreed:
1. The patties hereto shall undettake and complete the PROJECT in accordance with
the terms of this contract.
2. The term "PROJECT COST," as herein used, is hereby defined as the cost of the
physical construction necessary for the completion of the PROJECT.
01/23/03 TEDDIR.FOR 10/6/22
The costs incurred by the REQUESTING PARTY for preliminary engineering,
construction engineering and inspection, and right-of-way are excluded from the PROJECT
COST as defined by this contract.
The Michigan Department of Environment, Great Lakes, and Energy has informed the
DEPARTMENT that it adopted new administrative rules (R 325.10101, et. seq.) which prohibit
any governmental agency from connecting and/or reconnecting lead and/or galvanized service
lines to existing and/or new water main. Questions regarding these administrative rules should
be directed to the Michigan Department of Environment, Great Lakes, and Energy. The cost
associated with replacement of any lead and/or galvanized service lines, including but not limited
to contractor claims, will be the sole responsibility of the REQUESTING PARTY.
3. The DEPARTMENT is authorized by the REQUESTING PARTY to perform, at
no cost to the PROJECT, such administration of the PROJECT covered by this contract as is
necessary to assist the REQUESTING PARTY to qualify for funding. Such administration may
include performing such review, legal, financing, any other PROJECT related activities as are
necessary to assist the REQUESTING PARTY in meeting applicable State requirements.
The DEPARTMENT shall provide the REQUESTING PARTY with a notice to proceed
with the award of the construction contract for the PROJECT.
The DEPARTMENT shall make a final acceptance inspection of the PROJECT as
necessary to ensure the PROJECT meets State requirements. Failure to comply with State
requirements may result in forfeiture of future distributions of the Michigan Transportation Fund
as described in Section 5. No charges will be made by the DEPARTMENT to the PROJECT for
any inspection work or construction engineering.
4. The REQUESTING PARTY, under the terms of this contract, shall advertise and
award the PROJECT work in accordance with the following:
A. The REQUESTING PARTY will, at no cost to the DEPARTMENT or the
PROJECT, design, or cause to be designed, the PROJECT, and shall
accept full responsibility for that design. Any review undertaken by the
DEPARTMENT is for its own purposes and is not to nor does it relieve
the REQUESTING PARTY of liability for any claims, causes of action or
judgments arising out of the design of the PROJECT.
B. The REQUESTING PARTY, hereby, ce1tifies to the DEPARTMENT that
the plans, specifications, and estimates for the PROJECT have been
prepared in compliance with applicable State laws, standards, and
regulations.
C. The REQUESTING PARTY, hereby, certifies to the DEPARTMENT that
the contracting procedures to be followed by the REQUESTING PARTY
01/23/03 TEDDIR.FOR 10/6/22 2
in connection with the solicitation of the construction contract for the
PROJECT shall be based on an open competitive bid process. It is
understood that the proposal for the PROJECT shall be publicly advertised
and the contract awarded on the basis of the lowest responsive and
responsible bid in accordance with applicable State statutes and
regulations.
(1) The REQUESTING PARTY shall not award the construction
contract prior to receipt of a notice to proceed from the
DEPARTMENT.
(2) Upon verification that contractor selection by the REQUESTING
PARTY was made in accordance with the terms of this contract
and upon receipt of the "Request for Payment" form from the
REQUESTING PARTY, the DEPARTMENT will authorize
payment to the REQUESTING PARTY for the eligible amount in
accordance with Section 5.
D. The REQUESTING PARTY will, at no cost to the PROJECT or the
DEPARTMENT, comply with all applicable State statutes and regulations,
including, but not limited to, those specifically relating to construction
contract administration and obtain all permits and approvals with railway
companies, utilities, concerned State, Federal, and local agencies, etc., and
give appropriate notifications as may be necessary for the performance of
work required for the PROJECT.
The REQUESTING PARTY agrees to comply with all applicable
requirements of Part 91, Soil Erosion and Sedimentation Control of the
Natural Resources and Environmental Protection Act, 1994 PA 451 as
amended by 1995 PA 60 and 1996 PA 173, MCL 324.9101 et. seq., for all
PROJECT work performed under this contract, and the REQUESTING
PARTY shall require its contractors and subcontractors to comply with the
same.
E. All work in connection with the PROJECT shall be performed in
conformance with the DEPARTMENT'S current Standard Specifications
for Construction, special provisions, and the supplemental specifications
and plans pertaining to the PROJECT. All materials furnished and used in
the construction of the PROJECT shall conform to the aforesaid
specifications. Any changes in the scope of work for the PROJECT will
require approval by the DEPARTMENT.
F. The REQUESTING PARTY shall, at no cost to the PROJECT or to the
DEPARTMENT, appoint a project engineer who shall administer the
01/23/03 TEDDIR.FOR 10/6/22 3
PROJECT and ensure that the plans and specifications are followed, and
shall perform or cause to be performed the construction engineering and
inspection services necessary for the completion of the PROJECT.
Should the REQUESTING PARTY elect to use consultants for
construction engineering and inspection, the REQUESTING PARTY shall
provide a full-time project manager employed by the REQUESTING
PARTY who shall ensure that the plans and specifications are followed.
G. The REQUESTING PARTY shall require the contractor who is awarded
the contract for the construction of the PROJECT to provide, as a
minimum, insurance in the amounts specified in and in accordance with
the DEPARTMENT'S current Standard Specifications for Construction,
and to:
(1) Maintain bodily injury and property damage insurance for the
duration of the PROJECT.
(2) Provide owner's protective liability insurance naming as insureds
the State of Michigan, the Michigan State Transportation
Commission, the DEPARTMENT and its officials, agents and
employees, the REQUESTING PARTY and any other party with
jurisdiction for the roadway being constructed as the PROJECT,
and their employees, for the duration of the PROJECT and to
provide copies of certificates of insurance to the insureds. It is
understood that the DEPARTMENT does not assume either
ownership of any portion of the PROJECT or jurisdiction of any
REQUESTING PARTY highway as a result of being named as an
insured on the owner's protective liability insurance policy.
(3) Comply with the requirements of notice of cancellation and
reduction of insurance set forth in the current Standard
Specifications for Construction and to provide copies of notices
and reports prepared to those insured.
5. The PROJECT COST shall be met in part by contributions by TED FUNDS.
TED FUNDS Category F shall be applied to the eligible items of the PROJECT COST up to an
amount not to exceed the lesser of: ( 1) 45 percent of the approved and responsible low bid
amount, or (2) $375,000, the grant amount. The balance, if any, of the PROJECT COST, after
deduction of TED FUNDS, is the sole responsibility of the REQUESTING PARTY.
The REQUESTING PARTY shall be responsible for the payment of all costs and
expenses incurred in the performance of PROJECT work.
01/23/03 TED DIR.FOR 10/6/22 4
Based upon the final cost of the PROJECT and/or a request by the REQUESTING
PARTY, a payment adjustment may be initiated and/or authorized by the DEPARTMENT for
eligible items of the PROJECT COST such that the total amount of TED FUNDS does not
exceed the grant amount. The REQUESTING PARTY shall certify all actual costs incurred for
work performed under this contract that are eligible for payment with TED FUNDS and will be
required to repay any TED FUNDS it received in excess of 45 percent of the total of such costs.
6. The REQUESTING PARTY shall establish and maintain adequate records and
accounts relative to the cost of the PROJECT. Said records shall be retained for a period of three
(3) years after completion of construction of the PROJECT and shall be available for audit by the
DEPARTMENT. In the event of a dispute with regard to allowable expenses or any other issue
under this contract, the REQUESTING PARTY shall continue to maintain the records at least
until that dispute has been finally decided and the time after all available challenges or appeals of
that decision has expired.
The DEPARTMENT, or its representative, may inspect, copy, or audit the records at any
reasonable time after giving reasonable notice.
The REQUESTING PARTY, within six (6) months of completion of the PROJECT and
payment of all items of PROJECT COST related thereto, shall make a final reporting of
construction costs to the DEPARTMENT and certify that the PROJECT has been constructed in
accordance with the PROJECT plans, specifications, and construction contract.
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 shall promptly submit to the REQUESTING PARTY a Notice of
Audit Results and a copy of the audit report which may supplement or modify any tentative
findings verbally communicated to the REQUESTING PARTY at the completion of an audit.
Within sixty (60) days after the date of the Notice of Audit Results, the REQUESTING
PARTY shall: (a) respond in writing to the responsible Bureau or 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 (c) submit to the DEPARTMENT a written
explanation as to any questioned or no opinion expressed item of expense, hereinafter referred to
as the "RESPONSE". The RESPONSE shall be clearly stated and provide any supporting
documentation necessary to resolve any disagreement or questioned or no opinion expressed
item of expense. Where the documentation is voluminous, the REQUESTING PARTY may
supply appropriate excerpts and make alternate arrangements to conveniently and reasonably
make that documentation available for review by the DEPARTMENT. The RESPONSE shall
refer to and apply the language of the contract. The REQUESTING PARTY 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.
01/23/03 TEDDIR.FOR 10/6/22 5
The DEPARTMENT shall make its decision with regard to any Notice of Audit Results
and RESPONSE within one hundred twenty (120) days after the date of the Notice of Audit
Results. If the DEPARTMENT determines that an overpayment has been made to the
REQUESTING PARTY, the REQUESTING PARTY shall repay that amount to the
DEPARTMENT or reach agreement with the DEPARTMENT on a repayment schedule within
thirty (30) days after the date of an invoice from the DEPARTMENT. If the REQUESTING
PARTY fails to repay the overpayment or reach agreement with the DEPARTMENT on a
repayment schedule within the thirty (30) day period, the REQUESTING PARTY agrees that the
DEPARTMENT shall deduct all or a portion of the overpayment from any funds then or
thereafter payable by the DEPARTMENT to the REQUESTING PARTY under this contract or
any other agreement, or payable to the REQUESTING PARTY 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 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
REQUESTING PARTY 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 REQUESTING PARTY in a timely filed RESPONSE.
The REQUESTING PARTY shall comply with the Single Audit Act of 1984, P.L.
998-502 and applicable State laws and regulations relative to audit requirements.
7. Upon completion of construction of the PROJECT, the REQUESTING PARTY
will cause to be enacted and enforced such ordinances or regulations as may be necessary to
prohibit parking in the roadway right-of-way throughout the limits of the PROJECT.
8. The REQUESTING PARTY certifies that it is not aware if and has no reason to
believe that the property on which the work is to be performed under this agreement is a facility,
as defined by the Michigan Natural Resources and Environmental Protection Act [(NREPA), PA
451, 1994, as amended 2012]; MCL 324.2010l(l)(s). The REQUESTING PARTY also
certifies that it is not a liable party pursuant to either Part 201 or Part 213 of NREPA, MCL
324.20126 et seq. and MCL 324.21323a et seq. The REQUESTING PARTY is a local unit of
government that has acquired or will acquire property for the use of either a transportation
corridor or public right-of-way and was not responsible for any activities causing a release or
threat of release of any hazardous materials at or on the property. The REQUESTING PARTY
is not a person who is liable for response activity costs, pursuant to MCL 324.20 IO 1 (vv) and
(ww).
9. If, subsequent to execution of this contract, previously unknown hazardous
substances are discovered within the PROJECT limits, which require environmental remediation
pursuant to either State or federal law, the REQUESTING PARTY, in addition to reporting that
fact to the Michigan Department of Environment, Great Lakes, and Energy , shall immediately
01/23/03 TEDDIR.FOR 10/6/22 6
notify the DEPARTMENT, both orally and in writing of such discovery. The DEPARTMENT
shall consult with the REQUESTING PARTY to determine if it is willing to pay for the cost of
remediation and to determine the eligibility, for reimbursement, of the remediation costs. The
REQUESTING PARTY shall pay all costs associated with such remediation, including all delay
costs of the contractor for the PROJECT. If the REQUESTING PARTY refuses to participate in
the cost of remediation, the amount of TED FUNDS the REQUESTING PARTY received from
Grant #1009 shall be forfeited back to the DEPARTMENT.
10. If State funds administered by the DEPARTMENT are used to pay the cost of
remediating any hazardous substances discovered after the execution of this contract and if there
is a reasonable likelihood of recove1y, the REQUESTING PARTY, in cooperation with the
Michigan Department of Environment, Great Lakes, and Energy and the DEPARTMENT, shall
make a diligent effort to recover such costs from all other possible entities. If recovery is made,
the DEPARTMENT shall be reimbursed from such recove1y for the proportionate share of the
amount paid by the DEPARTMENT and the DEPARTMENT shall credit such sums to the
appropriate funding source.
11. The DEPARTMENT'S sole reason for entering into this contract is to enable the
REQUESTING PARTY to obtain and use funds provided by the State.
Any and all approvals of, reviews of, and recommendations regarding contracts,
agreements, permits, plans, specifications, or documents, of any nature, or any inspections of
work by the DEPARTMENT pursuant to the terms of this contract are done to assist the
REQUESTING PARTY in meeting program guidelines in order to qualify for available funds.
Such approvals, reviews, inspections and recommendations by the DEPARTMENT shall not
relieve the REQUESTING PARTY and the local agencies, as applicable, of their ultimate
control and shall not be construed as a warranty of their propriety or that the DEPARTMENT is
assuming any liability, control or jurisdiction.
The providing of recommendations or advice by the DEPARTMENT does not relieve the
REQUESTING PARTY and the local agencies, as applicable, of their exclusive jurisdiction of
the highway and responsibility under MCL 691.1402 et seq., as amended.
When providing approvals, reviews and recommendations under this contract, the
DEPARTMENT is performing a governmental function, as that term is defined in MCL
691.1401 et seq. as amended, which is incidental to the completion of the PROJECT.
12. The DEPARTMENT, by executing this contract, and rendering services pursuant
to this contract, has not and does not assume jurisdiction of the highway, described as the
PROJECT for purposes of MCL 691.1402 et seq., as amended. Exclusive jurisdiction of such
highway for the purposes of MCL 691.1402 et seq., as amended, rest with the REQUESTING
PARTY and other local agencies having respective jurisdiction.
01/23/03 TEDDIR.FOR 10/6/22 7
13. The REQUESTING PARTY shall approve all of the plans and specifications to
be used on the PROJECT and shall be deemed to have approved all changes to the plans and
specifications when put into effect. It is agreed that ultimate responsibility and control over the
PROJECT rests with the REQUESTING PARTY and local agencies, as applicable.
Upon completion of the PROJECT, the REQUESTING PARTY shall accept the facilities
constructed as built to specifications within the contract documents. It is understood that the
REQUESTING PARTY shall own the facilities and shall operate and maintain the facilities in
accordance with all applicable Federal and State laws and regulations, including, but not limited
to, Title II of the Americans with Disabilities Act (ADA), 42 USC 12131 et seq., and its
associated regulations and standards, and DEPARTMENT Road and Bridge Standard Plans and
the Standard Specifications for Construction.
14. The REQUESTING PARTY agrees that the costs reported to the DEPARTMENT
for this contract will represent only those items that are properly chargeable in accordance with
this contract. The REQUESTING PARTY 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.
15. Each party to this contract will remain responsible for any and all claims arising
out of its own acts and/or omissions during the performance of the contract, as provided by this
contract or by law. In addition, this is not intended to increase or decrease either party's liability
for or immunity from tort claims. This contract is also not intended to nor will it be interpreted
as giving either party a right of indemnification, either by contract or by law, for claims arising
out of the performance of this contract.
16. In connection with the performance of PROJECT work under this contract the
parties hereto (hereinafter in Appendix "A" referred to as the "contractor") agree to comply with
the State of Michigan provisions for "Prohibition of Discrimination in State 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 Acts of 1964 being P .L. 88-352, 78 Stat. 241, as
amended, being Title 42 U.S.C. Sections 1971, l 975a-l 975d, and 2000a-2000h-6, and will
require similar covenants on the part of any contractor or subcontractor employed in the
performance of this contract.
17. The REQUESTING PARTY and other local agencies, as applicable patties,
understand and agree that the highway(s) or street(s) being improved under the terms of this
agreement and funded with Transportation Economic Development Funds, shall not be subject to
any restriction by local authorities in using certain commercial vehicles on such highway(s) or
street(s). Such restrictions are in conflict with the basic concept of the Transportation Economic
Development Program and Funding. The REQUESTING PARTY, by signing this agreement,
agrees to obtain concurrence from other local governmental agencies within whose jurisdiction
or control the highway(s) or street(s) are being improved.
01/23/03 TEDDIR.FOR 10/6/22 8
18. This contract shall become binding on the parties hereto and of full force and
effect upon the signing thereof by the duly authorized officials for the parties hereto and upon the
adoption of the necessary resolution approving said contract and authorizing the signatures
thereto of the respective officials of the REQUESTING PARTY, a certified copy of which
resolution shall be attached to this contract.
IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed as
written below.
CITY OF MUSKEGON MICHIGAN DEPARTMENT
OF TRANSPORTATION
Leo Evans, P.E. Demetrius A. Parker Demetrius A. Parker, P.E.
DPW Director Leo Evans
Nov 14 2022 9:32 AM for: MDOT Director Nov 29 2022 11 :28 AM
By City of Muskegon By_ _ _ _ _ _ _ _ _ _ _ __
Title: Department Director MDOT
Ann Marie Meisch
By Ann Marie Meisch °NGH 14 2()22 3·54 4M
Title:
01/23/03 TEDDIR.FOR 10/6/22 9
October 6, 2022
EXHIBIT I
CONTROL SECTION EDF 61000
JOB NUMBER 215087CON
ESTIMATED COST
Estimated PROJECT COST
Contracted Work $825,200
ESTIMATED COST PARTICIPATION
GRAND TOTAL ESTIMATED COST $825,200
Less TED FUNDS* $371,340
BALANCE (REQUESTING PARTY'S SHARE) $453,860
NO DEPOSIT
*TED FUNDS for the PROJECT are limited to an amount as described in Section 5.
01/23/03 TEDDIR.FOR 10/6/22 10
APPENDIX A
PROHIBITION OF DISCRIMINATION IN STATE CONTRACTS
In connection with the performance of work under this contract; the contractor agrees as follows:
I. 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, ce1iify 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 pa1iy 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
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