Approved Agreements and Contracts 2024/09/24 MDOT Trunkline Maintenance Contract Renewal

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CONTRACT NO. 2024-0366
REGION: GRAND
AGENDA: DAB

MICHIGAN DEPARTMENT OF TRANSPORTATION

STATE TRUNKLINE MAINTENANCE CONTRACT

CITY OF MUSKEGON

This Contract made and entered into by and between the Michigan Department of Transportation
(MDOT), and the City of Muskegon, a Michigan municipal corporation (Municipality).

RECITALS:

MDOT is authorized by 1925 PA 17 Section 2, MCL 250.62 to contract with the Municipality for
the construction, improvement, or maintenance of state trunkline highways and appurtenant
facilities. MDOT, subject to the approval of the State Administrative Board; and

MDOT has affirmatively found that contracting with this Municipality for the maintenance of state
trunkline highways and bridges within its contract area, is in the best public interest: and

MDOT has so advised the State Transportation Commission and the Appropriations Committees
of the Senate and House of Representatives in accordance with 1951 PA 51 Section lic, MCL
247.661c; and

The parties agree as follows:

SECTION 1. SCOPE OF WORK

A. Services Provided: For the term of this Contract, the Municipality agrees to maintain the
state trunk line highways and, if applicable, appurtenant facilities within the Contract Area
by performing maintenance work. Maintenance work will be performed under the direction
of the Region Engineer of MDOT or a designee of the Region Engineer, acting under the
general direction of the Engineer of Transportation Systems Management and Operations
(TSMO) of MDOT. Work performed under this Contract will be performed in accordance
with accepted maintenance practices and/or specifications provided by MDOT as identified
in a written Letter of Understanding. For maintenance work not covered by the Field
Activity Budget, a Transportation Work Authorization (TWA) will be issued by the Region
Engineer.

1. A written Letter of Understanding shall be drafted by MDOT and signed by both
MDOT and the designated representative of the Municipality. The letter shall
remain in effect until either replaced or modified by the Region Engineer and

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approved by the Municipality. The letter will outline the number and type of
maintenance activities to be performed under this Contract (A sample Letter of
Understanding is attached as Appendix F). The Letter of Understanding shall
provide sufficient detail of the work activities to be performed, expectations or
outcomes from the performance of this work, and identification of budget line items
for budgeting and billing purposes. Attachment G (Municipality Firm Unit Prices)
and H (Municipality Snow Hauling Calculation Form) will be attached to the Letter
of Understanding.

2. The executed Letter of Understanding and all subsequent approved revisions
thereto, are incorporated herein by reference as if the same were repeated in full
herein.

3. If the Municipality is unable to perform any of the services outlined in the Letter of
Understanding on a twenty-four (24) hour, seven (7) day-a-week basis, the
Municipality will immediately notify MDOT. MDOT will work with the
Municipality to ensure that the services defined in the Letter of Understanding are
performed.

4. The Municipality and MDOT may agree to include additional maintenance items
to be covered under this Contract. Such items may include, but are not limited to,
maintenance of traffic control devices (signals), freeway lighting and intelligent
traffic systems (ITS). All such work will be listed in the Letter of Understanding,
as set forth in Appendix F, included in the line item budget and defined in a
supplemental scope.

5. The Municipality shall be responsible for providing all traffic control necessary to
complete the work as outlined in this Contract unless otherwise agreed to by
MDOT.

6. The Municipality and MDOT may enter into separate agreements for the shared
payment of installation, maintenance, and energy costs for traffic control devices.

B. Specifications and Performance: The Municipality will provide personnel, equipment,
materials, and facilities to perform the maintenance work under the terms of this Contract
in a manner consistent with MDOT’s established guidelines for winter and non-winter
maintenance activities.

The Municipality shall perform all maintenance work under this Contract in accordance
with accepted maintenance practices and/or specifications provided by MDOT and in
accordance with the approved Budget and annual Work Plan.

When MDOT recognizes that a certain maintenance activity, is not in compliance with
accepted maintenance practices and/or specifications, it will, within sixty (60) days of the
billing of work, issue a written notice to the Municipality. Upon issuance of the first written
notice, MDOT will work with the Municipality to develop a corrective action plan. Once
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both MDOT and the Municipality are satisfied with the corrective action plan, MDOT and
the Municipality will approve the plan for implementation. MDOT will reimburse the
Municipality for the cost of the non-compliant work. Once the corrective work is
completed in accordance with the corrective action plan, the Municipality will submit the
cost for the corrective work for full reimbursement by MDOT. The Municipality agrees
that if corrective work is not in accordance with the corrective action plan, the Municipality
will not invoice MDOT for the non-compliant corrective work.

If MDOT determines that the corrective work is not in compliance with the corrective
action plan, within thirty (30) days it will issue a second written notice to the Municipality
describing the unacceptable corrective work, the reason for rejection, and include a written
copy of MDOT’s maintenance practices and/or specifications, if applicable. Work not
meeting the corrective action plan will be corrected by the Municipality in accordance with
the second written notice and the previously approved corrective action plan, without
additional charge to MDOT. If MDOT, upon completion of the Municipality’s second
attempt to correct the non-compliant work, determines that the work is still not in
compliance, MDOT will have the non-compliant work corrected by other means at
MDOT’s expense and the Municipality will reimburse MDOT for such expense through
Maintenance Local Agency Payment System (MLAP). If there is a disagreement between
MDOT and the Municipality regarding whether or not the corrective work meets MDOT’s
maintenance practices and/or specifications, the Municipality may request the Dispute
Resolution Process as outlined in Section 26.

C. Permits: At the request of the Region Engineer, the Municipality may agree to inspect
work performed by permit or otherwise assist MDOT with permits. In such event:

1. MDOT will require all Permit Applicants to “save harmless” the State of Michigan,
Transportation Commission, MDOT, and all officers, agents, and employees
thereof, and the Municipality, their officials, agents, and employees, against any
and all claims for damages arising from operations covered by the permit as a
condition of all permits issued by MDOT.

2. MDOT will further require Permit Applicants to provide Commercial general
liability insurance, including coverage for contractual liability, completed
operations, and/or product liability, XX (Explosion), C (Collapse), & U
(Underground), and a contractor’s protective liability policy with a blasting
endorsement when blasting is involved, or Commercial general liability insurance
which includes all the above, naming as additional parties insured on all such
policies, the State of Michigan, Transportation Commission, MDOT, and all
officers, agents, and employees thereof, the Municipality their officials, agents, and
employees. The Permit Applicant will provide written proof of the insurance to
MDOT. MDOT may waive this requirement for permits issued to governmental
entities or public utilities.

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3, The amounts of such insurance will be no less than:

Commercial General Liability Insurance:

The minimum limits shall be $1,000,000 each occurrence and $2,000,000
aggregate,

Combined single limit for bodily injury and property damage liability shall be
$1,000,000 each occurrence.

The insurance limits above may be attained through an umbrella policy.

D. Transportation Work Authorizations: TWA’s may be issued by the Region Engineer for
both Maintenance work and non-maintenance work. This work may be performed by the
Municipality, or a subcontractor as set forth in Section 9 of this Contract. TWA’s will be
performed in accordance with MDOT’s accepted maintenance practices and specifications
and as required in the TWA. The Municipality will provide the necessary supervision or
inspection to ensure that the work is performed in accordance with the TWA. In the event
the Region Engineer finds the work performed not in compliance with MDOT’s accepted
maintenance practices or the specifications on the TWA, then the corrective action
specified in Subsection | (B) will be followed.

E, The Region Engineer is authorized to issue written orders, as necessary, for the
performance of maintenance work under the provisions of this Contract.

SECTION 2.) RESERVED FOR FUTURE USE

SECTION 3. INTEGRATION OF STATE AND MUNICIPAL WORK

The Municipality will furnish qualified personnel and adequate equipment and may furnish
materials, as set forth in this Contract, as needed to perform maintenance on state trunkline
highways, consistent with MDOT’s established core level of service for winter and non-
winter maintenance activities, an approved annual budget, work plan, and work schedule.
Personnel and equipment may be used on the local road system and state trunkline
highways as conditions warrant.

SECTION 4. HIGHWAY MAINTENANCE CONTRACT ADMINISTRATOR

The Municipality hereby designates Dan VanderHeide. as Contract Administrator on state
trunkline highways, who will be responsible for budget and the administration of the
Contract. The Municipalities’ title for this position is Director of Public Works. In the

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event the Municipality desires to replace the Contract Administrator, the Municipality will
notify MDOT within (30) days of the change in writing.

SECTION 5. SUPERVISION

The Municipality hereby designates Vern Berndt or others functioning in the same capacity
as Highway Maintenance Foremen, hereinafter referred to as the “Foremen”, who will
oversee all work covered by this Contract and be responsible to the Contract Administrator.
The Municipality will notify MDOT in writing within (30) days of any change in the above
personnel. The Municipality will be reimbursed for actual time worked by the Foremen
on state trunkline Highway maintenance when supported by daily timecards signed by their
immediate supervisor or electronic timekeeping approved by their assigned supervisor
subject to the provisions of Subsection 16(B).

SECTION 6. WAGE SCHEDULE

Wages paid by the Municipality for work on state trunkline highways will be the same as
on street work for the Municipality. A copy of the union agreement or HR Wage Schedule
will be provided to MDOT upon request.

No “stand by at home” pay will be included in charges for work on state trunkline
highways.

MDOT will reimburse the Municipality for Direct Labor Overhead costs on all labor costs
properly chargeable to MDOT, including but not limited to, vacation, sick leave, holiday
pay, workers’ compensation, retirement, social security, group life insurance,
hospitalization, longevity, unemployment insurance, and military leave, hereinafter
referred to as “EMPLOYEE BENEFITS,” in accordance with Section 16.

SECTION 7. MATERIALS TO BE ACQUIRED AND SPECIFICATIONS

Material necessary for the performance of this Contract, may be purchased by the
Municipality unless otherwise directed by the Region Engineer. The Municipality will
advertise and receive competitive bids when such purchases exceed Ten Thousand Dollars
($10,000.00), or if required by federal or state law. The Municipality shall select the lowest
qualified bid.

The Municipality will retain documentation that such bids were taken. Failure to retain
documentation that such bids were taken may result in denial of reimbursement of the costs
of such materials.

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The following materials: bituminous pre-mixed materials, bituminous materials,
aggregates (except ice control sand), bulk salt and traffic control devices used on state
trunkline highways by the Municipality, will conform to current or supplemental
specifications of MDOT, unless otherwise approved in advance by the Region Engineer.
The Region Engineer may require approval by MDOT’s Construction Field Services
Division, or by a laboratory approved by the Construction Field Services Division. Copies
of approvals will be placed on file in the offices of the Municipality and the Region
Engineer. If MDOT-owned materials are stored jointly with Municipality-owned materials,
proper and adequate inventory records must be maintained by the Municipality clearly
indicating the portion that is MDOT-owned.

SECTION 8. PRICE SCHEDULE OF MATERIALS AND SERVICES

Materials produced and/or supplied by the Municipality may be furnished at a firm unit
price subject to approval of source and price by the Region Engineer. Firm unit prices are
not subject to unit price adjustment by review/audit. The term “review/audit” hereafter
will be referred to as “review”.

The Municipality may change, add, or delete firm unit prices when requested in writing
and approved by the Region Engineer at least sixty (60) days prior to the effective date of
the change, addition, or deletion. All changes will be submitted with the Firm Unit Prices
form, Appendix G.

_ xX No, Firm Unit Price items will not be used.

Yes, Firm Unit Price items will be used.

MDOT may review all records necessary to assess the accuracy of the material quantities
for all materials on the Firm Unit Price List for which the Municipality requests
reimbursement.

Items purchased from a vendor source or vendor stockpile for direct use on the state
trunkline highways are not eligible for firm unit price consideration and should be billed at
vendor pricing.

Reimbursement for all materials supplied by the Municipality which are not included in
the firm unit price schedule will be reimbursed in accordance with Section 16(E). MDOT
may review all records for materials purchased from a vendor source or vendor stockpile
for direct use on state trunkline highways.

SECTION 9. SUBCONTRACTS

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The Municipality may subcontract any portion of the work to be performed under this
Contract. Bidding/price solicitation and subcontracts will comply with applicable law and
conform to the Municipality’s contracting process except as modified herein. All
subcontracted work will require the Municipality to submit a Quotation Request for
Services or Equipment (Form 426) along with relevant bid and contract documents and bid
or quote tabulation.

All subcontracted work will be performed in accordance with the established Scope of
Work outlined on Form 426 and any specifications developed by the Municipality and/or
MDOT for the subcontracted work. The scope of work and any specifications must be
approved by the Region Engineer. The Municipality will provide the necessary supervision
or inspection to assure the subcontracted work is performed in accordance with the scope
of work and specifications. At no time will the Municipality pay for subcontracted work
until the work has been inspected and approved by the Municipality for compliance with
the scope of work and specifications.

Emergency work will be subcontracted based on a verbal approval given by the Region
Engineer. The work must be supported by the submission of a Form 426 and summary of
emergency work within 15 days of completion.

The parties agree to extend the terms of the Contract if subcontracted work is incomplete
at the conclusion of the Contract term. This provision shall not apply if this Contract is
terminated by the Municipality or MDOT. In situations where this Contract is terminated
by the Municipality or MDOT, all subcontracts shall be deemed terminated as of the date
the Contract is terminated. The Municipality must incorporate this provision into all
subcontracts.

County and/or Municipality-based advantage programs, hereinafter the “CBA Process”, or
any type of preference program which awards contracts based on criteria other than low
bid through the competitive bidding process, may not be used for any work under this
Contract.

Failure to obtain the necessary approvals or to retain the documentation that the bids,
prices, or rate quotations were solicited as required in this section may result in a denial of
the reimbursement of the costs.

The term of any subcontract will not exceed five (5) years including any extensions.

For subcontracts involving the items of Drainage Structure Cleanout, Curb Sweeping, and
Area Mowing, the Municipality will include a cancellation clause that will allow the
Municipality to cancel the subcontract if funds are not made available by MDOT.

All Subcontracts shall be awarded to the lowest qualified bid. Subcontract solicitation and
approval process will be as follows:

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A. Subcontracts less than $25,000: The Municipality will solicit either a bid price, or rate
quotation from three or more qualified sources. Documentation of solicitation from all
qualified sources must be retained. Region Engineer approval of Form 426 is required.

B. Subcontracts_ $25,000 or greater: The Municipality will advertise and award by
competitive bid. Advertisements must clearly define the scope of work, performance
specifications, MDOT contract terms, and the location of work to be performed.
Documentation of the solicitation from all qualified sources must be retained. Region
Engineer approval of Form 426 is required.

State Administrative Board requirements for Contracts and Amendments (previously
referred to as overruns, extra work and adjustments), are outlined and set forth in Appendix
E, attached hereto and made a part hereof.

SECTION 10. NON-DISCRIMINATION

In connection with the performance of maintenance work under this Contract, the
Municipality (hereinafter in Appendix C referred to as the “Contractor”) agrees to comply
with the State of Michigan provisions for “Prohibition of Discrimination in State
Contracts,” as set forth in Appendix C, attached hereto and made a part hereof. The
Municipality further covenants that it will comply with the Civil Rights Act of 1964, being
P.L, 88-352, 78 Stat. 241, as amended, being Title 42 U.S.C. Sections 1971, 1975a-1975d,
and 2000a-2000h-6 and will require similar covenants on the part of any contractor or
subcontractor employed in the performance of this Contract.

SECTION 11. ANTI-KICKBACK

No official or employee of the Municipality or of the State of Michigan will receive
remuneration (directly or indirectly) for the purchase of materials, supplies, equipment, or
subcontracts in connection with the performance of this Contract.

SECTION 12. SCOPE OF CONTRACT

It is declared that the work performed under this Contract is a governmental function which
the Municipality performs for MDOT. This Contract does not confer jurisdiction upon the
Municipality over the state trunkline highways encompassed by this Contract or over any
other state trunkline highways. This Contract may not be construed to confer temporary
or concurrent jurisdiction upon the Municipality over a state trunkline highway. Nothing
inconsistent with the underlying statutory jurisdiction, duties, prerogatives, and obligations
of MDOT is herein intended. The parties hereto further declare that this Contract is not
made for the benefit of any third party.

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SECTION 13. INSURANCE

A. The Municipality will furnish MDOT with a certificate of automobile liability insurance,
which complies with the No-Fault Automobile Insurance laws of the State of Michigan,
MCL 500.3101, ef seg. The Insurance coverage will include vehicles owned, leased or
rented by the Municipality. Such insurance will not be less than Two Hundred and Fifty
Thousand Dollars ($250,000.00) for bodily injury or death of any one person. Coverage
for public liability, property damage, and combined single limit will also comply with the
No-Fault Automobile Insurance laws of the State of Michigan. The Municipality will
provide thirty (30) days’ notice to MDOT prior to cancellation, termination, or material
change of the policy. The certificate of said insurance, on MDOT Form 428 (Certificate
of Insurance for State Highway Maintenance Contract) covering public liability and
property damage, indicating thereon the policy number, and the aforesaid thirty (30) days’
notice provisions and the limits of liability, will be submitted to MDOT. The Municipality
agrees to review its insurance programs with its statewide association in an effort to obtain
cost savings and efficiency for MDOT.

If the Municipality is self-insured, a copy of the Secretary of State’s Certificate of Self-
insurance will be submitted.

In the event the Municipality receives a Notice of Intent to File Claim and/or any complaint
filed by a person seeking to recover damages from the Municipality for its alleged acts or
omissions ona state trunkline highway, the Municipality will provide a copy of such notice
to the Assistant Attorney General, within fifteen (15) days of receipt of said notice or
complaint. The Notice of Intent to File Claim and/or any complaint filed by a person
seeking to recover damages from the Municipality will be sent to:

Assistant Attorney General
Division Chief
Transportation Division
Van Wagoner Building - 4" Floor
425 West Ottawa Street
P.O. BOX 30050
Lansing, Michigan 48909

Thereafter, the Municipality will provide copies of pleadings and other information
regarding the claim or lawsuit when requested by an Assistant Attorney General

SECTION 14. WORKERS’ DISABILITY COMPENSATION

The Municipality will comply with the Michigan Workers’ Disability Compensation Act,
MCL 500.3400, et seq. for all employees performing work under this Contract.
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SECTION 15. BUDGET

Each MDOT fiscal year, the Region Engineer will prepare separate budgets for winter and
non-winter maintenance in accordance with MDOT guidelines. The Region Engineer, in
consultation with the Municipality, shall develop an annual Work Plan which shall include
non-winter maintenance activities, a proposed schedule, and the estimated cost for such
activities. The sum of those estimated costs will constitute the non-winter Budget and will
be distributed monthly in accordance with the proposed schedule.

MDOT agrees that, once established, the fiscal year non-winter maintenance will not be
reduced, except as otherwise provided in this Contract. The Budget for winter
maintenance activities will be based on a five-year (5) average of winter expenditures
which includes the costs for labor, fringe benefits, equipment, MDOT Salt Stores,
Municipality-supplied road salt, winter sand, other de-icing chemicals and overhead.
Notwithstanding the foregoing, MDOT will establish a statewide holdback fund amount
not to exceed thirty percent (30%) of the five (5) year winter average. The statewide
holdback funds will be used to cover Winter Overruns of the Municipality, other contract
road agencies, and MDOT direct forces. The statewide holdback funds will also be used
to pay any budget review adjustments owed to contract agencies. MDOT will distribute
any remaining funds in the statewide holdback to contract agencies and MDOT direct
forces based on a prioritization of statewide non-winter maintenance needs.

The Region Engineer and the Municipality will review the non-winter maintenance Budget
together at least every other month. Any adjustments to the proposed work plan to curtail
or expand operations will be addressed in this Budget review. During winter operations,
the winter Budget will be reviewed by the Region Engineer and the Municipality every
month to conduct the same review.

MDOT and Municipality will meet between March | and May 15 of each fiscal year to
develop a supplemental summer program. The supplemental summer program will be
funded by the remainder of the winter Budget, if any. The work activities proposed in the
supplemental summer program will be prioritized to support MDOT’s preservation
strategy. The remainder of the winter Budget will be released to the Municipality two
weeks after the final bill is received by MDOT covering the winter season as defined in the
Winter Letter of Understanding.

If the Municipality’s winter overruns (including benefits and overhead) exceed MDOT’s
winter budget and holdback funds statewide, MDOT will seek additional funding to
address the overruns including a supplemental appropriation from the State Budget Office.
MDOT reserves the right to reduce the non-winter maintenance Budget if efforts to secure
additional funding are unsuccessful.

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SECTION 16: REIMBURSEMENT SCHEDULE

MDOT will reimburse the Municipality for costs incurred in the performance of the work
covered by this Contract, except as set forth in Sections 18, 19, 20, and 21. To be eligible
for reimbursement under this Section, costs must be submitted to MDOT’s Maintenance
Local Agency Payment (MLAP) system prior to the start of the review for each respective
year of the Contract period.

A. Requests for reimbursement shall be made through MLAP at least bi-monthly (every other
month) on the basis of certified statement of charges prepared and submitted by the
Municipality within fifteen (15) days from the end of each bi-monthly period. Costs
submitted beyond sixty (60) days from the end of each bi-monthly period will include
written justification for the delay and will be paid only upon approval of the Region
Engineer. Municipalities with a line-item budget contract of $100,000 or greater shall
submit request for reimbursement on a monthly basis.

B. MDOT will reimburse the Municipality for the cost of all labor employed in the
performance of this Contract. The reimbursement will include the expense of permit
inspections, field and office engineering, and reviewing expenses in connection with force
account work by subcontractors.

C. MDOT will reimburse the Municipality for the cost of MDOT’s share of the cost of
EMPLOYEE BENEFITS as referred to in Section 6 as a percentage of payroll. The
percentage shall be developed using MDOT Form 455M (Report of Employee Benefit
Costs for the Municipality) and shall conform with the general accounts of the Municipality
on the Municipality’s previous fiscal years’ experience. These charges are subject to
review in accordance with Section 25.

D. MDOT will reimburse the Municipality for the cost of MDOT’s share of the actual cost of
Municipality owned or purchased energy.

E. MDOT will reimburse the Municipality for the cost of purchased bulk (measured by
volume or weight) materials and Non-Bulk (measured by area or count) material used in
the performance of this Contract. The Municipality shall deduct all discounts or rebates in
excess of two percent (2%), to establish the reimbursed cost.

F, MDOT will reimburse the Municipality for the cost of handling materials furnished by the
Municipality and materials furnished by MDOT as follows:

1. Bulk Items (measured by volume or weight):
The direct expenses of handling, such as unloading, processing, stockpiling,
heating, or loading for materials in bulk, bags or drums such as aggregates,
bituminous materials and chemicals, on condition that reimbursement of such
expenses is not provided elsewhere herein, and these costs can be identified within
the records of the Municipality. When bulk items intended for use on the state

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trunkline are co-mingled with the Municipality’s materials for their local roads,
MDOT will only reimburse the Municipality for the cost of handling the portion
expected to be used on the state trunkline highways. The Municipality will
establish a rate of use annually, based on the previous year’s use to identify
MDOT?’s share of handling cost. The Municipality’s established rate is subject to
adjustment by review.

2. Non-Bulk Items (measured by area or count):
A five percent (5%) handling and storage charge may be added to the purchase
price of all materials measured by area or count provided such materials are stocked
in and distributed from approved storage facilities. When reported by the
Municipality, charges for handling and storage in excess of five percent (5%) will
be reimbursed to the Municipality upon review, provided that these charges can be
identified and supported within the records of the Municipality.

Equipment owned by the Municipality will be reimbursed at the established rental rates
found in Schedule C, Report 375 Equipment Rental Rates, issued annually by MDOT.
Rented equipment will be reimbursed at actual cost for the equipment rental.

MDOT will reimburse the Municipality for the amounts paid by the Municipality to a
subcontractor as set forth in Section 9.

MDOT will reimburse the Municipality for the cost of labor, materials, and equipment
rental incurred in connection with engineering, supervision, and inspection of subcontract
work.

Overhead in Accordance with Attached Overhead Schedule.

MDOT will reimburse the Municipality for overhead costs at the appropriate percentage
rate as indicated in Appendix B. The overhead rate shall be based upon the original annual
budget established for the Municipality and shall not change.

The overhead amount payable under Section 16(I) is reimbursement to the Municipality
for all costs and expenses arising out of the performance of this Contract not specifically
described in other sections of this Contract. This reimbursement includes salary and
expenses (including transportation) of the Foreman (except as noted in Section 16(K)),
salaries of clerical assistants, including radio communication staff, office expense, storage
rentals on Municipality owned property, and the cost of small road tools. Work tools
without a power assist and used in a road or a bridge maintenance activity, are considered
small road tools. Small road tools do not have an equipment rental rate listed in Schedule
C, Report 375, Equipment Rental Rates. Small road tools are reimbursed as an overhead
cost.

K. MDOT will reimburse the Municipality for MDOT’S pro-rata share of the cost to maintain
chemical storage facilities as provided for in the chemical storage facility contracts
between the Municipality and MDOT.

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L. The Municipality will be reimbursed as a direct cost for work performed by the Foreman
making regular inspections of state trunkline highways in accordance with written
instructions from the Region Engineer. This time shall be specifically recorded on daily
time sheets and reported as a direct labor charge.

It is further agreed that in smaller municipalities, the Foreman designated above may at
times be engaged in tasks other than those of a strictly supervisory nature, such as operator
of a truck or other highway equipment. The Municipality may be reimbursed for this time
worked on state trunklines, provided that all such time for non-supervisory work is
specifically recorded on the daily time sheet and reported on the Maintenance Payroll
Report Form 410A. The exact dates on which the Maintenance Superintendent so worked,
the number of hours worked, and the number of hours worked under each classification
shall be indicated on the Maintenance Payroll Report Form 410A. The completed Form
410A shall be uploaded to MDOT’s MLAP system.

SECTION 17: ELECTRONIC FUNDS TRANSFER

Public Act 533 of 2004 requires that payments under this Contract be processed by
electronic funds transfer (EFT). The Municipality is required to register to receive
payments by EFT at the SIGMA Vendor Self Service (VSS) website
(www.michigan.gov/SIGMAYVSS).

SECTION 18: SNOW HAULING

MDOT will share in the cost of snow hauling if each snow hauling effort is approved by
the Region Engineer. The frequency (annually, each storm, etc.) will be at the discretion
of the Region Engineer and will be detailed in the Letter of Understanding. The
Municipality should denote snow hauling charges as Activity 149, Other Winter
Maintenance, on Trunk Line Maintenance Reports. Prior written authorization from the
Region Engineer shall be required for each snow haul event outside the parameters in the
Letter of Understanding and shall be kept on file for review purposes.

MDOT’S share of snow hauling will be calculated on the Municipality Snow Hauling
Calculation Form, Appendix H. The completed form will be submitted to the Region
Engineer. The snow hauling percentage will be based on the ratio of the width of area
designated for traffic movement to the width of the total area agreed upon for snow hauling.
MDOT is not responsible for snow removal in parking lanes or sidewalks and will subtract
the area of parking lanes and sidewalks from the total area of the state trunkline highway
right-of-way to determine the area designated for traffic movement.

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MDOT’S reimbursement for snow hauling from state trunkline highways will be paid at
the below percent of actual charges supported by proper documentation,

67_ percent (%)

The Municipality agrees that it will prohibit additional snow from being deposited on the
highway right-of-way from side streets.

SECTION 19: PAVEMENT MARKING

Compensation for the item of Special Markings Paint & Tape will be made on the basis of
actual expenditure only, except in no case will the Municipality be compensated for a total
expenditure in excess of the amount designated for Special Markings Paint & Tape in the
Line Item Budget for the appropriate MDOT fiscal year. Compensation for Special
Markings Paint & Tape is limited to only painting authorized by the Region Engineer. The
Municipality shall not include charges for curb painting in the routine maintenance cost for
state trunkline maintenance.

SECTION 20: COMPENSATION FOR AESTHETIC WORK ITEMS

Compensation for the items of Curb Sweeping, Area Mowing and Litter Pickup will be
made on the basis of actual expenditures only, except that in no case will the Municipality
be compensated for a total expenditure in excess of the budget amount designated each of
these three work activities on the Summary of the Field Activity Budget for the appropriate
MDOT fiscal year.

The number of work operations for each of these three activities will be agreed upon
between the Municipality and Region Engineer; and reflected in each line activity budget
amount.

SECTION 21: TREES AND SHRUBS

Except for emergency work, the Municipality must request MDOT’S written approval to
remove dead trees and/or trim trees prior to the start of work. MDOT will pay all costs to
remove dead trees. MDOT and Municipality shall equally share costs when state and local
forces combine efforts to trim trees within the trunkline right-of-way as approved by the
Region Engineer.

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SECTION 22: EQUIPMENT LIST

The Municipality will furnish MDOTa list of the equipment it uses during performance
under this Contract, on MDOT form 471 (Equipment Specifications and Rentals.) This
form shall be uploaded to the Files page in MDOT’s MLAP system.

SECTION 23: RECORDS TO BE KEPT

A. The Municipality will establish and maintain accurate records, in accordance with
generally accepted accounting principles of all expenses incurred for which payment is
sought or made under this Contract, said records to be hereinafter referred to as the
“RECORDS.” Separate accounts will be established and maintained for all costs incurred
under this Contract. The Municipality will retain the following RECORDS, and others, in
accordance with generally accepted accounting principles:

1, Retain daily timecards or electronic timekeeping files for employees and equipment
indicating the distribution of time to route sections and work items. Daily timecards
must be signed by the employee, the immediate supervisor and by the timekeeper
when the timekeeper is employed. If the Municipality uses crew-day cards, it will
retain crew-day cards backed by a time record for the pay period signed as above,
in lieu of daily individual timecards detailing the time distribution. If the
Municipality uses electronic timekeeping, it will retain data files detailing time
distribution and assigned supervisor approval.

2. Retain properly signed material requisitions (daily distribution slips) which indicate
type of material, quantity, units of measure, the date of distribution and the
distribution to route sections and work items.

3. Retain additional cost records to support and develop unit cost charges and
percentages as applied to invoice costs. Cost records are not necessary in support
of the overhead percentage or the five percent (5%) handling charge.

B. The Municipality will maintain the RECORDS for at least three (3) years from the date of
MDOT’S receipt of the statement of charges for the quarter ending September 30 of each
year of this Contract period. In the event of a dispute regarding allowable expenses or any
other issue under this Contract, the Municipality will thereafter continue to maintain the
RECORDS at least until that dispute has been finally decided and the time for all available
challenges or appeals for that decision has expired.

The Municipality will maintain all RECORDS supporting equipment usage from the time
of equipment purchase to disposal to support any gain or loss from equipment disposed.
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Representatives of MDOT may inspect, copy or review the RECORDS at any mutually
acceptable time. However, the Municipality cannot unreasonably delay the timely
performance of the review.

SECTION 24: COST CERTIFICATION, REIMBURSEMENT AND ADJUSTMENT

The Municipality hereby certifies that, to the best of the Municipality’s knowledge, the
costs reported to MDOT for this Contract will represent only those items which are
properly chargeable in accordance with the Contract. The Municipality also hereby
certifies that it has read the Contract terms and is aware of the applicable laws, regulations,
and terms of the Contract that apply to the reporting of costs incurred under the terms of
this Contract.

SECTION 25: CONTRACT REVIEW AND RESPONSE

A. The Municipality’s records will be subject to review within the statute of limitations, and
the review period will coincide with the Municipality’s fiscal year, unless the Contract is
terminated or not renewed.

Charges by the Municipality for maintenance of state trunkline highways and authorized
non-maintenance work performed under this Contract will not be adjusted (increased or
decreased) by review after twenty-four (24) months subsequent to the date of MDOT’S
receipt of certified statement of charges for the quarter ending September 30 of each year
of this Contract period. This limitation will not apply in case of fraud or misrepresentation
of material fact or if mutually agreed to in writing.

The firm unit prices for aggregates and bituminous materials that are processed and
furnished by the Municipality will not be subject to adjustment.

If any adjustments are to be made, the Municipality will be notified of the tentative
exceptions and adjustments within the above twenty-four (24) month period. The twenty-
four (24) month period is intended only as a limitation of time for making adjustments and
does not limit the time for payment of such amounts. In the event that a review performed
by or on behalf of MDOT indicates an adjustment to the costs reported under this Contract
or questions the allowability of an item of expense, MDOT will promptly submit to the
Municipality a Notice of Review Results and a copy of the Review Report, which may
supplement or modify any tentative findings communicated to the Municipality at the
completion of a review.

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Within sixty (60) days after the date of the Notice of Review Results, the Municipality will
submit to MDOT a written response, hereinafter referred to as the “Response”, to the
Notice of Review Results indicating one of the following options:

1. The Municipality concurs with the Notice of Review Results and will either repay
the amount of any overpayment to MDOT and/or or be reimbursed the amount of
any underpayment by MDOT.

2. The Municipality does not concur with Notice of Review Results. The “Response”
will explain the nature and basis for any disagreement as to a disallowed item of
expense, and/or,

3. The “Response” will include a written explanation as to any questioned item of
expense. The “RESPONSE” will be clearly stated and provide any supporting
documentation necessary to resolve any disagreement or questioned item of
expense. Where the documentation is voluminous, the Municipality may supply
appropriate excerpts and make alternate arrangements to conveniently and
reasonably make that documentation available for review by MDOT. The
RESPONSE will refer to and apply the language of the Contract.

4. The Municipality 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 MDOT to make a final decision to either allow or disallow any items of
questioned cost.

MDOT will review submitted RESPONSE and attached documentation from the
Municipality. MDOT will reply in writing acknowledging receipt of the
Municipality RESPONSE. The submitted RESPONSE and attached documentation
from the Municipality will be referred to the MDOT Appeal Panel. See Section 26,
“Dispute Resolution Process”.

SECTION 26: DISPUTE RESOLUTION PROCESS

A. Contract Disputes

For review disputes refer to Section 26 (B) below, all other disputes between the parties
shall be resolved under the terms of this section. It is the intent that each party may
communicate concerns relative to the contract and resolve any issues as they arise. After
a contract issue has been resolved, a summary of the agreed upon resolution shall be jointly
drafted and distributed. Some issues may require ongoing communication to resolve and
may become an item for negotiation during the next review and renegotiation of the
Contract.

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If the parties are unable to resolve any dispute, the parties must meet with the Engineer of
TSMO or designee. The following are steps to resolve the dispute without the need for
formal legal proceedings:

I) The representative of the Municipality and MDOT must meet as often as the parties
reasonably deem necessary to gather and furnish to each other all information with
respect to the matter at issue which the parties believe to be appropriate and
germane in connection with the dispute. The representatives shall discuss the
problem and negotiate in good faith in an effort to resolve the dispute without the
necessity of any legal proceeding.

2) During negotiations, all reasonable requests made by one party to another for non-
privileged information reasonably related to the Contract shall be honored in order
that each of the parties may be fully advised of the other’s position.

3) The specific format for the discussions shall be left to the discretion of the
designated Municipality and MDOT representatives but may include the
preparation of agreed upon statement of fact or written statements of position.

4) Statements made by the Municipality or MDOT during Dispute Resolution may not
be introduced as evidence by either party in any judicial action related to or under
this Contract.

5) In cases where disputes have not been resolved, any remaining issues will be
referred to the MDOT Appeal Panel which consists of four Bureau Directors, three
of which will constitute a quorum.

6) Every effort will be made to complete this process within 90 calendar days by both
parties.

B. Review Disputes

For review disputes the submitted “Response” and attached documentation from the
Municipality will be referred to the MDOT Appeal Panel. The Appeal Panel consists of
four Bureau Directors, three of which will constitute a quorum.

1) MDOT will provide the Municipality with an opportunity to appear before the
Appeal Panel to explain and support their Response.

2) After an Appeal Panel written decision, the Municipality will either accept the
decision or file a lawsuit in a court of proper jurisdiction to contest MDOT’s
decision. The filing of a lawsuit must be initiated by the Municipality within thirty
(30) days of the receipt of the Appeal Panel’s written decision. MDOT will not
withhold or offset the funds in dispute if the Municipality files a lawsuit in a court
of proper jurisdiction.
\

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3) If the Municipality fails to repay an overpayment or reach an agreement with
MDOT ona repayment schedule within the thirty (30) day period, the Municipality
agrees that MDOT will deduct all or a portion of an overpayment from any funds
due the Municipality by MDOT under the terms of this Contract.

4) Every effort will be made to complete this process within 60 calendar days by both
parties.

This section shall not be construed to prevent either party from initiating, and a
party is authorized to initiate, an action for breach of this Contract or for any other
relief allowed by law earlier to avoid the expiration of any applicable limitations
period, to preserve a superior position with respect to the other party, or under
Injunctive Relief below. Ifa dispute is not resolved through the Dispute Resolution
Process, either party may initiate an action for breach of this Contract, or any other
relief allowed by law in a court of proper jurisdiction. Time periods may be
extended if agreed upon by both parties.

Injunctive Relief

The only circumstance in which disputes between MDOT and the Municipality shall not
be subject to the provisions of this Dispute Resolution Process is when a party makes a
good faith determination that it will suffer irreparable harm due to a breach of the terms of
the Contract by the other party and that a temporary restraining order or other immediate
injunctive relief is the only adequate remedy.

Each party agrees to continue performing its obligations under the Contract while a dispute
is being resolved except to the extent the issue in dispute precludes performance (dispute
over payment must not be deemed to preclude performance) and without limiting either
party’s right to terminate the Contract as provided in Section 28.

SECTION 27: TERM OF CONTRACT

This Contract will be in effect from October 1, 2024 through September 30, 2029.

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SECTION 28: CONTRACT TERMINATION OR EXPIRATION

A. For convenience, MDOT may terminate this Contract by providing written notice to the
Municipality at least two (2) years prior to the beginning of the Contract year to which the
termination, applies.

The Municipality may terminate this Contract by providing written notice to MDOT at
least two (2) years prior to the beginning of the Contract year to which the termination
applies.

In the event either party provides notice of an intent to terminate the Contract as provided
in this subsection, the Contract shall terminate at the beginning of the Contract year
(October 1), two years following the date of the notice. For greater clarity, the parties do
not intend for the Contract to terminate as of the date of the notice. Notwithstanding any
other provision to the contrary, if a party provides notice of its intent to terminate the
Contract as provided in this subsection and the Contract will expire before the two-year
notice period has lapsed, the parties agree that the Contract shall be automatically renewed
and continue in full force and effect until October 1, two years following the date of the
notice.

If a new Contract has not been executed by the parties within 120 days following the
expiration of this Contract, this Contract shall be deemed automatically renewed as of the
date of expiration and continue in full force and effect for two years following such date.
After those two years have lapsed, the Contract shall be deemed terminated.

Notwithstanding any provision of this Contract to the contrary, upon termination of this
Contract “for cause”, the Municipality must, for a period of time specified by MDOT (not
to exceed 90 calendar days), provide all reasonable transition assistance requested by
MDOT, to allow for the terminated portion of the Contract Activities to continue without
interruption or adverse effect, and to facilitate the orderly transfer of such Contract
Activities to MDOT or its designees. This Contract will automatically be extended through
the end of the transition period.

SECTION 29: STATE OF MICHIGAN ADMINISTRATIVE BOARD RESOLUTION

The provisions of the State Administrative Board Resolution 2017-2, April 25, 2017, are
set forth in Appendix D, attached hereto and made a part hereof.

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SECTION 30: CONTRACTUAL INTERPRETATION

All capitalized words and phrases used in this Contract have the meaning set forth in
Appendix A.

All words and phrases not specifically defined in Appendix A shall be construed and
understood according to the ordinary meaning of the words used, but technical words and
phrases shall have the meanings set forth in MDOT’s publications, manuals, advisories, or
guides, as applicable. If no MDOT publication, manual, advisory or guide is applicable,
such technical words shall be construed and understood according to the usual and accepted
meaning used in the industry or field to which they relate and any words or phrases that
have a specialized meaning in the law, shall be construed and understood according to such
specialized meaning.

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SECTION 31: AUTHORIZED SIGNATURE

This Contract will become binding on the parties and of full force and effect upon signing
by the duly authorized official of the Municipality and of MDOT and upon adoption of a
resolution approving said Contract and authorizing the signature thereto of the respective
official of the Municipality, a certified copy of which resolution will be sent to MDOT
with this Contract, as applicable.

CITY OF MUSKEGON

E-SIGNED by Dan VanderHeide
on 2024-09-25 08:02:19 EDT
BY:
TITLE:

MICHIGAN DEPARTMENT OF TRANSPORTATION

E-SIGNED by JASON GUTTING
on 2024-09-25 08:03:33 EDT
BY:
TITLE: MDOT Director

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APPENDIX A

DEFINITIONS

Annual Work Plan: A schedule developed by the Municipality and Region Engineer’s designee
of the routine maintenance work to be performed annually on state trunklines by the Municipality.

Budget: The funds allocated to the Municipality for the fiscal year beginning October 1. Budget
may also be referred to as Annual Budget or Field Activity Budget or Maintenance Budget.

Chemical Storage Facilities: Bulk salt storage buildings.

Competitive Bidding: A procurement process that involves advertising work so that qualified
vendors can submit bids to perform the work. The contract is then awarded to the lowest qualified
bidder.

Contract Administrator: An individual designated by the Municipality responsible for
supervising all work covered under this Contract.

Department: The Michigan Department of Transportation.

Engineer of Transportation System Management and Operations (TSMO): The
Department's designated engineer of TSMO.

Equipment Questionnaire: A report prepared by the Municipality and forwarded to the
Department to substantiate the previous year’s actual equipment costs.

Foremen: A person(s) designated by the Municipality responsible for overseeing all work covered
under this Contract and is responsible to the Contract Administrator.

Maintenance Work: Routine activities performed on a regular basis or in response to uncontrollable
events upon the state trunklines. Also includes planned activities to state trunklines to preserve
functional condition and any work authorized by a TWA.

Maintenance of State Trunkline highways/lane miles maintained: The Municipality is to provide
the winter and non-winter maintenance activities on its miles as identified within the work plan.

Michigan State Transportation Commission: The policy-making body for all state
transportation programs. The Commission establishes policy for the Michigan Department of
Transportation in relation to transportation programs and facilities and other such works as related
to transportation development as provided by law. Responsibilities of the Commission include the
development and implementation of comprehensive transportation plans for the entire state,
including aeronautics, bus and rail transit, providing professional and technical assistance, and
overseeing the administration of state and federal funds allocated for these programs.
Non-Winter Maintenance Budget: The portion of the Budget allocated to non-winter maintenance
activities,

Office of Commission Audit (OCA): The office that reports directly to the Michigan State
Transportation Commission. The Office of Commission Audits is charged with the overall
responsibility to supervise and conduct review activities for the Department of Transportation.
The auditor submits to the Commission reports of financial and operational audits and
investigations performed by staff for acceptance.

Region Engineer: The Department’s designated chief engineer responsible for the oversight of
each region of the Department or that region’s designee.

Review: A financial statement review is a service under which the accountant obtains limited
assurance that there are no material modifications that need to be made to an entity’s financial
statement for them to be in conformity with the applicable financial reporting framework. OCA’s
review will be conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants and the standards applicable to attestation engagements
contained in Governmental Auditing Standards issued by the Comptroller General of the United
States. A review consists primarily of inquires of personnel and the application of analytical
procedures to data.

Schedule C Equipment Rental Rates: The department’s annual list of statewide hourly
equipment rental rates that shall be charged for the use of road equipment calculated from the
average costs submitted by each agency in the “Equipment Questionnaire”.

Small Road Tools: Hand tools which do not have power assist (non-powered) used for general
road and bridge maintenance such as rakes, shovels, brooms, etc.

Small Power Tools: Work tools powered by electricity or battery power and have a rental rate
assigned.

State Administrative Board: A Board that consists of the Governor, Lieutenant Governor,
Secretary of State, Attorney General, State Treasurer, and the Superintendent of Public
Instruction. The DTMB designates a Secretary to the State Administrative Board and provides
for staff support. The State Administrative Board has general supervisory control over the
administrative activities of all state departments and agencies, including but not limited to, the
approval of contracts and leases, oversight of the state capital outlay process and the settlement
of small claims against the state. The State Administrative Board functions through three standing
committees (Finance and Claims, Building, Transportation and Natural Resources) which make
recommendations to the Board. The State Administrative Board meets the first and third
Tuesday of each month.

State Trunkline Highway: A road, highway, or freeway under the jurisdiction of the Department,
and usually numbered as an M, US, or Interstate Route.
Termination for Cause: The exercise of MDOT’s right to terminate this Contract “for cause”,
in whole or in part, if the Municipality, as determined by MDOT: (a) endangers the value,
integrity, or security of any location, data, or personnel; (b) becomes insolvent, petitions for
bankruptcy court proceedings, or has an involuntary bankruptcy proceeding filed against it by any
creditor; (c) engages in any conduct that may expose MDOT to liability; (d) breaches any of its
material duties or obligations; or (e) fails to cure a breach within the time stated in a notice of
breach. Any reference to specific breaches being material breaches within this Contract will not
be construed to mean that other breaches are not material.

Termination Date: The date the contract is no longer effective.

Transportation Work Authorization (TWA): A written order for work not covered by the
Budget. Funding for the TWA is reimbursed to the Municipality in addition to the annual Budget.

Transportation and Natural Resources Committee: A committee that approves the award
of Michigan Department of Transportation (MDOT) contracts and agreements; Department of
Natural Resources (DNR) oil, gas, and mineral leases; conveyance of submerged lands. The
committee meets the Wednesday before the State Administrative Board meeting. The agenda
is prepared by MDOT and DNR.

Winter Maintenance: Maintenance Work centered on the process to remove snow and ice from
the trunkline to provide a reasonably clear and bare driving surface under prevailing winter
conditions. The activity numbers that define the Budget line items for winter maintenance are:

1410: Winter maintenance
1440: Winter road patrol (See winter maintenance patrol below)
1490: Other winter maintenance (Shall include maintenance items resulting from winter
maintenance, but not actual winter maintenance, i.e. sweeping and flushing immediately after
winter ends)

This work includes all material costs required to conduct work under the above activity numbers.

Winter Maintenance Patrol: An employee assigned to monitor state trunkline road
conditions during the winter at times outside the normal workday, i.e. 2nd or 3rd shift.

Work Plan: An annual outline of maintenance activities to be performed under this Contract.
The components of the plan include the amount of Budget allocated to each routine maintenance
activity group, a list of prioritized maintenance activities, and may include a proposed timeframe
for completion.
APPENDIX B

MICHIGAN DEPARTMENT OF TRANSPORTATION

MUNICIPALITY CONTRACT

OVERHEAD SCHEDULE

Effective October 1, 2024, through September 30, 2029

Original Annual Percent Percent Total
Budget Amount Allowed Allowed Percent
for for Small Allowed
Overhead Tools

Up to $25,000 11.00 50 11.50
$25,001 to $50,000 __ 10.25 50 10.75
$50,001 to $75,000 9.50 50 10.00
$75,001 to $100,000 8.75 50 9.25
$100,001 and over 8.00 50 8.50
APPENDIX C
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.

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.

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.

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.

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.

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.
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.

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.

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
APPENDIX D

STATE ADMINISTRATIVE BOARD
RESOLUTION 2017-2
PROCEDURES APPLICABLE TO MDOT CONTRACTS AND GRANTS
AND
RECISSION OF RESOLUTION 2011-2

WHEREAS, the State Administrative Board (“Board”) exercises general
supervisory control over the functions and activities of all administrative
departments, boards, commissioners, and officers of this State, and of all State
institutions pursuant to Section 3 of 1921 PA 2, MCL 17.3;

WHEREAS, the Board may adopt rules governing its procedures and providing
for the general conduct of its business and affairs pursuant to Section 2, of 1921 PA
2, MCL 17.2;

WHEREAS, exercising its power to adopt rules, the Board adopted Resolution
2011-2 on August 30, 2011, establishing a $500,000 or more threshold for Board
approval of the Michigan Department of Transportation (“MDOT”) Professional
Engineering Consultant Contracts and Construction Contracts and increasing the
threshold for Board approval for Service Contracts to $250,000 or more for initial
contracts and $125,000 or more for an amendment to a Service Contract;

WHEREAS, the Board has adopted Resolution 2017-1, raising the threshold
for Board approval of contracts for materials and services to $500,000 or more for the
initial contract and $500,000 or more for contract amendments, and rescinding
Resolution 2011-1;

WHEREAS, MDOT is a party to a considerable number of contracts, the
majority of which are funded via grants administered by federal agencies including
the U.S. Department of Transportation’s Federal Highway Administration, Federal
Transit Administration, Federal Railroad Administration, and Federal Aviation
Administration, which oversee MDOT’s administration of such contracts and
amendments thereto;

WHEREAS, MDOT has implemented internal procedures to assure the proper
expenditure of state and federal funds and is subject to financial and performance
audits by the Office of Commission Audits pursuant to 1982 PA 438, MCL 247.667a;

WHEREAS, MDOT is a party to a significant number of contracts which by
their nature involve substantial consideration and often require amendments arising
out of changes in scope, differing field conditions and design errors and omissions;
WHEREAS, delays in the approval of amendments to contracts can result in
postponement of payments to subcontractors and suppliers; work slowdowns and
stoppages; delays in the completion of projects; exposure to additional costs; and
exposure to litigation arising out of contractor claims; and

WHEREAS, recognizing the Board’s duty to promote the efficiency of State
Government, the Board resolves as follows:

1. Resolution 2011-2 is rescinded.

2. A contract for professional design, engineering or consulting services
requiring MDOT prequalification in connection with the construction or physical
improvement of a street, road, highway, bridge, transit or rail system, airport or other
structure congruous with transportation (“Professional Engineering Consultant
Contract”) or a contract for the construction or physical improvement of a street, road,
highway, bridge, transit or rail system, airport or other structure congruous with
transportation (“Construction Contract”) must be approved by the Board prior to
execution by MDOT if the amount of the contract is $500,000 or more. MDOT may
obtain approval of the solicitation of a Professional Engineering Consultant Contract
or a Construction Contract which, based on the estimate prepared by an engineer
employed by the State of Michigan, is estimated to be $500,000 or more. A contract
arising out of such solicitation must be approved by the Board prior to execution by
MDOT if the amount of the contract exceeds 110% of the State engineer’s estimate.

3. An amendment to a Professional Engineering Consultant Contract or a
Construction Contract must be approved by the Board prior to execution by MDOT if
the amount of the amendment and the sum of all previous amendments exceed 10%
of the original contract, except that an amendment to a Professional Engineering
Consultant Contract or a Construction Contract need not be approved by the Board
if: a) approved in accordance with applicable federal law or procedure by a
representative of a federal agency contributing funds to the project that is the subject
of the contract; or b) approved in accordance with MDOT’s internal procedures
provided the procedures include approval by at least one MDOT employee who has
managerial responsibility and is neither the project manager nor directly involved in
the administration of the project.

A. A contract for services not requiring MDOT prequalification (“Service
Contract”) in the amount of $500,000 or more must be approved by the Board prior
to execution by MDOT. A Service Contract does not include a Professional
Engineering Consultant Contract or a Construction Contract.
5. An amendment to a Service Contract must be approved by the Board
prior to execution by MDOT if the amount of the amendment and the sum of all
previous amendments total $500,000 or more. Thereafter, an amendment to a
Service Contract must be approved by the Board if the amount of the amendment and
the sum of all amendments executed after the most recent Board approval total
$500,000 or more.

6. A contract involving the conveyance of any real property interest under
the jurisdiction of MDOT must be approved by the Board prior to execution by MDOT
if the fair market value of the interest is $500,000 or more. Fair market value must
be determined in accordance with procedures approved by the State Transportation
Commission.

7. MDOT may enter into a contract with a sub-recipient without approval
of the Board if: a) the purpose of the contract is to provide federal or state matching
funds for a project; b) MDOT has been authorized by an agency administering any
federal funds to award them to the sub-recipient; and c) the sub-recipient has agreed
to fully reimburse the State in the event the sub-recipient does not use the funds in
accordance with the purpose of the funding. A sub-recipient includes, but is not
limited to, a local unit of government, a governmental authority, a private non-profit
entity, and a railroad or rail service provider.

8. MDOT may enter into a cost participation contract with a local unit of
government without approval of the Board if: a) the contract involves the construction
or physical improvement of a street, road, highway, bridge or other structure
congruous with transportation; b) the construction or improvement is funded by
federal, state or local funds; and c) the contract is approved by each entity providing
funds or in accordance with applicable law.

9. MDOT may enter into a contract in connection with the award of a grant
including state matching funds, to a local unit of government, a governmental
authority, a private non-profit entity, a railroad or a rail service provider, without
approval of the Board if the contract provides that the recipient will fully reimburse
the State in the event grant funds are not used in accordance with the terms of the
grant.

10. MDOT may enter into a contract with an airport sponsor without
approval of the Board if the contract has been approved by the Michigan Aeronautics
Commission.

11. MDOT may enter into a contract or award a grant without approval of
the Board in situations where emergency action is required. For all emergency
contracts or grants of $250,000 or more, MDOT must transmit to the Board a written
report setting forth the nature of the emergency and the key terms of the contract or
grant within 30 days of executing the contract or awarding the grant.
12. Notwithstanding any provisions of this resolution, the Board may
require MDOT to report the status of any project and may require MDOT to obtain
Board approval of any contract, grant or any amendment to a contract.

Es 9017.
This Resolution is effective (gurl ol

APPROVED—
Stale
Administrative Board
APPENDIX E

SUBCONTRACT REQUIREMENTS

SUMMARY OF STATE ADMINISTRATIVE BOARD
REQUIREMENTS FOR AMENDMENTS
(PREVIOUSLY REFERRED TO AS OVERRUNS,
EXTRA’S AND ADJUSTMENTS)

Administrative Board Resolution (2017-2, April 25, 2017)

State Administrative Board approval is required on all contracts (including subcontracts)
when the sum of the contract including any optional year(s) is $500,000 or greater.

Amendments

. Amendment we .
Subcontract Requirements: A t State Administrative
moun Board (SAB) Approval
Requirements:

e Region Engineer approval required $499,999 or less Not required
prior to start of work.

e Form 426 must be signed by the $0, 000 or eroaier require
Region Engineer. ,
SAB approval.

e Documentation of amendment is

required by the Municipality. $500,000 or Required prior to the start
greater of work.
« Send revised Form 426 to the
Transportation Systems Management
Operations (TSMO), Contract
Note: When the sum of the
Specialist for review and approval
contract and all amendments
prior to the start of work.
total $500,000 or greater,
SAB approval is required.

Definition of Term: Amendment includes situations where the original contract quantity or
contract cost is exceeded. It also includes situations where quantities or work are added to the
original contract as extra’s or adjustments.

January 30, 2024
STATE OF MICHIGAN
GRETCHEN WHITMER BRADLEY C. WIEFERICH, P.E.
GOVERNOR DEPARTMENT OF TRANSPORTATION DIRECTOR

APPENDIX F

SAMPLE: Letter of Understanding

Date

Contract Agency Name
Address
Contact Person, Title

RE: Letter of Understanding for State Trunkline Maintenance Contract between Michigan
Department of Transportation (MDOT) and the (insert name of contract agency)

Dear

This Letter of Understanding is in follow up to our recent meeting held on and will serve as a
reference to clarify the Scope of Work set forth in Section 1, of the State Trunkline Maintenance
Contract.

The Scope of Work will be limited to (insert type of work activities and frequency of work to be
performed) on the state trunkline (indicate routes) in the City (or Village) of . The work
activities are to be conducted by the City (Village) as a part of the Contract with MDOT.

The Scope of Work shall include traffic control to perform the work.

Reimbursement for Snow Hauling will be limited to (insert agreed upon snow hauling parameters) and
will be reimbursed at (insert snow hauling rate)% of the total costs of snow hauling. For any
additional snow hauling outside of these parameters, MDOT will not participate in the cost unless
written approval is received prior to the snow hauling. The Municipality Snow Hauling Calculation
form (Appendix H) is attached.

Request for reimbursement of the Scope of Work activities identified herein shall be in accordance
with Section 16 of the Contract. Payment for items with Firm Unit Prices will be in accordance with
the attached Municipality Firm Unit Prices form (Appendix G) attached.

Subcontracting of any work activities shall be in accordance with Section 9 of the Contract.

MURRAY D. VAN WAGONER BUILDING ¢ P.O. BOX 30050 « LANSING, MICHIGAN 48909
www. Michigan.gow/MDOT ¢ 517-241-2400
LH-LAN-O (05/2023)
Name
Page 2
Date

Please sign each of the two original letters enclosed. Please keep one copy for your records and return
the other copy to my attention.

Sincerely,

Name
Maintenance Coordinator (or Engineer)
MDOT TSC

APPROVED BY:

City (Village) of agrees to the terms and conditions stated in this agreement.

Dated this day of , 2024

Name, Title

APPROVED BY:

Date
Region Engineer
Michigan Department of Transportation
Appendix G

Michigan Department
of Transportation
0572 (03/2024) MUNICIPALITY FIRM UNIT PRICES [ Clear Form |
| Clear Form |
MUNICIPALITY NAME EFFECTIVE DATE

TYPE OF MATERIALS PRODUCED OR UNIT OF UNIT PRICE
SUPPLIED MEASURE PRICE ITEM LOCATION INCLUDES

INSERT ABOVE, THE FOLLOWING APPLICABLE NUMBER(S):

Type of Materials produced or supplied by Municipality
1. Aggregate
2. Winter Sand
3. Salt
4. Other (Describe):

liem Locations
1. Pit Site
2. Yard
3. Other (Describe):

Price Includes
1. Processing or Mixing Costs
2. Stockpiling or Hauling to Stockpile Costs
3. Royalty Costs
4. Municipal Supplied Sait or Calcium Chloride (when used in a winter salt/sand mixture)
5. Winter Sand
6. Bituminous Costs
7. Other (Describe):

MUNICIPALITY SUBMITTED BY
NAME TITLE DATE

MDOT APPROVED BY
NAME TITLE DATE
Appendix H

Clear Form
Michigan Department

S197 (00/2024) MUNICIPALITY SNOW HAULING CALCULATION FORM

MUNICIPALITY NAME ROUTE EFFECTIVE DATE

SKETCH OF ROADWAY AND SNOW HAULING LIMITS

TOTAL WIDTH OF SNOW HAULING (WSH) WIDTH OF AREA DESIGNATED FOR TRAFFIC MOVEMENT (ADTM)

tt ft

SNOW HAULING RATE (SHR): SHR = ADTM / WSH %

SHR: / = %

: MUNICIPALITY SUBMITTED BY
NAME TITLE

MDOT APPROVED BY
NAME TITLE
MDOT 5191 (02/2024) Back to Form
DEFINITIONS

Total Width of Snow Hauling (WSH): Total width of the roadway, parking lanes, and sidewalks from which snow will be
removed during snow hauling operations.

Width of Area Designated for Traffic Movement (ADTM): The portion of the highway right-of-way that is intended for traffic
movement. The ADTM does not include parking lanes, sidewalks, or buffer areas that are part of the right-of-way.

Sample Calculation

Total road right-of-way is 66 feet, which includes three 12-foot lanes, two 8-foot parking lanes, and 7 feet of sidewalk and
buffer space on each side of the roadway. No snow will be hauled from the area beyond the sidewalks.

WSH: 66 feet
ADTM: 36 feet

Snow Hauling Rate: 36 feet (ADTM) / 66 feet (WSH) = 55%

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