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Agenda Item Review Form
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Muskegon City Commission
Commission Meeting Date: March 09, 2021 Title: MOOT Agreement for Peck Street
Submitted By: Leo Evans Department: Public Works
Brief Summary: Staff is requesting approval of the contract with MOOT for the reconstruction of
Peck Street from Merrill Avenue north to Apple Avenue and approval of the resolution authorizing
the Mayor and Clerk to sign the contract.
Detailed Summary: This is the standard contract governing projects that are constructed using
federal funds through MOOT. The estimated cost for the project construction is $843,138.82 with
$381,810 of that being federal surface transportation funding and the remainder will be accounted
for in the Cities 21-22 Budget for Major Streets (~$300K I 202-92002) and Water (~$250K I 591-
92002) funds.
Work on this portion of Peck Street is planned to commence after the 4 th of July and continue into
September, hence the budgeting for these projects will fall in next fiscal year.
Amount Requested:$ O Amount Budgeted: $ O
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion:
Approve the attached contract and resolution and authorize the mayor and clerk to sign both.
Check if the following Departments need to approve the item first:
Police Dept. D
Fire Dept. D
IT Dept. □
For City Clerk Use Only:
Commission Action:
RESOLUTION 2021-22(K)
RESOLUTION FOR APPROVAL OF A CONTRACT AGREEMENT BElWEEN THE
MICHIGAN DEPARTMENT OF TRANSPORTATION AND THE CITY OF
MUSKEGON FOR ROADWAY RECONSTRUCTION WORK ALONG PECK
STREET FROM MERRILL AVENUE NORTH TO APPLE AVENUE, INCLUDING
HOT MIX ASPHALT SURFACING, CONCRETE CURB AND GUTTER, WATER
MAIN AND PERMANENT PAVEMENT MARKING WORK.
Moved by Commissioner Johnson and supported by Commissioner German the
following Resolution be adopted:
WHEREAS, entry by the City of Muskegon into Contract no. 20-5553 between the
Michigan Department of Transportation and the City of Muskegon for the
Reconstruction of Peck Street between Merrill Avenue and Apple Avenue within
the City is in the best interests of the City of Muskegon.
RESOLVED, that entry by the City into Contract Agreement Number 20-5553 be and
the same is hereby authorized and approved and the Mayor and Clerk are
authorized to execute said contract for and on behalf of the City of Muskegon.
Adopted this 9TH day of March, 2021.
ATTES~ ~ ~ ~ ~':,,}) ~ '
Ann Meisch, City Clerk
CERTIFICATION
This resolution was adopted at a meeting of the City Commission, held on
March 9, 2021. 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.
CITY OF MUSKEGON
STP DA
Control Section STUL 61000
Job Number 205371CON
Project 21A0187
CFDA No. 20.205 (Highway Research
Planning & Construction)
Contract No. 20-5553
PARTI
THIS CONTRACT, consisting of PART I and PART II (Standard Agreement
Provisions), 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 the City of Muskegon, Michigan, hereinafter referred to as the
"PROJECT" and estimated in detail on EXHIBIT "I", dated February 10, 2021, attached hereto
and made a part hereof:
PART A-FEDERAL PARTICIPATON
Hot mix asphalt reconstruction work along Peck Street from Merrill Avenue notiherly to
Apple Avenue (Highway M-46), including storm sewer, concrete curb and gutter,
sidewalk, and pavement marking work; and all together with necessary related work.
PART B-NO FEDERAL PARTICIPATION
Watermain work along Peck Street from Merrill Avenue n01iherly to Apple Avenue
(Highway M-46), including related sidewalk work; and all together with necessary
related work.
WITNESS ETH:
WHEREAS, pursuant to Federal law, monies have been provided for the performance of
certain improvements on public roads; and
WHEREAS, the reference "FHWA" in PART I and PART II refers to the United States
Department of Transpotiation, Federal Highway Administration; and
WHEREAS, the PROJECT, or portions of the PROJECT, at the request of the
REQUESTING PARTY, are being programmed with the FHWA, for implementation with the
use of Federal Funds under the following Federal program(s) or funding:
SURFACE TRANSPORTATION PROGRAM
09/06/90 STPLS.FOR 2/10/21
WHEREAS, the patties 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 undettakings of
the parties and in conformity with applicable law, it is agreed:
1. The parties hereto shall undertake 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, including any other costs
incurred by the DEPARTMENT as a result of this contract, except construction engineering and
inspection.
No charges will be made by the DEPARTMENT to the PROJECT for any inspection
work or construction engineering.
The costs incurred by the REQUESTING PARTY for preliminary engineering,
construction engineering, construction materials testing, 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 (EGLE) 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 EGLE. 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 administer
on behalf of the REQUESTING PARTY all phases of the PROJECT, including adve1tising and
awarding the construction contract for the PROJECT or portions of the PROJECT. Such
administration shall be in accordance with PART II, Section II of this contract.
Any items of the PROJECT COST incurred by the DEPARTMENT may be charged to
the PROJECT.
4. The REQUESTING PARTY, at no cost to the PROJECT or to the
DEPARTMENT, shall:
A. Design or cause to be designed the plans for the PROJECT.
B. Appoint a project engineer who shall be in responsible charge of the
PROJECT and ensure that the plans and specifications are followed.
09/06/90 STPLS.FOR 2/10/21 2
C. Perform or cause to be performed the construction engineering,
construction materials testing, and inspection services necessary for the
completion of the PROJECT.
The REQUESTING PARTY will furnish the DEPARTMENT proposed timing
sequences for trunkline signals that, if any, are being made part of the improvement. No timing
adjustments shall be made by the REQUESTING PARTY at any trunkline intersection, without
prior issuances by the DEPARTMENT of Standard Traffic Signal Timing Permits.
5. The PROJECT COST shall be met in accordance with the following:
PART A
Federal Surface Transportation Funds shall be applied to the eligible items of the
PART A portion of the PROJECT COST up to the lesser of: (I) $381,810_, or (2)
an amount such that 81.85 percent, the normal Federal participation ratio for such
funds, for the PART A portion of the PROJECT is not exceeded at the time of the
award of the construction contract. The balance of the PART A portion of the
PROJECT COST, after deduction of Federal Funds, shall be charged to and paid
by the REQUESTING PARTY in the manner and at the times hereinafter set
fo1th.
PARTB
The PART B po1tion of the PROJECT COST is not eligible for Federal
participation and shall be charged to and paid 100 percent by the REQUESTING
PARTY in the manner and at the times hereinafter set fo1th.
Any items of PROJECT COST not reimbursed by Federal Funds will be the sole
responsibility of the REQUESTING PARTY.
6. No working capital deposit will be required for this PROJECT.
In order to fulfill the obligations assumed by the REQUESTING PARTY under the
provisions of this contract, the REQUESTING PARTY shall make prompt payments of its share
of the PROJECT COST upon receipt of progress billings from the DEPARTMENT as herein
provided. All payments will be made within 30 days of receipt of billings from the
DEPARTMENT. Billings to the REQUESTING PARTY will be based upon the REQUESTING
PARTY'S share of the actual costs incurred less Federal Funds earned as the PROJECT
progresses.
7. At such time as traffic volumes and safety requirements warrant, the
REQUESTING PARTY will cause to be enacted and enforced such ordinances as may be
necessary to prohibit parking in the traveled roadway throughout the limits of the PROJECT.
8. The performance of the entire PROJECT under this contract, whether Federally
funded or not, will be subject to the provisions and requirements of PART II that are applicable
to a Federally funded project.
09/06/90 STPLS.FOR 2/10/21 3
In the event of any discrepancies between PART I and PART II of this contract, the
provisions of PART I shall prevail.
Buy America Requirements (23 CFR 635.410) shall apply to the PROJECT and will be
adhered to, as applicable, by the parties hereto.
9. The REQUESTING PARTY ce1tifies that it is not aware if and has no reason to
believe that the prope1ty 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 patty pursuant to either Patt 201 or Patt 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 prope1ty for the use of either a transpo1tation
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 prope1ty. The REQUESTING PARTY
is not a person who is liable for response activity costs, pmsuant to MCL 324.20101 (vv) and
(ww).
10. 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 Depa1tment of Environmental Quality, shall immediately 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, with
the FHWA, to determine the eligibility, for reimbursement, of the remediation costs. The
REQUESTING PARTY shall be charged for and shall pay all costs associated with such
remediation, including all delay costs of the contractor for the PROJECT, in the event that
remediation and delay costs are not deemed eligible by the FHW A. If the REQUESTING
PARTY refuses to participate in the cost of remediation, the DEPARTMENT shall terminate the
PROJECT. The parties agree that any costs or damages that the DEPARTMENT incurs as a
result of such termination shall be considered a PROJECT COST.
11. If federal and/or 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 recovery, the REQUESTING PARTY, in cooperation
with the Depattment of Environmental Quality 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 FHWA and/or the DEPARTMENT and the DEPARTMENT shall credit
such sums to the appropriate funding source.
12. The DEPARTMENT'S sole reason for entering into this contract is to enable the
REQUESTING PARTY to obtain and use funds provided by the Federal Highway
Administration pursuant to Title 23 of the United States Code.
09/06/90 STPLS.FOR 2/10/21 4
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 or its agents 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 or its
agents 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 or its agents is assuming any liability, control or jurisdiction.
The providing of recommendations or advice by the DEPARTMENT or its agents 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 or its agents 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.
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 applicable law.
13. 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, rests with the REQUESTING
PARTY and other local agencies having respective jurisdiction.
14. 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.
15. 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.
16. 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.
09/06/90 STPLS.FOR 2/10/21 5
17. The parties shall promptly provide comprehensive assistance and cooperation in
defending and resolving any claims brought against the DEPARTMENT by the contractor,
vendors or suppliers as a result of the DEPARTMENT'S award of the construction contract for
the PROJECT. Costs incurred by the DEPARTMENT in defending or resolving such claims
shall be considered PROJECT COSTS.
18. The DEPARTMENT shall require the contractor who is awarded the contract for
the construction of the PROJECT to provide insurance in the amounts specified and in
accordance with the DEPARTMENT'S current Standard Specifications for Construction and to:
A. Maintain bodily injury and property damage insurance for the duration of
the PROJECT.
B. 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 county, county road commission,
or municipality in whose jurisdiction the PROJECT is located, and their
employees, for the duration of the PROJECT and to provide, upon request,
copies of certificates of insurance to the insureds. It is understood that the
DEPARTMENT does not assume jurisdiction of the highway described as
the PROJECT as a result of being named as an insured on the owner's
protective liability insurance policy.
C. Comply with the requirements of notice of cancellation and reduction of
insurance set forth in the current standard specifications for construction
and to provide, upon request, copies of notices and rep01ts prepared to
those insured.
09/06/90 STPLS.FOR 2/10/21 6
19. 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 resolutions 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
B.,-_ ____:_____:~ ;.<..._-=:.....,:~ L...--
By- -----,,- ------,..--,~ - - -
r- Depart
Bradley
By -~'\~
Title: Clttj Cj-e,("IL_
09/06/90 STPLS.FOR 2/10/21 7
February 10, 2021
EXHIBIT I
CONTROL SECTION STUL 61000
JOB NUMBER 205371CON
PROJECT 21A0187
ESTIMATED COST
CONTRACTED WORK
PART A PARTB TOTAL
Estimated Cost $651,260 $238,798 $890,058
COST PARTICIPATION
GRAND TOTAL ESTIMATED COST $651,260 $238,798 $890,058
Less Federal Funds* $381,810 $ 0 $381,810
BALANCE (REQUESTING PARTY'S SHARE) $269,450 $238,798 $508,248
*Federal Funds for the PROJECT are limited to an amount as described in Section 5.
NO DEPOSIT
09/06/90 STPLS.FOR 2/10/21 8
RESOLUTION 2021-22(K)
RESOLUTION FOR APPROVAL OF A CONTRACT AGREEMENT BETWEEN THE
MICHIGAN DEPARTMENT OF TRANSPORTATION AND THE CITY OF
MUSKEGON FOR ROADWAY RECONSTRUCTION WORK ALONG PECK
STREET FROM MERRILL AVENUE NORTH TO APPLE AVENUE, INCLUDING
HOT MIX ASPHALT SURFACING , CONCRETE CURB AND GUTTER, WATER
MAIN AND PERMANENT PAVEMENT MARKING WORK.
Moved by Commissioner Johnson and supported by Commissioner German the
following Resolution be adopted:
WHEREAS, entry by the City of Muskegon into Contract no. 20-5553 between the
Michigan Department of Transportation and the City of Muskegon for the
Reconstruction of Peck Street between Merrill Avenue and Apple Avenue within
the City is in the best interests of the City of Muskegon.
RESOLVED, that entry by the City into Contract Agreement Number 20-5553 be and
the same is hereby authorized and approved and the Mayor and Clerk are
authorized to execute said contract for and on behalf of the City of Muskegon.
Adopted this 9TH day of March, 2021 .
ATTES~ ~"-1 ~~
2
Ann Meisch, City Clerk
CERTIFICATION
This resolution was adopted at a meeting of the City Commission, held on
March 9, 2021 . 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.
CITY OF MUSKEGON
By ~ ~~~
Ann Meisch, City Clerk
DOT
BUREAU OF HIGHWAYS
NON CONSTRUCTION
03-15-93
PART II
MODIFIED
STANDARD AGREEMENT PROVISIONS
SECTION I COMPLIANCE WITH REGULATIONS AND DIRECTIVES
SECTION II PROJECT ADMINISTRATION AND SUPERVISION
SECTION III ACCOUNTING AND BILLING
SECTION IV SPECIAL PROGRAM AND PROJECT CONDITIONS
1
SECTION I
COMPLIANCE WITH REGULATIONS AND DIRECTIVES
A. All work shall be performed in accordance with the requirements and procedures of the
DEPARTMENT.
B. All work on projects for which reimbursement with Federal funds is requested shall be
performed in accordance with the requirements and guidelines set forth in the Directives
of the Federal-Aid Policy Guide (FAPG) of the FHWA, as applicable, and as referenced
in pertinent sections of Title 23 and Title 49 of the Code of Federal Regulations (CFR),
and all supplements and amendments thereto.
C. In conformance with FAPO (23 CFR 630C): Project Agreements, the parties to this
contract, on those Federally funded projects which exceed a total cost of $100,000.00
stipulate the following with respect to their specific jurisdictions:
I. That any facility to be utilized in perfonnance undet or to benefit from this
contract is not listed on the Environmental Protection Agency (EPA) List of
Violating Facilities issued pursuant to the requirements of the Federal Clean Air
Act, as amended, and the Federal Water Pollution Control Act, as amended.
2, That they each agree to comply with all of the requirements of Section 114 of the
Federal Clean Air Act and Section 308 of the Federal Water Pollution Control
Act, and all regulations and guidelines issued thereunder.
3, That as a condition of Federal aid pursuant to this contract they shall notify the
DEPARTMENT of the receipt of. any advice indicating that a facility to be
utilized in performance under or to benefit from this contract is under
consideration to be listed on the EPA List of Violating Facilities,
D. Ensure that the PROJECT is constructed in accordance with and incorporates all
c01mnitted environmental impact mitigation measures listed in approved environmental
documents unless modified or deleted by approval of the FHWA.
E. All the requirements} guidelines, conditions and restrictions ·noted in all other pertinent
Directives and Instructional Memoranda of the FHWA will apply to this contract and will
be adhered to, as applicable, by the parties hereto.
03-15-93 2
SECTION II
PROJECT ADMINISTRATION AND SUPERVISION
A. The DEPARTMENT shall provide such administrative guidance as it determines is
required by the PROJECT in order to facilitate the obtaining of available federal and/or
state funds.
B. On those projects funded with Federal monies, the DEPARTMENT shall, as may be
required, secure from the FHWA approval of plans and specifications, and such cost
estimates for FHWA participation in the PROJECT COST.
C. Should it be necessary or desirable that portions of the work covered by this contract be
accomplished by a consulting firm, a railway company, or governmental agency, fhm,
person, or corporation, under a subcontract with the REQUESTING PARTY at
PROJECT expense, such subconh·acted arrangements will be covered by fom1al written
agreement between the REQUESTING PARTY and that pa1ty,
This formal written agreement shall: include a reference to the specific prime contract to
which it pe1tains; include provisions which clearly set forth the maximum reimbursable
and the basis of payment; provide for the maintenance of accounting records in
accordance with generally accepted accounting principles, which clearly document the
actual cost of the services provided; provide that costs eligible for reimbursement shall be
in accordance with clearly defined cost criteria such as 49 CFR Part 18, 48 CFR Part 31,
23 CFR Part 140, 0MB Circular A-87, etc. as applicnble; provide for access to the
depa1iment or its representatives to inspect and audit all data and records related to the
agreement for a minimum of three years after the department's final payment to the local
unit.
All such agreements will be submitted for• approval by the DEPARTMENT and, if
applicable, by the FHWA prior to execution thereof, except for agreements for amounts
less than $109,000 for preliminary engineering and testing services executed under and in
accordance with the provisions of the 11 Small Purchase Procedures 11 FAPO (23 CFR 172),
which do not require prior approval of the DEPARTMENT or the FHWA.
Any such approval by the DEPARTMENT shall in no way be consh11ed as a warranty of
the subcontractor's qualifications, financial integrity, or ability to perform the work being
subcontracted.
D. No PROJECT work for which reimbursement will be requested by the REQUESTING
PARTY is to be subcontracted or performed until the DEPARTMENT gives written
notification that such work may conitnence.
E. The REQUESTING PARTY shall be responsible for the payment of all costs and
expenses incurred in the perfonnance of the work it agrees to undertake and perform.
03-15-93 3
F. The REQUESTING PARTY shall pay directly to the party performing the work all
billings for the services performed on the PROJECT which are authorized by or through
the REQUESTING PARTY. .
G. The REQUESTING PARTY shall submit to the DEPARTMENT all paid billings for
which reimbursement is desired in accordance with DEPARTMENT procedures.
H. All work by a consulting firm will be performed in compliance with the applicable
provisions of 1980 PA 299, Subsection 201, MCL 339.2001; MSA 18.425(2001), as well
as in accordance with the provisions of all previously cited Directives of the FHWA.
I. The project engineer shall be subject to such administrative guidance as may be deemed
necessary to ensure compliance with program requirement and, in those instances where
a consultant firm is retained to provide engineeiing and inspection services, the personnel
performing those services shall be subject to the same conditions.
J. The DEPARTMENT) in administering the PROJECT in accordance with applicable
Federal and State requirements and regulations, neither assumes nor becomes liable for
any obligations undertaken or arising between the REQUESTING PARTY and any other
party with respect to the PROJECT.
K. In the event it is determined by the DEPARTMENT that there will be either insufficient
Federal funds or insufficient time to properly administer such funds for the entire
PROJECT or portions thereof, the DEP ARTMENTi prior to advertising or issuing
authorization for work performance, may cancel the PROJECT, or any po1tion thereof,
and upon written notice to the parties this contract shall be void and of no effect with
respect to that canceled portion of the PROJECT. Any PROJECT deposits previously
made by the parties on the canceled p01tions of the PROJECT will be promptly refunded.
L. Those projects funded with Federal monies will be subject to inspection· at all tin1es by
the DEPARTMENT and the FHWA.
03-15-93 4
. SECTION III
ACCOUNTING AND BILLING
A. Procedures for billing for work undertaken by the REQUESTING PARTY:
l. The REQUESTING PARTY shall 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 shall be
established and maintained for all costs incurred under this contract.
The REQUESTING PARTY shall maintain the RECORDS for at least three (3)
years from the date of final payment of Federal Aid made by the DEPARTMENT
under this contract. In the event of a dispute with regard to the allowable
expenses or any other issue under this contract, the REQUESTING PARTY shall
thereafter continue to maintain the RECORDS at least until that dispute has been
finally decided and the time for all available challenges or appeals of that decision
has expired. ·
The DEPARTMENT, or its representative, may inspect, copy, or audit the
RECORDS at any reasonable time after giving reasonable notice,
If any part of the work is subcontracted, the REQUESTING PARTY shall assure
compliance with the above for all subcontracted work.
In the event that an audit perfom1ed by or on behalf of the DEPARTMENT
indicates an adjustment to the costs reported under this contract, or questions the
allowability of an hem of expense 1 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 repo1t, (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 1 hereinafter referred to as the
11
RESPONSE 11 , The RESPONSE shall be clearly stated and provide any
suppo1iing documentation necessary to resolve any disagreement or questioned or
no opinion expr:essed item of expense. Where the documentation is voluminous,
the REQUESTING PARTY may supply appropriate excerpts and make alternate
a1rnngements to conveniently and reasonably make that documentation available
for review by the DEPARTMENT. The RESPONSE shall refer to and apply the
03~15-93 s
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.
The DEPARTMENT shall make its decision with regard to any Notice of A\1dit
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 DEPART.MENT 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 thhty (30) day period~ the REQUESTING PARTY
agrees· that the DEPARTMENT shall deduct all or a po1iion 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 pmtial payments or repayment schedules based on
the unpaid balance at the end of each month until the balance is paid in full. The
assessment of interest will begin thirty (30) days from the date of the invoice,
The rate of interest will be based on the Michigan Depaiiment 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
Depmiment 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, as
amended, including, but not limited to, the Single Audit Amendments of 1996 (31
use 7501-7507).
The REQUESTING PARTY shall adhere to the following requirements
associated with audits of accounts and records;
a. Agencies expending a total of $500,000 or more in federal funds, from one or
more funding sources in its fiscal year, shall comply with the requirements of the
federal Office of Management and Budget (0MB) Circular A-133, as revised or
amended.
03-15-93 6
The agency shall submit two copies of:
The Reporting Package
The Data Collection Form
The management letter to the agency) if one issued by the audit fim1
The 0MB Circular A-133 at1dit must be submitted to the address below in
accordance with the time frame established in the circular, as revised or amended.
b. Agencies expending less than $500,000 in federal funds must submit a letter to
the Department advising that a cfrcular audit was not required. The letter shall
indicate the applicable fiscal year, the amount of federal funds spent, the name(s)
of the Department federal programs, and the CFDA grant number(s). This
info1mation must also be submitted to the address below.
c. Address: Michigan Depaiiment of Education
Accounting Service Center
Hannah Building
608 Allegan Street
Lansing) MI 48909
d. Agencies must also comply with applicable State laws and regulations relative
to audit requirements.
e. Agencies shall not charge audit costs to Department's federal programs which
are not in accordance with the 0MB Circular A-133 requirements,
f. All agencies are subject to the federally required monitoring activities, which
may include limited scope reviews and other 01Mite monitoring.
2. Agreed Unit Prices Work ~ All billings for work unde1iaken by the
REQUESTING PARTY on an agreed unit price basis will be submitted in
accordance with the Michigan Department of Transportation Standard
Specifications for Construction and pertinent FAPG Directives and Guidelines of
theFHWA.
3. Force Account Work and Subcontracted Wol'k - All billings submitted to the
DEPARTMENT for Federal reimbursement for items of work perfom1ed on a
force account basis or by any subcontract with a consulting firm, railway
company, governmental agency or other party, under the terms of this contract)
shall be prepared in accordance with the provisions of the pe11inent FAPG
Directives and the procedures of the DEPARTMENT. Progress billings may be
submitted monthly during the time work is being performed provided, however,
that no bill of a lesser amount than $1,000.00 shall be submitted unless it is a final
or end of fiscal year billing. All billings shall be labeled either "Progress Bill
Number _ _ _ 11 , or "Final Billing".
03"15-93 7
I I
4. Final billing under this contract shall be submitted in a timely manner but not later
than six months after completion of the work. Billings for work submitted later
than six months after completion of the work will not be paid,
5. Upon receipt of billings for reimbursement for work unde1iaken · by the
REQUESTING PARTY on projects funded with Federal monies, the
DEPARTMENT will act as billing agent for the REQUESTING PARTY,
consolidating said billings with those for its own force account work arid
presenting these consolidated billings to the FHWA for.payment. Upon receipt of
reimbursement from the FHWA, the DEPARTMENT will promptly forward to
the REQUESTING PARTY its share of said reimbursement.
6. Upon receipt of billings for reimbursement for work undertaken by the
REQUESTING PARTY on projects funded with non-Federal monies, the
DEPARTMENT will promptly forward to the REQUESTING PARTY
reimbursement of eligible costs.
B. General Conditions:
Pursuant to the authority granted by law, the REQUESTING PARTY hereby
irrevocably pledges a sufficient amount of funds received by it from the Michigan
Transportation Fund to meet its obligations as specified in PART I and PART II.
If the REQUESTING PARTY sh.all fail to make any of its required paymen.ts
when due, as specified herein, the DEPARTMENT shall immediately notify the
REQUESTING PARTY and the State Treasurer of the State of Michigan or such
other state officer or agency having charge and co1itrol over disbursement of the
Michigan Transportation Fund, piJrsuant to law, of the fact of such default and the
amount thereof, and, if such default is not cured by payment within ten (10) days,
said State Treasurer or other state officer or agency is then authorized and
directed to withhold from the first of such monies thereafter allocated by law to
the REQUESTING PARTY from the Michigan Transportation Fund sufficient
monies to remove the default, and to credit the REQUESTING PARTY with
payment thereof, and to notify the REQUESTING PARTY in writing of such fact.
2. Upon completion of all work under this contract and final audit by the
DEPARTMENT or the FHWA, the REQUESTING PARTY promises to
promptly repay the DEPARTMENT for any disallowed items of costs previously
disbursed by the DEPARTMENT. The REQUESTING PARTY pledges its
future receipts from the Michigan Transportation Fund for repayment of all
disallowed items and, upon failure to make repayment for any disallowed items
within ninety (90) days of demand made by the DEPARTMENT, the
DEPARTMENT is hereby authorized to withhold an equal amount from the
REQUESTING PARTY'S share of any future distribution of Michigan
Transp01iation Funds in settlement of said claim.
03-15-93 8
I I \ /
SECTION IV
SPECIAL PROGRAM AND PROJECT CONDITIONS
A. Those projects for which the REQUESTING PARTY has been reimbursed with Federal
monies for the performance of preliminary engineering must be under construction by the
close of the tenth (10th) fiscal year following the fiscal year in which the FHWA and the
DEPARTMENT projects agreement covering that work is executed, or the
REQUESTING PARTY may be required to repay to the DEPARTMENT, for forwarding
to· the FHWA, alt monies distributed as the FHWA'S contribution to that preliminary
engineering.
B. Those projects for which the REQUESTING PARTY has been reimbursed with Federal
monies for the acquisition of right-of-way must be under constrnction by the close of the
twentieth (20th) fiscal year following the fiscal year in which the FHWA and the
DEPARTMENT projects agreement covering that work is executed, or the
REQUESTINGPARTY maybe required to repay to the DEPARTMENT, for fo1warding
to the FHWA, all monies distributed as the FHWA'S contribution to that right-of-way
acquisition.
C. In connection with the performance of PROJECT work under this contract the parties
hereto (hereinafter in Appendix '!A" refened to as the 11 contractor11 ) 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, 1975a-1975d, and 2000a-
2000h"6 and the Regulations of the United States Department of Transpmiation (49
C.F.R. Pali 21) issued pursuant to said Act, including Appendix "B", attached hereto and
made a part hereof, and will require similar covenants on the part of any contractor or
subcontractor employed in the performance of this contract.
D. The paiiies will carry out the applicable requirements of the DEPARTMENT'S
Disadvantaged Business Enterprise (DBE) program and 49 CFR, Part 26, including, but
not limited to, those requirements set forth in Appendix C.
03-15-93 9
i ,I { f
APPENDIX A
PROIDBITION 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, tenns, 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 pmiicular 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
po1tion 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;
recrnihnent; advertising; layoff or termination; rates of pay or other fom1s 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 ~onsideration 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 conh·actor or its collective bargaining representative shall send to each labor union or
representative of workers with whlch 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 rnles, 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.
APPENDIXB
TITLE VI ASSURANCE
During the performance of this contract, the contractor, for itself, its assignees) and its successors
in interest (hereinafter referred to as the "conh·actor"), agrees as follows:
1. Compliance with Regulations: For all federally assisted programs, the contractor shall
comply with the nondiscrimination regulations set fo1th in 49 CFR Patt 21, as may be
amended from time to time (hereinafter refen-ed to as the Regulations). Such Regulations
are incorporated herein by reference and made a part of this contract.
2, Nondiscrimination: The contractor, with regard to the work performed under the
contract, shall not discriminate on the grounds of race) color, sex, or national origin in the
selection, retention, and treatment of subcontractors, including procurements of materials
and leases of equipment. The conh·actor shall not paiticipate either directly or indirectly
in the discrimination prohibited by Section 21,5 of the Regulations, including
employment practices, when the contractor covers a program set forth in Appendix B of
the Regulations.
3, Solicitation for Subcontracts, Including Procurements of Materials and Equipment:
All solicitations made by the contractor, either by competitive bidding or by negotiation
for subcontract work, including procurement of materials or leases of equipment, must
include a notification to each potential subcontractor or supplier of the contractor's
obligations under the contract and the Regulations relative to nondiscrimination on the
grounds of race, color, or national origin.
4. Information and Reports: The contractor shall provide all info1lhation and reports
required by the Regulations or directives issued pursuant thereto and shall permit access
to its books, records, accounts, other sources of infonnation, and facilities as may be
dete1mined to be pertinent by the Department or the United States Depmiment of
Transpo1iation (USDOT) in order to ascertain compliance with such Regulations or
directives. If req\1ired information concerning the contractor is in the exclusive
possession of another who fails or refuses to furnish the required information, the
contractor shall certify to the Department or the USDOT) as appropriate, and shall set
forth the effo1is that it made to obtain the information.
5, Sanctions for Noncompliance: In the event of the contractor's noncompliance with the
nondiscrimination provisions of this contract, the Department shall impose such contract
sanctions as it or the USDOT may detetmine to be appropriate, including, but not limited
to, the following:
a, WitW1olding payments to the contractor until the contractor complies; and/or
b. Canceling, tenninating, or suspending the contract, in whole or in part.
6. .Incorporation of Provisions: The contractor shall include the provisions of Sections ( 1)
through (6) in every subcontract, including procurement of material and leases of
equipment, unless exempt by the Regulations or directives issued pursuant thereto. The
contractor shall take such action with respect to any subcontract or procurement as the
Depaiiment or the US DOT may direct as a means of enforcing such provisionsi including
sanctionsfor non-compliance, provided, however, that in the event a contractor becomes
involved in or is threatened with litigation from a subcontractor or supplier as a result of
such direction, the contractol' may request the Depattment to enter into such litigation to
protect the interests of the state. In addition, the contractor may request the United States
to enter into such litigation to protect the interests of the United States.
Revised June 2011
APPENDIXB
TITLE VI ASSURANCE
During the performance of this contract, the contractor, for itself, its assignees, and its successors
in interest (hereinafter referred to as the "conh·actor"), agrees as follows:
1. Compliance with Regulations: For all federally assisted programs, the contractor shall
comply with the nondiscrimination regulations set fo1th in 49 CFR Pali 21, as may be
amended from time to time (hereinafter refened to as the Regulations). Such Regulations
are incorporated herein by reference and made a part of this contract.
2. Nondiscrimination: The contractor, with regard to the work performed under the
contract, shall not discriminate on the grounds of race, color, sex, or national origin in the
selection, retention, and treatment of subcontractors, including procurements of materials
and leases of equipment. The conh·actor shall not participate either directly or indirectly
in the discrimination prohibited by Section 21.5 of the Regulations, including
employment practices, when the contractor covers a program set forth in Appendix B of
the Regulations.
3, Solicitation for Subcontracts, Including Procurements of Materials and Eguipment:
All solicitations made by the contractor, either by competitive bidding or by negotiation
for subcontract work, including procurement of materials or leases of equipment, must
include a notification to each potential subcontractor or supplier of the contractor's
obligations under the contract and the Regulations relative to nondiscrimination on the
grounds of race, color, or national origin.
4. Information and Reports: The conh'actor shall provide all infonnation and reports
required by the Regulations or directives issued pursuant thereto and shall permit access
to its books, records, accounts, other sources of infonnation, and facilities as may be
dete1mined to be pertinent by the Department or the United States Department of
Transpo1tation (USDOT) in order to ascertain compliance with such Regulations or
directives. If required information concerning the contractor is in the exclusive
possession of another who fails or refuses to furnish the required information, the
contractor shall ce1iify to the Department or the USDOT, as appropriate, and shall set
forth the effo1is that it made to obtain the information.
5. Sanctions for Noncompliance: In the event of the contractor's noncompliance with the
nondiscrimination provisions of this contract, the Department shall impose such contract
sanctions as it or the USDOT may dete1mine to be appropriate, including) but not limited
to, the following:
a, Withholding payments to the contractor until the contractor complies; and/or
b. Canceling, tenninating, or suspending the contract, in whole or in part.
6. .Incorporation of Provisions; The contractor shall include the provisions of Sections ( 1)
through (6) in every subcontract, including procurement of material and leases of
equipment, unless exempt by the Regulations or directives issued pursuant thereto. The
contractor shall take such action with respect to any subcontract or procurement as the
Department or the US DOT may direct as a means of enforcing such provisions, including
sanctionsfor non-compliance, provided, however, that in the event a contractor becomes
involved in or is threatened with litigation from a subcontractor or supplier as a result of
such direction, the contractor may request the Department to enter into such litigation to
protect the interests of the state. In addition, the contractor may request the United States
to enter into such litigation to protect the interests of the United States.
Revised June 2011
APPENDIXC
TO BE INCLUDED IN ALL FINANCIAL ASSISTANCE
AGREEMENTS WITH LOCAL AGENCIES
Assurance that Recipients and Contractors Must Make
(Excerpts from US DOT Regulation 49 CFR 26.13)
A. Each financial assistance agreement signed with a DOT operating administration
(or a primary recipient) must include the following assurance:
The recipient shall not discriminate on the basis of race, color,
national origin, or sex in the award and performance of any US
DOT-assisted contract or in the administration of its DBE
program or the requirements of 49 CFR Part 26. The recipient
shall take all necessary and reasonable steps under 49 CFR
Part 26 to ensure nondiscrimination in the award and
administration of US DOT-assisted contracts. The recipient's
DBE program, as required by 49 CFR Part 26 and as
approved by US DOT, is incorporated by reference in this
agreement. Implementation of this program is a legal
obligation and failure to carry out its terms shall be treated as
a violation of this agreement. Upon notification to the
recipient of its failure to carry out its approved program, the
department may impose sanctions as provided for under Part
26 and may, in appropriate cases, refer the mattet for
enforcement under 18 U.S.C. 1001 and/or the Program Fraud
Civil Remedies Act of 1986 (31 U.S,C. 3801 et seq.).
B. Each contract MDOT signs with a contractor (and each subcontract the prime
contractor signs with a subcontractor) must include the following assurance:
The contractor, sub recipient or subcontractor shall not
discriminate on the basis of race, color, national origin, or sex
in the performance of this contract. The contractor shall carry
out applicable requirements of 49 CFR Part 26 in the award
and administration of US DOT-assisted contracts, Failure by
the contractor to carry out these requirements is a material
breach of this contract, which may result in the termination of
this contract or such other remedy as the recipient deems
appropriate.
2/8/2021 1:16 PM
ltMDOT
Michigan Dep.:ir1men1 ot Transportation AASHTOWare Project™ Version 4.4 Revision 034
Tabulation of Bids Report v1
Call Number: 020 Contract ID: 61000-205371 Project(s): 21A0187
Letting Date: February 05, 2021 Region(s): Muskegon TSC Counties: Muskegon County
Contract Time: 10/01/21 COMPLETION DATE
Contract Description: 0.24 mi of hot mix asphalt reconstruction , concrete curb, gutter, sidewalk and ramps, storm sewer, watermain and
pavement markings on Peck Street from Merrill Avenue northerly to Apple Avenue (M-46) in the city of Muskegon ,
Muskegon County. This is a Local Agency project. ** 890 Ea or 890 K or Comb/Jt. 890 Cb, J **In addition to the
above minimum prequalification requirement for prime contractors this project includes subclassifications of Cb, Ea, J
and K. If the prime contractor is not prequalified in those subclassifications it must use prequalified subcontractors.
Those subcontractors must be designated prior to award of the contract to the confirmed low bidder.
List of Vendors
t.:~~-~~;··, ·:.-_,'{., ~:.:-:.·~-- '._ .·t;~_;_t,;
0 -EST- - Engineer's Estimate $890,058.05 105.56% 100.00%
05076 -: McCormickSand, Inc.
,_,....,.,...,......,..
-~-- -,., -·=·-
$843,138.82
-~-
100.00% 94.73%
___ ., __
---- .... -- - r-•~-- ------------ ------ -----~--- --·--- ----- -
2 01272 - Wadel Stabilization, Inc. $857,484.60 101 .70% 96.34%
00152 ·: Kamminga & Roodvoets, In c.
3
4
·- - -·
02123 - Brenner Excavating, Inc.
- 6,,, -
- _ ..... _. __ -- - --- - - - - ·- -- - ~- - ---- -- -
$878,449.55
-- ... ·-
$878,699.36
... ..... -
.;.., _;_, ______ .__ -~.,__,_..,
104.19%
..... .. ....
__ ,. ___ :
104.22%
.- ..- ·- __. __ .___._,., __ _..,__ ___
98.70%
....
98.72%
- --
5 0662f'=Jackson~Merkey Contrac tors7"i,c.- -·- - . $974,673.35 115.60%
--- 109.51%
~
,.,.
.
- ---- ----- .. - ---- - ------------------- ______
_.......... - -----'1--- --· . -
6 02499 - Schippers Excavating, Inc. $979,467.90 116.17% 110.05%
7
·---- ---- -·
03665 - Al's Excavating, Inc. $1 ,041 ,929.90 123.58%
-- 117.06%
Page: 1 of 44
STATE OF MICHIGAN
GRETCHEN WHITMER DEPARTMENT OF TRANSPORTATION PAUL C. AJEGBA
GOVERNOR DIRECTOR
LANSING
April 2, 2021
Ms. Ann Meisch, City Clerk
City of Muskegon
933 Terrace Street
Muskegon, Michigan 49440
Dear Ms. Meisch:
RE: Contract Number: 20-5553
Control Section: STUL 61000
Job Number: 205371 CON
Location: Peck Street from Merrill Avenue to Apple Avenue
Enclosed is one (1) executed copy of the above referenced contract between your
organization and the Michigan Department of Transportation.
Enclosure
cc: Amy Zokvic
MURRAY D. VAN WAGONER BUILDING• P.O. BOX 30050 • LANSING, MICHIGAN 48909
www.Michigan.gov/MDOT • 517-241-2400
LH-LAN-0 (10/19)