E-7. Approve Agreement with MnDOT for Federal Fund TransfersCITY OF C HANHASSE N
Chanhassen is Community for Life -Providing for Today and Planning for Tomorrow
MEMORANDUM
TO: Todd Gerhardt, City Manager
t
FROM: Paul Oehme, Dir, of Public Works/City Engineer
DATE: January 8, 2018
SUBJ: Approve Agreement and Resolution for Federal Fund Contracting Process with
MnDOT
rams] Zell 511-1011Ic1y� 111Z
"The City Council approves agreement and resolution for Federal fund contracting process with
MnDOT."
City Council approval requires a simple majority vote of the City Council present.
MnDOT has contacted the City and requested the City enter into an agreement to allow MnDOT
to act as the City's agent in accepting federal aid funds. This agreement is intended to cover all
federally funded projects that the City may be awarded. It supersedes the agreement executed in
2003, which is referenced in this agreement. The City from time to time receives federal funds
for roadway projects. Sometimes MnDOT leads the project in which case MnDOT would need
the federal funds transferred to the project account. The last project this agreement was used was
for federal funds the City received for a trail underpass at TH 5 by Minnewashta Parkway.
MnDOT included the project and the federal funds for the underpass in the TH 5 Rehabilitation
project.
The City Attorney has reviewed the agreement.
Attachments: Agreement
Resolution
g:\eng\public\pw390 mndot general\bkgd 010818 fed fund agr w mndot.docx
PH 952.227.1100 • www.ci.chanhassen.mn.us • FX 952.227.1110
7700 MARKET BOULEVARD • PO BOX 147 • CHANHASSEN • MINNESOTA 55317
MnDOT Contract No. 1029930
DEPARTMENT OF
TRANSPORTATION
STATE OF MINNESOTA
AGENCY AGREEMENT
for
FEDERAL PARTICIPATION IN CONSTRUCTION
This agreement is entered into by and between the City of Chanhassen ("Local Government") and the State of
Minnesota acting through its Commissioner of Transportation ("MnDOT").
1. Pursuant to Minnesota Statutes Section 161.36, the Local Government desires MnDOT to act as the Local
Government's agent in accepting federal funds on the Local Government's behalf for the construction,
improvement, or enhancement of transportation financed either in whole or in part by Federal Highway
Administration ("FHWA") federal funds, hereinafter referred to as the "Project(s)"; and
2. This agreement is intended to cover all federal aid projects initiated by the Local Government and therefore has
no specific State Project number associated with it, and
2.1. The Catalog of Federal Domestic Assistance number or CFDA number is 20.205, and
2.2. This agreement supersedes agreement number old (99945)
2.3. This project is for construction not research and development.
2.4. MnDOT requires that the terms and conditions of this agency beset forth in an agreement.
AGREEMENT TERMS
1. Term of Agreement
1.1. Effective Date. This agreement will be effective on the date the MnDOT obtains all required signatures
under Minn. Stat. §16C.05, Subd. 2. Upon the effective date, this agreement will supersede agreement
99945.
2. Local Government's Duties
2.1. Designation. The Local Government designates MnDOT to act as its agent in accepting federal funds in its
behalf made available for the Project(s). Details on the required processes and procedures are available on
the State Aid Website
2.2. Staffing.
2.2.1. The Local Government will furnish and assign a publicly employed licensed engineer, ("Project
Engineer"), to be in responsible charge of the Project(s) and to supervise and direct the work to be
performed under any construction contract let for the Project(s). In the alternative where the Local
Government elects to use a private consultant for construction engineering services, the Local
Government will provide a qualified, full-time public employee of the Local Government, to be in
responsible charge of the Project(s). The services of the Local Government to be performed hereunder
may not be assigned, sublet, ortransferred unless the Local Government is notified in writing by
MnDOT that such action is permitted under 23 CFR 1.33 and 23 CFR 635.105 and state law. This
written consent will in no way relieve the Local Government from its primary responsibility for
performance of the work.
Updated December 1, 2017
MnDOT Contract No. 1029930
2.2.2. During the progress of the work on the Project(s), the Local Government authorizes its Project
Engineer to request in writing specific engineering and/or technical services from MnDOT, pursuant to
Minnesota Statutes Section 161.39. Such services may be covered by other technical service
agreements. If MnDOT furnishes the services requested, and if MnDOT requests reimbursement, then
the Local Government will promptly pay MnDOT to reimburse the state trunk highway fund for the full
cost and expense of furnishing such services. The costs and expenses will include the current MnDOT
labor additives and overhead rates, subject to adjustment based on actual direct costs that have been
verified by audit. Provision of such services will not be deemed to make MnDOT a principal or co-
principal with respect to the Project(s).
2.3. Pre -letting. The Local Government will prepare construction contracts in accordance with Minnesota law
and applicable Federal laws and regulations.
2.3.1. The Local Government will solicit bids after obtaining written notification from MnDOTthat the FHWA
has authorized the Project(s). Any Projects) advertised prior to authorization without permission will
not be eligible for federal reimbursement.
2.3.2. The Local Government will prepare the Proposal for Highway Construction for the construction
contract, which will include all of the federal -aid provisions supplied by MnDOT.
2.3.3. The Local Government will prepare and publish the bid solicitation for the Project(s) as required by
state and federal laws. The Local Government will include in the solicitation the required language for
federal -aid construction contracts as supplied by MnDOT. The solicitation will state where the
proposals, plans, and specifications are available for the inspection of prospective bidders, and where
the Local Government will receive the sealed bids.
2.3.4. The Local Government may not include other work in the construction contract for the authorized
Project(s) without obtaining prior notification from MnDOT that such work is allowed by FHWA.
Failure to obtain such notification may result in the loss of some or all of the federal funds for the
Project(s). All work included in a federal contract is subject to the same federal requirements as the
federal project.
2.3.5. The Local Government will prepare and sell the plan and proposal packages and prepare and
distribute any addenda, if needed.
2.3.6. The Local Government will receive and open bids.
2.3.7. After the bids are opened, the Local Government will consider the bids and will award the bid to the
lowest responsible bidder, or reject all bids. If the construction contract contains a goal for
Disadvantaged Business Enterprises, the Local Government will not award the bid until it has received
certification of the Disadvantaged Business Enterprise participation from the MnDOT Office of Civil
Rights.
2.3.8. The Local Government entity must disclose in writing any potential conflict of interest to the Federal
awarding agency or pass through entity in accordance with applicable Federal awarding agency policy.
2.4. Contract Administration.
2.4.1. The Local Government will prepare and execute a construction contract with the lowest responsible
bidder, hereinafter referred to as the "Contractor," in accordance with the special provisions and the
latest edition of MnDOT's Standard Specifications for Construction and all amendments thereto. All
contracts between the Local Government and third parties or subcontractors must contain all
applicable provisions of this Agreement, including the applicable federal contract clauses, which are
identified in Appendix II of 2 CFR 200, Uniform Administrative Requirements, Cost Principles and Audit
Requirements for Federal Awards, and as provided in Section 18 of this agreement.
MnDOT Contract No. 1029930
2.4.2. The Project(s) will be constructed in accordance with plans, special provisions, and standard
specifications of each Project. The standard specifications will be the latest edition of MnDOT
Standard Specifications for Highway Construction, and all amendments thereto. The plans, special
provisions, and standard specifications will be on file at the Local Government Engineer's Office. The
plans, special provisions, and specifications are incorporated into this agreement by reference as
though fully set forth herein.
2.4.3. The Local Government will furnish the personnel, services, supplies, and equipment necessary to
properly supervise, inspect, and document the work for the Project(s). The services of the Local
Government to be performed hereunder may not be assigned, sublet, or transferred unless the Local
Government is notified in writing by MnDOT that such action is permitted under 23 CFR 1.33 and 23
CFR 635.105 and state law. This written consent will in no way relieve the Local Government from its
primary responsibility for performance of the work.
2.4.4. The Local Government will document quantities in accordance with the guidelines set forth in the
Construction Section of the Electronic State Aid Manual that were in effect at the time the work was
performed.
2.4.5. The Local Government will test materials in accordance with the Schedule of Materials Control in
effect at the time each Project was let. The Local Government will notify MnDOT when work is in
progress on the Project(s) that requires observation by the Independent Assurance Inspector as
required by the Independent Assurance Schedule.
2.4.6, The Local Government may make changes in the plans or the character of the work, as may be
necessary to complete the Project(s), and may enter into Change Order(s) with the Contractor. The
Local Government will not be reimbursed for any costs of any work performed under a change order
unless MnDOT has notified the Local Government that the subject work is eligible for federal funds
and sufficient federal funds are available.
2.4.7. The Local Government will request approval from MnDOT for all costs in excess of the amount of
federal funds previously approved for the Project(s) prior to incurring such costs. Failure to obtain
such approval may result in such costs being disallowed for reimbursement.
2.4.8. The Local Government will prepare reports, keep records, and perform work so as to meet federal
requirements and to enable MnDOT to collect the federal aid sought by the Local Government.
Required reports are listed in the MnDOT State Aid Manual, Delegated Contract Process Checklist,
available from MnDOT's authorized representative. The Local Government will retain all records and
reports and allow MnDOT or the FHWA access to such records and reports for six years.
2.4.9. Upon completion of the Project(s), the Project Engineer will determine whether the work will be
accepted.
2.5. Limitations.
2.5.1. The Local Government will comply with all applicable Federal, State, and local laws, ordinances, and
regulations.
2.5.2. Nondiscrimination. It is the policy of the Federal Highway Administration and the State of Minnesota
that no person in the United States will, on the grounds of race, color, or national origin, be excluded
from participation in, be denied the benefits of, or be subjected to discrimination under any program
or activity receiving Federal financial assistance (42 U.S.C. 2000d), Through expansion of the mandate
for nondiscrimination in Title VI and through parallel legislation, the proscribed bases of discrimination
include race, color, sex, national origin, age, and disability. In addition, the Title VI program has been
extended to cover all programs, activities and services of an entity receiving Federal financial
MnDOT Contract No. 1029930
assistance, whether such programs and activities are Federally assisted or not. Even in the absence of
prior discriminatory practice or usage, a recipient in administering a program or activity to which this
part applies, is expected to take affirmative action to assure that no person is excluded from
participation in, or is denied the benefits of, the program or activity on the grounds of race, color,
national origin, sex, age, or disability. It is the responsibility of the Local Government to carry out the
above requirements.
2.5.3. Utilities. The Local Government will treat all public, private or cooperatively owned utility facilities
which directly or indirectly serve the public and which occupy highway rights of way in conformance
with 23 CFR 645 "Utilities" which is incorporated herein by reference.
2.6. Maintenance. The Local Government assumes full responsibility for the operation and maintenance of any
facility constructed or improved under this Agreement.
3. MnDOT's Duties
3.1. Acceptance. MnDOT accepts designation as Agent of the Local Government for the receipt and disbursement
of federal funds and will act in accordance herewith.
3.2. Project Activities.
3.2.1. MnDOT will make the necessary requests to the FHWA for authorization to use federal funds for the
Project(s), and for reimbursement of eligible costs pursuant to the terms of this agreement.
3.2.2. MnDOT will provide to the Local Government copies of the required Federal -aid clauses to be included
in the bid solicitation and will provide the required Federal -aid provisions to be included in the Proposal
for Highway Construction.
3.2.3. MnDOTwill review and certifythe DBE participation and notify the Local Government when certification
is complete. If certification of DBE participation (or good faith efforts to achieve such participation)
cannot be obtained, then Local Government must decide whether to proceed with awarding the
contract. Failure to obtain such certification will result in the project becoming ineligible for federal
assistance, and the Local Government must make up any shortfall.
3.2.4. MnDOT will provide the required labor postings.
3.3. Authority. MnDOT may withhold federal funds, where MnDOT or the FHWA determines that the Project(s)
was not completed in compliance with federal requirements.
3.4. Inspection. MnDOT, the FHWA, or duly authorized representatives of the state and federal government will
have the right to audit, evaluate and monitor the work performed under this agreement. The Local
Government will make available all books, records, and documents pertaining to the work hereunder, for a
minimum of six years following the closing of the construction contract.
4. Time
4.1. The Local Government must comply with all the time requirements described in this agreement. In the
performance of this agreement, time is of the essence
4.2. The period of performance is defined as beginning on the date of federal authorization and ending on the
date defined in the federal financial system or federal agreement ("end date"). No work completed after
the end date will be eligible for federal funding. Local Government must submit all contract closeout
paperwork to MnDOT, twenty four months prior to the end date.
Payment
5.1. Cost. The entire cost of the Project(s) is to be paid from federal funds made available by the FHWA and by
other funds provided by the Local Government. The Local Government will pay any part of the cost or
rd
MnDOT Contract No. 1029930
expense of the Project(s) that is not paid by federal funds. Mn DOT will receive the federal funds to be paid
by the FHWA for the Project(s), pursuant to Minnesota Statutes 4 161.36, Subdivision 2. MnDOT will
reimburse the Local Government, from said federal funds made available to each Project, for each partial
payment request, subject to the availability and limits of those funds.
5.2. Indirect Cost Rate Proposal/Cost Allocation Plan. If the Local Government seeks reimbursement for indirect
costs and has submitted to MnDOT an indirect cost rate proposal or a cost allocation plan, the rate proposed
will be used on a provisional basis. At any time during the period of performance or the final audit of a
project, MnDOT may audit and adjust the indirect cost rate according to the cost principles in 2 CFR Part
200. MnDOT may adjust associated reimbursements accordingly.
5.3. Reimbursement. The Local Government will prepare partial estimates in accordance with the terms of the
construction contract for the Project(s). The Project Engineer will certify each partial estimate. Following
certification of the partial estimate, the Local Government will make partial payments to the Contractor in
accordance with the terms of the construction contract for the Project(s).
5.3.1. Following certification of the partial estimate, the Local Government may request reimbursement for
costs eligible for federal funds. The Local Government's request will be made to MnDOT and will
include a copy of the certified partial estimate.
5.3.2. Upon completion of the Project(s), the Local Government will prepare a final estimate in accordance
with the terms of the construction contract for the Project(s). The Project Engineer will certify the
final estimate. Following certification of the final estimate, the Local Government will make the final
payment to the Contractor in accordance with the terms of the construction contract for the
Project(s).
5.3.3. Following certification of the final estimate, the Local Government may request reimbursement for
costs eligible for federal funds. The Local Government's request will be made to MnDOT and will
include a copy of the certified final estimate along with the required records.
5.3.4. Upon completion of the Project(s), MnDOT will perform a final inspection and verify the federal and
state eligibility of all the payment requests. If the Project is found to have been completed in
accordance with the plans and specifications, MnDOT will promptly release any remaining federal
funds due the Local Government for the Project(s). If MnDOT finds that the Local Government has
been overpaid, the Local Government must promptly return any excess funds
5.3.5. In the event MnDOT does not obtain funding from the Minnesota Legislature or other funding source,
or funding cannot be continued at a sufficient level to allow for the processing of the federal aid
reimbursement requests, the Local Government may continue the work with local funds only, until
such time as MnDOT is able to process the federal aid reimbursement requests.
5.4. Matching Funds. Any cost sharing or matching funds required of the Local Government in this agreement
must comply with 2 CFR 200.306.
5.5. Federal Funds. Payments under this Agreement will be made from federal funds. The Local Government is
responsible for compliance with all federal requirements imposed on these funds and accepts full financial
responsibility for any requirements including, but not limited to, 2 CFR Part 200 imposed by the Local
Government's failure to comply with federal requirements. If, for any reason, the federal government fails
to pay part of the cost or expense incurred by the Local Government, or in the event the total amount of
federal funds is not available, the Local Government will be responsible for any and all costs or expenses
incurred under this Agreement. The Local Government further agrees to pay any and all lawful claims arising
out of or incidental to the performance of the work covered by this Agreement in the event the federal
government does not pay the same.
M nDOT Contract No. 1029930
5.6. Closeout. The Local Government must liquidate all obligations incurred under this Agreement for each
project and submit all financial, performance, and other reports as required by the terms of this Agreement
and the Federal award, twenty four months prior to the end date of the period of performance for each
project. MnDOT will determine, at its sole discretion, whether a closeout audit is required prior to final
payment approval. If a closeout audit is required, final payment will be held until the audit has been
completed. Monitoring of any capital assets acquired with funds will continue following project closeout.
6. Conditions of Payment. All services provided by Local Government under this agreement must be performed to
MnDOT's satisfaction, as determined at the sole discretion of MnDOT's Authorized Representative and in
accordance with all applicable federal, state, and local laws, ordinances, rules, and regulations. The Local
Government will not receive payment for work found by MnDOT to be unsatisfactory or performed in violation of
federal, state, or local law.
7. Authorized Representatives
7.1. MnDOT's Authorized Representative is:
Name: Mitchell Rasmussen, or his successor.
Title: State Aid Engineer
Phone: 651-366-4831
Email: Mitch. rasmussen@state.mn.us
MnDOT's Authorized Representative has the responsibility to monitor Local Government's performance and
the authority to accept the services provided under this agreement. If the services are satisfactory,
MnDOT's Authorized Representative will certify acceptance on each invoice submitted for payment.
7.2. The Local Government's Authorized Representative is:
Name: Paul Oehme or his/her successor.
Title: Chanhassen City Engineer
Phone: 952-227-1169
Email: poehme@cl.chanhassen.mn.us
If the Local Government's Authorized Representative changes at any time during this agreement, the Local
Government will immediately notify MnDOT.
8. Assignment Amendments, Waiver, and Agreement Complete
8.1. Assignment. The Local Government may neither assign nor transfer any rights or obligations under this
agreement without the prior written consent of MnDOT and a fully executed Assignment Agreement,
executed and approved by the same parties who executed and approved this agreement, or their successors
in office.
8.2. Amendments. Any amendments to this agreement must be in writing and will not be effective until it has
been executed and approved by the same parties who executed and approved the original agreement, or
their successors in office.
8.3. Waiver. If MnDOT falls to enforce any provision of this agreement, that failure does not waive the provision
or MnDOT's right to subsequently enforce it.
8.4. Agreement Complete. This agreement contains all negotiations and agreements between MnDOT and the
Local Government. No other understanding regarding this agreement, whether written or oral, may be used
to bind either party.
MnDOT Contract No. 1029930
8.5. Severability. If any provision of this Agreement or the application thereof is found invalid or unenforceable
to any extent, the remainder of the Agreement, including all material provisions and the application of such
provisions, will not be affected and will be enforceable to the greatest extent permitted by the law.
9. Liability and Claims
9.1. Tort Liability. Each party is responsible for its own acts and omissions and the results thereof to the extent
authorized by law and will not be responsible for the acts and omissions of any others and the results
thereof. The Minnesota Tort Claims Act, Minnesota Statutes Section 3.736, governs MnDOT liability.
9.2. Claims. The Local Government acknowledges that MnDOT is acting only as the Local Government's agent
for acceptance and disbursement of federal funds, and not as a principal or co -principal with respect to the
Project. The Local Government will pay any and all lawful claims arising out of or incidental to the Project
including, without limitation, claims related to contractor selection (including the solicitation, evaluation,
and acceptance or rejection of bids or proposals), acts or omissions in performing the Project work, and any
ultra vires acts. The Local Government will indemnify, defend (to the extent permitted by the Minnesota
Attorney General), and hold MnDOT harmless from any claims or costs arising out of or incidental to the
Project(s), including reasonable attorney fees incurred by MnDOT. The Local Government's indemnification
obligation extends to any actions related to the certification of DBE participation, even if such actions are
recommended by MnDOT.
10. Audits
10.1. Under Minn. Stat. § 16C.05, Subd.5, the Local Government's books, records, documents, and accounting
procedures and practices of the Local Government, or other party relevant to this agreement or transaction,
are subject to examination by MnDOT and/or the State Auditor or Legislative Auditor, as appropriate, for a
minimum of six years from the end of this agreement, receipt and approval of all final reports, or the
required period of time to satisfy all state and program retention requirements, whichever is later. The
Local Government will take timely and appropriate action on all deficiencies identified by an audit.
10.2. All requests for reimbursement are subject to audit, at MnDOT's discretion. The cost principles outlined in 2
CFR 200.400-.475 will be used to determine whether costs are eligible for reimbursement under this
agreement.
10.3. If Local Government expends $750,000 or more in Federal Funds during the Local Government's fiscal year,
the Local Government must have a single audit or program specific audit conducted in accordance with 2
CFR Part 200.
11. Government Data Practices. The Local Government and MnDOT must comply with the Minnesota Government
Data Practices Act, Minn. Stat. Ch. 13. as it applies to all data provided by MnDOT under this agreement, and as it
applies to all data created, collected, received, stored, used, maintained, or disseminated by the Local
Government underthis agreement. The civil remedies of Minn. Stat. §13.08 apply to the release of the data
referred to in this clause by either the Local Government or MnDOT.
12. Workers Compensation. The Local Government certifies that it is in compliance with Minn. Stat. 6176.181, Subd.
2, pertaining to workers' compensation insurance coverage. The Local Governments employees and agents will
not be considered Mn DOT employees. Any claims that may arise under the Minnesota Workers' Compensation
Act on behalf of these employees and any claims made by any third party as a consequence of any act or omission
on the part of these employees are in no way MnDOT's obligation or responsibility.
13. Governing Law, Jurisdiction, and Venue. Minnesota law, without regard to its choice -of -law provisions, governs
this agreement. Venue for all legal proceedings out of this agreement, or its breach, must be in the appropriate
state or federal court with competent jurisdiction in Ramsey County, Minnesota.
14. Termination; Suspension
MnDOT Contract No. 1029930
14.1. Termination by MnDOT. Mn DOT may terminate this agreement with or without cause, upon 30 days
written notice to the Local Government. Upon termination, the Local Government will be entitled to
payment, determined on a pro rata basis, for services satisfactorily performed.
14.2. Termination for Cause. MnDOT may immediately terminate this agreement if MnDOT finds that there has
been a failure to comply with the provisions of this agreement, that reasonable progress has not been made,
that fraudulent or wasteful activity has occurred, that the Local Government has been convicted of a
criminal offense relating to a state agreement, or that the purposes for which the funds were granted have
not been or will not be fulfilled. MnDOT may take action to protect the interests of MnDOT of Minnesota,
including the refusal to disburse additional funds and requiring the return of all or part of the funds already
disbursed.
14.3. Termination for Insufficient Funding. MnDOT may immediately terminate this agreement if:
14.3.1. It does not obtain funding from the Minnesota Legislature; or
14.3.2. If funding cannot be continued at a level sufficient to allow for the payment of the services covered
here. Termination must be by written or fax notice to the Local Government. MnDOT is not
obligated to pay for any services that are provided after notice and effective date of termination.
However, the Local Government will be entitled to payment, determined on a pro rata basis; for
services satisfactorily performed to the extent that funds are available. MnDOT will not be assessed
any penalty if the agreement is terminated because of the decision of the Minnesota Legislature, or
otherfunding source, not to appropriate funds. MnDOT will provide the Local Government notice of
the lack of funding within a reasonable time of MnDOT's receiving that notice.
14.4. Suspension. MnDOT may immediately suspend this agreement in the event of a total or partial government
shutdown due to the failure to have an approved budget by the legal deadline. Work performed by the
Local Government during a period of suspension will be deemed unauthorized and undertaken at risk of
non-payment.
15. Data Disclosure. Under Minn. Stat. § 2700.651 Subd. 3, and other applicable law, the Local Government consents
to disclosure of its social security number, federal employer tax identification number, and/or Minnesota tax
identification number, already provided to MnDOT, to federal and state tax agencies and state personnel involved
in the payment of state obligations. These identification numbers may be used in the enforcement of federal and
state tax laws which could result in action requiring the Local Government to file state tax returns and pay
delinquent state tax liabilities, if any.
16. Fund Use Prohibited. The Local Government will not utilize any funds received pursuant to this Agreement to
compensate, either directly or indirectly, any contractor, corporation, partnership, or business, however
organized, which is disqualified or debarred from entering into or receiving a State contract. This restriction
applies regardless of whether the disqualified or debarred party acts in the capacity of a general contractor, a
subcontractor, or as an equipment or material supplier. This restriction does not prevent the Local Government
from utilizing these funds to pay any party who might be disqualified or debarred after the Local Government's
contract award on this Project.
17. Discrimination Prohibited by Minnesota Statutes §181.59. The Local Government will comply with the provisions
of Minnesota Statutes §181.59 which requires that every contract for or on behalf of the State of Minnesota, or
any county, city, town, township, school, school district or any other district in the state, for materials, supplies or
construction will contain provisions by which Contractor agrees: 1) That, in the hiring of common or skilled labor
for the performance of any work under any contract, or any subcontract, no Contractor, material supplier or
vendor, will, by reason of race, creed or color, discriminate against the person or persons who are citizens of the
United States or resident aliens who are qualified and available to perform the work to which the employment
relates; 2) That no Contractor, material supplier, or vendor, will, in any manner, discriminate against, or
MnDOT Contract No. 1029930
intimidate, or prevent the employment of any person or persons identified in clause 1 of this section, or on being
hired, prevent or conspire to prevent, the person or persons from the performance of work under any contract on
account of race, creed or color; 3) That a violation of this section is a misdemeanor; and 4) That this contract may
be canceled or terminated by the state of Minnesota, or any county, city, town, township, school, school district or
any other person authorized to contracts for employment, and all money due, or to become due under the
contract, may be forfeited for a second or any subsequent violation of the terms or conditions of this Agreement.
18, Appendix II 2 CFR Part 200 Federal Contract Clauses. The Local Government agrees to comply with the following
federal requirements as identified in 2 CFR 200, Uniform Administrative Requirements, Cost Principles and Audit
Requirements for Federal Awards, and agrees to pass through these requirements to its subcontractors and third
party contractors, as applicable. In addition, the Local Government shall have the same meaning as "Contractor" in
the federal requirements listed below.
18.1. Remedies. Contracts for more than the simplified acquisition threshold currently set at $150,000, which is
the inflation adjusted amount determined by the Civilian Agency Acquisition Council and Defense
Acquisition Regulations Council (Councils) as authorized by 41 U.S.C. 1908, must address administrative,
contractual, or legal remedies in instances where contractors violate or breach contract terms, and provide
for such sanctions and penalties as appropriate.
18.2. Termination. All contracts in excess of $10,000 must address termination for cause and for convenience by
the non -Federal entity including the manner by which it will be effected and the basis for settlement.
18.3. Equal Employment Opportunity. Except as otherwise provided under 41 CFR Part 60, all contracts that meet
the definition of "federally assisted construction contract" in 41 CFR Part 60-1.3 must include the equal
opportunity clause provided under 41 CFR 60-1.4(b), in accordance with Executive Order 11246, "Equal
Employment Opportunity" (30 FR 12319, 12935, 3 CFR Part, 1964-1965 Comp., p. 339), as amended by
Executive Order 11375, "Amending Executive Order 11246 Relating to Equal Employment Opportunity," and
implementing regulations at 41 CFR part 60, "Office of Federal Contract Compliance Programs, Equal
Employment Opportunity, Department of Labor."
18.4. Davis -Bacon Act, as amended. (40 U.S.C. 3141-3148) When required by Federal program legislation, all
prime construction contracts in excess of $2,000 awarded by non -Federal entities must include a provision
for compliance with the Davis -Bacon Act (40 U.S.C. 3141-3144, and 3146-3148) as supplemented by
Department of Labor regulations (29 CFR 5, "Labor Standards Provisions Applicable to Contracts Covering
Federally Financed and Assisted Construction"). In accordance with the statute, contractors must be
required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a
wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages
not less than once a week. The non -Federal entity must place a copy of the current prevailing wage
determination issued by the Department of Labor in each solicitation. The decision to award a contract or
subcontract must be conditioned upon the acceptance of the wage determination. The non -Federal entity
must report all suspected or reported violations to the Federal awarding agency. The contracts must also
include a provision for compliance with the Copeland "Anti -Kickback" Act (40 U.S.C. 3145), as supplemented
by Department of Labor regulations (29 CFR 3, "Contractors and Subcontractors on Public Building or Public
Work Financed in Whole or in Part by Loans or Grants from the United States"). The Act provides that each
contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the
construction, completion, or repair of public work, to give up any part of the compensation to which he or
she is otherwise entitled. The non -Federal entity must report all suspected or reported violations to the
Federal awarding agency.
18.5. Contract Work Hours and Safety Standards Act. (40 U.S.C. 3701-3708) Contract Work Hours and Safety
Standards Act (40 U.S.C. 3701-3708). Where applicable, all contracts awarded by the non -Federal entity in
excess of $100,000 that involve the employment of mechanics or laborers must include a provision for
MnDOT Contract No. 1029930
compliance with 40 U.S.C. 3702 and 3704, as supplemented by Department of Labor regulations (29 CFR
Part 5). Under 40 U.S.C. 3702 of the Act, each contractor must be required to compute the wages of every
mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard
work week is permissible provided that the worker is compensated at a rate of not less than one and a half
times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of
40 U.S.C. 3704 are applicable to construction work and provide that no laborer or mechanic must be
required to work in surroundings or under working conditions which are unsanitary, hazardous or
dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily
available on the open market, or contracts for transportation or transmission of intelligence.
18.6. Rights to Inventions Made Under a Contract or Agreement. If the Federal award meets the definition of
"funding agreement" under 37 CFR §401.2 (a) and the recipient or subrecipient wishes to enter into a
contract with a small business firm or nonprofit organization regarding the substitution of parties,
assignment or performance of experimental, developmental, or research work under that "funding
agreement," the recipient or subrecipient must comply with the requirements of 37 CFR Part 401, "Rights to
Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts
and Cooperative Agreements," and any implementing regulations issued by the awarding agency.
18.7. Clean Air Act (42 U.S.C. 7401-7671q.) and the Federal Water Pollution Control Act (33 U.S.C. 1251-1387),
as amended. Contracts and subgrants of amounts in excess of $150,000 must contain a provision that
requires the non -Federal award to agree to comply with all applicable standards, orders or regulations
issued under the Clean Air Act (42 U.S.C. 7401-7671q) and the Federal Water Pollution Control Act as
amended (33 U.S.C. 1251-1387). Violations must be reported to the Federal awarding agency and the
Regional Office of the Environmental Protection Agency (EPA).
18.8. Debarment and Suspension. (Executive Orders 12549 and 12689) A contract award (see 2 CFR 180.220)
must not be made to parties listed on the government wide exclusions in the System for Award
Management (SAM), in accordance with the OMB guidelines at 2 CFR 180 that implement Executive Orders
12549 (3 CFR part 1986 Comp., p. 189) and 12689 (3 CFR part 1989 Comp., p. 235), "Debarment and
Suspension." SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by
agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive
Order 12549.
18.9. Byrd Anti -Lobbying Amendment. (31 U.S.C. 1352) Contractors that apply or bid for an award exceeding
$100,000 must file the required certification. Each tier certifies to the tier above that it will not and has not
used Federal appropriated funds to pay any person or organization for influencing or attempting to
influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or
an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other
award covered by 31 U.S.C. 1352. Each tier must also disclose any lobbying with non -Federal funds that
takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier
up to the non -Federal award.
18.10. Procurement of Recovered Materials. See 2 CFR 200.322 Procurement of Recovered Materials.
18.11. Drug -Free Workplace. In accordance with 2 C.F.R. § 32.400, the Local Government will comply with the
Drug -Free Workplace requirements under subpart B of 49 C.F.R. Part 32.
18.12. Nondiscrimination. The Local Government hereby agrees that, as a condition of receiving any Federal
financial assistance under this agreement, it will comply with Title VI of the Civil Rights Act of 1964 (78 Stat.
252, 42 U.S.C. § 2000d), related nondiscrimination statutes (i.e., 23 U.S.C. § 324, Section 504 of the
Rehabilitation Act of 1973 as amended, and the Age Discrimination Act of 1975), and applicable regulatory
requirements to the end that no person in the United States shall, on the grounds of race, color, national
origin, sex, handicap, or age be excluded from participation in, be denied the benefits of, or otherwise be
10
MnDOT Contract No. 1029930
subjected to discrimination under any program or activity for which the Local Government receives Federal
financial assistance. The specific requirements of the Department of Transportation Civil Rights assurances
(required by 49 C.F.R. §§ 21.7 and 27.9) are incorporated in the agreement.
18.13. Federal Funding Accountability and Transparency Act (FFATA).
18.13.1. This Agreement requires the Local Government to provide supplies and/or services that are funded
in whole or in part by federal funds that are subject to FFATA. The Local Government is responsible
for ensuring that all applicable requirements, including but not limited to those set forth herein, of
FFATA are met and that the Local Government provides information to the MnDOT as required.
Reporting of Total Compensation of the Local Government's Executives.
b. The Local Government shall report the names and total compensation of each of its five most
highly compensated executives for the Local Government's preceding completed fiscal year, if
in the Local Government's preceding fiscal year it received:
i. 80 percent or more of the Local Government's annual gross revenues from Federal
procurement contracts and Federal financial assistance subject to the Transparency Act,
as defined at 2 CFR 170.320 (and subawards); and
ii. $25,000,000 or more in annual gross revenues from Federal procurement contracts (and
subcontracts), and Federal financial assistance subject to the Transparency Act (and
subawards); and
iii. The public does not have access to information about the compensation of the
executives through periodic reports filed under section 13(a) or 15(d) of the securities
Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue
Code of 1986. (To determine if the public has access to the compensation information,
see the U.S. Security and Exchange Commission total compensation filings at
http:lZwww.sec.gov/answers/execomp.htm.).
Executive means officers, managing partners, or any other employees in management
positions.
C. Total compensation means the cash and noncash dollar value earned by the executive during
the Local Government's preceding fiscal year and includes the following (for more information
see 17 CFR 229.402(c)(2)):
i, Salary and bonus.
ii. Awards of stock, stock options, and stock appreciation rights. Use the dollar amount
recognized for financial statement reporting purposes with respect to the fiscal year in
accordance with the Statement of Financial Accounting Standards No. 123 (Revised
2004) (FAS 123R), Shared Based Payments.
iii. Earnings for services under non -equity incentive plans. This does not include group life,
health, hospitalization or medical reimbursement plans that do not discriminate in favor
of executives, and are available generally to all salaried employees.
iv. Change in pension value. This is the change in present value of defined benefit and
actuarial pension plans.
V. Above -market earnings on deferred compensation which is not tax qualified.
11
MnDOT Contract No. 1029930
18.13.2. Other compensation, if the aggregate value of all such other compensation (e.g. severance,
termination payments, value of life insurance paid on behalf of the employee, perquisites or
property) for the executive exceeds $10,000.
18.13.3. The Local Government must report executive total compensation described above to the MnDOT
by the end of the month during which this agreement is awarded.
18.13.4. The Local Government will obtain a Data Universal Numbering System (DUNS) number and
maintain its DUNS number for the term of this agreement. This number shall be provided to
MnDOT on the plan review checklist submitted with the plans for each project. More information
about obtaining a DUNS Number can be found at: htto://fedgov.dnb com/webforml
18.13.5. The Local Government's failure to comply with the above requirements is a material breach of this
agreement for which the MnDOT may terminate this agreementfor cause. The MnDOT will not be
obligated to pay any outstanding invoice received from the Local Government unless and until the
Local Government is in full compliance with the above requirements.
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12
City of Chanhassen
Local Government certifies that the appropriate
person(s) have executed the contract on behalf of the
Local Government as required by applicable articles,
bylaws, resolutions or ordinances
32
C,
Title
Date
Updated December 1, 2017 13
MnDOT Contract No. 1029930
DEPARTMENT OF TRANSPORTATION
COMMISSIONER OF ADMINISTRATION
By:
Date:
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE: January 8, 2018 RESOLUTION NO: 2018 -
MOTION BY:
SECONDED BY:
RESOLUTION APPROVING THE CITY OF CHANHASSEN ENTER INTO
AN AGREEMENT (NO. 1029930) WITH MnDOT FOR FEDERAL FUND
CONTRACTING PROCESS
PW390
WHEREAS, MnDOT is requesting the City enter into an agreement to allow MnDOT to
act as the City's agent in accepting federal aid funds; and
WHEREAS, this agreement is intended to cover all federally funded projects that the
City may be awarded; and
WHEREAS, this agreement supersedes the agreement executed in 2003.
NOW THEREFORE, BE IT RESOLVED that pursuant to Minnesota Stat. Sec.
161.36, the Commissioner of Transportation be appointed as Agent of the City of Chanhassen to
accept as its agent, federal aid funds which may be made available for eligible transportation
related projects.
BE IT FURTHER RESOLVED that the City Council of the City of Chanhassen,
Minnesota, is hereby authorized and directed for and on behalf of the City of Chanhassen to
execute and enter into an agreement with the Commissioner of Transportation prescribing the
terms and conditions of said federal aid participation as set forth and contained in "Minnesota
Department of Transportation Agency Agreement No. 1029930" a copy of which said agreement
was before the City Council and which is made a part hereof by reference.
Passed and adopted by the Chanhassen City Council this 8t' day of January, 2018,
ATTEST:
Todd Gerhardt, City Manager
Denny Laufenburger, Mayor
YES NO ABSENT