Planning and Service Coordination Committee Special Meeting

Transcription

1 Planning and Service Coordination Committee Special Meeting Wednesday, August 31, :00 PM Regional Transit Authority of Southeast Michigan 1001 Woodward Ave., Suite 1400 Detroit, MI AGENDA 1. Call to order 2. Approval of Agenda 3. Public comment 4. RefleX Service Sub-Agreements Action a. DDOT b. SMART 5. New Business 6. Adjourn The Committee may, at its discretion, revise this agenda or take up any other issues as need and time allow. Request for reasonable accommodations at RTA meetings require advance reservations. Individuals with disabilities requiring assistance should contact RTA Information Services at least 48 hours in advance of the meeting. Contact Virginia Lickliter at Documents and information are available in a variety of formats. Contact the RTA Information Center at info@rtamichigan.org or call to discuss your format need. Further information can be found at or by calling Virginia Lickliter at Regional Transit Authority of Southeast Michigan 1001 Woodward Avenue, suite 1400, Detroit, MI

2 Pass Through Agreement Between Subrecipient: City of Detroit Department of Transportation Entity Identifier (DUNS): Pass Through Agency: Regional Transit Authority of Southeast Michigan Award Period: September 3, 2016 to November 30, 2016 State Agency and type of funds being passed through MDOT Comprehensive Transportation Fund Project Number Total Funds CTF Funds Local Match Project Authorization Date: July 18, 2016 Project Authorization Number: P4/R1 Pass Through Agency Information Regional Transit Authority of Southeast Michigan (RTA) Entity Identifier (Duns): RTA Project: Woodward Express Bus Service $ 371,000 $ 371,000 $ The funds herein provided under this Agreement shall be utilized for Express Bus Service on Woodward Avenue, hereinafter referred to as "Reflex." The City of Detroit Department of Transportation ( DDOT ) will operate Reflex along Woodward Avenue, designated as Route 498, between Somerset Mall and Downtown Detroit, serving 14 northbound stops and 14 southbound stops, in accordance with the additional service details set forth in Attachment A, subject to change at DDOT s sole discretion. DDOT will provide the service in accordance with the current master agreement between the Federal Transit Administration and the RTA ( FTA Master Agreement ) and the current master agreement between the Michigan Department of Transportation and the RTA ("MDOT Master Agreement ). DDOT represents that DDOT s operation of Reflex is covered under the City of Detroit s self insurance program as set forth in Chapter 18, Article VIII of the Detroit City Code, in accordance with the FTA Master Agreement. This Agreement covers service beginning September 3, 2016 through November 30, 2016 ( Term of Service ). The RTA agrees to pay DDOT a monthly flat rate to provide Reflex services during this time period. DDOT agrees to report to the RTA within 10 days following the end of every month the actual costs to provide the Reflex service, based on a unit cost of $167 per hour ( Cost Per Revenue Hour ). DDOT agrees that the costs of providing Reflex services during the Term of Service will not be in excess of the funds provided in this agreement. If DDOT s actual costs in any month are reported as less than the flat rate for that month, the RTA will work with DDOT to reinvest those funds in in Reflex service under a subsequent longer term agreement. The Parties acknowledge and agree that RTA has no control over, and is not responsible for, the operation, maintenance, or management of Reflex services, and that DDOT is solely responsible for the operation, maintenance and management of Reflex services, including but not limited to, purchasing and maintaining vehicles, establishing routes and route schedules, and maintaining adequate security, as well as employment matters, including but not limited to, conducting background checks and hiring personnel, training employees, supervising, disciplining and terminating employees. DDOT acknowledges and agrees that the RTA shall not be responsible for the acts of DDOT, or of DDOT s employees, agents, and servants, with respect to the Reflex services provided by DDOT, except as set forth in the FTA Master Agreement or the MDOT Master Agreement. This Agreement may be executed in any number of counterparts, each of which is an original, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. REGIONAL TRANSIT AUTHORITY OF SOUTHEAST MICHIGAN DETROIT DEPARTMENT OF TRANSPORTATION BY BY (Signature) (Signature) TITLE TITLE DATE DATE

3 ATTACHMENT A: REFLEX SERVICE DETAILS (WOODWARD AVENUE) DDOT will operate the Reflex service on Woodward Avenue, designated as Route 498, between Somerset Mall and Downtown Detroit, serving 14 northbound stops and 14 southbound stops. DDOT will maintain the levels of Reflex service described below: Weekday Northbound buses departing Downtown Detroit: o Every minutes from 5:04 AM to 10:14 PM (inclusive of the times shown), o Then roughly every 60 minutes from 10:14 PM to 12:20 AM. Weekday Southbound buses departing Somerset Mall: o Every minutes from 5:28 AM to 9:13 PM (inclusive of the times shown), o Then roughly every 60 minutes from 9:13 PM to 12:19 PM. Saturday Northbound buses departing Downtown Detroit: o Every minutes from 5:59 AM to 8:44 PM (inclusive of the times shown), o Then roughly every 60 minutes from 8:44 PM to 12:54 AM. Saturday Southbound buses departing Somerset Mall: o Every minutes from 7:09 AM to 9:50 PM (inclusive of the times shown), o Then roughly every 60 minutes from 9:50 PM to 12:55 AM. Sunday & Holiday Northbound buses departing Downtown Detroit: o Every 60 minutes from 6:55 AM to 8:55 AM (inclusive of the times shown), o Then every minutes from 8:55 AM to 6:05 pm (inclusive of the times shown), o Then roughly every 60 minutes from 6:05 PM to 9:15 PM. Sunday & Holiday Southbound buses departing Somerset Mall: o Roughly every 60 minutes from 7:55 AM to 10:55 AM (inclusive of the times shown), o Then every 45 minutes from 10:55 AM to 7:10 PM (inclusive of the times shown), o Then roughly every 60 minutes from 7:10 PM to 10:25 PM. Operational Details:

4 DDOT will install all required bus stop signage, shelter decals, and information displays at designated stop locations along Woodward Avenue and Gratiot Avenue within the City of Detroit. DDOT will keep all bus stop signage, shelter decals, and information displays up-todate and in usable condition along Woodward Avenue and Gratiot Avenue within the City of Detroit. DDOT will use funds identified in the pass through Agreement to replace any components that are missing, destroyed, or seriously damaged. DDOT will assign five (5) buses, of which up to three (3) will be used in regularservice and the remainder will be available in reserve.. The five (5) buses will be wrapped and branded specifically for the Reflex service. DDOT will keep the buses assigned to the Reflex service in good working condition and free of visible damage. DDOT will ensure that enough transit equipment operators are assigned to the Reflex service to maintain agreed-upon service levels. All service levels and other operational details of the Reflex service are subject to change at DDOT s sole discretion.

5 Pass Through Agreement Between Subrecipient: Suburban Mobility Authority for Regional Transportation Entity Identifier (DUNS): Pass Through Agency: Regional Transit Authority of Southeast Michigan Award Period: September 5, 2016 to November 30, 2016 Funding Source Total FundsCTF Funds Local Match MDOT Comprehensive Transportation Fund Project Number $ 378,249 $ 378,249 Operating Reimbursement MDOT Comprehensive Transportation Fund Local Bus Operating (Fiscal Year 2017) Operating Reimbursement CMAQ Grant: Reflex Bus Service (Grant Number M ) PreAward Auhority -Other Local Funds Match Identified Operating Offset - Estimated Farebox Revenue SUBTOTAL - Operating Reimbursement and Farebox Project Authorization Date: July 18, 2016 Project Authorization Number: P4/R1 Pass Through Agency Information Regional Transit Authority of Southeast Michigan (RTA) Entity Identifier (DUNS): RTA Project: Gratiot Bus Service $ 186,792 $ 186,792 $ 138,240 $ 138,240 $ 703,281 $ 565,041 $ 138,240 MDOT Comprehensive Transportation Fund Project Number $ 250,000 $ 250,000 Initial Investment Work Reimbursement TOTAL - Operating and Capital $ 953,281 $ 815,041 $ 138,240 The funds identified above and provided by the Regional Transit Authority for Southeast Michigan ( RTA ) as set forth in this Pass Through Agreement shall be utilized for bus service on Gratiot Avenue ("Reflex Service ). Under the Reflex Service the Suburban Mobility Authority for Regional Transportation ( SMART ) will operate the program service on Gratiot Avenue, designated as Route 598, between Mt. Clemens and Downtown Detroit, serving 13 northbound stops and 13 southbound stops, with one (1) additional northbound and southbound stop added on weekdays at the North River Park and Ride lot near Mt. Clemens, and will also operate the program service designated as Route 599, a weekday-only, morning and evening peak-period service beginning and ending at Cass Avenue and Putnam Street in the City of Detroit, and operating generally on Warren Avenue, Canfield Street, and Cass Avenue, connecting to Gratiot Avenue via Warren Avenue. This service will have 13 northbound and 13 southbound stops, sharing 10 northbound and southbound stops on Gratiot Avenue, north of Warren Avenue, with the Route 598. SMART will also operate complementary Americans with Disabilities Act ("ADA") service along the two Routes 598 and 599 consistent with 49 C.F.R. Section (e). See Attachment A for additional service details. SMART will operate the Reflex Service in accordance with the Annual FTA Master Agreement and MDOT Master Agreement. SMART represents that SMART s operation of the Reflex Service is covered under the SMART self-insurance program in accordance with the FTA Master Agreement. This Pass Through Agreement covers service beginning September 5, 2016 through November 30, 2016, and SMART s obligation to operate the Reflex Service terminates on November 30, 2016 unless extended in writing by mutual agreement of the RTA and SMART. { }

6 SMART RTA Pass Through Agreement Gratiot Reflex Bus Service Page Two The RTA will pay SMART, for its initial investment, a one-time sum of up to $250,000 ( Initial Investment ) for providing what is identified as the Initial Investment Work set forth in Attachment A, within thirty days of the receipt of the invoice for the completed work. In addition, RTA shall pay SMART the total amount of $565,041 in three monthly installments of $188,347 each paid on, or before, October 10, 2016, November 10, 2016, and December 10, 2016 to fund the operation of the Reflex Service during the term of this Pass Through Agreement. SMART shall receive all fare box revenue, at SMART s customary fares, generated by the operation of the Reflex Service ( Total Fare Box Revenue ). SMART agrees to report within 10 days of the end of September 2016, October 2016, and November 2016 its actual costs to provide the Reflex Service using a unit cost of $153 per hour for Route 598 and Route 599 and a unit cost of $71 per hour for complementary ADA Paratransit (the collective amounts for all three months shall be referred to as the Total Actual Costs ). By December 10, 2016, SMART shall report to RTA the Total Actual Costs and the Total Fare Box Revenue received. If the Total Actual Costs exceed the total amount of the monthly installments plus the Total Fare Box Revenue, the RTA shall pay SMART the amount of any shortfall by December 24, In the event there is a shortfall, RTA and SMART may re-evaluate the level and/or length of Reflex Service under a subsequent longer term agreement between the parties. If the Total Actual Costs are lower than the total of the monthly installments plus the Total Fare Box Revenue, the RTA will negotiate with SMART to either create a reserve fund to address potential quarterly shortfalls, or to reinvest those funds in Reflex services under a subsequent longer term agreement with the RTA. The Parties acknowledge and agree that RTA has no control over, and is not responsible for, the operation and maintenance of the Reflex Service, and that SMART is solely responsible for the operation and maintenance of the Reflex Service, including, but not limited to, purchasing and maintaining vehicles, maintaining adequate security, as well as employment matters, including but not limited to, conducting background checks and hiring personnel, training employees, supervising, disciplining and terminating employees. SMART acknowledges and agrees that the RTA shall not be responsible for the acts of SMART, or of SMART s employees, agents, and servants, with respect to the Reflex Service provided by SMART, except as set forth in the FTA Master Agreement or the MDOT Master Agreement. In the event that any portion of this Pass Through Agreement is determined by a court or arbitrator to be deemed in violation of state or federal law or a prior, binding contractual agreement, either RTA or SMART shall be entitled to immediately terminate this Pass Through Agreement by sending notice of such termination to the other party, and, in such circumstance, the parties' respective obligations under this Pass Through Agreement going forward shall immediately cease as of the date of the sending of the notice of termination. To the best of its knowledge, SMART represents there are no pending or threatened claims against SMART that its entering into the Pass Through Agreement would violate a state or federal law, or any contract to which SMART is a party. Further, to the best of its knowledge, SMART is unaware of any contract to which SMART is a party that would preclude it from entering into the Pass Through Agreement, including collective bargaining agreements and { }

7 13(c) agreements (SMART has agreed to prove its CBAs and 13(c) agreements for review by counsel if desired by RTA). In the event of such termination, each party shall be responsible for fulfilling all its obligations to the other party incurred prior to the date of termination even if the costs of such obligations are actually paid after the date of termination. RTA s obligations in the event that the Agreement is terminated shall be limited to all amounts incurred by SMART as set forth in this Pass Through Agreement prior to the termination date plus an amount equal to the net cost to SMART of driver compensation committed to by SMART as of the termination date after reasonable efforts by SMART to mitigate these costs. Further, RTA and SMART agree to notify the other whenever litigation is threatened or commenced, and whenever a challenge is threatened or commenced by a party to a collective bargaining agreement or 13(c) Agreement with SMART. Further, if requested by one party, the other party agrees to meet to discuss possible amendments to the Agreement so that the Agreement complies with state or federal law, or is no longer in violation of an agreement, but this obligation does not limit, restrict or delay a party in any way from exercising its termination rights under this Pass Through Agreement. In addition, either party shall have the right to terminate this Pass Through Agreement if the funding methodology set forth in RTA Resolution 15, or the amount retained by the RTA in Local Bus Operating funding to fund new or expanded regional service in RTA Resolution 16 are modified in any respect. The RTA and SMART agree to the terms and conditions set forth in the letter dated August 30, 2016 from the U.S. Department of Labor to the extent it is applicable to this Pass Through Agreement (attached hereto).the Regional Transit Authority Suburban Mobility Authority of Southeast Michigan for Regional Transportation By By (Signature) (Signature) Title Title Date, 2016 Date, 2016 { }

8 ATTACHMENT A: REFLEX SERVICE DETAILS (GRATIOT AVENUE) SMART will operate the program service on Gratiot Avenue, designated as Route 598, between Mt. Clemens and Downtown Detroit on a seven (7) day basis, serving 13 northbound stops and 13 southbound stops, with one (1) additional northbound and southbound stop added on weekdays at the North River Park and Ride lot near Mt. Clemens. SMART will also operate the program service designated as Route 599, a weekdayonly, morning and evening peak-period service beginning and ending at Cass Avenue and Putnam Street in the City of Detroit, and operating generally on Warren Avenue, Canfield Street, and Cass Avenue, connecting to Gratiot Avenue via Warren Avenue. This service will have 13 northbound and 13 southbound stops, sharing 10 northbound and southbound stops on Gratiot Avenue, north of Warren Avenue, with the Route 598. SMART will maintain the levels of service described below for Route 598: Weekday Northbound buses departing Downtown Detroit: o every 45 minutes from 5:20 AM to 7:45 PM, and, o every 55 minutes from 7:45 PM to 8:40 PM, and, o every 45 minutes from 8:40 PM to 10:10 PM, and, o every 60 minutes from 10:10 PM to 12:10 AM. Weekday Southbound buses departing North River Park and Ride: o every 45 minutes from 5:00 AM to 6:40 PM, and, o every 55 minutes from 6:40 PM to 7:35 PM, and, o every 45 minutes from 7:35 PM to 8:20 PM, and, o every 55 minutes from 8:20 PM to 9:15 PM, and, o every 60 minutes from 9:15 PM to 12:15 AM. Saturday Northbound buses departing Downtown Detroit: o every 45 minutes from 6:15 AM to 6:15 PM, and, o every 55 minutes from 6:15 PM to 7:10 PM, and, o every 60 minutes from 7:10 PM to 1:10 AM. Saturday Southbound buses departing Downtown Mt. Clemens: o every 45 minutes from 6:45 AM to 8:15 PM, and, o roughly (within five minutes) every 60 minutes from 8:15 PM to 12:20 AM. Sunday Northbound buses departing Downtown Detroit: o every 60 minutes from 7:00 AM to 9:00 AM, and, o every 45 minutes from 9:00 AM to 6:10 PM, and, { } 1

9 o every 60 minutes from 6:10 PM to 9:10 PM. Sunday Southbound buses departing Downtown Mt. Clemens: o every 60 minutes from 7:00 AM to 11:00 AM, and, o every 45 minutes from 11:00 AM to 7:15 PM, and o roughly (within five minutes) every 60 minutes from 7:15 PM to 9:15 PM. SMART will maintain the levels of service described below for Route 599: Weekday Northbound buses departing Cass Avenue and Putnam Street at roughly 7:00 AM, 3:05 PM and 5:20 PM. Weekday Southbound buses departing North River Park and Ride at roughly 5:48 AM, 7:59 AM, and 4:15 PM. Operational Details: 1. SMART will perform, at RTA s expense, Initial Investment Work which includes: (a) installing all bus stop signs provided to it by the RTA along the Reflex Routes (both Woodward and Gratiot), at each stop location not within the City of Detroit; (b) wrapping and branding the four regular-service buses providing the service as referenced in paragraph 3 below; and (c) in addition to the shelters already installed by SMART and being reimbursed by the RTA, SMART agrees to install any additional bus stop shelters which costs shall be reimbursed by RTA. At this time, as part of the Initial Investment Work, SMART has installed a concrete walkway on Woodward at NB Bowers and shelters at the following locations: (a) Gratiot 598/599 (1) SB 8 Mile, (2) SB 7 Mile, (3) NB Russell, (4) NB Warren, (5) NB 7 Mile, and (6) NB 15 Mile (includes extending concrete pad); and (b) Woodward 498 (1) SB Trowbridge, (2) NB Hendrie (new pad), and (3) SB Bowers (new pad). 2. SMART will keep all Reflex bus stop signage, bus shelters, shelter decals, and information displays, on the Reflex Routes described in Paragraph 1 above, up-to-date and in usable condition, and to promptly replace any components that are missing, destroyed, or seriously damaged. 3. SMART will allocate four (4) regular-service buses, plus one (1) reserve bus specifically for the program service. 4. SMART agrees to keep the buses assigned to this program service in good working condition and reasonably free of visible damage. 5. SMART will operate complementary Americans with Disabilities Act ("ADA") service along the two Routes 598 and 599 consistent with 49 C.F.R. Section { } 2

10 37.131(e), and will track hours of service for each trip attributable only to the Gratiot Reflex Service. { } 3

11 U.S. Department of Labor Office of Labor-Management Standards Washington, D.C August 30, 2016 Marisol Simon, Regional Administrator Federal Transit Administration, Region V 200 West Adams St., Suite 2410 Chicago, IL Re: FTA Application Regional Transit Authority of Southeast Michigan On Behalf of: Suburban Mobility Authority for Regional Transportation and the Detroit Department Of Transportation MI Dear Regional Administrator: This is in reply to your request for certification of employee protective provisions for the abovereferenced grant application under 49 U.S.C Revisions and/or amendments to this grant may be subject to additional certification in accordance with 29 C.F.R SMART In connection with a previous grant application, the Suburban Mobility Authority for Regional Transportation (SMART) and the International Brotherhood of Teamsters (IBT), Local 247, executed an agreement dated May 16, 1990, which, as supplemented by Attachment A to the Department's July 13, 1990 certification for SMART, provides to the employees represented by the union protections satisfying the requirements of 49 U.S.C., Section 5333(b) for any operating or capital assistance project situations. Also, SMART and the United Automobile, Aerospace and Agricultural Implement Workers of America (UAW), Local 417, executed an agreement, dated May 30, 1990, which, as supplemented by Attachment A to the Department's July 13, 1990 certification for SMART,

12 - 2 - provides to the employees represented by the union protections satisfying the requirements of 49 U.S.C., Section 5333(b) for any operating or capital assistance project situations. Furthermore, SMART and the United Steelworkers of America (USWA), Local 2511, executed an agreement dated July 18, 1991, which provides to the employees represented by the union protections satisfying the requirements of 49 U.S.C., Section 5333(b) for any operating or capital assistance project situations. The above parties have agreed that the terms and conditions of the referenced agreements/arrangements, with supplements as cited, shall be made applicable to the instant project, respectively. In addition, the January 3, 2011 Unified Protective Arrangement (UPA) provides to transportation related employees in the service area of the project protections satisfying the requirements of 49 U.S.C., Section 5333(b). The employees in the service area of the project, represented by the International Brotherhood of Electrical Workers, the Detroit DOT Foreman's Association, and the Supervisors Chapter of the Detroit DOT Foreman's Association, American Federation of State, County and Municipal Employees (AFSCME), shall be considered third party beneficiaries in accordance with condition (4) below. SMART, by executing the contract of assistance accepts the terms and conditions of the UPA for application to any operating or capital assistance project situations. Furthermore, in connection with previous grant applications, SMART and the Amalgamated Transit Union (ATU), Locals 26 and 1564, negotiated protective arrangements for operating and capital assistance grants to SMART. The ATU represents both line-haul operators and clerical employees of SMART (LU-1564), and employees of the Detroit Department of Transportation (LU-26), who are in the service area of the project. In its certification of March 29, 1993, the Department set forth terms and conditions for both operating and capital protections to be applicable to SMART grants for ATU represented employees. These protective arrangements provide to the employees represented by the union protections satisfying the requirements of 49 U.S.C., Section 5333(b). The Department has determined that the Operating Assistance Arrangement dated March 29, 1993, shall be made applicable to any operating assistance portions 1 of the instant project for employees represented by the ATU, with the exception of the reference to ATE employees in Paragraph (27). The addendum pursuant to paragraph (4) of the March 29, 1993 Operating Assistance Arrangement shall be paragraph (18) of the March 29, 1993 Capital Assistance Arrangement. Also, the terms and conditions of the March 29, 1993 Capital Assistance Arrangement, as supplemented by an October 23, 1989 side letter agreed to by the parties pertaining to line-haul service, shall be applied to any capital portions of the instant project. 1 For purposes of 49 USC 5333(b), the Department makes operating arrangements applicable to capitalized line items which FTA formerly funded as operating assistance, including and not limited to other program administration funds which are operating in nature.

13 - 3 - In addition, in connection with a previous grant application, SMART and the ATU Local 1564 executed supplemental protective arrangements to address the impacts of P.A. 54 of 2011, M.C.L (b) on the continuation of collective bargaining under 49 U.S.C. 5333(b). The supplemental protective arrangements, dated December 12 and 15, 2011, satisfies the requirements of 49 U.S.C. 5333(b) and shall supplement the March 29, 1993 Operating and Capital Arrangements. The Department previously determined that the December 12 and 15, 2011 agreement shall also supplement any other agreement and/or arrangement cited above where the union has a collective bargaining relationship with SMART. Furthermore, SMART, by letter dated August 8, 2013, confirms that enactment of the Financial Stability and Choice Act, P.A. 436, does not diminish its duty to comply 49 U.S.C. Section 5333(b) and has assured the Department that it has not and does not intend to take any unilateral action with regard to the collective bargaining or Section 13(c) agreements. Additionally, SMART has stated that it has balanced its budget for over a decade and has adopted a balance budget for fiscal year Therefore, with regard to P.A. 436, the Department has determined that, in this instance, SMART continues to satisfy the requirements of 49 U.S.C. Section 5333(b). The Department reminds the parties that Federal Transit law requires that the protective arrangements, including the Department s certification of such, be incorporated into the terms of assistance to the grantee, and it is expected that any assurances made by the grantee in the terms of assistance remain in effect throughout the life of the project. Failure to maintain such assurances may subject the grantee to legal action. In addition, the Department in a letter to SMART dated September 11, 2013, requested that SMART clarify whether Section 5(1) was their preferred alternative to invocation of Section 9 of P.A. 152, M.C.L By letter dated September 20, 2013, SMART clarified that P.A. 152, M.C.L , does not apply to SMART because it has preexisting 49 U.S.C. 5333(b) arrangements with each of its bargaining units, including ATU, and that such arrangements are considered other contract[s] inconsistent with Sections 3 and 4, as described in Section 5(1) of P.A. 152, M.C.L (1). Based on such clarification, as set forth in SMART s letter of September 20, 2013, the Department concludes that SMART continues to satisfy the requirements of 49 U.S.C. 5333(b) with regard to P.A 152. Also, with regard to P.A. 63, as amended by P.A. 107, SMART, in its letter of August 24, 2012, stated that it is not eligible for or entitled to EVIP funding and therefore the provisions of the these laws will have no impact on SMART s compliance with the requirements of 49 U.S.C. SMART, therefore, satisfies the requirements of Section 5333(b) 49 U.S.C. with regard to P.A. 63 and 107. Furthermore, by letter dated May 1, 1991, SMART indicated that if the project provides funding for the Lake Erie Transportation Commission it is likewise bound to the same protective arrangements as SMART.

14 - 4 - Detroit Department of Transportation The Detroit Department of Transportation (DDOT); the Amalgamated Transit Union, Locals 26 and 1564 (ATU); the American Federation of State, County, and Municipal Employees, Michigan Council #25, Locals 214 and 312 (AFSCME); the International Brotherhood of Teamsters, Local 214 (IBT); the DOT Foreman's Association (DDOTFA); and the Supervisors Chapter of the DOT Foreman s Association (SC-DDOTFA) have each become a party to, or accepted the terms and conditions of, the agreement executed on July 23, 1975, by the American Public Transit Association and transit employee labor organizations (The National/ Model 13 (c)agreement). DDOT and the ATU have agreed, additionally, that paragraph (18) of their April 3, 1991 agreement, which was executed in connection with an earlier grant application, shall be included as the addendum to the July 23, 1975 agreement pursuant to paragraph (4) thereof. The terms and conditions of the July 23, 1975 agreement provide protections to employees represented by the unions which satisfy the requirements of 49 U.S.C. 5333(b) for any operating assistance project situations. 2 The Detroit Department of Transportation (DDOT); the Amalgamated Transit Union, Locals 26 and 1564 (ATU); the American Federation of State, County, and Municipal Employees, Michigan Council #25, Locals 214 and 312 (AFSCME); the International Brotherhood of Teamsters, Local 214 (IBT); the DOT Foreman's Association (DDOTFA); the Supervisors Chapter of the DOT Foreman s Association (SC-DDOTFA), have agreed that the terms and conditions of their agreements and/or arrangements dated April 3, 1991 (to which Local 1564 became party pursuant to (26)); February 14, 1991; January 11, 1991 (AFSCME Local 214); October 24, 1990 (AFSMCE Local 312), and; December 7, 1990 (for both the DDOTFA and SC-DDOTFA), shall be made applicable to the instant project, respectively. These agreements, developed in connection with previous grant applications, provide to employees represented by the union protections satisfying the requirements of 49 U.S.C., Section 5333(b) for any capital assistance project situations. In addition, the January 3, 2011 Unified Protective Arrangement (UPA) provides to other transportation related employees in the service area of the project protections satisfying the requirements of the Federal transit law, 49 U.S.C. 5333(b) for capital and operating assistance. The employees in the service area of the DDOT, represented by the Sheet Metal Workers, Local 80 (SMW), and the International Union of Operating Engineers, Local 547 (IUOE), the United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) and the United Steelworkers of America (USWA) and the International Brotherhood of Electrical Workers, Local 58 (IBEW) shall be considered third party beneficiaries in accordance with condition (4) below. The DDOT by executing the Department of Transportation s (DOT) contract of assistance accepts the terms and conditions of the UPA. 2 For purposes of 49 USC 5333(b), the Department makes operating arrangements applicable to capitalized line items which FTA formerly funded as operating assistance, including and not limited to other program administration funds which are operating in nature

15 - 5 - P.A. 54 Furthermore, in connection with previous grant applications, the City of Detroit (City) and the Amalgamated Transit Union Local 26 executed supplemental protective arrangements to address issues concerning the continuation of collective bargaining in light of the enactment of P.A. 54 of 2011, M.C.L (b) (P.A. 54). The supplemental agreement, executed on September 20 and 21, 2011 provides protections satisfying the requirements of 49 U.S.C. 5333(b) and shall supplement the above agreements and/arrangements where a collective bargaining relationship exists with the grantee. P.A. 152 With regard to P.A. 152, M.C.L (2011), et. seq., DDOT, in its letter of September 5, 2012, expressed an intent to engage in collective bargaining irrespective of PA 152 and to invoke section 9 of that Act should the parties agreement not comply with the PA 152 requirements. DDOT s commitment to invoke Section 9 enables DDOT to continue to meet its obligations under Federal transit law, 49 U.S.C. 5333(b) in the instant project situation. The Department, along with the parties, will continue to monitor the situation carefully, in the event that the matter should arise in future certification reviews. P.A. 63, as amended by P.A. 107 Also, with regard to Sections of P.A. 63, which were amended by Section 402 of P.A. 107, the DDOT in its letter of September 5, 2012, provided that they commit, with regard to their employees subject to Section 5333(b) protections, to qualify for funding pursuant to Categories 1 and 2, and not Category 3. The Department has determined that DDOT continues to meet its obligations under Federal transit law, 49 U.S.C. 5333(b) with regard to P.As 63 and 107. P.A. 436 Furthermore, with regard to Local Financial Stability and Choice Act, P.A. 436, a successor statute to the Local Government and School District Fiscal Accountability Act P.A. 4, the City of Detroit Department of Transportation (DDOT), by letter dated November 30, 2015, assured the Department that the Local Government and School District Fiscal Accountability Act ( Accountability Act ), M.C.L , et seq., does not diminish its obligation to bargain with the ATU and intends to continue to do so, on all lawful subjects of bargaining. Additionally, the City has assured the Department that nothing about its present financial condition would trigger any mechanisms under the Accountability Act leading to the impairment of the rights protected under the arrangements noted above, and the City does not anticipate the advent of conditions leading to such circumstances. The DDOT s assurance also will apply to other unions where a collective bargaining relationship exists with DDOT. P.A. 181 and 183 With respect to P.A. 181, the Department has determined that, at this time, the ability to bargain continues to exist, and any limits on benefits by P.A. 181 do not impede collective bargaining in

16 - 6 - a manner that affects DDOT s ability to comply with 49 U.S.C. 5333(b) for its represented employees. The Department will continue to monitor the situation for future certifications. With regard to P.A. 183, the Department previously determined that the following Joint Stipulations executed by DDOT on October 10, 2014 and the ATU on October 13, 2014; by DDOT on December 2 and AFSCME Locals 312 and 214 on December 3, 2014; DDOT and the DDOT Forman s Association Supervisors Unit Joint Stipulation dated December 9, 2014; DDOT and the DDOT Forman s Association Nonsupervisory Chapter dated December 9, 2014; DDOT and IUOE dated December 10, 2014, and; DDOT and IBT dated December 12, 2012 does not present, at this time, there an impediment to the continuation of collective bargaining under 49 U.S.C 5333(b)(2)(A) and (B). The Department based its determination on the fact that the parties agreed that P.A. 183, as stipulated in the separate Joint Stipulations, will not affect or require any changes to the terms and conditions of employment for the duration, or any additional periods, of any current collective bargaining agreements. Furthermore, the parties agree that they will continue to bargain in good faith over wages, hours, and other terms and conditions of employment, including, but not limited to, retirement benefit plans. The Department acknowledges that the parties do not waive their right to lodge objections in response to future referrals for DDOT grants depending on the state law at that time. The Department will also continue to monitor the situation for future certifications. RTA of Southeast MI (as grantee) The Department of Labor will make the certification called for under the statute on condition that the Regional Transit Authority of Southeast Michigan ensures, as a precondition to the release of assistance to any Recipient under the grant, that such Recipient agrees to the respective terms and conditions referenced herein, and that this certification letter and the corresponding protective arrangements are incorporated into the contract of assistance between Regional Transit Authority of Southeast Michigan and each Recipient, by reference. Accordingly, the Department of Labor makes the certification called for under the statute with respect to the instant project on condition that: 1. This letter and the terms and conditions of the protective arrangements referenced above, shall be made applicable to the instant project and made part of the contract of assistance, by reference; 2. As a precondition to the release of assistance to any Recipient, this letter and the terms and conditions of the respective protective arrangements referenced above, shall be incorporated into the contract of assistance between Regional Transit Authority of Southeast Michigan and such Recipient, by reference; Any dispute or controversy arising regarding the application, interpretation, or enforcement of this provision which cannot be settled by and between the parties at interest within thirty (30) days after the dispute or controversy first arises, may be referred by any party to any final and binding dispute settlement procedure

17 - 7 - acceptable to the parties, or in the event they cannot agree upon such procedure, to the Department of Labor or an impartial third party designated by the Department of Labor for a final and binding determination; 3. The term "project" as used in the above arrangements shall be deemed to cover and refer to the instant project; 4. The protective arrangements certified by the Secretary of Labor are intended for the primary and direct benefit of transit employees in the service area of the project. These employees are intended third-party beneficiaries to the employee protective arrangements referenced in the grant contract between the U.S. Department of Transportation Regional Transit Authority of Southeast Michigan, and the parties to the contract so signify by executing that contract. Such transit employees are also thirdparty beneficiaries to the protective arrangements incorporated in any subsequent contract(s) of assistance between the Grantee and any Recipient(s). Employees not represented by any labor organization, or if so represented through their representative on their behalf, may assert claims with respect to the protective arrangements under this provision. This clause creates no independent cause of action against the United States Government; 5. Disputes over the interpretation, application and enforcement of the terms and conditions of the certified protective arrangements, including those disputes arising out of this letter of certification, except for any disputes arising out of enumerated paragraph 2 above, shall be resolved in accordance with the procedures specified in the aforementioned certified arrangements; and 6. Employees of mass transportation providers in the service area of the project who are not represented by a union designated above shall be afforded substantially the same levels of protections as are afforded to the employees represented by the union(s) under the above referenced protective arrangements and this certification. Such protections include procedural rights and remedies as well as protections for individual employees affected by the project. Should a dispute remain after exhausting any available remedies under the protective arrangements and absent mutual agreement to utilize any other final and binding resolution procedure, any party to the dispute may submit the controversy to final and binding arbitration. With respect to a dispute involving a union not designated above, if a component of its parent union is already subject to a protective arrangement, the arbitration procedures of that arrangement will be applicable. If no component of its parent union is subject to the arrangements, the Recipient or the union

18 - 8 - may request the American Arbitration Association to furnish an arbitrator and administer a final and binding resolution of the dispute under its Labor Arbitration Rules. If the employees are not represented by a union for purposes of collective bargaining, the Recipient or employee(s) may request the Secretary of Labor to designate a neutral third party or appoint a staff member to serve as arbitrator and render a final and binding determination of the dispute. Sincerely, Ann Comer, Chief Division of Statutory Programs cc: Scheryl Portee/FTA Jessica M. Chu/ATU James P. Hoffa/IBT Lee Saunders/AFSCME Albert Garrett/AFSCME Council 25 Philip Douglas/AFSCME Local 312 Armelia Nickleberry/AFSCME Local 214 Richard G. Mack, Jr./Attorney for AFSCME Council 25 George B. Washington/Scheff, Washington & Driver, P.C. Richard Edelman/Mooney, Green, Saindon, Murphy and Welch, PC James T. Callahan/IUOE Nicholas Duncan/DDOT Foreman's Association of America, 337 Pamela King/Supervisors Chapter/ DDOT Foreman's Association of America Edwin D. Hill/IBEW Legal Department/UAW