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Background Paper for Proposed
R
ESOLUTION
AGENDA ITEM # M-5
DATE:
June 25, 2012
DEPARTMENT:
DEPARTMENT OFAVIATION
MARK LOVIN, DIRECTOR
TITLE
A RESOLUTION ACCEPTING AND APPROVING A FEDERAL AVIATION
ADMINISTRATION (FAA) GRANT AGREEMENT PROJECT NO. 3-08-0046-31 FOR
$7,300,000 FOR THE CONSTRUCTION OF A NEW TRAINING RUNWAY AT PUEBLO
MEMORIAL AIRPORT AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO
EXECUTE SAME
ISSUE
Should City Council accept an FAA grant for $7,300,000 for the construction of a new training
runway at the airport?
RECOMMENDATION
Approval of this Resolution.
BACKGROUND
This grant is for the paving and lighting of the new training runway and associated taxiways and
the installation of the runway visual navaids. The FAA has determined that the current training
runway is unsafe due to its proximity to the ramp. These funds are for 95% of the project
funding. The City has accepted a grant from the State that will fund 2.5% and the City’s
obligation will be 2.5%.
FINANCIAL IMPACT
th
The FAA has requested that the grant be signed and returned to them by June 30. A separate
Ordinance will be done to budget the funds into the project. The total project is estimated at
$7,684,790. The FAA grant is for $7,300,000. The grant from the State is for $192,395 and the
City's match will be $192,395.
RESOLUTION NO. 12439
A RESOLUTION ACCEPTING AND APPROVING A
FEDERAL AVIATION ADMINISTRATION (FAA) GRANT
AGREEMENT PROJECT NO. 3-08-0046-31 FOR $7,300,000
FOR THE CONSTRUCTION OF A NEW TRAINING RUNWAY
AT PUEBLO MEMORIAL AIRPORT AND AUTHORIZING
THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME
WHEREAS, the City of Pueblo has received a Grant Agreement from the United States
of America Federal Aviation Administration to fund the construction of a new training runway at
Pueblo Memorial Airport subject to the execution of a Grant Agreement; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Grant Agreement between the City of Pueblo, a Municipal Corporation, and the
United States of America Federal Aviation Administration making available $7,300,000 in
federal funds for the construction of a new training runway at Pueblo Memorial Airport, a copy
of which is attached hereto, having been approved as to form by the City Attorney, is hereby
accepted and approved.
SECTION 2.
The President of City Council is hereby authorized to execute said Grant Agreement on
behalf of Pueblo, a Municipal Corporation, and the City Clerk shall affix the Seal of the City to
the Grant Agreement and attest the same.
INTRODUCED: June 25, 2012
BY: Sandy Daff
COUNCIL PERSON
P\izso4 aLl
U.S. Department
of Transportation
Federal Aviation
Administration
Part I - Offer
Date of Offer: June 13, 2012
Airport: Pueblo Memorial
Project Number: 3 -08- 0046 -31
Contract Number: DOT- FAl2NM -1014
DUNS: 010620284
To: City of Pueblo, Colorado (herein called the "Sponsor ")
From: The United States of America (acting through the Federal Aviation Administration, herein called the
FAA")
Whereas, the Sponsor has submitted to the FAA a Project Application dated April 9, 2012, for a grant of Federal funds
for a project at or associated with the Pueblo Memorial Airport, which Project Application, as approved by the FAA, is
hereby incorporated herein and made a part hereof; and
Whereas, the FAA has approved a project for the Airport (herein called the "Project ") consisting of the following:
Construct replacement training runway - Phase III (pave and light runway and
associated taxiways and install runway visual navaids),
all as more particularly described in the Project Application.
FAA Form 5100 -37 (7/90) 1
Now therefore, pursuant to and for the purpose of carrying out the provisions of Title 49, United States Code, as
amended, herein called "the Act ", and in consideration of (a) the Sponsor's adoption and ratification of the
representations and assurances contained in said Project Application and its acceptance of this offer as hereinafter
provided, and (b) the benefits to accrue to the United States and the public from the accomplishment of the Project and
compliance with the assurances and conditions as herein provided, THE FEDERAL AVIATION
ADMINISTRATION, FOR AND ON BEHALF OF THE UNITED STATES, HEREBY OFFERS AND AGREES
to pay, as the United States share of the allowable costs incurred in accomplishing the Project, 95.00 per centum thereof.
This Offer is made on and SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS:
CONDITIONS
1. The maximum obligation of the United States payable under this offer shall be $7,300,000. For the purposes of
any future grant amendments which may increase the foregoing maximum obligation of the United States under
the provisions of Section 47108(b) of the Act, the following amounts are being specified for this purpose:
$ -0 -for planning
$7,300,000 for airport development and noise program implementation
2. The allowable costs of the project shall not include any costs determined by the FAA to be ineligible for
consideration as to allowability under the Act.
3. Payment of the United States' share of the allowable project costs will be made pursuant to and in accordance
with the provisions of such regulations and procedures as the Secretary shall prescribe. Final determination of
the United States' share will be based upon the final audit of the total amount of allowable project costs and
settlement will be made for any upward or downward adjustments to the Federal share of costs.
4. The Sponsor shall carry out and complete the Project without undue delay and in accordance with the terms
hereof, and such regulations and procedures as the Secretary shall prescribe, and agrees to comply with the
assurances which were made part of the project application.
5. The FAA reserves the right to amend or withdraw this offer at any time prior to its acceptance by the Sponsor.
6. This offer shall expire and the United States shall not be obligated to pay any part of the costs of the project
unless this offer has been accepted by the Sponsor on or before August 10, 2012, or such subsequent date as may
be prescribed in writing by the FAA.
7. The Sponsor shall take all steps, including litigation if necessary, to recover Federal funds spent fraudulently,
wastefully, or in violation of Federal antitrust statutes, or misused in any other manner in any project upon which
Federal fiends have been expended. For the purposes of this grant agreement, the term "Federal funds" means
funds however used or disbursed by the Sponsor that were originally paid pursuant to this or any other Federal
grant agreement. It shall obtain the approval of the Secretary as to any determination of the amount of the
Federal share of such funds. It shall return the recovered Federal share, including funds recovered by settlement,
order or judgement, to the Secretary. It shall furnish to the Secretary, upon request, all documents and records
pertaining to the determination of the amount of the Federal share or to any settlement, litigation, negotiation, or
FAA Form 5100 -37 (7/90) 2
other efforts taken to recover such funds. All settlements or other final positions of the Sponsor, in court or
otherwise, involving the recovery of such Federal share shall be approved in advance by the Secretary.
8. The United States shall not be responsible or liable for damage to property or injury to persons which may arise
from, or be incident to, compliance with this grant agreement.
Special Conditions
9. The Sponsor will carry out the project in accordance with policies, standards, and specifications approved by the
Secretary including but not limited to the advisory circulars listed in the "Current FAA Advisory Circulars
Required for Use in AIP funded and PFC Approved Projects," dated January 12, 2012, and included in this grant,
and in accordance with applicable state policies, standards, and specifications approved by the Secretary.
10. The Sponsor must provide for the continuous operation and maintenance of any navigational aid funded under
the AIP during the useful life of the equipment and check the facility prior to its commissioning to assure it meets
the operational standards. The Sponsor must also remove, relocate, or lower each obstruction on the approach or
provide for the adequate lighting or marking of the obstruction if any aeronautical study conducted under FAR
Part 77 determines that to be acceptable, and mark and light the runway, as appropriate. The Federal Aviation
Administration will not take over the ownership, operation, or maintenance of any Sponsor - acquired equipment.
11. It is mutually understood 'and agreed that if, during the life of the project, the FAA determines that the maximum
grant obligation of the United States exceeds the expected needs of the Sponsor by $25,000.00 or five percent
(5 %), whichever is greater, the maximum obligation of the United States can be unilaterally reduced by letter
from the FAA advising of the budget change. Conversely, if there is an overrun in the total actual eligible and
allowable project costs, FAA may increase the maximum grant obligation of the United States to cover the
amount of the overrun not to exceed the statutory percent limitation and will advise the Sponsor by letter of the
increase. It is further understood and agreed that if, during the life of the project, the FAA determines that a
change in the grant description is advantageous and in the best interests of the United States, the change in
grant description will be unilaterally amended by letter from the FAA. Upon issuance of the aforementioned
letter, either the grant obligation of the United States is adjusted to the amount specified or the grant description
is amended to the description specified.
12. Unless otherwise approved by the FAA, the Sponsor will not acquire or permit any contractor or subcontractor to
acquire any steel or manufactured products produced outside the United States to be used for any project for
airport development or noise compatibility for which funds are provided under this grant. The Sponsor will
include in every contract a provision implementing this special condition.
13. In accordance with Section 47108(b) of the Act, as amended, the maximum obligation of the United States, as
stated in Condition No. 1 of this Grant Offer:
a. may not be increased for a planning project;
b. may be increased by not more than 15 percent for development projects;
c. may be increased by not more than 15 percent for land projects.
14. The Sponsor agrees to comply with the Assurances attached to this offer, which replaces the assurances that
accompanied the Application for Federal Assistance.
FAA Form 5100-37 (7/90) 3
15. The Sponsor agrees to perform the following:
a. Furnish a construction management program to FAA prior to the start of construction which shall detail
the measures and procedures to be used to comply with the quality control provisions of the construction
• contract, including, but not limited to, all quality control provisions and tests required by the Federal
specifications. The program shall include as a minimum:
(1) The name of the person representing the Sponsor who has overall responsibility for contract
administration for the project and the authority to take necessary actions to comply with the
contract.
(2) Names of testing laboratories and consulting engineer firms with quality control responsibilities
on the project, together with a description of the services to be provided.
(3) Procedures for determining that testing laboratories meet the requirements of the American
Society of Testing and Materials standards on laboratory evaluation, referenced in the contract
specifications (D 3666, C 1077).
(4) Qualifications of engineering supervision and construction inspection personnel.
(5) A listing of all tests required by the contract specifications, including the type and frequency of
tests to be taken, the method of sampling, the applicable test standard, and the acceptance criteria
or tolerances permitted for each type of test.
(6) Procedures for ensuring that the tests are taken in accordance with the program, that they are
documented daily, that the proper corrective actions, where necessary, are undertaken.
b. Submit at completion of the project, a final test and quality control report documenting the results of all
tests performed, highlighting those tests that failed or did not meet the applicable test standard. The
report shall include the pay reductions applied and reasons for accepting any out -of- tolerance material.
c. Failure to provide a complete report as described in paragraph (a), or failure to perform such tests, shall,
absent any compelling justification, result in a reduction in Federal participation for costs incurred in
connection with construction of the applicable pavement. Such reduction shall be at the discretion of the
FAA and will be based on the type or types of required tests not performed or not documented and will
be commensurate with the proportion of applicable pavement with respect to the total pavement
constructed under the grant agreement.
d. The FAA, at its discretion, reserves the right to conduct independent tests and to reduce grant payments
accordingly if such independent tests determine that Sponsor test results are inaccurate.
16. The sponsor agrees to monitor progress on the work to be accomplished by this grant. For consultant services,
the Sponsor agrees to make payment only for work that has been satisfactorily completed. It is understood by
and between the parties hereto that the approximate value of the final project documentation is ten percent (10 %)
of the total value of the consultant services contract, and the amount will not be paid to the Consultant until
acceptable final project documentation is provided.
17. TRAFFICKING IN PERSONS:
a. Provisions applicable to a recipient that is a private entity.
1. You as the recipient, your employees, subrecipients under this award, and subrecipients' employees
may not —
i. Engage in severe forms of trafficking in persons during the period of time that the award is in
effect;
FAA Form 5100 -37 (7/90) 4
ii. Procure a commercial sex act during the period of time that the award is in effect; or
iii. Use forced labor in the performance of the award or subawards under the award.
2. We as the Federal awarding agency may unilaterally terminate this award, without penalty, if you or a
subrecipient that is a private entity –
i. Is determined to have violated a prohibition in paragraph a.1 of this award term; or
ii. Has an employee who is determined by the agency official authorized to terminate the award
to have violated a prohibition in paragraph a.1 of this award term through conduct that is either —
A. Associated with performance under this award; or
B. Imputed to you or the subrecipient using the standards and due process for imputing
the conduct of an individual to an organization that are provided in 2 CFR part 180,
"OMB Guidelines to Agencies on Governmentwide Debarment and Suspension
(Nonprocurement)," as implemented by our agency at 49 CFR Part 29. •
b. Provision applicable to a recipient other than a private entity. We as the Federal awarding agency may
unilaterally terminate this award, without penalty, if a subrecipient that is a private entity- -
1. Is deter lined to have violated an applicable prohibition in paragraph a.1 of this award term; or
2. Has an employee who is determined by the agency official authorized to terminate the award to have
violated an applicable prohibition in paragraph a.1 of this award term through conduct that is either- -
i. Associated with performance under this award; or
ii. Imputed to the subrecipient using the standards and clue process for imputing the conduct of an
individual to an organization that are provided in 2 CFR part 180, "OMB Guidelines to Agencies
on Government wide Debarment and Suspension ( Nonprocurement)," as implemented by our
agency at 49 CFR Part 29.
c. Provisions applicable to any recipient.
1. You must inform us immediately of any information you receive from any source alleging a violation
of a prohibition in paragraph a.1 of this award term.
2. Our right to terminate unilaterally that is described in paragraph a.2 or b of this section:
i. Implements section 106(g) of the Trafficking Victims Protection Act of 2000 (TVPA), as
amended (22 U.S.C. 7104(g)), and
ii. Is in addition to all other remedies for noncompliance that are available to us under this award.
3. You must include the requirements of paragraph a.1 of this award term in any subaward you make to a
private entity.
d. Definitions. For purposes of this award term:
1. "Employee" means either:
i. An individual employed by you or a subrecipient who is engaged in the performance of the
project or program under this award; or
ii. Another person engaged in the performance of the project or program under this award and
not compensated by you including, but not limited to, a volunteer or individual whose services
are contributed by a third party as an in -kind contribution toward cost sharing or matching
requirements.
2. "Forced labor" means labor obtained by any of the following methods: the recruitment, harboring,
transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or
coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery.
3. "Private entity ":
FAA Form 5100 -37 (7/90) 5
i. Means any entity other than a State, local government, Indian tribe, or foreign public entity, as
those terms are defined in 2 CFR 175.25.
ii. Includes:
A. A nonprofit organization, including any nonprofit institution of higher education,
hospital, or tribal organization other than one included in the definition of Indian tribe at
2 CFR 175.25(b).
B. A for -profit organization.
4. "Severe forms of trafficking in persons," "commercial sex act," and "coercion" have the meanings
given at section 103 of the TVPA, as amended (22 U.S.C. 7102).
18. The Sponsor shall provide for a Single Audit in accordance with Office of Management Budget Circular A -133.
The Sponsor shall submit the Single Audit reporting package to the Federal Audit Clearinghouse on the Federal
Audit Clearinghouse's Internet Data Entry System at http: / /harvester.census.gov /fac /collect /ddeindex.html. The
Sponsor shall also provide one copy of the completed A -133 Audit to the Denver Airports District Office.
FAA Form 5100 -37 (7/90) 6
The Sponsor's acceptance of this Offer and ratification and adoption of the Project Application incorporated herein shall be evidenced
by execution of this instrument by the Sponsor, as hereinafter provided, and this Offer and Acceptance shall comprise a Grant
Agreement, as provided by the Act, constituting the contractual obligations and rights of the United States and the Sponsor with
respect to the accomplishment of the Project and compliance with the assurances and conditions as provided herein. Such Grant
Agreement shall become effective upon the Sponsor's acceptance of this Offer.
United States of America
Federal Aviation Administration
Manager, enver Atarts District Office
Part 11 m Accep ance
The Sponsor does hereby ratify and adopt all assurances, statements, representations, warranties, covenants, and agreements contained
in the Project Application and incorporated materials referred to in the foregoing Offer and does hereby accept this Offer and by such
acceptance agrees to comply with all of the terms and conditions in this Offer and in the Project Application.
Executed this 2 5 t h day of Jun , 2012.
CITY 0 PUEBLO OL P RADO
By: .4/ / //A`41
(SEAL) '.port lesi:nate. • icia Representative
Chris K. Kaufman
Attest: Title: President of the City Council
Gin Dutcher
Title: Cit Clerk
Certificate of Sponsor's Attorney
I, 1 g/a/f 5. / , acting as Attorney for the Sponsor do hereby certify:
That in my opinion the Sponsor is empowered to enter into the foregoing Grant Agreement under the laws of the State of Colorado.
Further, I have examined the foregoing Grant Agreement and the actions taken by said Sponsor relating thereto, and find that the
acceptance thereof by said Sponsor and Sponsor's official representative has been duly authorized and that the execution thereof is in
all respects due and proper and in accordance with the laws of the said State and the Act. In addition, for grants involving projects to
be carried out on property not owned by the Sponsor, there are no legal impediments that will prevent full performance by the Sponsor.
Further, it is my opinion that the said Grant Agreement constitutes a legal and binding obligation of the Sponsor in accordance with the
terms thereof. / /
Dated at Riga O /Df this 26 day of )444..4, 2012.
Signature of Spons r' At orney
FAA Form 5100 -37 (7/90) 7
Airport Sponsor Assurances (4/2U12) HKr rays LP I
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Grant Assurances
Airport Sponsors
A. General.
1. These assurances shall be complied with in the performance of grant agreements
for airport development, airport planning, and noise compatibility program grants
for airport sponsors.
2. These assurances are required to be submitted as part of the project application by
sponsors requesting funds under the provisions of Title 49, U.S.C., subtitle VII, as
amended. As used herein, the term "public agency sponsor" means a public
agency with control of a public -use airport; the term "private sponsor" means a
private owner of a public -use airport; and the term "sponsor" includes both public
psond pri sp
3. Upon a gency acceptance sonrs a of this vate grant offer onsors. by the sponsor, these assurances are
incorporated in and become part of this grant agreement.
B. Duration and Applicability.
1. Airport development or Noise Compatibility Program Projects Undertaken
by a Public Agency Sponsor. The terms, conditions and assurances of this grant
agreement shall remain in full force and effect throughout the useful life of the
facilities developed or equipment acquired for an airport development or noise
compatibility program project, or throughout the useful life of the project items
installed within a facility under a noise compatibility program project, but in any
event not to exceed twenty (20) years from the date of acceptance of a grant offer
of Federal funds for the project. However, there shall be no limit on the duration
of the assurances regarding Exclusive Rights and Airport Revenue so long as the
airport is used as an airport. There shall be no limit on the duration of the terms,
conditions, and assurances with respect to real property acquired with federal
funds. Furthermore, the duration of the Civil Rights assurance shall be specified
in the assurances.
2. Airport Development or Noise Compatibility Projects Undertaken by a
Private Sponsor. The preceding paragraph 1 also applies to a private sponsor
except that the useful life of project items installed within a facility or the useful
life of the facilities developed or equipment acquired under an airport
development or noise compatibility program project shall be no less than ten (10)
years from the date of acceptance of Federal aid for the project.
Airport Sponsor Assurances (4/2012) ARP Page 1 of 17
3. Airport Planning Undertaken by a Sponsor. Unless otherwise specified in this
grant agreement, only Assurances 1, 2, 3, 5, 6, 13, 18, 30, 32, 33, and 34 in
section C apply to planning projects. The terms, conditions, and assurances of
this grant agreement shall remain in full force and effect during the life of the
project.
C. Sponsor Certification. The sponsor hereby assures and certifies, with respect to this
grant that:
1. General Federal Requirements. It will comply with all applicable Federal laws,
regulations, executive orders, policies, guidelines, and requirements as they relate
to the application, acceptance and use of Federal funds for this project including
but not limited to the following:
Federal Legislation
a. Title 49, U.S.C., subtitle VII, as amended.
b. Davis -Bacon Act - 40 U.S.C. 276(a), et seq.'
c. Federal Fair Labor Standards Act - 29 U.S.C. 201, et seq.
d. Hatch Act— 5 U.S.C. 1501, et seq.' -
e. Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970 Title 42 U.S.C. 4601, et seq.
f. National Historic Preservation Act of 1966 - Section 106 - 16 U.S.C.
470(f).
g. Archeological and Historic Preservation Act of 1974 - 16 U.S.C. 469
through 469c.'
h. Native Americans Grave Repatriation Act - 25 U.S.C. Section 3001, et
seq.
i. Clean Air Act, P.L. 90 -148, as amended.
j. Coastal Zone Management Act, P.L. 93 -205, as amended.
k. Flood Disaster Protection Act of 1973 - Section 102(a) - 42 U.S.C. 4012a.'
1. Title 49, U.S.C., Section 303, (formerly known as Section 4(0)
m. Rehabilitation Act of 1973 - 29 U.S.C. 794.
n. Civil Rights Act of 1964 - Title VI - 42 U.S.C. 2000d through d -4.
o. Age Discrimination Act of 1975 - 42 U.S.C. 6101, et seq.
p. American Indian Religious Freedom Act, P.L. 95 -341, as amended.
q. Architectural Barriers Act of 1968 -42 U.S.C. 4151, et seq.'
r. Power plant and Industrial Fuel Use Act of 1978 - Section 403 - 2 U.S.C.
8373.'
s. Contract Work Hours and Safety Standards Act - 40 U.S.C. 327, et seq.'
t. Copeland Anti kickback Act - 18 U.S.C. 874.1
u. National Environmental Policy Act of 1969 42 U.S.C. 4321, et seq.'
v. Wild and Scenic Rivers Act, P.L. 90 -542, as amended.
w. Single Audit Act of 1984 - 31 U.S.C. 7501, et seq.'
x. Drug -Free Workplace Act of 1988 - 41 U.S.C. 702 through 706.
Executive Orders
Airport Sponsor Assurances (4/2012) ARP Page 2 of 17
Executive Order 11246 - Equal Employment Opportunity'
Executive Order 11990 - Protection of Wetlands
Executive Order 11998 — Flood Plain Management
Executive Order 12372 - Intergovernmental Review of Federal Programs
Executive Order 12699 - Seismic Safety of Federal and Federally Assisted New
Building Construction'
Executive Order 12898 - Environmental Justice
Federal Regulations
a. 14 CFR Part 13 - Investigative and Enforcement Procedures.
b. 14 CFR Part 16 - Rules of Practice For Federally Assisted Airport
Enforcement Proceedings.
c. 14 CFR Part 150 - Airport noise compatibility planning.
d. 29 CFR Part 1 - Procedures for predetermination of wage rates.'
e. 29 CFR Part 3 - Contractors and subcontractors on public building or
public work financed in whole or part by loans or grants from the United
States.'
f. 29 CFR Part 5 - Labor standards provisions applicable to contracts
covering federally financed and assisted construction (also labor standards
provisions applicable to non - construction contracts subject to the Contract
Work Hours and Safety Standards Act).'
g. 41 CFR Part 60 - Office of Federal Contract Compliance Programs, Equal
Employment Opportunity, Department of Labor (Federal and federally
assisted contracting requirements).'
h. 49 CFR Part 18 - Uniform administrative requirements for grants and
cooperative agreements to state and local governments.
i. 49 CFR Part 20 - New restrictions on lobbying.
j. 49 CFR Part 21 - Nondiscrimination in federally- assisted programs of the
Department of Transportation - effectuation of Title VI of the Civil Rights
Act of 1964.
k. 49 CFR Part 23 - Participation by Disadvantage Business Enterprise in
Airport Concessions.
1. 49 CFR Part 24 - Uniform relocation assistance and real ?roperty
acquisition for Federal and federally assisted programs.' -
m. 49 CFR Part 26 — Participation By Disadvantaged Business Enterprises in
Department of Transportation Programs.
n. 49 CFR Part 27 - Nondiscrimination on the basis of handicap in programs
and activities receiving or benefiting from Federal financial assistance.'
o. 49 CFR Part 29 — Government wide debarment and suspension
(nonprocurement) and government wide requirements for drug -free
workplace (grants).
P. 49 CFR Part 30 - Denial of public works contracts to suppliers of goods
and services of countries that deny procurement market access to U.S.
contractors.
Airport Sponsor Assurances (4/2012) ARP Page 3 of 17
q. 49 CFR Part 41 - Seismic safety of Federal and federally assisted or
regulated new building construction.'
Office of Management and Budget Circulars
a. A -87 - Cost Principles Applicable to Grants and Contracts with State and
Local Governments.
b. A -133 - Audits of States, Local Governments, and Non - Profit
Organizations
1 These laws do not apply to airport planning sponsors.
2 These laws do not apply to private sponsors.
3 49 CFR Part 18 and OMB Circular A -87 contain requirements for State
and Local Governments receiving Federal assistance. Any requirement
levied upon State and Local Governments by this regulation and
circular shall also be applicable to private sponsors receiving Federal
assistance under Title 49, United States Code:
Specific assurances required to be included in grant agreements by any of the
above laws, regulations or circulars are incorporated by reference in this grant
agreement.
2. Responsibility and Authority of the Sponsor.
a. Public Agency Sponsor: It has legal authority to apply for this grant, and
to finance and carry out the proposed project; that a resolution, motion or
similar action has been duly adopted or passed as an official act of the
applicant's governing body authorizing the filing of the application,
including all understandings and assurances contained therein, and
directing and authorizing the person identified as the official
representative of the applicant to act in connection with the application
and to provide such additional information as may be required.
b. Private Sponsor: It has legal authority to apply for this grant and to
finance and carry out the proposed project and comply with all terms,
conditions, and assurances of this grant agreement. It shall designate an
official representative and shall in writing direct and authorize that person
to file this application, including all understandings and assurances
contained therein; to act in connection with this application; and to
provide such additional information as may be required.
3. Sponsor Fund Availability. It has sufficient funds available for that portion of
the project costs which are not to be paid by the United States. It has sufficient
funds available to assure operation and maintenance of items funded under this
grant agreement which it will own or control.
4. Good Title.
a. It, a public agency or the Federal government, holds good title,
satisfactory to the Secretary, to the landing area of the airport or site
thereof, or will give assurance satisfactory to the Secretary that good title
will be acquired.
Airport Sponsor Assurances (4/2012) ARP Page 4 of 17
ty ,
b. For noise compatibility program projects to be carried out on the property
of the sponsor, it holds good title satisfactory to the Secretary to that
portion of the property upon which Federal funds will be expended or will
give assurance to the Secretary that good title will be obtained.
5. Preserving Rights and Powers.
a. It will not take or permit any action which would operate to deprive it of
any of the rights and powers necessary to perform any or all of the terms,
conditions, and assurances in this grant agreement without the written
approval of the Secretary, and will act promptly to acquire, extinguish or
modify any outstanding rights or claims of right of others which would
interfere with such performance by the sponsor. This shall be done in a
manner acceptable to the Secretary.
b. It will not sell, lease, encumber, or otherwise transfer or dispose of any
part of its title or other interests in the property shown on Exhibit A to this
application or, for a noise compatibility program project, that portion of
the property upon which Federal funds have been expended, for the
duration of the terms, conditions, and assurances in this grant agreement
without approval by the Secretary. If the transferee is found by the
Secretary to be eligible under Title 49, United States Code, to assume the
obligations of this grant agreement and to have the power, authority, and
financial resources to carry out all such obligations, the sponsor shall
insert in the contract or document transferring or disposing of the
sponsor's interest, and make binding upon the transferee all of the terms,
conditions, and assurances contained in this grant agreement.
c. For all noise compatibility program projects which are to be carried out by
another unit of local government or are on property owned by a unit of
local government other than the sponsor, it will enter into an agreement
with that government. Except as otherwise specified by the Secretary, that
agreement shall obligate that government to the same terms, conditions,
and assurances that would be applicable to it if it applied directly to the
FAA for a grant to undertake the noise compatibility program project.
That agreement and changes thereto must be satisfactory to the Secretary.
It will take steps to enforce this agreement against the local government if
there is substantial non - compliance with the terms of the agreement.
d. For noise compatibility program projects to be carried out on privately
owned property, it will enter into an agreement with the owner of that
property which includes provisions specified by the Secretary. It will take
steps to enforce this agreement against the property owner whenever there
is substantial non - compliance with the terms of the agreement.
e. If the sponsor is a private sponsor, it will take steps satisfactory to the
Secretary to ensure that the airport will continue to function as a public -
use airport in accordance with these assurances for the duration of these
assurances.
f. If an arrangement is made for management and operation of the airport by
any agency or person other than the sponsor or an employee of the
sponsor, the sponsor will reserve sufficient rights and authority to insure
Airport Sponsor Assurances (4/2012) ARP Page 5 of 17
that the airport will be operated and maintained in accordance Title 49,
United States Code, the regulations and the terms, conditions and
assurances in this grant agreement and shall insure that such arrangement
also requires compliance therewith.
g. Sponsors of commercial service airports will not permit or enter into any
arrangement that results in permission for the owner or tenant of a
property used as a residence, or zoned for residential use, to taxi an
aircraft between that property and any location on airport. Sponsors of
general aviation airports entering into any arrangement that results in
permission for the owner of residential real property adjacent to or near
the airport must comply with the requirements of Sec. 136 of Public Law
112 -95 and the sponsor assurances.
6. Consistency with Local Plans. The project is reasonably consistent with plans
(existing at the time of submission of this application) of public agencies that are
authorized by the State in which the project is located to plan for the development
of the area surrounding the airport.
7. Consideration of Local Interest. It has given fair consideration to the interest of
communities in or near where the project may be located.
S. Consultation with Users. In making a decision to undertake any airport
development project under Title 49, United States Code, it has undertaken
reasonable consultations with affected parties using the airport at which project is
proposed.
9. Public Hearings. In projects involving the location of an airport, an airport
runway, or a major runway extension, it has afforded the opportunity for public
hearings for the purpose of considering the economic, social, and environmental
effects of the airport or runway location and its consistency with goals and
objectives of such planning as has been carried out by the community and it shall,
when requested by the Secretary, submit a copy of the transcript of such hearings
to the Secretary. Further, for such projects, it has on its management board either
voting representation from the communities where the project is located or has
advised the communities that they have the right to petition the Secretary
concerning a proposed project.
10. Air and Water Quality Standards. In projects involving airport location, a
major runway extension, or runway location it will provide for the Governor of
the state in which the project is located to certify in writing to the Secretary that
the project will be located, designed, constructed, and operated so as to comply
with applicable air and water quality standards. In any case where such standards
have not been approved and where applicable air and water quality standards have
been promulgated by the Administrator of the Environmental Protection Agency,
certification shall be obtained from such Administrator. Notice of certification or
refusal to certify shall be provided within sixty days after the project application
has been received by the Secretary.
11. Pavement Preventive Maintenance. With respect to a project approved after
January 1, 1995, for the replacement or reconstruction of pavement at the airport,
Airport Sponsor Assurances (4/2012) ARP Page 6 of 17
it assures or certifies that it has implemented an effective airport pavement
maintenance - management program and it assures that it will use such program for
the useful life of any pavement constructed, reconstructed or repaired with
Federal financial assistance at the airport. It will provide such reports on
pavement condition and pavement management programs as the Secretary
determines may be useful.
12. Terminal Development Prerequisites. For projects which include terminal
development at a public use airport, as defined in Title 49, it has, on the date of
submittal of the project grant application, all the safety equipment required for
certification of such airport under section 44706 of Title 49, United States Code,
and all the security equipment required by rule or regulation, and has provided for
access to the passenger enplaning and deplaning area of such airport to passengers
enplaning and deplaning from aircraft other than air carrier aircraft.
13. Accounting System, Audit, and Record Keeping Requirements.
a. It shall keep all project accounts and records which fully disclose the
amount and disposition by the recipient of the proceeds of this grant, the
total cost of the project in connection with which this grant is given or
used, and the amount or nature of that portion of the cost of the project
supplied by other sources, and such other financial records pertinent to the
project. The accounts and records shall be kept in accordance with an
accounting system that will facilitate an effective audit in accordance with
the Single Audit Act of 1984.
b. It shall make available to the Secretary and the Comptroller General of the
United States, or any of their duly authorized representatives, for the
purpose of audit and examination, any books, documents, papers, and
records of the recipient that are pertinent to this grant. The Secretary may
require that an appropriate audit be conducted by a recipient. In any case
in which an independent audit is made of the accounts of a sponsor
relating to the disposition of the proceeds of a grant or relating to the
project in connection with which this grant was given or used, it shall file
a certified copy of such audit with the Comptroller General of the United
States not later than six (6) months following the close of the fiscal year
for which the audit was made.
14. Minimum Wage Rates. It shall include, in all contracts in excess of $2,000 for
work on any projects funded under this grant agreement which involve labor,
provisions establishing minimum rates of wages, to be predetermined by the
Secretary of Labor, in accordance with the Davis -Bacon Act, as amended (40
U.S.C. 276a- 276a -5), which contractors shall pay to skilled and unskilled labor,
and such minimum rates shall be stated in the invitation for bids and shall be
included in proposals or bids for the work.
15. Veteran's Preference. It shall include in all contracts for work on any project
funded under this grant agreement which involve labor, such provisions as are
necessary to insure that, in the employment of labor (except in executive,
administrative, and supervisory positions), preference shall be given to Vietnam
Airport Sponsor Assurances (4/2012) ARP Page 7 of 17
era veterans, Persian Gulf veterans, Afghanistan -Iraq war veterans, disabled
veterans, and small business concerns owned and controlled by disabled veterans
as defined in Section 47112 of Title 49, United States Code. However, this
preference shall apply only where the individuals are available and qualified to
perform the work to which the employment relates.
16. Conformity to Plans and Specifications. It will execute the project subject to
plans, specifications, and schedules approved by the Secretary. Such plans,
specifications, and schedules shall be submitted to the Secretary prior to
commencement of site preparation, construction, or other performance under this
grant agreement, and, upon approval of the Secretary, shall be incorporated into
this grant agreement. Any modification to the approved plans, specifications, and
schedules shall also be subject to approval of the Secretary, and incorporated into
this grant agreement.
17. Construction Inspection and Approval. It will provide and maintain competent
technical supervision at the construction site throughout the project to assure that
the work conforms to the plans, specifications, and schedules approved by the
Secretary for the project: It shall subject the construction work on any project
contained in an approved project application to inspection and approval by the
Secretary and such work shall be in accordance with regulations and procedures
prescribed by the Secretary. Such regulations and procedures shall require such
cost and progress reporting by the sponsor or sponsors of such project as the
Secretary shall deem necessary.
18. Planning Projects. In carrying out planning projects:
a. It will execute the project in accordance with the approved program
narrative contained in the project application or with the modifications
similarly approved.
b. It will furnish the Secretary with such periodic reports as required
pertaining to the planning project and planning work activities.
c. It will include in all published material prepared in connection with the
planning project a notice that the material was prepared under a grant
provided by the United States.
d. It will make such material available for examination by the public, and
agrees that no material prepared with funds under this project shall be
subject to copyright in the United States or any other country.
e. It will give the Secretary unrestricted authority to publish, disclose,
distribute, and otherwise use any of the material prepared in connection
with this grant.
f. It will grant the Secretary the right to disapprove the sponsor's
employment of specific consultants and their subcontractors to do all or
any part of this project as well as the right to disapprove the proposed
scope and cost of professional services.
g . It will grant the Secretary the right to disapprove the use of the sponsor's
employees to do all or any part of the project.
h. It understands and agrees that the Secretary's approval of this project grant
or the Secretary's approval of any planning material developed as part of
Airport Sponsor Assurances (4/2012) ARP Page 8 of 17
this grant does not constitute or imply any assurance or commitment on
the part of the Secretary to approve any pending or future application for a
Federal airport grant.
19. Operation and Maintenance.
a. The airport and all facilities which are necessary to serve the aeronautical
users of the airport, other than facilities owned or controlled by the United
States, shall be operated at all times in a safe and serviceable condition
and in accordance with the minimum standards as may be required or
prescribed by applicable, Federal, state and local agencies for maintenance
and operation. It will not cause or permit any activity or action thereon
which would interfere with its use for airport purposes. It will suitably
operate and maintain the airport and all facilities thereon or connected
therewith, with due regard to climatic and flood conditions. Any proposal
to temporarily close the airport for non- aeronautical purposes must first be
approved by the Secretary. In furtherance of this assurance, the sponsor
will have in effect arrangements for
1) Operating the airport's aeronautical facilities whenever required;
2) Promptly marking and lighting hazards resulting from airport
conditions, including temporary conditions; and
3) Promptly notifying airmen of any condition affecting aeronautical
use of the airport. Nothing contained herein shall be construed to
require that the airport be operated for aeronautical use during
temporary periods when snow, flood or other climatic conditions
interfere with such operation and maintenance. Further, nothing
herein shall be construed as requiring the maintenance, repair,
restoration, or replacement of any structure or facility which is
substantially damaged or destroyed due to an act of God or other
condition or circumstance beyond the control of the sponsor.
b. It will suitably operate and maintain noise compatibility program items
that it owns or controls upon which Federal funds have been expended.
20. Hazard Removal and Mitigation. It will take appropriate action to assure that
such terminal airspace as is required to protect instrument and visual operations to
the airport (including established minimum flight altitudes) will be adequately
cleared and protected by removing, lowering, relocating, marking, or lighting or
otherwise mitigating existing airport hazards and by preventing the establishment
or creation of future airport hazards.
21. Compatible Land Use. It will take appropriate action, to the extent reasonable,
including the adoption of zoning laws, to restrict the use of land adjacent to or in
the immediate vicinity of the airport to activities and purposes compatible with
normal airport operations, including landing and takeoff of aircraft. In addition, if
the project is for noise compatibility program implementation, it will not cause or
permit any change in land use, within its jurisdiction, that will reduce its
compatibility, with respect to the airport, of the noise compatibility program
measures upon which Federal funds have been expended.
Airport Sponsor Assurances (4/2012) ARP Page 9 of 17
22. Economic Nondiscrimination.
a. It will make the airport available as an airport for public use on reasonable
terms and without unjust discrimination to all types, kinds and classes of
aeronautical activities, including commercial aeronautical activities
offering services to the public at the airport.
b. In any agreement, contract, lease, or other arrangement under which a
right or privilege at the airport is granted to any person, firm, or
corporation to conduct or to engage in any aeronautical activity for
furnishing services to the public at the airport, the sponsor will insert and
enforce provisions requiring the contractor to-
1) furnish said services on a reasonable, and not unjustly
discriminatory, basis to all users thereof, and
2) charge reasonable, and not unjustly discriminatory, prices for each
unit or service, provided that the contractor may be allowed to
make reasonable and nondiscriminatory discounts, rebates, or other
similar types of price reductions to volume purchasers.
c. Each fixed -based operator at the airport shall be subject to the same rates,
fees, rentals, and other charges as are uniformly applicable to all other
fixed -based operators making the same or similar uses of such airport and
utilizing the same or similar facilities.
d. Each air carrier using such airport shall have the right to service itself or to
use any fixed -based operator that is authorized or permitted by the airport
to serve any air carrier at such airport.
e. Each air carrier using such airport (whether as a tenant, non tenant, or
subtenant of another air carrier tenant) shall be subject to such
nondiscriminatory and substantially comparable rules, regulations,
conditions, rates, fees, rentals, and other charges with respect to facilities
directly and substantially related to providing air transportation as are
applicable to all such air carriers which make similar use of such airport
and utilize similar facilities, subject to reasonable classifications such as
tenants or non tenants and signatory carriers and non signatory carriers.
Classification or status as tenant or signatory shall not be unreasonably
withheld by any airport provided an air carrier assumes obligations
substantially similar to those already imposed on air carriers in such
classification or status.
f. It will not exercise or grant any right or privilege which operates to
prevent any person, firm, or corporation operating aircraft on the airport
from performing any services on its own aircraft with its own employees
[including, but not limited to maintenance, repair, and fueling] that it may
choose to perform.
g. In the event the sponsor itself exercises any of the rights and privileges
referred to in this assurance, the services involved will be provided on the
same conditions as would apply to the furnishing of such services by
commercial aeronautical service providers authorized by the sponsor
under these provisions.
Airport Sponsor Assurances (4/2012) ARP Page 10 of 17
h. The sponsor may establish such reasonable, and not unjustly
discriminatory, conditions to be met by all users of the airport as may be
necessary for the safe and efficient operation of the airport.
i. The sponsor may prohibit or limit any given type, kind or class of
aeronautical use of the airport if such action is necessary for the safe
operation of the airport or necessary to serve the civil aviation needs of the
public.
23. Exclusive Rights. It will permit no exclusive right for the use of the airport by
any person providing, or intending to provide, aeronautical services to the public.
For purposes of this paragraph, the providing of the services at an airport by a
single fixed -based operator shall not be construed as an exclusive right if both of
the following apply:
a. It would be unreasonably costly, burdensome, or impractical for more than
one fixed -based operator to provide such services, and
b. If allowing more than one fixed -based operator to provide such services
would require the reduction of space leased pursuant to an existing
agreement between such single fixed -based operator and such airport. It
further agrees that it will not, either directly or indirectly, grant or permit
any person, firm, or corporation, the exclusive right at the airport to
conduct any aeronautical activities, including, but not limited to charter
flights, pilot training, aircraft rental and sightseeing, aerial photography,
crop dusting, aerial advertising and surveying, air carrier operations,
aircraft sales and services, sale of aviation petroleum products whether or
not conducted in conjunction with other aeronautical activity, repair and
maintenance of aircraft, sale of aircraft parts, and any other activities
which because of their direct relationship to the operation of aircraft can
be regarded as an aeronautical activity, and that it will terminate any
exclusive right to conduct an aeronautical activity now existing at such an
airport before the grant of any assistance under Title 49, United States
Code.
24. Fee and Rental Structure. It will maintain a fee and rental structure for the
facilities and services at the airport which will make the airport as self - sustaining
as possible under the circumstances existing at the particular airport, taking into
account such factors as the volume of traffic and economy of collection. No part
of the Federal share of an airport development, airport planning or noise
compatibility project for which a grant is made under Title 49, United States
Code, the Airport and Airway Improvement Act of 1982, the Federal Airport Act
or the Airport and Airway Development Act of 1970 shall be included in the rate
basis in establishing fees, rates, and charges for users of that airport.
25. Airport Revenues.
a. All revenues generated by the airport and any local taxes on aviation fuel
established after December 30, 1987, will be expended by it for the capital
or operating costs of the airport; the local airport system; or other local
facilities which are owned or operated by the owner or operator of the
Airport Sponsor Assurances (4/2012) ARP Page 11 of 17
airport and which are directly and substantially related to the actual air
transportation of passengers or property; or for noise mitigation purposes
on or off the airport. The following exceptions apply to this paragraph:
1) If covenants or assurances in debt obligations issued before
September 3, 1982, by the owner or operator of the airport, or
provisions enacted before September 3, 1982, in governing statutes
controlling the owner or operator's financing, provide for the use of
the revenues from any of the airport owner or operator's facilities,
including the airport, to support not only the airport but also the
airport owner or operator's general debt obligations or other
facilities, then this limitation on the use of all revenues generated
by the airport (and, in the case of a public airport, local taxes on
aviation fuel) shall not apply.
2) If the Secretary approves the sale of a privately owned airport to a
public sponsor and provides funding for any portion of the public
sponsor's acquisition of land, this limitation on the use of all
revenues generated by the sale shall not apply to certain proceeds
from the sale. This is conditioned on repayment to the Secretary
by the private owner of an amount equal to the remaining
unamortized portion (amortized over a 20 -year period) of any
airport improvement grant made to the private owner for any
purpose other than land acquisition on or after October 1, 1996,
plus an amount equal to the federal share of the current fair market
value of any land acquired with an airport improvement grant
made to that airport on or after October 1, 1996.
3) Certain revenue derived from or generated by mineral extraction,
production, lease, or other means at a general aviation airport (as
defined at Section 47102 of title 49 United States Code), if the
FAA determines the airport sponsor meets the requirements set
forth in Sec. 813 of Public Law 112 -95.
b. As part of the annual audit required under the Single Audit Act of 1984,
the sponsor will direct that the audit will review, and the resulting audit
report will provide an opinion concerning, the use of airport revenue and
taxes in paragraph (a), and indicating whether funds paid or transferred to
the owner or operator are paid or transferred in a manner consistent with
Title 49, United States Code and any other applicable provision of law,
including any regulation promulgated by the Secretary or Administrator.
c. Any civil penalties or other sanctions will be imposed for violation of this
assurance in accordance with the provisions of Section 47107 of Title 49,
United States Code.
26. Reports and Inspections. It will:
a. submit to the Secretary such annual or special financial and operations
reports as the Secretary may reasonably request and make such reports
Airport Sponsor Assurances (4/2012) ARP Page 12 of 17
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•
available to the public; make available to the public at reasonable times
and places a report of the airport budget in a format prescribed by the
Secretary;
b. for airport development projects, make the airport and all airport records
and documents affecting the airport, including deeds, leases, operation and
use agreements, regulations and other instruments, available for inspection
by any duly authorized agent of the Secretary upon reasonable request;
c. for noise compatibility program projects, make records and documents
relating to the project and continued compliance with the terms,
conditions, and assurances of this grant agreement including deeds, leases,
agreements, regulations, and other instruments, available for inspection by
any duly authorized agent of the Secretary upon reasonable request; and
d. in a format and time prescribed by the Secretary, provide to the Secretary
and make available to the public following each of its fiscal years, an
annual report listing in detail:
1) all amounts paid by the airport to any other unit of government and
the purposes for which each such payment was made; and
2) all services and property provided by the airport to other units of
government and the amount of compensation received for
provision of each such service and property.
27. Use by Government Aircraft. It will make available all of the facilities of the
airport developed with Federal financial assistance and all those usable for
landing and takeoff of aircraft to the United States for use by Government aircraft
in common with other aircraft at all times without charge, except, if the use by
Government aircraft is substantial, charge may be made for a reasonable share,
proportional to such use, for the cost of operating and maintaining the facilities
used. Unless otherwise determined by the Secretary, or otherwise agreed to by the
sponsor and the using agency, substantial use of an airport by Government aircraft
will be considered to exist when operations of such aircraft are in excess of those
which, in the opinion of the Secretary, would unduly interfere with use of the
landing areas by other authorized aircraft, or during any calendar month that —
a. Five (5) or more Government aircraft are regularly based at the airport or
on land adjacent thereto; or
b. The total number of movements (counting each landing as a movement) of
Government aircraft is 300 or more, or the gross accumulative weight of
Government aircraft using the airport (the total movement of Government
aircraft multiplied by gross weights of such aircraft) is in excess of five
million pounds.
28. Land for Federal Facilities. It will furnish without cost to the Federal
Government for use in connection with any air traffic control or air navigation
activities, or weather - reporting and communication activities related to air traffic
control, any areas of land or water, or estate therein, or rights in buildings of the
sponsor as the Secretary considers necessary or desirable for construction,
operation, and maintenance at Federal expense of space or facilities for such
Airport Sponsor Assurances (4/2012) ARP Page 13 of 17
purposes. Such areas or any portion thereof will be made available as provided
herein within four months after receipt of a written request from the Secretary.
29. Airport Layout Plan.
a. It will keep up to date at all times an airport layout plan of the airport
showing (1) boundaries of the airport and all proposed additions thereto,
together with the boundaries of all offsite areas owned or controlled by the
sponsor for airport purposes and proposed additions thereto; (2) the
location and nature of all existing and proposed airport facilities and
structures (such as runways, taxiways, aprons, terminal buildings, hangars
and roads), including all proposed extensions and reductions of existing
airport facilities; (3) the location of all existing and proposed nonaviation
areas and of all existing improvements thereon; and (4) all proposed and
existing access points used to taxi aircraft across the airport's property
boundary. Such airport layout plans and each amendment, revision, or
modification thereof, shall be subject to the approval of the Secretary
which approval shall be evidenced by the signature of a duly authorized
representative of the Secretary on the face of the airport layout plan. The
sponsor will not make or permit any changes or alterations in the airport or
any of its facilities which are not in conformity with the airport layout plan
as approved by the Secretary and which might, in the opinion of the
Secretary, adversely affect the safety, utility or efficiency of the airport.
b. If a change or alteration in the airport or the facilities is made which the
Secretary determines adversely affects the safety, utility, or efficiency of
any federally owned, leased, or funded property on or off the airport and
which is not in conformity with the airport layout plan as approved by the
Secretary, the owner or operator will, if requested, by the Secretary (1)
eliminate such adverse effect in a manner approved by the Secretary; or
(2) bear all costs of relocating such property (or replacement thereof) to a
site acceptable to the Secretary and all costs of restoring such property (or
replacement thereof) to the level of safety, utility, efficiency, and cost of
operation existing before the unapproved change in the airport or its
facilities except in the case of a relocation or replacement of an existing
airport facility due to a change in the Secretary's design standards beyond
the control of the airport sponsor.
30. Civil Rights. It will comply with such rules as are promulgated to assure that no
person shall, on the grounds of race, creed, color, national origin, sex, age, or
handicap be excluded from participating in any activity conducted with or
benefiting from funds received from this grant. This assurance obligates the
sponsor for the period during which. Federal financial assistance is extended to the
program, except where Federal financial assistance is to provide, or is in the form
of personal property or real property or interest therein or structures or
improvements thereon in which case the assurance obligates the sponsor or any
transferee for the longer of the following periods: (a) the period during which the
property is used for a purpose for which Federal financial assistance is extended,
or for another purpose involving the provision of similar services or benefits, or
Airport Sponsor Assurances (4/2012) ARP Page 14 of 17
(b) the period during which the sponsor retains ownership or possession of the
property.
31. Disposal of Land.
a. For land purchased under a grant for airport noise compatibility purposes,
including land serving as a noise buffer, it will dispose of the land, when
the land is no longer needed for such purposes, at fair market value, at the
earliest practicable time. That portion of the proceeds of such disposition
which is proportionate to the United States' share of acquisition of such
land will be, at the discretion of the Secretary, (1) reinvested in another
project at the airport, or (2) transferred to another eligible airport as
prescribed by the Secretary. The Secretary shall give preference to the
following, in descending order, (1) reinvestment in an approved noise
compatibility project, (2) reinvestment in an approved project that is
eligible for grant funding under Section 47117(e) of title 49 United States
Code, (3) reinvestment in an approved airport development project that is
eligible for grant funding under Sections 47114, 47115, or 47117 of title
49 United States Code, (4) transferred to an eligible sponsor of another
public airport to be reinvested in an approved noise compatibility project
at that airport, and (5) paid to the Secretary for deposit in the Airport and
Airway Trust Fund. If land acquired under a grant for noise compatibility
purposes is leased at fair market value and consistent with noise buffering
purposes, the lease will not be considered a disposal of the land.
Revenues derived from such a lease may be used for an approved airport
development project that would otherwise be eligible for grant funding or
any permitted use of airport revenue.
b. For land purchased under a grant for airport development purposes (other
than noise compatibility), it will, when the land is no longer needed for
airport purposes, dispose of such land at fair market value or make
available to the Secretary an amount equal to the United States'
proportionate share of the fair market value of the land. That portion of
the proceeds of such disposition which is proportionate to the United
States' share of the cost of acquisition of such land will, (1) upon
application to the Secretary, be reinvested or transferred to another eligible
airport as prescribed by the Secretary. The Secretary shall give preference
to the following, in descending order: (1) reinvestment in an approved
noise compatibility project, (2) reinvestment in an approved project that is
eligible for grant funding under Section 47117(e) of title 49 United States
Code, (3) reinvestment in an approved airport development project that is
eligible for grant funding under Sections 47114, 47115, or 47117 of title
49 United States Code, (4) transferred to an eligible sponsor of another
public airport to be reinvested in an approved noise compatibility project
at that airport, and (5) paid to the Secretary for deposit in the Airport and
Airway Trust Fund.
c. Land shall be considered to be needed for airport purposes under this
assurance if (1) it may be needed for aeronautical purposes (including
runway protection zones) or serve as noise buffer land, and (2) the revenue
Airport Sponsor Assurances (4/2012) ARP Page 15 of 17
from interim uses of such land contributes to the financial self - sufficiency
of the airport. Further, land purchased with a grant received by an airport
operator or owner before December 31, 1987, will be considered to be
needed for airport purposes if the Secretary or Federal agency making
such grant before December 31, 1987, was notified by the operator or
owner of the uses of such land, did not object to such use, and the land
continues to be used for that purpose, such use having commenced no later
than December 15, 1989.
d. Disposition of such land under (a) (b) or (c) will be subject to the retention
or reservation of any interest or right therein necessary to ensure that such
land will only be used for purposes which are compatible with noise levels
associated with operation of the airport.
32. Engineering and Design Services. It will award each contract, or sub - contract
for program management, construction management, planning studies, feasibility
studies, architectural services, preliminary engineering, design, engineering,
surveying, mapping or related services with respect to the project in the same
manner as a contract for architectural and engineering services is negotiated under
Title IX of the Federal Property and Administrative Services Act of 1949 or an
equivalent qualifications -based requirement prescribed for or by the sponsor of
the airport.
33. Foreign Market Restrictions. It will not allow funds provided under this grant to
be used to fund any project which uses any product or service of a foreign country
during the period in which such foreign country is listed by the United States
Trade Representative as denying fair and equitable market opportunities for
products and suppliers of the United States in procurement and construction.
34. Policies, Standards, and Specifications. It will carry out the project in
accordance with policies, standards, and specifications approved by the Secretary
including but not limited to the advisory circulars listed in the Current FAA
Advisory Circulars for AIP projects, dated (the latest
approved version as of this grant offer) and included in this grant, and in
accordance with applicable state policies, standards, and specifications approved
by the Secretary.
35. Relocation and Real Property Acquisition. (1) It will be guided in acquiring
real property, to the greatest extent practicable under State law, by the land
acquisition policies in Subpart B of 49 CFR Part 24 and will pay or reimburse
property owners for necessary expenses as specified in Subpart B. (2) It will
provide a relocation assistance program offering the services described in Subpart
C and fair and reasonable relocation payments and assistance to displaced persons
as required in Subpart D and E of 49 CFR Part 24. (3) It will make available
within a reasonable period of time prior to displacement, comparable replacement
dwellings to displaced persons in accordance with Subpart E of 49 CFR Part 24.
36. Access By Intercity Buses. The airport owner or operator will permit, to the
maximum extent practicable, intercity buses or other modes of transportation to
Airport Sponsor Assurances (4/2012) ARP Page 16 of 17
have access to the airport; however, it has no obligation to fund special facilities
for intercity buses or for other modes of transportation.
37. Disadvantaged Business Enterprises. The recipient shall not discriminate on the
basis of race, color, national origin or sex in the award and performance of any
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 non discrimination in the award
and administration of DOT - assisted contracts. The recipient's DBE program, as
required by 49 CFR Part 26, and as approved by 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 matter for enforcement under 18 U.S.C. 1001 and/or
the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801).
38. Hangar Construction. If the airport owner or operator and a person who owns an
aircraft agree that a hangar is to be constructed at the airport for the aircraft at the
aircraft owner's expense, the airport owner or operator will grant to the aircraft
owner for the hangar a long term lease that is subject to such terms and conditions
on the hangar as the airport owner or operator may impose.
39. Competitive Access.
a. If the airport owner or operator of a medium or large hub airport (as
defined in section 47102 of title 49, U.S.C.) has been unable to
accommodate one or more requests by an air carrier for access to gates or
other facilities at that airport in order to allow the air carrier to provide
service to the airport or to expand service at the airport, the airport owner
or operator shall transmit a report to the Secretary that -
1) Describes the requests;
2) Provides an explanation as to why the requests could not be
accommodated; and
3) Provides a time frame within which, if any, the airport will be able
to accommodate the requests.
b. Such report shall be due on either February 1 or August 1 of each year if
the airport has been unable to accommodate the request(s) in the six month
period prior to the applicable due date.
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