HomeMy WebLinkAbout2003-07-28 City Council (6)City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE:
SUBJECT:
AUGUST 4, 2003 CMR: 385:03
COUNTY OF SANTA CLARA GRANT APPLICATION FOR
FEDERAL FUNDING TO REPAIR AND REPAVE A PORTION OF
EMBARCADERO WAY
RECOMMENDATION
Staff recommends that Council: 1) authorize the City Manager to provide written
concurrence to enable Santa Clara County to accept a grant from the Federal Aviation
Administration (FAA) under the Airport Improvement Program (AIP) to rehabilitate a
portion of Embarcadero Way on the site of the Palo Alto Airport.
BACKGROUND
The 50-year lease between the City and the County of Santa Clard County for the Palo
Alto Airport will terminate in 2017. The County of Santa Clara Roads and Airports
Department is planning to submit a grant application to the FAA under the AIP to
rehabilitate a portion of Embarcadero Way at the Palo Alto Airport as shown on the
attached site plan. The project will not require any financial participation by the City of
Palo Alto. However, because the conditions of the grant (grant assurances) would remain
in force until 2023, which is beyond the expiration of the lease, the County is requesting
the City’s written concurrence to accept the grant.
DISCUSSION
The road to be improved is a portion of Embarcadero Way, which serves as the access
road to the Palo Alto Airport and the Palo Alto Golf Course. The road has settled in
certain areas and is in need of upgrading. In addition to reconstructing and repairing the
road, improvements will include an electrical security roller gate and a four-foot high
cyclone fence. The gate and fencing are being added to provide security as part of the 9/11
F.A.A. requirements for smaller airports.
CMR:385:03 Page 1 of 3
If approved, the AIP grant will fund 90% of the estimated project cost. The remaining
10% will be funded by the County’s Airport Enterprise Fund and possibly a state grant
from Caltrans Aeronautics. The grant is for $495,000, of which the County will be
responsible for a 10% match of $45,000 and the FAA’s portion of the project amounts to
$450,000. The County intends to ask the State for its share of the matching funds (4.5%)
but in the current budget environment, the County may not receive any funding from the
State.
The County has requested the City write a letter concurring with the grant application and
indicating that it will comply with the grant assurances from 2017 to 2023 after the
current lease with the County expires. If the lease is extended, the City will assume no
responsibility for complying with the assurances. Many of the grant assurances (copy
attached) relate to use of the grant funds and construction and completion of the project,
so these conditions will have been met by the County before 2017. Ongoing conditions
which could become the responsibility of the City or another lessee should the County
lease not be extended after 2017 include continued use of the property as an airport;
maintaining the improved road; a prohibition on granting exclusive rights for use of the
airport; an obligation to expend all revenues generated by the airport on capital or
operating costs of the airport. The obligations, of the grant assurance would not
automatically pass to the City or another lessee. Item 5b of the grant assurance would
require the County to obtain the Secretary of the Federal Aviation Administration’s
approval prior to assigning any of the rights and obligations of the grant assurance to the
City or another lessee. Given the need for the improvements this grant would fund, and
based on the assumption the property will continue to be used as an airport, staff is
recommending that the City concur with the grant application.
RESOURCE IMPACT
The grant application and road improvement project will not require any financial
participation by the City of Palo Alto. In the event the County lease for the airport is not
renewed after its termination in 2017, the City or another lessee could become
responsible for grant assurances, involving costs such as maintaining the road continued
airport use until 2023, and expending revenues generated by the airport on airport capital
or operating costs.
POLICY IMPLICATIONS
City concurrence with the grant application and assurances does not conflict with existing
City policies. It does assume the airport use of the property will continue beyond the
expiration of the County lease in 2017.
CMR:385:03 Page 2 of 3
ENVIRONMENTAL REVIEW
An environmental impact assessment (EIA) as may be required by the California
Environmental Quality Act (CEQA) will be performed in connection with the City’s
discretionary Site and Design review of the proposed County road improvements.
ATTACHMENTS
Attachment A:
Attachment B:
Site map showing area of Embarcadero Way to be improved.
Grant Assurances
PREPARED BY:
WILLIAM W. FELLMAN
Manager, Real Property
DEPARTMENT HEAD APPROVAL:
DirCtor, Administrative Services
CITY MANAGER APPROVAL:
EMILY HARRISON
Assistant City Manager
cc: Michael Murdter, Director
County of Santa Clara Roads and Airports Dept
CMR:385:03 Page 3 of 3
Attachment B
ASSURANCES
Airport Sponsors
General.
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.
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 agency sponsors and
private sponsors.
Upon acceptance of.the grant offer by the sponsor, these assurances are incorporated in
and become part of the grant agreement.
Duration and Applicability.
Airport development or Noise Compatibility Program Projects Undertaken by a
Public Agency Sponsor. The terms, conditions and assurances of the 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.
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.
Airpor[ Planning Undertaken by a Sponsor. Unless otherwise specified in the 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 the grant agreement shall
remain in full force and effect during the life of the project.
Sponsor Certification. The sponsor hereby assures and certifies, with respect to this grant that:
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
Title 49, U.S.C., subtitle V!!, as amended.
Davis-Bacon Act - 40 U.S.C. 276(a), et see.1
Federal Fair Labor Standards Act - 29 U.S.C. 201, et see.
Airpor~ Assurances (9/99)
1
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U.
V.
W.
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Hatch Act - 5 U.S.C. 1501, et s_.~_~.2
Uniform Relocation Assistance and Real Property Acquisition Policies Act
of 1970 Title 42 U.S.C. 4601, et s_Ls_.~.~.12
National Historic Preservation Act of 1966 - Section 106 - 16 U.S.C.
470(0.1
Archeological and Historic Preservation Act of 1974 - 16 U.S.C. 469
through 469c.1
Native Americans Grave Repatriation Act - 25 U.S.C. Section 3001, et
se_&.q.
Clean Air Act, P.L. 90-148, as amended.
Coastal Zone Management Act, P.L. 93-205, as amended.
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)
Rehabilitation Act of 1973 - 29 U.S.C. 794.
Civil Rights Act of 1964 - Title VI - 42 U.S.C. 2000d through d-4.
Age Discrimination Act of 1975 - 42 U.S.C. 6101, et se~.
American Indian Religious Freedom Act, P.L 95-341, as amended.
Architectural Barriers Act of 1968 -42 U.S.C. 4151, et see.1
Power plant and Industrial Fuel Use Act of 1978- Section 403- 2 U.S.C.
8373.1
Contract Work Hours and Safety Standards Act - 40 U.S.C. 327, et s_~.~
Copeland Antikickback Act - 18 U.S.C. 874.1
National Environmental Policy Act of 1969 - 42 U.S.C. 4321, et s_~.~
Wild and Scenic Rivers Act, P.L. 90-542, as amended.
Single Audit Act of 1984 - 31 U.S.C. 7501, et s_~.2
Drug-Free Workplace Act of 1988 - 41 U.S.C. 702 through 706.
Executive Orders
Executive Order 11246 - Equal Employment Opportunity1
Executive Order 11990 - Protection of Wetlands
Executive Order 11998 - Flood Plain Management
Executive Order 12372- lntergovernmental Review of Federal Programs.
Executive Order 12699 - Seismic Safety of Federal and Federally Assisted New
Building Construction1
Executive Order 12898- Environmental Justice
Federal Regulations
ao 14 CFR Part 13 - Investigative and Enforcement Procedures.
14 CFR Part 16 - Rules of Practice For Federally Assisted Airport
Enforcement Proceedings.
14 CFR Part 150 - Airport noise compatibility planning.
29 CFR Part 1 - Procedures for predetermination of wage rates.~
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.~
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).1
4! CFR Part 60 - Office of Federal Contract Compliance Programs, Equal
Employment Opportunity, Department of Labor (Federal and federally
assisted contracting requirements).1
49 CFR Part 18 - Uniform administrative requirements for grants and
cooperative agreements to state and local governments.3
Airport Assurances (9/99)
2
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49 CFR Part 20 - New restrictions on lobbying.
49 CFR Part 21 - Nondiscrimination in federally-assisted programs of the
Department of Transportation - effectuation of Title Vl of the Civil Rights
Act of 1964.
49 CFR Part 23 - Participation by Disadvantage Business Enterprise in
Airport Concessions.
49 CFR Part 24 - Uniform relocation assistance and real property
acquisition for Federal and federally assisted programs.~ 2
49 CFR Part 26 - Participation By Disadvantaged Business Enterprises in
Department of Transportation Programs.
49 CFR Part 27 - Nondiscrimination on the basis of handicap in programs
and activities receiving or benefitting from Federal financial assistance.1
49 CFR Part 29 - Government wide debarment and suspension (non-
procurement) and government wide requirements for drug-free workplace
(grants).
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.
49 CFR Part 41 - Seismic safety of Federal and federally assisted or
regulated new building construction.1
Office of Management and Budget Circulars
A-87 - Cost Principles Applicable to Grants and Contracts with State and
Local Governments.
A-133 - Audits of States, Local Governments, and Non-Profit
Organizations
These laws do not apply to airport planning sponsors.
These laws do not apply to pdvate sponsors.
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 the grant agreement.
Responsibility and Authority of the Sponsor.
Public Agency Sponsor: It has legal authority to apply for the 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.
bo Private Sponsor: It has legal authority to apply for the 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
c~,,,~,~,,,~u ,he, e,,,, to act in connectionw,~,," ~" ~"~,,Io,=pp ~ .........~^~ .....,=,,u’4 to ~ ..... ......~.4~
such additional information as may be required.
Airport Assurances (9/99)
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 the grant agreement which it will own or
control.
4. Good Title.
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.
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.
ao 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 the 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.
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 the 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 the 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.
do
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.
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.
Airport Assurances (9/99)
4
eo 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.
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
that the airport will be operated and maintained in accordance Title 49,
United States Code, the regulations and the terms, conditions and
assurances in the grant agreement and shall insure that such
arrangement also requires compliance therewith.
o
10.
11.
12.
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.
Consideration of Local Interest. It has given fair consideration to the interest of
communities in or near where the project may be located.
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.
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.
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.
Pavement Preventive Maintenance. With respect to a project approved after January 1,
1995, for the replacement or reconstruction of pavement at the airport, 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.
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
Airport Assurances (9/99)
5
13.
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.
Accounting System, Audit, and Record Keeping Requirements.
It shall keep all project accounts and records which fully disclose the
amount and disposition by the recipient of the proceeds of the grant, the
total cost of the project in connection with which the 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.
bo 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 the 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 the 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.
15.
16.
17".
Minimum Wage Rates. It shall include, in all contracts in excess of $2,000 for work on
any projects funned under the 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.
Veteran’s Preference. It shall include in all contracts for work on any project funded
under the 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 Veterans of the Vietnam era and 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.
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 the grant agreement.
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 schedu!es approved by the Secreta~ 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
Airport Assurances (9/99)
6
18.
19.
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.
Planning Projects. In carrying out planning projects:
It will execute the project in accordance with the approved program
narrative contained in the project application or with the modifications
similarly approved.
bo It will furnish the Secretary with such periodic reports as required
pertaining to the planning project and planning work activities.
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.
do 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.
It will give the Secretary unrestricted authority to publish, disclose,
distribute, and otherwise use any of the material prepared in connection
with this grant.
It wil! 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.
go 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 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.
Operation and Maintenance.
ao 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
Airport Assurances (9/99)
7
(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.
bo 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.
22. Economic Nondiscrimination.
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.
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-
(l) furnish said services on a reasonable, and not unjustly discriminatory,
basis to all risers 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.
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.
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.
Each air carrier using such airport (whether as a tenant, nontenant, or
subtenant of another air carrier tenant) shall be subject to such
nondiscriminatory and substantially comparable rules, regulations,
Airport Assurances (9/99)
8
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 nontenants and signatory carriers and nonsignatory 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.
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.
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.
ho 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.
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
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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.
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 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.
Provided, however, that 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.
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Co
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.
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:
ao submit to the Secretary such annual or special financial and operations
reports as the Secretary may reasonably request and make such reports
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;
for airport development projects, make the airport and all airport records and
documents affecting the airport, including deeSs, leases, operation and use
agreements, regulations and other instruments, available for inspection by any
duly authorized agent of the Secretary upon reasonable request;
for noise compatibility program projects, make records and documents
relating to the project and continued compliance with the terms, conditions,
and assurances of the 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
do 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:
(i) all amounts paid by the airport to any other unit of government and the
purposes for which eachsuch payment was made; and
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27.
28.
29.
(ii) 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.
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.
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 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.
Airport Layout Plan.
ao 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; and (3) the location of all existing and proposed
nonaviation areas and of all existing improvements thereon. 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.
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
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30.
31.
32.
(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.
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 (b) the period
during which the sponsor retains ownership or possession of the property.
Disposal of Land.
For land purchased under a grant for airport noise compatibility purposes,
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, at the discretion of the
Secretary, 1) be paid to the Secretary for deposit in the Trust Fund, or 2)
be reinvested in an approved noise compatibility project as prescribed by
the Secretary.
(1) 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, (a) upon
application to the Secretary, be reinvested in another eligible airport
improvement project or projects approved by the Secretary at that airport
or within the national airport system, or (b) be paid to the Secretary for
deposit in the Trust Fund if no eligible project exists.
(2) Land shall be considered to be needed for airport purposes under this
assurance if (a) it may be needed for aeronautical purposes (including
runway protection zones) or serve as noise buffer land, and (b) the
revenue 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.
Disposition of such land under (a) or (b) 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.
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
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33.
34.
35.
36.
37.
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.
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.
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 AlP projects,
dated ~ and included in this grant, and in accordance with applicable state policies,
standards, and specifications approved by the Secretary.
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 wilt 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.
Access By Intercity Buses. The airport owner or operator will permit, to the maximum
extent practicable, intercity buses or other modes of transportation to have access to the
airport, however, it has no obligation to fund special facilities for intercity buses or for other
modes of transportation.
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 sha!l 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).
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