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CONTRACT 4591 Other CLOSEDLos Angeles I wc dA It 0 Worl irports FOR 0A LSERLIK" Sam Lee LAX City of El Segundo Uvontatio Residential Sound Insulation Program Van NO" 333 Main -Street, Unit A El,Segundo, CA 90'245-3814 City of Los Angeles Eft GafetM ins Dear Mr. Lee: Baud of Airport ce"Imisslinleis We transmit for your files one fully executed original of the Letter of unn O. Bunon Agreement No. LEA.-4897 for the Implementation of an eligible noise Resident mitigation project pursuant to the Noise Compatibility and Sound vW06a C� *Iasco Vice PrftWont Insulation Grant Program. Gabriel L. EsftaZhian Joc�de G*16w% Attached to the document is a certified copy of Resolution No. 25391 13'eavite .14 Mat1hew M . Johnsen adopted by the Board of Airport Commissioners authorizing thi's Dr, CyntWa A TolloiS Agreement. Girsa Masle Uftdoey Very truly yours, Sandra J. Miller — Secretary BOARD OF All COMMISSIONERS Encl. Id Way LOS Mgele,a Cwifor'nia, 90045-5803 Mail PO. Box 92216 Los Aingelf,,s 90000,22,.t6 TolopboAm 310 646 5252 fistorvot Los Angeles 'World Airports 6 saS WHEREAS,on recommendation of Management, there was presented for approval, a Letter of Agreement with the City of El Segundo for Residential Sound Insulation — Grant Implementation Plan 6 (GIP 6), and authorize the release of funds in the _amount of $9.225 million to implement an eligible no mitigation project; and: WHEREAS, El Segundo established a Sound Insulation Program in the early 1990's and LAX received Noise Mitigation funds from the Federal Aviation Administration (FAA) since the t_avorrtario inception of the program. El Segundo began accepting Los Angeles World Airports' (LAWA) sound insulation grants in 2006. To date, El Segundo has received LAWA grants totaling Van ra'�,'a $40.6 million and FAA grants totaling $48.1 million for an overall total of $88.7 million in City of Las Angeles combined funding;; and Eric Garcetti Mayor WHEREAS, LAWA through the .Stipulated Settlement Agreement provides funding for a noise Board of Airport mitigation project within the FAA approved Alt D 65 Contour, which will use 80% FAA funding Commissioners and 20% LAWA funding. In December 2010, the FAA informed LAWA of its revised policy Sean 0. Burton determination stating FAA funding previously approved under the Part 150 Noise President Compatibility Program (NCP) can only continue for noise mitigation of residences if they fall Valeria C. Velasco within the FAA -approved funding contour. However, the FAA is allowing LAWA to provide Vice President 100% funding using airport revenue for soundproofing projects that were previously approved Gabriel L. Eshaghian under the Part 150 NCP until December 31, 2015; and Jackie Goldberg Beatrice C. Hsu WHEREAS, LAWA through the Los Angeles Intemational Airport (LAX) Master Plan Matthewe Johnson Stipulated Settlement �Agreement agreed to provide up to $22.5 million annually`to the Cities Dr. Cynthle A. Telles f? � p p of El Segundo, Inglewood and the County of Los Angeles. To fund GIP 6, staff'is requesting ExecuLtiveive Director Gina Lindsey El Segundo receive the maximum annual allocation any one.. jurisdiction can receive, which is $9.225 million. LAWA funds will match FAA Airport Improvement Program (AIP) Grant 3-06- 139-74 which was awarded to El Segundo in 2013 for $5.5 million. The City will use $5:0 million of this FAA grant for GIP 6 for a total of $14.2 million in LAWA and FAA funds. El Segundo plans to use the remaining: $500,000 from FAA AIP Grant 74 to design insulation treatments for homes in a subsequent GIP (GIP 7); and WHEREAS, the total cost for GIP 6 is $14.2 million which includes all acoustical, architectural, engineering, administration and construction costs to design and sound insulate 287 units, of which 135 are single-family` homes and 152 are multi -family homes. This will bring the total number of completed homes to 2,160 or 47% of eligible dwelling units; and WHEREAS, estimated breakdown of GIP 6 is as follows: Single- Multi- Single- Family Multi- Family Total Total Program Area Family Allocated Family Allocated Units Allocated Units I Amount Units Amount Amount FAA . wY..S.__ m _.. a $3 6.2M 4M 129 ._i...__$ 8r LAWA 85 $4.8M 3 $3"-.. WA only 50 � $2 8M 79 2M _..,�-158 $ 0,0M 7"rafals: 135 .$7.6M 9 102 $6:6M 287 $14.211 and IWatrld Lhw Los Aniteles Calflomi a 90045, 803 Malt PO, BON 92216 Los AnoOes CaWorinla 90U09-• 21B T"otonhone 310 646 52152 Totornot mvvragav,.�..saa�:co. N w N N, N 11FROINIK02,70 It* N NOW, THEREFORE, BE IT RESOLVED that the Board of Airport Commissioners determined that this action is exempt from the California Environmental Quality Act requirements, adopted the Staff Report; approved the Letter of Agreement with the City of El Segundo for Residential Sound Insulation — Grant Implementation Plan S, authorized the Executive Director to execute said Letter of Agreement with the. City of El Segundo upon approval as t farm by the City Attorney; and further authorized the appropriation and allocation of $9.225' million from the LAX Passenger Facility Charge Fund'to Work Breakdown Structure Element .01. ODP2-71R or from the LAX Revenue a Fund to Work Breakdown Structure Element 1.1 ,03P -700 as may be required. 000 I hereby certify that this Resolution No. 26391 Is true and correct, as adopted by the Surd of Airport Commissioners at its Regular Meeting held on Monday,,April 21, 2014. 7"' Sandra J. Diller—'Seret,ary BOARD OF AJRPRT COMMISSIONERS SSIONERS 6oaFd He ES-RSI-6 City of Los Angeles Executive Director Los Angeles World Airports One World Way Los Angeles, CA 90045 Attn: Sound Insulation Grant Program LETTER AGREEMENT RESIDENTIAL SOUND INSULATION (RSI-6) CITY OF EL SEGUNDO On • { s l 2014 by Resolution No. 2WPAI applicable provisi ns of Resolution No. 22867 and pursuant to Resolution No. 21481, the Board of Airport Commissioners (BOAC) authorized the City of Los Angeles, Department of Airports, also known as Los Angeles World Airports (LAWA), to provide funds, in the total sum of $9,225,000 (LAWA grant amount or funds), to the City of El Segundo for implementation of the FAA -approved LAX Part 150 residential sound insulation project. LAWA's grant amount for the Residential Sound Insulation Project under this Letter Agreement (Project) will be allocated as follows: $1,250,000 will match Federal Aviation Administration (FAA) Grant Agreement (No. AIP 3-06-0139-74) in the total sum of $5,000,000 (FAA grant or funds). The remaining $7,975,000 of the LAWA grant amount will not be matched to federal funds, but will be used for sound mitigation of residential dwelling units located within 60 dB Alt D Contour, but outside of the currently approved FAA funding contour, This second contour was approved by the FAA in a letter dated December 3, 2010 which is attached hereto and incorporated by reference herein as Exhibit 1. The provisions of this Letter Agreement shall apply to all LAWA funds and all FAA grant funds matched by LAWA funds. All parcels proposed for mitigation pursuant to this Grant Implementation Plan (GIP 6) and this Letter Agreement shall meet all LAWA eligibility requirements set forth in this Letter Agreement. In no way shall any statement or procedure or other process to create a new legal obligation on the part of LAWA and/or modify or amend the Stipulated Settlement Agreement adopted by the BOAC as set forth in Resolution No. 22867. To the extent that there is a conflict between the terms of the Stipulated Settlement Agreement and the terms in this Letter Agreement the terms in the Settlement Agreement will supersede. City of El Segundo will comply with, and/or ensure compliance with all of the terms and conditions in this Letter Agreement upon the transfer to City of El Segundo of the LAWA grant amount. LAWA has stipulated that such grant amount shall be transferred upon City of El Segundo's submittal of two (2) fully executed copies of the Letter Agreement. SIGM Segunda&OA GIP W4-2-14 1. This Letter Agreement shall terminate on December 31, 2015 at which time the Project will be completed. If the Project is not completed by this date, City of El Segundo agrees and understands that it and/or LAWA may need to seek further FAA approval for the use of the funds to complete the Project. 2. City of El Segundo will comply with BOAC Resolution No. , applicable provisions of Resolution No. 22867 and Resolution No. 21481, as modified by Resolution No. 22867, and all FAA Grant requirements and assurances, as well as other requirements and guidelines pertaining to the Project.' The City of El Segundo will further comply with any relevant and more restrictive land use mitigation program or sound insulation requirements or guidelines established by the State of California pursuant to the Noise Standards found in Tale 21, Subchapter 6 of the California Code of Regulations (California Airport Noise Standards) or in the California Noise Insulation Standards found in Title 24, Chapter 12, of the State Building Code, or as otherwise set forth herein. Whenever there is a conflict, LAWA will determine, in consultation with City of El Segundo and all concerned parties, which requirements or guidelines pertain to the Project. The City of El Segundo has been provided with copies of the aforementioned Resolutions. 3. The City of El Segundo has submitted to LAWA signed copies of the FAA Grant Agreement(s) and copies of the FAA Grant Application(s) supporting the FAA grant(s), which are attached hereto and incorporated by reference herein as Exhibits 2 and 3. 4. In undertaking the Project, City of El Segundo acknowledges LAWA's technical and oversight responsibilities under the California Airport Noise Standards and its auditing responsibilities as a grant issuing agency. City of El Segundo will work cooperatively and in good faith with LAWA in performing and documenting its work in furtherance of this Letter Agreement and in support of LAWA's responsibilities. If City of El Segundo has not met the conditions and requirements established herein, LAWA may take any of the following actions: (1) upon due notice, City of El Segundo will refund to LAWA the unencumbered funds that City of El Segundo has already received under this Letter Agreement for the Project, (2) LAWA will withhold additional funds under the grant, and/or (3) City of El Segundo will become ineligible for future funds. 5. City of El Segundo will ensure the timely preparation and submittal of all documents required by LAWA. Where documents required by this Letter Agreement are prepared for and submitted for LAWA's approval after execution of this Letter Agreement, or required to be periodically updated, resubmitted and approved by LAWA after execution of this Letter Agreement, but such documents are not submitted by the required dates and have become past due, City of El Segundo agrees to suspend expenditure of all moneys transferred by this Letter Agreement until all such past due documents are submitted to and approved by LAWA, excepting only expenditures necessary to prepare or update the past due documents. 6. Pursuant to the February 16, 2006 Stipulated Settlement Agreement, except as provided below, LAWA shall not require the dedication of avigation easements, noise easements, easements of right-of-way, or any other easements (collectively 'The parties acknowledge the FAA's recent 'Program Guidance Letter 12-09, AIP Eligibility and Justification Requirements for Noise Insulation Projects" ("PGL'. If and to the extent that the PGL is applicable, the City of El Segundo will comply with it. SIGNS S"Mdo&OA GIP 614-2-14 2 "easements") in return for funding of, or participation in, the residential acoustical treatment portion of iAWA's Airport Noise Mitigation Program. Where applicable sections of the California Airport Noise Standards (Cal. Code of Regs. Title 21, Section 5000 et seq.) deem acoustical treatments alone insufficient to convert residential land uses to compatibility with airport operations, the following conditions apply: (1) In the case of residences constructed on or after January 1, 1989, LAWA may require the dedication of an easement in return for acoustical treatment funding from LAWA; (2) In the case of residences constructed before January 1, 1989 exposed to a noise level of 75 dB CNEL or above, and having an exterior normally cognizable private habitable area such as a backyard, patio or balcony, LAWA may condition the provision of acoustical treatment funding from LAWA on the property owner's agreement to LAWA's acquisition of an easement -for Fair Market Value. if the owner of property failing in one of the two above -listed categories applies to the City of El Segundo for residential sound insulation, the City of El Segundo shall use LAWA grant funds and begin construction for such insulation only if the property owner has granted and has fully executed a noise easement. In addition, LAWA must receive such fully executed and recorded noise easement for each specific property prior to completion of the construction of such sound insulation. The noise easement to be dedicated will be in substantially the form of the Sample Noise Easement attached to the Stipulated Settlement approved by BOAC Resolution No. 22867, or another form of easement mutually agreed to by LAWA and the property owner. 7. The City of Et Segundo will issue a Title 21 Compliance Certificate for each eligible incompatible property that it sound insulates with LAWA and/or FAA funds and for each incompatible property which is offered sound insulation but is not insulated either as the result of an overt declination of the offer or a lack of response to the offer, or due to the ineligibility of the property caused by failure to comply with the requiremen€s of Section 20, below, or other cause of ineligibility. The City of El Segundo will ensure that Title 21 Compliance Certificates provided for herein are prepared in a form, and are distributed and filed as required by LAWA. City of El Segundo acknowledges that any incompatible property which is offered sound insulation, but is not insulated for any of the reasons listed above, may at a later date, participate in the program provided the causes for ineligibility are eliminated to the satisfaction of LAWA. A. In lieu of the Title 21 Compliance Certificate for properties that decline sound insulation or fail to respond to a valid offer for sound insulation, the City of El Segundo shall obtain the property owner's written statement of declination or provide other written evidence of the property owner declining a valid offer of acoustical treatment or the property owners failure to respond to a valid written offer of acoustical treatment. Such evidence shall consist of a certified copy of the offer letter and proof of service. A copy of such additional documentation shall be submitted to LAWA with the Final Grant Report. The City of El Segundo shall maintain a copy of such documentation until notified otherwise by LAWA: 8. Any funds, and interest thereon, remaining from LAWA grant amount after completion of the Project will be refunded to LAWA within ninety (90) days of completion of the Project, or will be reinvested in a subsequent LAWA-approved sound insulation project pursuant to such instructions as LAWA may issue. SIGP/EI Segundv&OA GIP 014-2-14 9. City of El Segundo will provide LAWA with all pertinent information to prepare and maintain an airport incompatible land use program plan, known as the Airport Noise Mitigation Plan (ANMP) in compliance with guidelines developed and maintained by LAWA. The ANMP will set forth in narrative and graphic form LAWA's objectives, priorities, and program requirements, and City of El Segundo's mitigating actions, and time schedule to bring eligible incompatible land use within its jurisdiction into compliance with the California Airport Noise Standards. The ANMP will be comprehensive in that it will include all proposed mitigation strategies including both sound insulation and acquisition/recycle programs. A. The City of El Segundo will update the ANMP information at least annually no later than March 31st of each year. The ANMP information will include the City of El Segundo's progress in terms of number of dwelling units sound insulated, cost estimates and other program elements that are pertinent to achieving total compliance with the California Airport Noise Standards. The information submitted will conform to the requirements set forth in the most recent version of the "Guidelines for Cumulative Annual Progress Report" developed by LAWA and provided to City of El Segundo. The ANMP information will describe the number of Noise Easements that were obtained for properties that require an easement to be sound insulated, and the process for issuing a Title 21 Compliance Certificate for all properties to be sound insulated. Data will be submitted in a format specified by LAWA. 10. The City of El Segundo has prepared the required Grant Implementation Plan or (GIP) for properties to be sound insulated with the combined FAA and LAWA funds covered by this Letter Agreement. GIP 6 was prepared in compliance with guidelines developed and maintained by LAWA, is in narrative and graphic form and specifies priorities, and describes how they were set, mitigation measures to be taken, time - schedules, estimated costs (including an estimated total cost breakdown for each dwelling unit), and other pertinent Project elements. The GIP 6 sets forth a prioritized schedule to be followed that ensures that incompatible sound insulation will be systematically offered to the owner(s) of each eligible property in accordance with the program and Project priorities set forth under Section 11, below. 11. The City of El Segundo recognizes that it is LAWNs intent to achieve compliance with the California Airport Noise Standards as quickly, efficiently and cost effectively as possible. In pursuing this objective, it is LAWAks intent that land use mitigation programs be prioritized so that incompatible properties that will continue to remain in the Airport Noise Impact Area (based on the latest Quarterly Noise Report) the longest, that are within the highest noise zones, and that are not projected for early conversion or redevelopment through normal market forces, should receive the highest priority for LAWA funds. 12. The City of El Segundo recognizes that it is LAWA's objective to establish a systematic and, to the extent possible, uniform computerized record -keeping system for all residential sound insulation projects funded or partially funded by LAWA. The City of El Segundo will work cooperatively with and assist LAWA in establishing and maintaining such a system. SIGP/EI Segundo&QA GIP 614-2-14 ,4 13. In further cooperating with maintenance of a unified system of records, the City of El Segundo will prepare any and all maps included in any document required or submitted pursuant to this Letter Agreement so as to conform to LAWA specified format. 14. In the event the required documents are not submitted to LAWA as provided by this Letter Agreement, City of EI Segundo will limit, until such documents are submitted and approved by LAWA, the expenditure of LAWA funds to the preparation of said documents and to Project preparatory work that is exclusive of actual construction costs described in Section 16 below. 15. BOAC Resolution No. 21481 Section 8 states "Funding under this policy will be conditional on the sponsoring local jurisdiction having adopted local building code regulations and a specific plan and/or other necessary regulations to ensure that all new residential structures and all added or expanded habitable rooms with any modified or reconstructed residental structure achieve an interior CNEL of at least 45 dB." The City of El Segundo has adopted an ordinance satisfying this requirement. 16. In undertaking and documenting incompatible Residential Sound Insulation (RSI) projects, the City of El Segundo will ensure and will document that not less than 80% of LAWA grant funds are allocated to actual construction costs, including all required building permits. City of El Segundo will ensure that non -construction planning; engineering, design, noise measurement and administrative overhead costs (undertaken by either or both City of El Segundols staff or consultants) shall not exceed 20% of total Project cost. The City of El Segundo will inform LAWA in the event that the non -construction costs exceed 20% of the total Project cost and explain the reason for doing so. LAWA grant funds may be used only for materials and activities that are also eligible for purchase with FAA grant funds and are subject to the same limitations imposed on the use of the FAA grant funds. City of El Segundo will obtain specific written authorization from LAWA before deviating from any of these funding criteria. All such actual costs, calculations, and deviations, if any, shall be documented in the final Grant Report for the Project. 17. To the maximum extent possible, the City of EI Segundo will, in conducting the Project, conform to the recommendations set forth in LAWNs "Design Guide for Residential Sound Insulation" (Design Guide) in the vicinity of LAWA airports as such document may be updated from time to time. City of El Segundo will obtain written approval from LAWA before approving any changes or deviations from such Design Guide recommendations. All such deviations will be documented in the Final Grant Report for the Project. 18. In undertaking the Project, City of El Segundo will provide LAWA a digital copy, on a compact disc (CD), of the construction bid package including design specifications and plans at least 30 days prior to the bid release date. LAWA will provide comments or approval within 15 days, if LAWA does not respond within 15 days, the City of El Segundo will have the authority to move ahead with the advertising for -bids. 19. In undertaking the Project, the City of El Segundo will utilize the 75 dB 2Q05 contour pursuant to the California Airport Noise Standards, to determine the required interior noise level criterion and to select the necessary type of sound insulation materials and installation measures and requirements specified in LAWA's design guide to achieve the interior noise level criterion for each building to be sound insulated. For those SIGP/EI SegundolLOA GIP 614-2-14 dwellings located outside the 75 dB 2Q05 contour, the latest LAWA published LAX Quarterly Report will be utilized to determine the required interior noise level criterion and insulation materialsreferenced above. The 75 dB 2Q05 contour is attached hereto and incorporated by reference herein as Exhibit 4. The latest LAWA published LAX Quarterly Report is available via the LAWA website at hft2://www.lawa. r (welcome Iax.as x?id 1090. 20. In undertaking the Project, City of El Segundo will not use and will not authorize the use of LAWA funds to remedy building or safety code violations, to bring the property into compliance with current building or safety codes, to repair seismic or other pre-existing damage, or to change the general size, layout or aesthetic properties of the building other than those changes directly incidental to the installation of the sound insulation materials. The City will only use LAWA and/or FAA funds to provide the standard package of noise insulation improvements which are a part of the core insulation package, and which can include some combination of window replacement (with or without grids), door replacement (solid, wagon wheel, etc.), insulation, caulking and weather-stripping and central air ventilation systems. The City will not use LAWA or FAA funds to offer or provide upgrades not included in the standard package of noise insulation improvements that are not a part of the core insulation package. Upgrades are defined as elements providing a higher or improved standard of equipment or machinery than what the dwelling unit currently has, and for which the resident may elect to have included in their designs. 21. In undertaking the Project, the City of El Segundo will provide a random sample of pre - and post -construction noise testing for at least 10% of the total number of affected residential units. A post -construction noise audit, when conducted, will document the noise reduction results of the. Project and whether or not the California Airport Noise Standards objective of 45 dB interior CNEL is achieved in each habitable room. Such tests and audit will be documented in the Grant Report for the Project. 22. In undertaking the Project, City of El Segundo will utilize the following definition when determining the eligibility of habitable rooms and spaces within an eligible building; Habitable space (room) is space in a residence for living, sleeping, eating or cooking. Bathrooms, toilet compartments, closets, halls, storage or utility space, garages and similar areas are not considered habitable space. All habitable rooms within a building are to be sound insulated. Elements of sound insulation, such as replacement windows or exterior doors, may be considered for application to non -habitable space if their omission would be detrimental to meeting sound insulation objectives in adjacent habitable spaces. This will normally be limited to entrance hallways, bathrooms, and to interior doors connecting the main residence with garage spaces. Garage and utility room exterior doors and windows are not eligible for treatment. The City of El Segundo will submit any application of sound insulation elements to non -habitable space to LAWA for approval prior to FAA review and approval of the plans and specifications for sound insulating buildings within the Project. 23. At the time of initial enrollment of each building owner (the Owner) in the Project, and prior to conducting noise testing or the preparation of sound insulation plans for the building(s), the City of El Segundo will require the Owner to sign an agreement authorizing the installation of sound insulation and any FAA prescribed agreements, $IGP/E15egundo/LOA GIP 614-2-14 6 that may exist, to maintain the sound insulation remedies (e.g., windows, doors, ventilation, attic insulation, etc.) in a state of repair consistent with their use for sound insulation. 24. At the time of final enrollment of the Owner in the Project, and prior to ordering the sound insulation materials for the property, City of El Segundo will afford the Owner an opportunity to review the sound insulation plans for the building(s) and will require the Owner to sign LAWA-approved Authorization to Proceed. City of El Segundo will issue Title 21 Compliance Certificates for incompatible properties that are to be sound insulated. Such Title 21 Compliance Certificates will be signed by an authorized representative of the City of El Segundo and submitted to LAWA. 25. In undertaking the Project, the City of El Segundo will conduct progress meetings with LAWA staff, and will provide progress reports on an as needed basis setting forth information required by LAWA in a format established by LAWA. 26. Within 60 days of completion of the Project funded under this Letter Agreement, and in accordance with guidelines developed and maintained by LAWA, City of El Segundo will prepare and submit one (1) hard copy and one digital copy on a compact disc(CD) of the final Grant Report for the Project to LAWA showing the results of the Project, the allocation of actual sound insulation (constructionMon-construction) expenditures (both LAWA and FAA) among the individual properties in the Project, a listing of all Title 21 Compliance Certificates issued, and the total allocation, in detail satisfactory to LAWA, of actualexpenses (both LAWA and FAA) by project category and sub -category: e.g., for project planning, project evaluation and design, project construction, and project administration. All general administrative overhead expenses will be detailed separately from construction -related administrative expenses. The final Grant Report Will contain an explicit comparison between the estimated total cost breakdown that was submitted in GIP V and the actual total cost for construction for each dwelling unit. 27. In addition to the final Grant Report, City of El Segundo will provide to LAWA an updated Cumulative Annual Progress Report (CAPR), documenting the historical and ongoing receipt and expenditure of all LAWA grant funds and FAA matching funds, and all FAA Grants obtained without matching LAWA grant funds, and the submittal of all Easements and Title 21 Compliance Certificates by City of El Segundo. A cumulative list of all properties made compatible with the California Airport Noise Standards will be maintained by City of El Segundo and at least annually updated and attached to the Cumulative Annual Progress Report. The CAPR will be updated annually and submitted to LAWA no later than three (3) months after the end of the calendar year. The CAPR will be prepared 'in accordance with the "Guidelines for Cumulative Annual Progress Report„. LAWA will provide the City of El Segundo the most recent version of these guidelines no later than January 1 of each calendar year if revisions have been made to the one already provided by LAWA to the City of El Segundo. The City of El Segundo shall provide to LAWA one (1) hard copy and one digital copy on a compact disc (CD) of the CAPR. 28. The City of El Segundo shall also complete an annual accounting report and audit prepared by a Certified Public Accounting (CPA) firm for the Project. 29. In implementing this sound insulation program City of El Segundo will utilize an accounting system that will comply with the generally accepted government auditing SIGNED Segundo/LOA GIP 614-2-14 A standards (GAGAS), as fully described in the United States Government, General Accountability Office. This standard includes, but is not limited to, the following 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 the grant, the total cost of the project in connection with which the grant is given or used, and the amount and nature of that portion of the cost of the project supplied by other sources, the amount and disposition of any interest earned on LAWA funds, 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 all State and Federal laws, regulations, and requirements. B. It shall make available to the Controller of the City of Los Angeles and the Executive Director of LAWA, or any of their duly authorized representatives, for the purpose of audit and examination, any books, documents, papers, and records of the City of El Segundo that are pertinent to the grant. The Controller of the City of Los Angeles or the Executive Director of LAWA may require that an appropriate audit be conducted by the City of El Segundo. In any case in which an independent audit is made of the accounts of the City of El Segundo relating to the disposition of the proceeds of this grant, or relating to the project with which the grant was given or used, it shall file a certified copy of such audit with the Controller of the City of Los Angeles and the Executive Director of LAWA not later than 6 months following the close of the fiscal year for which the audit was made. This Letter Agreement is effective on the date it is fully executed, which is the latest date it is signed by the authorized party. (SIGNATURE PAGE TO FOLLOW) SIGP/EI Segundo/LOA GIP 614-2-14 8 APPROVED AS TO FORM CITY OF EL SEGUNDO City Attorney City of EI Segundo b„ ATTEST: N � 1-1-1 Michael Feuer, City Attorney City of Los Angeles APPROVED AS TO FORM By:rS;]-:7\Qk A sistanMrigeles uty City Attorney City of Date: -11 1 g dzC9,w (Pr �I i At dr Name) 10 CITY OF LOS ANGELES by Director /Los Angeles w • Airports Date: Lkry AL • 4(W,Deputy' ffl5= cwvwier Las Angeles World Alrports s S6Wkft&0A as en z-t4