CONTRACT 3059 Grant Agreement CLOSEDU.S. Department
of Transportation
Federal Aviation
Administration
GRANT AGREEMENT
Part I - Offer
Date of Offer 5EN - h ZOOZ
Los Angeles International Airport /Planning Area
Project No. 3-06-0139-20
Contract No. DTFA08-02-C-21527
TO; City of El Segundo
(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 Project Application dated May 09, 2002 for a grant of Federal funds for
a project at or associated with the Los Angeles International Airport/Planning Area which Project Application, as approved
by the FAA, is hereby incorporated herein and made part hereof; and
WHEREAS, the FAA has approved a project for the Airport or Planning Area (herein called the "Project") consisting of the
following:
Noise mitigation measures for residences within 75 DNL in the city of El Segundo
(approximately 100 units).
all as more particularly described in the Project Application.
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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, 80 percent of those eligible project costs.
The Offer is made on and subject to the following terms and conditions:
Conditions
1, The maximum obligation of the Units—d States payable under this offer shall be $2,000,000.00.
For the ni it uses 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:
$ 0.00 for planning
$ 2,000,000.00 for airport development or 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 delays 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 September 30, 2002 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 funds 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
judgment, 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 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.
9. Buy American Requirement. Unless otherwise approved by the FAA, it 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.
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3059...
10. It is understood and agreed by and between the parties hereto that this Grant Offer is made and accepted based on
estimates for the described airport development or noise program implementation; and the parties hereby covenant
and agree that within 210 days from the date of acceptance of this Grant Offer, the Sponsor shall receive bids for the
approved project contained within the grant description.
11. No payment shall be made under the terms of this grant agreement for work accomplished on privately owned land
until the sponsor submits the agreement with the owner of the property required by Assurance 5d of the Part V
Assurances and such agreement is determined to be satisfactory. As a minimum, the agreement with the private
owner must contain the following provisions:
11.1. The property owner shall subiPci the construction work on the project to such inspection and approval during
the construction or ingta:idtion of the noise compatibility measures and after completion of the measures as
may reasonably be requested by the Secretary or the sponsor.
11.2. The property owner shall assume the responsibility for maintenance and operation of the items installed,
purchased or constructed under this grant agreement. Neither the FAA nor the sponsor bears any
responsibility for the maintenance and operation of these items.
11.3. If Federal funds for the noise compatibility measures are transferred by the sponsor to the owner of the private
property, or the owner's agent, the property owner shall agree to maintain and make available to the Secretary
or the sponsor, upon reasonable request, records disclosing the amount of funds received and the disposition
of those funds.
11.4. The property owner's right to sue the owner of Los Angeles International Airport for adverse noise impact will be
abrogated if the property owner deliberately or willfully acts to reduce or destroy the effectiveness of the noise
compatibility measures during the useful life of such measures. This obligation shall remain in effect
throughout the useful life of the noise compatibility measures, but not to exceed twenty (20) years from the date
of the sponsor's acceptance of Federal aid for the project.
12. The Sponsor agrees to request cash drawdowns on the letter of credit only when actually needed for its
disbursements and to timely reporting of such disbursements as required. It is understood that failure to adhere to
this provision may cause the letter of credit to be revoked.
13. 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.
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3059. ..
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
We
P. Miftlig,arvisor, Standards Section
Part II - Acceptance
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 1 7th day of September, 2002.
By:
(SEAL)
Title:
Attest:
Title: Cathy Domann, Deputy City Clerk
City of El Segundo
(Name of Sponsor)
(Signature of Sponsors Designated Official Representative)
MJkP Cordon
(Typed Name of Sponsors Designated Official Representative)
Mayor of the City of E1 Segundo
(Typed Title of Sponsors Designated Official Representative)
/ CERTIFICATE OF SPONSOR'S ATTORNEY
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
California. Further, I have examined the foregoing Grant Agreement and the actions taken by said Sponsor and Sponsor's
official representative has been duly authorized and that the execution thereof is in all respects due and proper 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 this ""'° day 0-
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