CONTRACT 3353 Grant Agreement CLOSEDlCJ
U.S. Department
of Transportation
Federal Aviation
Administration
GRANT AGREEMENT
Part I - Offer
Date of Offer June 3, 2005
Los Angeles International Airport /Planning Area
Project No. 3-06-0139-26
Contract No. DTFA08-04-C-21735
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 February 11, 2004 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 70-74 DNL in the city of El Segundo
(approximately 100 units).
all as more particularly described in the Project Application.
Page 1 of 4 Pages
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
The maximum obligation of the United States payable under this offer shall be $2,000,000.00.
For the purposes of any future grant amendments which may increase the foregoing maximum obligation of the
United States under the provisions of Section 47108(b) of the Act, the following amounts are being specified for this
purpose:
$ 0.00 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 August 4, 2004 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.
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.
Page 2 of 4 Pages
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 90 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 subject the construction work on the project to such inspection and approval during
the construction or installation 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.
14. The attached Assurances is incorporated hereto with the Grant Offer and is made a part hereof.
Page 3 of 4 Pages
3353•
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
Ipn P, Milligan
ervisor, 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 20th
(SEAL)
Attest:
day of July
Title: Cathy Domann, Deputy City Clerk
Ci of El Segundo
` (Name of Sponsor)
r'
tSign#of Sponsors Designated Official Representative)
k,
By: Hary Strenn
(Typed Name of Sponsors Designated Official Representative)
Title: City Manager
(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 Spolhir 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.. . ' ".2
Dated at- J Z Z _`7_ this da,
Page 4 of 4 Pages
ASSURANCES
Non -Airport Sponsors Undertaking Noise Compatibility Program Projects
A. General.
1. These assurances shall be complied with in the performance of grant
agreements for noise compatibility projects undertaken by sponsors who are not
proprietors of the airport which is the subject of the noise compatibility program.
2. These assurances are required to be submitted as part of the project application
by sponsors requesting funds under the provisions of Title 49, U.S.C., subtitle
VII, as amended. Sponsors are units of local government in the areas around
the airport which is the subject of the noise compatibility program.
3. Upon acceptance of the grant offer by the sponsor, these assurances are
incorporated in and become part of the grant agreement.
B. Duration. 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 or throughout the useful life of the items installed under the project, but in any
event not to exceed twenty (20) years from the date of the acceptance of a grant offer of
Federal funds for the project. However, there shall be no time 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 as specified in the
assurance.
C. Sponsor Certification. The sponsor hereby assures and certifies, with respect to this
grant that:
1. General Federal Requirements. It will comply with all applicable Federal laws,
regulations, executive orders, policies, guidelines and requirements as they
relate to the application, acceptance, and use of Federal funds for this project
including but not limited to the following:
Federal Legislation.
a. Title 49, U.S.C., subtitle VII, as amended.
b. Davis -Bacon Act - 40 U.S.C. 276(a). et seq.
C. Federal Fair Labor Standards Act - 29 U.S.C. 201 et seq.
d. Hatch Act - 5 U.S.C. 1501, et seq.
e. Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970 - 42 U.S.C. 4601, et seq.
f. National Historic Preservation Act of 1966 - Section 106 - 16
U.S.C. 470(f).
g. Archeological and Historic Preservation Act of 1974 - 469
through 469c.
h. Native American Grave Repatriation Act - 25 U.S.C. Section
3001, et seq.
i. Clean Air Act, P.L. 90-148, as amended.
j. Coastal Zone Management Act, P.L. 93-205, as amended.
k. Flood Disaster Protection Act of 1973 - Section 102(a) -42
U.S.C. 4012a.
I. Title 49, U.S.C., Section 303, (formerly known as Section 4(f)).
M. Rehabilitation Act of 1973 - 29 U.S.C. 794.
n. Civil Rights Act of 1964 - Title VI - 42 U.S.C. 2000d through d-4.
o. Age Discrimination Act of 1975 - 42 U.S.C. 6101, et seq.
Nonairport Sponsor Assurances
P. American Indian Religious Freedom Act, P.L. 95-341,
q Architectural Barriers Act of 1968 - U.S.C. 4151, et seq.
r. Power plant and Industrial Fuel Use Act of 1978 - Section 403 -
42 U.S.C.8373.
S. Contract Work Hours and Safety Standards Act - 40 U.S.C. 327, et seq.
t. Copeland Antikickback Act -18 U.S.C. 874.
U. National Environmental Policy Act of 1969 - 42 U.S.C. 4321, et
seq.
V. Wild and Scenic Rivers Act, P.L. 90-542, as amended.
w, Single Audit Act of 1984 - 31 U.S.C. 7501, et seq.
X. Drug -Free Workplace Act of 1988 - 41 U.S.C. 702 through 706.
Executive Orders
Executive Order 11246 - Equal Employment Opportunity
Executive Order 11990 - Protection of Wetlands
Executive Order 11998 — Flood Plain Management
Executive Order 12372 - Intergovernmental Review of Federal
Programs.
Executive Order 12699 - Seismic Safety of Federal and Federally
Assisted New Building Construction
Executive Order 12898 - Environmental Justice
Federal Regulations
a. 14 CFR Part 13 - Investigative and Enforcement Procedures.
b. 14 CFR Part 16 - Rules of Practice For Federally Assisted
Airport Enforcement Proceedings.
C. 14 CFR Part 150 - Airport noise compatibility planning.
d. 29 CFR Part 1 - Procedures for predetermination of wage rates.
e. 29 CFR Part 3 - Contractors and subcontractors on public
building or public work financed in whole or part by loans or
grants from the United States.
f. 29 CFR Part 5 - Labor standards provisions applicable to
contracts covering federally financed and assisted construction.
g. 41 CFR Part 60 - Office of Federal contract compliance
programs, equal employment opportunity, Department of Labor
(Federal and federally -assisted contracting requirements).
h. 49 CFR Part 18 - Uniform administrative requirements for grants
and cooperative agreements to state and local governments.
i. 49 CFR Part 20 - New restrictions on lobbying.
j. 49 CFR Part 21 - Nondiscrimination in federally -assisted
programs of the Department of Transportation - effectuation of
Title VI to the Civil Rights Act of 1964.
k. 49 CFR Part 24 - Uniform relocation assistance and real property
acquisition regulation for Federal and federally assisted
programs.
1. 49 CFR Part 26 — Participation By Disadvantaged
Business Enterprises in Department of Transportation
Programs.
M. 49 CFR Part 27 - Non -Discrimination on the basis of handicap in
programs and activities receiving or benefitting from Federal
financial assistance.
Nonairport Sponsor Assurances
2
® . . 6
n. 49 CFR Part 29 — Government wide debarment and suspension
(non -procurement) and government wide requirements for drug -
free workplace (grants).
o. 49 CFR Part 30 - Denial of public work contracts to suppliers of
goods and services of countries that deny procurement market
access to U.S. contractors.
P. 49 CFR Part 41 - Seismic safety of Federal and federally
assisted or regulated new building construction.
Office of Management and Budget Circulars
a. A-87 - Cost Principles Applicable to Grants and Contracts with
State and Local Governments.
b. A-133 -Audits of States, Local Governments, and Non -Profit
Organizations.
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.
2. Responsibility and Authority of the 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.
3. Sponsor Fund Availability.
a. It has sufficient funds available for that portion of the project
costs which are not to be paid by the United States.
b. It has sufficient funds available to ensure operation and
maintenance of items funded under the grant agreement which it
will own or control.
4. Good Title. For projects to be carried out on the property of the sponsor, it holds
good title satisfactory to the Secretary to that portion of the property upon which
Federal funds will be expended or will give assurance to the Secretary that good
title will be obtained.
5. Preserving Rights and Powers.
a. It will not enter into any transaction, or 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 to acquire, extinguish, or modify
any outstanding rights or claims of right of others which would
interfere with such performance by the sponsor. This shall be
done in a manner acceptable to the Secretary.
b. It will not sell, lease, encumber, or otherwise transfer or dispose
of any part of its title or other interests in the property, for which it
holds good title and upon which Federal funds have been
expended, for the duration of the terms, conditions, and
Nonairport Sponsor Assurances
3
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 making
binding upon the transferee, all of the terms, conditions and
assurances contained in this grant agreement.
C. For all noise compatibility 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 governmental unit. Except as otherwise
specified by the Secretary, that agreement shall obligate that
governmental unit 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 project.
That agreement and changes thereto must be approved in
advance by the Secretary.
d. For noise compatibility 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.
6. Consistency with Local Plans. The project is reasonably consistent with plans
(existing at the time of submission of this application) of public agencies that are
authorized by the State in which the project is located to plan for the
development of the area surrounding the airport.
7. Consideration of Local Interest. It has given fair consideration to the interest of
communities in or near which the project may be located.
8. 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 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 should be kept in accordance with an
accounting system that will facilitate an effective audit in
accordance with the Single Audit Act of 1984.
b. It shall make available to the Secretary and the Comptroller
General of the United States, or any of their duly authorized
representatives, for the purpose of audit and examination, any
books, documents, papers, and records of the recipient that are
pertinent to 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 no later than six (6) months following the close of the
fiscal year for which the audit was conducted.
Nonairport Sponsor Assurances
4
9. Minimum Wage Rates. It shall include, in all contracts in excess of $2,000 for
work on any projects funded 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.
10. 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 administrative,
executive, and supervisory positions), preference shall be given to veterans of
the Vietnam era and disabled veterans as defined in Section 47117 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.
11. 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 by the Secretary, shall be incorporated into
this grant agreement. Any modifications to the approved plans, specifications,
and schedules shall also be subject to approval by the Secretary and
incorporation into the grant agreement.
12. 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 with the plans, specifications, and schedules approved by the
Secretary for the project. It shall subject the construction work on any project
contained in an approved project application to inspection and approval by the
Secretary and such work shall be in accordance with regulations and procedures
prescribed by the Secretary. Such regulations and procedures shall require such
cost and progress reporting by the sponsor or sponsors of such project as the
Secretary shall deem necessary.
13. Operation and Maintenance. It will suitably operate and maintain noise program
implementation items that it owns or controls upon which Federal funds have
been expended.
14. Hazard Prevention. It will protect such terminal airspace as is required to protect
instrument and visual operations to the airport (including established minimum
flight altitudes) by preventing the establishment or creation of future airport
hazards on property owned or controlled by it or over which it has land use
jurisdiction.
15. Compatible Land Use. It will take appropriate action, including the adoption of
zoning laws, to the extent reasonable, 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, it
will not cause or permit any change in land use, within its jurisdiction that will
reduce the compatibility, with respect to the airport, of the noise compatibility
measures upon which Federal funds have been expended.
Nonairport Sponsor Assurances
16. Reports and Inspections. It will submit to the Secretary such annual or special
financial and operations reports as the Secretary may reasonably request. It will
also 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.
17. Civil Rights. It will comply with such rules as are promulgated, to ensure 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 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.
18. Engineering and Design Services. It will award each contract or subcontract for
program management, construction management, planning studies, feasibility
studies, architectural services, preliminary engineering, design, surveying,
mapping, or related services with respect to the project in the same manner as a
contract for architectural and engineering services as 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.
19. 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.
20. Disposal of Land.
a. 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.
b. Disposition of such land under (a) 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.
21. 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
Nonairport Sponsor Assurances
333.
acquisition policies in Subpart B of 49 CFR Part 24 and will pay or reimburse
property owners for necessary expenses as specified in Subpart B. (2) It will
provide a relocation assistance program offering the services described in
Subpart C and fair and reasonable relocation payments and assistance to
displaced persons as required in Subparts 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.
22. 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 nondiscrimination 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 cant' out its terms shall be treated as a violation of this agreement.
Upon notification to the recipient of its failure to carry out its approved program,
the Department may impose sanctions as provided for under Part 26, and may, in
appropriate cases refer the matter for enforcement under 18 U.S.C. 1001 and/or
the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801).
Nonairport Sponsor Assurances
7