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CONTRACT 3861 Other�. Soard 3861 . ES -RSI -III City of Los Angeles Executive Director Los Angeles World Airports One World Way Los Angeles, CA 90045 Attn: Soundproofing Program LETTER AGREEMENT RESIDENTIAL SOUND INSULATION (RSI -III) CITY OF EL SEGUNDO On , 2008 by Resolution No. 31052L applicable provisions 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 (LAWA), to provide funds, in the total sum of $5,587,500 (hereinafter referred to as 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 is to partially match Federal Aviation Administration (FAA) Grant Agreement No. AIP 3 -06- 0139 -43, in the total sum of $6,000,000 (hereinafter referred to as the FAA grant or funds). 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 III) and Letter Agreement (Agreement) shall meet all LAWA eligibility requirements set forth in this Letter Agreement. This Letter Agreement does not in any way modify the Stipulated Settlement Agreement adopted by the BOAC as set forth in Resolution No. 22867. City of El Segundo will comply with, or ensure compliance with all of the terms and conditions in this Letter Agreement upon the transfer to City of El Seg.undo of the LAWA grant amount. LAWA has stipulated that such grant amount shall be transferred in accordance with a payment schedule that includes no fewer than two partial payments as follows: First payment of $5,028,750 upon City of El Segundo's submittal of five (5) fully executed copies of the Letter Agreement, and LAWA's approval of the Grant Implementation Plan; a second and last payment of $558,750 upon LAWA receipt and approval of the final Grant Report required by this Agreement to be submitted on completion of the funded project(s). City of El Segundo will comply with BOAC Resolution No. 23� 5z, applicable provisions of Resolution No. 22867 and Resolution No. 21481, as modified by Resolution 22867, and all FAA Grant or other requirements and guidelines pertaining to this project. 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 Title 21, Subchapter 6 of the California Administrative Code (California Airport Noise Standards) or in the California Noise Insulation Standards found in Title 24, Chapter 12, Section F: L U M P \E L S E G U N D 0 \G I P I I 1 9/24/08 , 1208A 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. 2. 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 herein. 3. In undertaking sound insulation projects, 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 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 funds that City of El Segundo has already received under this Letter Agreement, (2) LAWA will withhold additional funds under the grant, and /or (3) City of El Segundo will become ineligible for future funds. 4. City of El Segundo will ensure the timely preparation and submittal of all documents required by LAWA. Where documents required by this Agreement are prepared for and submitted for LAWA's approval after execution of this Agreement, or required to be periodically updated, resubmitted and approved by LAWA after execution of this 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 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. 5. 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 easements) in return for funding of, or participation in, the residential acoustical treatment portion of LAWA's Airport Noise Mitigation Program. Where applicable sections of the California Airport Noise Standards (Cal. Code Regs. Tit. 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 falling 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 for such insulation only if LAWA and /or the property F:LUMP \ELSEGUNDO \GIPIII 9/24/08 'Z } 386 � owner presents to the City of El Segundo documentary evidence that the property owner has committed to dedicate a noise easement to LAWA prior to commencing construction of the sound insulation. The noise easement to be dedicated will be in substantially the form of 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. 6. City of El Segundo will submit a Title 21 Compliance Certificate for each eligible incompatible property that it sound insulates with LAWA and /or FAA funds. City of El Segundo will ensure that Title 21 Compliance Certificates provided for herein are prepared in a form as required by LAWA. 7. Any funds, and interest thereon, remaining from LAWA grant amount after completion of the incompatible sound insulation project will be refunded to LAWA or will be reinvested in a subsequent approved Part 150 incompatible sound insulation project pursuant to such instructions as LAWA may issue. 8. City of El Segundo will provide LAWA with all pertinent information to prepare and maintain an airport incompatible land use program plan (hereinafter referred to as the Aircraft Noise Mitigation Plan or the 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 mitigation actions, and time schedule to bring all 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. City of El Segundo will update the ANMP information at least annually no later than March 1 each year, with the next update due to LAWA March 1, 2009. The ANMP information will include 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 Airport Noise Standards. The ANMP information will describe the number of Noise Easements (and other Easements mutually agreed to by LAWA and the property owner, if any) that 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. Such data will cover the impact area within LAWA's Fourth Quarter 1992 annual 65 dB Community Noise Equivalent Level (CNEL) noise contour and the FAA- approved Part 150 65 dB CNEL noise contour. 9. City of El Segundo has prepared the required project implementation plan (hereinafter referred to as the Grant Implementation Plan or GIP III) for properties to be sound insulated with the combined FAA and LAWA funds covered by this Agreement. The GIP III 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 I III sets forth a prioritized schedule to be followed that ensures that F:LUMMELSEGUNDO\GIPIII 9/24/08 3 a s d 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 10, below. 10. City of El Segundo recognizes that it is LAWA's intent to achieve compliance with the California Airport Noise Standards as quickly, efficiently and cost effectively as possible. In pursuing this objective, it is LAWA's intent that land use mitigation programs be prioritized so that incompatible properties that will continue to remain in the Airport noise impact area 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. 11. 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 projects funded or partially funded by LAWA. City of El Segundo will work cooperatively with and assist LAWA in establishing and maintaining such a system. 12. City of El Segundo will provide LAWA with up -to -date land use information for the areas described in the Aircraft Noise Mitigation Plan; this update of land use information documenting the progress of the mitigation program will be provided in a format as specified by LAWA. 13. In further cooperating with maintenance of a unified system of records, City of El Segundo will prepare any and all maps included in any document required or submitted pursuant to this 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 Agreement, City of El 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 provides at paragraph 8 that "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 residential 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, City of El Segundo will ensure and will document that approximately 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 Segundo's staff or consultants) will be approximately 20% of total project cost. LAWA grant funds may be used only for materials and activities that are also F:LUMP\ELSEGUNDO \GIPIII 9/24/08 4 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, City of El Segundo will, in conducting RSI projects, conform to the recommendations set forth in LAWA's Design Guide for Residential Sound Insulation projects 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 RSI projects, City of El Segundo will normally utilize the Fourth Quarter 1992 65 dB CNEL noise contour map (criterion noise contour map) for the Airport, prepared by LAWA pursuant to the California Airport Noise Standards, and the FAA- approved Part 150 65 dB noise contour 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; unless, however, the predicted future CNEL (zone) level for the property exceeds the criterion contour map level in which case the future level should be used in the design of the sound insulation measures. City of El Segundo will obtain written approval from LAWA prior to any deviation from the use of this criterion CNEL noise contour map, and the FAA- approved Part 150 65 dB noise contour map, normally as part of Aircraft Noise Mitigation Plan approval. 19. In undertaking RSI projects, 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. 20. In undertaking RSI projects, City of El Segundo will provide for a random sample of pre- and post- construction noise testing for a not -to- exceed 10% of the total number of affected units. A post - construction noise audit, when conducted, will document the 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 each project. 21. In undertaking RSI projects, 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. F:LUMMELSEGUNDO\GIPIII 9124/08 5 3861 • 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. 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. 22. At the time of initial enrollment of each building owner (the Owner) in an RSI project, and prior to conducting noise testing or the preparation of sound insulation plans for the building(s), City of El Segundo will require the Owner to sign an agreement authorizing the installation of sound insulation and any FAA prescribed agreements, 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. 23. At the time of final enrollment of the Owner in an RSI 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 City of El Segundo and submitted to LAWA. 24. In undertaking LAWA funded projects, 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. 25. Within 60 days of completion of the project(s) funded under this Letter Agreement, and in accordance with guidelines developed and maintained by LAWA, City of El Segundo will prepare and submit two (2) copies of a final Grant Report for the project to LAWA showing the results of the project, the allocation of actual sound insulation (construction /non - construction) expenditures (both LAWA and FAA) among the individual project properties, a listing of all Title 21 Compliance Certificates issued, and the total allocation, in detail satisfactory to LAWA, of actual expenses (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 Grant Report will contain an explicit comparison between the estimated total cost breakdown that was submitted in the project GIP III and the actual total cost for construction for each dwelling unit. 26. City of El Segundo shall also complete an annual accounting report and audit prepared by a Certified Public Accounting (CPA) firm for the project. F:LUMP\ELSEGUND0XGIPIII 9/24108 6 R 27. In implementing this sound insulation program City of El Segundo will utilize an accounting system that will comply with generally accepted government auditing standards (GAGAS), as fully described in the United States Government, General Accounting Office publication yellow book standards. 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. F: LUMP\ELSEGUNDMGIP I I 1 9/24/08 Dated: APPROVED AS TO FORM City Att rney — City of El Seg ndo ATTEST: By_ ( ignature) Oath (Pruned Name) (Tale) Rockard J. Delgadillo, City Attorney City of Los Angeles APPROVED AS TO FORM By: --A A, Awist&nt/D y ityAftrney City of Los gel s Date: F: LUMP\ELSEGUNDMUP I I 1 9/24/08 CITY OF EL SEGUNDO by ( ign tur 4u #1 N0c-DOWFLA- (Printed Name) C44,>A- (Title) Date: CITY OF LOS ANGELES (Printed Name) s 3861•... F BOARD FILE NO. LAA -8463 TM Los Angeles World Airports RESOLUTION NO. 23652 WHEREAS, on recommendation of Management, there was presented for approval, release of funds to the City of El Segundo for the implementation of an eligible noise mitigation project, Residential Sound Insulation — Grant Implementation Plan III, pursuant to noise compatibility and land use mitigation programs; and WHEREAS, the Board of Airport Commissioners (BOAC) and Federal Aviation Administration LAX (FAA) have approved a Part 150 Noise Compatibility Program (NCP) at Los Angeles International LA/Ontario Airport ( "LAX ") that makes land use mitigation projects within the cities of Los Angeles, El Segundo, Inglewood, and the unincorporated areas of Los Angeles County eligible for FAA and LA/Palmdale airport funding. Pursuant to Los Angeles World Airports' (LAWA) Federal Aviation Regulations Van Nuys Part 150 NCP, the Land Use Mitigation Funding Program set forth in BOAC Resolution No. City of Los Angeles 21481, and the LAX Master Plan Stipulated Settlement ( "Settlement "), the City of El Segundo ( "El Segundo ") has requested from LAWA, for Grant Implementation Plan III (GIP III), the calendar Antonio R. Villaraigosa year 2008 allocation as outlined under the Settlement, or a grant of $5.58M, to supplement FAA Mayor grant AIP 3 -06- 0139 -43 in the amount of $6,000,000; and Board of Airport Commissioners WHEREAS, GIP III will fund all acoustical, architectural, engineering administration an Alan I. Rothenberg construction costs. It details noise mitigatin measures consisting of soundproofing 250 dwelling President units over a tweve (12) month duration. The area targeted in the project is located in the highest Valeria C. Velasco noise impact of El Segundo. Owners of the dwelling units have signed installation agreements Vice President and have committed to participate in the program. The estimated total cost for the project is Joseph A. Aredas $11,587,500 ($5,587,500 LAWA funds and $6,000,000 FAA funds). It is estimated that the Michael A. Lawson Sylvia Patsaouras average cost to sound proof a single family home in El Segundo is approximately $45,000, while Fernando M. Torres -Gil a multi - family residence (apartment, condominium, etc.) is approximately $30,000; and Walter Zifkin Gina Marie Lindsey WHEREAS, LAWA payment of these funds is contingent upon El Segundo's compliance with Executive Director LAWA's Land Use Mitigation Policy and others as set forth by BOAC Resolution No. 21481, and with the Settlement and requirements established thereunder. El Segundo has prepared GIP III covering the use of these funds and has signed the related Letter Agreement. Prior to receiving any funds, El Segundo will provide the required documents and follow the prescribed procedures and requirements as stated in said GIP and Letter Agreement, which stipulates that this grant amount will be transferred to El Segundo in two (2) payments as follows: first payment of $5,028,750 upon El Segundo's submittal of executed copies of Letter Agreement and LAWA's approval of GIP III; a second payment in the amount of $558,750, upon LAWA's receipt and approval of the Final Grant Report required by the Letter Agreement to be submitted upon completion of the grant- funded project(s). "Noise Mitigation Program — Other Local Jurisdictions" is an approved Passenger Facility Charge (PFC) project, and will be funded from PFC funds; and WHEREAS, this action, as a continuing administrative activity, is exempt from the requirements of the California Environmental Quality Act pursuant to Article II Section 2(f) of the Los Angeles City CEQA Guidelines, as amended by the Los Angeles City Council on July 31, 2002; and WHEREAS, actions taken on this item by the Board of Airport Commissioners will become final pursuant to the provisions of Los Angeles City Charter Section 245; 1 World Way Los Angeles California 90045 -5803 Mail P0. Box 9221.6 Los Angeles California 90009 -2216 Telephone 310 646 5252 Internet www.lawa.org a e � Resolution No. 23652 -2- 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; authorized the Executive Director to execute the Letter Agreement with the City of El Segundo, upon approval as to form by the City Attorney, and to release $5,587,500 to the City of El Segundo pursuant to the terms and conditions contained within the Letter Agreement and as outlined in the Stipulated Settlement Agreement with the City of El Segundo; and approved allocation of an amount not -to- exceed $5,587,500 from the Los Angeles International Airport Passenger Facility Charge fund to WBS Element 1.01.00020D -71 R as required. M. I hereby certify that the foregoing is a true and correct copy of Resolution No. 23652 adopted by the Board of Airport Commissioners at a Special Meeting held Monday, October 20, 2008. c Sandra J. — Secretary BOARD OF AIRPORT COMMISSIONERS