Item C23 C.23
t, BOARD OF COUNTY COMMISSIONERS
County of Monroe YFfi� Mayor Sylvia Murphy,District 5
The Florida Keys �� � �l'U � Mayor Pro Tern Danny Kolhage,District 1
�pw° Michelle Coldiron,District 2
Heather Carruthers,District 3
David Rice,District 4
County Commission Meeting
April 17, 2019
Agenda Item Number: C23
Agenda Item Summary #5393
BULK ITEM: Yes DEPARTMENT: Airports
TIME APPROXIMATE: STAFF CONTACT: Richard Strickland (305) 809-5200
none
AGENDA ITEM WORDING: Approval to enter into a non-exclusive five (5) year Retail Vending
Machine Concession Agreement with Coca Cola Beverages Florida, LLC to provide two (2)
beverage vending machines at the Key West International Airport; 15% of net revenues with a
minimum of $600.00/yr. generated from the vending machines will be paid to the Airport on a
quarterly in arrears basis.
ITEM BACKGROUND: On December 7, 2016 the County issued an RFP for vending machine
service providers. The bid opening was held on January 25, 2017 and there were no respondents.
Pursuant to county purchasing policy and procedures staff requested approval to contact possible
vendors through letters of interest and negotiate with those vendors indicating an interest in
providing the services.
PREVIOUS RELEVANT BOCC ACTION:
On January 20, 2016, the BOCC approved the bid solicitation for Vending Machine Concession
services at the Key West International Airport and the Florida Keys Marathon International Airport.
At the bid opening on there were no respondents. On February 15, 2017, the BOCC authorized staff
to contact possible vendors through letters of interest and negotiate with vendors who indicated
interest in providing the services.
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATION: Approval.
DOCUMENTATION:
Coca Cola Agreement
FINANCIAL IMPACT:
Packet Pg. 974
C.23
Effective Date: 02/25/2017
Expiration Date: 02/24/2022
Total Dollar Value of Contract:
Total Cost to County: n/a
Current Year Portion:
Budgeted:
Source of Funds:
CPI:
Indirect Costs:
Estimated Ongoing Costs Not Included in above dollar amounts:
Revenue Producing: Yes If yes, amount: approx. $600.00/yr.
Grant:
County Match:
Insurance Required:
Additional Details:
REVIEWED BY:
Beth Leto Completed 03/26/2019 12:52 PM
Richard Strickland Completed 03/26/2019 12:54 PM
Pedro Mercado Completed 03/26/2019 2:09 PM
Budget and Finance Completed 03/27/2019 8:53 AM
Maria Slavik Completed 03/27/2019 9:05 AM
Kathy Peters Completed 03/28/2019 12:16 PM
Board of County Commissioners Pending 04/17/2019 9:00 AM
Packet Pg. 975
RETAIL VENDING MACHINE CONCESSION AGREEMENT
AT KEY WEST INTERNATIONAL AIRPORT
MONROE COUNTY
COCA-COLA BEVERAGES FLORIDA, LLC
THIS RETAIL VENDING MACHINE CONCESSION AGREEMENT AT KEY WEST
INTERNATIONAL AIRPORT (the "Agreement") is made and entered into on the 25"' day of February,
2017 by and between MONROE COUNTY, a political subdivision of the State of Florida whose address is
1100 Simonton Street, Key West, Florida 33040, hereinafter referred to as "Lessor," and COCA-COLA
BEVERAGES FLORIDA, LLC, a Delaware limited liability company whose address is 10117 Princess
Palm Avenue, Suite 100,Tampa, Florida 33610, hereinafter referred to as"Lessee"or"Tenant";
WHEREAS, the Lessor is the owner of the Key West International Airport (hereafter "EYW" or
the"Airport"); and
WHEREAS, Lessor desires to grant to Lessee the right to operate a retail vending machine
concession at and from EYW at Key West, Florida; and
WHEREAS, the Lessee desires to enter into such an Agreement and represents to the Lessor that
it is qualified to operate a retail vending machine concession and has the financial resources to undertake
such an operation;
NOW THEREFORE, IN CONSIDERATION of the mutual covenants and promises hereinafter
contained,the parties hereto do hereby agree as follows:
1. Premises - Lessor hereby leases to Lessee one outside location at the departure terminal area
and one location at the arrivals area at EYW, as mutually agreed upon by Lessee and by the Director of
Airports or his designee, hereafter collectively the "Premises," for use as retail vending machine
concessions, hereafter occasionally referred to as the"Vending Machine Operation." Each location at the
Premises shall contain one(1)of Lessee's beverage vending machines for a total of two(2)Lessee beverage
vending machines at EYW. The Director of Airports, in his sole discretion, may authorize additional
vending machine(s) upon Lessee's request and the Director of Airport's written approval. All vending
machines and equipment owned by Lessee and placed in the Airport pursuant to this Agreement, including
but not limited to any replacement parts, replacements, additions, accessories or any portion thereof, will
be referred to herein as the"Equipment."
2. Lease Covenants and Equipment
(a) The Lessee shall provide a list of all beverage products it intends to sell through the
Vending Machine Operation.The Lessor reserves,and delegates to the Director of Airports or his designee,
the right to reasonably reject any items it finds inappropriate, objectionable or not in the best interests of
the Airport and Lessee agrees to permanently remove such items from the Vending Machine Operation;
provided, however, if any such removal or rejection materially reduces or modifies Lessee's rights, duties
or benefits under this Agreement, Lessee has the right to terminate this Agreement.
(b) The parties must comply with all the applicable requirements of the statutes, rules,
ordinances,regulations,orders and policies of the federal and state governments and Monroe County either
in effect on the effective date of this Agreement or later adopted during the term of the Agreement.
(c) The Premises and the Airport are subject to the terms of those certain Sponsor's Assurances,
attached as Exhibit A, made to guarantee the public use of the Airport as incident to grant agreements
between the Lessor and the United States of America. This Agreement and all provisions hereof shall be
given only such effect as will not conflict or be inconsistent with the terms and conditions contained in
those certain Sponsor Assurances,and any existing or subsequent amendments thereto that are provided to
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Lessee by Lessor. If any subsequent amendment to the Sponsor Assurances materially reduces or modifies
Lessee's rights, duties or benefits under this Agreement, Lessee has the right to terminate this Agreement.
Lessor represents and warrants that the terms of this Agreement are permitted by the aforementioned
Sponsor's Assurances as of the date of the parties signing this Agreement.
(d) Lessor hereby guarantees that: (i) no logo, trademark, advertisement, or other indication of
Lessee's ownership of the Equipment shall be obstructed, defaced, or removed, and no other logo,
trademark,or advertisement shall be attached to the Equipment; (ii) in the event the Equipment contains an
illuminated sign, Lessor shall keep such sign illuminated at all times; (iii) the Equipment shall not be
obstructed without the prior written consent of Lessee; (iv)the Equipment shall not be moved or removed
without the prior written consent of Lessee,and, in the event the Equipment is moved, Lessor shall remain
fully responsible for the Equipment as per the terms of this Agreement;(v)the Equipment shall not be sold,
reassigned,loaned,leased,or rented to any other party except as authorized by Lessee,in which case,Lessor
shall remain fully responsible for the Equipment as per the terms of this Agreement; (vi) no racks,
merchandise, or any other objects shall be placed on top of or attached to the Equipment unless expressly
authorized by Lessee;and(vii)Lessor will not attach the Equipment,or allow the Equipment to be attached,
in such a manner as to become part of the realty as a fixture or otherwise, and the Equipment will be
maintained so that it may be easily removed without damage to buildings or realty.
(e) Lessee is, and at all times shall remain, the exclusive owner of the Equipment. Lessor shall
protect Lessee's title and keep the Equipment free from all claims, liens, and encumbrances. Lessor's
obligations under this section remain until such time as Lessee or Lessee's designee picks up the Equipment.
Lessee agrees to supply and deliver all of the products stored in,or sold through,the Equipment,and Lessor
agrees to not allow any products other than those supplied by Lessee to be sold through or stored in the
Equipment. Lessor authorizes Lessee to execute and file any additional instruments in all jurisdictions
where it deems it necessary to perfect and maintain Lessee's interest in the Equipment.
(f) Lessee shall have the right, during Lessor's regular business hours,to inspect the Equipment at
the Premises or wherever the Equipment may be located and to review all records that relate to the
Equipment. Lessor shall promptly notify Lessee of all details arising out of any lost or stolen Equipment,
alleged encumbrances on the Equipment, or any accident allegedly resulting from the use or operation
thereof. Within 72 hour of any move of the Equipment, including, without limitation, to or from Lessor's
premises or another business location, during the term of this Agreement, Lessor shall notify Lessee of the
new location of the Equipment. Lessee shall have the right to terminate this Agreement and remove its
Equipment if Lessees objects to the relocated site of the Equipment. Lessor will not allow anyone other
than Lessor or Lessee to move the Equipment.To the extent Lessor moves the Equipment,or allows anyone
else to do so,Lessor will be solely responsible for all liability and damages,including any damage sustained
by the Equipment, Lessor,any of Lessor's employees or contractors, or any other party or third party may
sustain as a result of the move, and to the extent set forth in F.S. 768.28, will defend, indemnify and hold
Lessee harmless from and against any claims, and all resulting expenses, fees (including reasonable
attorneys' fees),damages,settlements and costs,arising out of such move.This Agreement,along with any
additional documents and/or records by and/or between the parties describing the Equipment and the
location(s)where such Equipment is placed, shall be maintained by Lessee and shall constitute the official
book of record pertaining to the Equipment.
3. Term and Termination. This lease agreement will take effect on the 251" day of February,
2017("Effective Date"), and will terminate on the 24th day of February, 2022.
Either party may terminate this Agreement upon 30 days' written notice to the other party. Either
party may also terminate this Agreement upon the occurrence of any of the following events of default: (a)
the other party transfers, subleases, or assigns this Agreement, in whole or in part, transfers all or
substantially all of its assets to a third party, or transfers,conveys, assigns,or pledges a controlling interest
or ownership to a third party, by operation of law or otherwise, without the other parry's prior written
consent;(b)the other party fails to perform or comply with any one or more terms,conditions,or provisions
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of this Agreement, and fails to cure such default within 30 days of receiving notice of the alleged default
from the non-defaulting party;or(c)the other party is adjudicated insolvent by any court or tribunal or files
voluntary petition in bankruptcy or enters into an arrangement with its creditors. Lessee may further
terminate this Agreement upon the occurrence of any of the following additional events of default by
Lessor: (a)the Equipment is relocated to a site Lessee objects to; (b) Lessor transfers, lends, subleases, or
encumbers the Equipment or attempts to do so; or(c)the Equipment is levied, seized,or attached,whether
by operation of law or otherwise.
In the event of an uncured default by either party, the non-defaulting party shall have the right to
terminate this Agreement and pursue any other remedy at law or in equity.In the event of an uncured default
by Lessor, Lessee shall have the additional right to take possession of any or all of the Equipment without
demand or notice wherever the same may be located, without any court order or other process of law.
If the Equipment is not made accessible to Lessee by Lessor within 30 days of the end of the term
or termination of this Agreement, then Lessor shall pay all costs and expenses relating to the removal of
the Equipment.
4. Commissions
(a) Lessee,during the term hereof,shall pay Lessor 15%of the net revenues generated
at the vending machine(s)to be paid on quarterly in arrears("Commissions")based off the initial vend rates
set forth below. Commissions are paid based upon case collected after deducting taxes,deposits, recycling
fees,other handling fees, communication charges and credit and debit card fees, if any. Commissions will
not be payable on any sales from vending machines not filled or serviced exclusively by Lessee. Lessee
may adjust the vend prices as necessary to reflect changes in its costs,including cost of goods.Commissions
will be paid each Agreement quarter following the Agreement quarter in which they were earned, with an
accounting of all sales and monies in a form reasonably satisfactory to Lessor, and will become immediate
property of Lessor. If, at the end of each calendar year,the Commissions paid in that calendar year did not
total Six Hundred Dollars($600),then Lessee will pay Lessor the difference between Six Hundred Dollars
($600)and the total Commissions earned that calendar year so that in no event will the total Commissions
paid out in any calendar year be less than Six Hundred Dollars ($600). "Agreement quartet" means each
calendar quarter period during the term. (e.g. Commissions earned during the first quarter- January I and
March 31 shall be paid no later than the end of the second quarter—April I through June 30).
The initial vend rates for vending machines not in the employee areas are as set forth below and will be
held firm through February 24, 2020; thereafter, Lessee may increase the vend rates by twenty-five cents
($0.25).
Product Vend rate
per unit
16 oz Can- Monster $2.50
20 oz PET—sparkling soft drinks("SSD") $1.50
20 oz PET- Dasani $1.50
20 oz PET-Fuze $1.50 _J
The initial vend rates for the vending machine in the employee area are as set forth below and will be held
firm through February 24,2020;thereafter,Lessee may increase the vend rates by twenty-five cents($0.25).
Product Vend rate
er unit
12 oz. can—SSD $1.00
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(b) Lessee shall maintain all books, records, and documents directly pertinent to
performance under this Agreement in accordance with generally accepted accounting principles
consistently applied. Each party to this Agreement or their authorized representatives shall have reasonable
and timely access to such records of each other party to this Agreement as they relate to this Agreement for
public records purposes during the term of the Agreement and for 4 years following the termination of this
Agreement.
(c) The Lessee must pay all assessments, taxes, including sales taxes, levied by any
governmental body with the power to impose assessments or taxes with respect to beverage products sold
out of Lessee's Vending Machine Operation. Upon Lessor's request, Lessee must provide the Airport
managers with the sales tax records for each year on or before February 28 of the following year.
(d) Lessee's vending machines shall provide a contact number and shall identify a
contact person that may be reached 24 hours a day, 7 days a week for a refund in the event the vending
machine malfunctions. The Lessee must provide any and all other items and Equipment needed for the
Vending Machine Operation. Lessee's items and Equipment must be promptly removed from the Premises
when this Agreement terminates. Lessee has the right during the term hereof, at its own expense, at any
time from time to time, to replace, update, or modify any of the vending machines, all of which shall be
and remain the property of Lessee and may be removed by Lessee prior to or within a reasonable time after
expiration of the term of this Agreement; provided, however, that Lessee shall repair any damage to the
Premises caused by such removal, reasonable wear and tear excepted. The failure to remove the vending
machines or any other personal property shall not constitute Lessee a hold-over.
(e) If the Lessee fails to pay any Commissions due under this lease within 30 days
after the Lessor notifies the Lessee in writing that the Commission is overdue, then the Lessor may, in its
discretion,either immediately or later require Lessee to remove the Equipment without prejudice or waiver
to any other available remedy the Lessor might have for the recovery of the Commissions due from the
Lessee. Upon the Lessor's requiring Lessee to remove the Equipment under this section this Agreement
will terminate. However,the Lessee's obligation to pay the Commissions due will survive the termination.
5. The Lessee agrees to furnish good, prompt and efficient service to reasonably meet all
demands for the Vending Machine Operations at the Airport. The Vending Machine Operation must be
open for service to the Airport 365 days per year, 24 hours per day,to the extent reasonably practical.
6. No signs, on premises advertising, or awnings may be erected by the Lessee on the
Premises or elsewhere at EYW unless they are approved by the Director of Airports in writing; provided,
however,Lessee's Equipment is permitted to have the logos,trademarks and marketing of Lessee's brands
on the Equipment for the Vending Machine Operations. No exterior architectural changes may be made
without the consent in writing of the Airport Manager,whose consent will not be unreasonably withheld.
7. If the Vending Machine Operation is injured or damaged by any breaking, entering or
vandalism of the Vending Machine Operation,the Lessee must promptly make all the necessary repairs at
its expense, to the extent not caused by the acts or omission of Lessor, to replace or restore the Vending
Machine Operation to the condition immediately prior to the breaking,entering or vandalism or the attempt
to break or enter. If the leased Premises is injured or damaged by any breaking, entering or vandalism of
the Premises, Lessor must promptly make all the necessary repairs at its expense, to the extent not caused
by the acts or omissions of Lessee, to restore the Premises to the condition immediately prior to the
breaking, entering or vandalism or the attempt to break or enter. For the avoidance of doubt, Lessee is not
responsible for the cost to repair the Premises to the extent the damage to the Premises is not caused by the
acts or omissions of Lessee.
8. The Lessee is responsible for the reasonable maintenance of the Equipment and shall
provide a 24 hour contact number for purposes of reporting any malfunction of the Equipment. The Lessee
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must,at its own cost,make the repairs(or replacements)needed to preserve the Vending Machine Operation
in good condition,reasonable wear and tear excepted. The repairs or replacements must result in Equipment
quality that is equal to or better than the quality of the original condition of the Equipment. Lessor shall
allow Lessee or Lessee's agents to enter the Premises or the location where the Equipment is located for
the purpose of inspection and/or performance of such service and repair, or necessary replacement, return,
or removal of the Equipment. Lessor's sole recourse against Lessee with respect to service and/or repair
provided by Lessee or its agents to the Equipment is that Lessee will correct any defective workmanship at
no additional charge to Lessor, provided that Lessee is given prompt notification of any defective
workmanship. Lessee shall not be otherwise liable for negligent acts or omissions committed in regard to
service and/or repair of the Equipment,and Lessee assumes no responsibility for incidental, consequential,
or special damages occasioned by such negligent acts or omissions.
9. The Lessor does not make any representations or warranties regarding the Premises beyond
those set forth in this Agreement. Lessor acknowledges that Lessee is not the manufacturer of the
Equipment. LESSEE MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY KIND AND
EXPRESSLY DISCLAIMS ANY IMPLIED WARRANTIES AS TO THE FITNESS FOR A
PARTICULAR PURPOSE, MERCHANTABILITY, DESIGN, CONSTRUCTION, CONDITION,
SPECIFICATIONS, OR PERFORMANCE OF THE EQUIPMENT. Lessor accepts no warranties and
expressly waives any implied warranties as to the fitness for a particular purpose, merchantability, design,
construction, condition, specification,or performance of the Equipment.
10. In the event the Premises are partially damaged by fire,explosion,the elements,the public
enemy or other casualty, but not rendered untenable,then the Premises will be repaired with due diligence
by Lessor at the Lessor's sole cost and expense. If the damage is so extensive that the Premises are rendered
untenable but capable of being repaired within 30 days, then the Premises will be repaired with due
diligence by Lessor at the Lessor's sole cost and expense. The Commissions payable under this lease will
be waived until the Premises are fully restored. If the Premises are completely destroyed or so damaged
that the Premises will be untenable for more than 30 days, the Lessor is under no obligation to repair and
reconstruct the Premises, and the Commissions must be paid only up to the time of the damage or
destruction and then the obligation to pay Commissions ceases until the Premises are fully restored. If
within 30 days after the damage or destruction the Lessor fails to notify Lessee of the Lessor's intention to
repair or reconstruct the damaged or destroyed Premises,or to furnish a substantially equivalent location to
conduct the Vending Machine Operation,then the Lessee may give Lessor written notice of its intention to
then terminate this Agreement.
11. Before entering the Premises, the Lessee must provide certificates of insurance to Lessor
which demonstrates that the Lessee has obtained insurance in the amounts and according to the conditions
described as follows:
(a) The Lessee will be responsible for all necessary insurance coverage which includes, at a
minimum:
Worker's Compensation-$100,000 Bodily Injury by Accident;
$500,000 Bodily Injury by Disease, policy limits;
$100,000 Bodily Injury by Disease, each employee
Vehicle Liability-$300,000 combined single limit
General Liability- $300,000 combined single limit
The Lessee shall carry fire and extended coverage insurance, if obtainable, on all fixed
improvements erected by Lessee on the demised Premises to the full insurable value hereof, it being
understood and agreed that for purposes hereof the term "full insurable value" shall be deemed to be that
amount for which a prudent owner in like circumstances would insure similar property, but in no event an
amount in excess of Lessee's original cost of constructing said fixed improvements.
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The Monroe County Board of County Commissioners will be included as"Additional Insured"on
all policies,except workers compensation, issued to satisfy the above requirements. All forms of insurance
required above shall be from insurers reasonably acceptable to Lessor.
All insurance policies must specify that they are not subject to cancellation, non-renewal, material
change, or reduction in coverage unless a minimum of thirty days' prior notification is given to Lessor by
the insurer.
(b) The Lessee must keep in full force and effect the insurance described during the term of
this Agreement. If the insurance policies originally purchased that meet the requirements are canceled,
terminated or reduced in coverage,then the Lessee must immediately substitute complying policies so that
no gap in coverage occurs.
(c) The insurance required of the Lessee in this paragraph is for the protection of Lessor, its
property and employees, and the general public. The insurance requirement is not, however, for the
protection of any specific member of the general public who might be injured because of an act or omission
of the Lessee. The insurance requirements of this paragraph do not make any specific injured member of
the general public a third party beneficiary under this Agreement. Therefore, any failure by Lessor to
enforce this paragraph, or evict the Lessee from the Airport if the Lessee becomes uninsured or
underinsured, is not a breach of any duty or obligation owed to any specific member of the general public
and cannot form the basis of any Lessor liability to a specific member of the general public or his/her
dependents,or estate or heirs,
(d) The Lessor may treat the Lessee in default if the Lessee, after entering the Premises but
before beginning its operation,does not have the insurance required by subparagraph I I(a). Before Lessor
may terminate the Agreement in this situation, Lessor must give the Lessee a written notice of the default
stating that, if the required insurance is not obtained within 10 days of the Lessee's receipt of notice,then
Lessor will terminate this Agreement. Lessor may treat the Lessee in default and cancel this Agreement if
the Lessee, after starting the operation, fails to keep in full force and effect the insurance required by
subparagraph 11(a). Before treating the Lessee in default and terminating the Agreement in this situation,
Lessor need only provide the Lessee 24 hour notice by overnight courier. Lessor may, but need not,provide
Lessee with an opportunity to cure the default if the Lessee has not done so after the above-referenced 10
day cure period.
12. Notwithstanding anything herein contained that may be,or appear to be,to the contrary, it
is expressly understood and agreed that the rights granted under this Agreement are nonexclusive and the
Lessor herein reserves the right to grant similar privileges to another lessee or other lessees on other parts
of the Airport.
13. At the end of this Agreement(or any renewal), the Lessee's right to the Premises, the use
of Airport facilities,and any other right or privilege granted under this Agreement ceases. The fixtures and
equipment that are attached to the real estate now become the property of the Lessor. All other equipment,
improvements, furnishings and other property of the Lessee, including the Equipment, at the Premises are
personal to the Lessee and remain the property of the Lessee and must be removed by it. The Lessee must
also restore the Premise to its original condition, ordinary wear and tear and damage by causes beyond the
control of the Lessee excepted.
14. At the end of the term or as earlier required under this Agreement, Lessor agrees to
promptly notify Lessee that the Equipment is available for return and pick-up by Lessee or Lessee's
designee at Lessor's Premises. Lessee shall be solely responsible for making arrangements for the pick-up
of the Equipment(to which Lessor will provide reasonable assistance)and for any and all costs associated
with the pick-up of the equipment.
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15. Lessor may enter upon the Premises at any reasonable time, with advance notice, for any
purpose connected with the performance of the Lessor's obligations under this Agreement or in the exercise
of its governmental functions.
16. The Lessee may not assign this Agreement, or any part of it, or sublease the Premises, or
any portion of the Premises, without the written approval of the Lessor. The change of the Lessee's status
from an individual to a partnership or corporation is an assignment under this paragraph requiring the
Lessor's approval. If the Lessee is approved to do business in the corporate form, any assignment of a
controlling interest in the corporate stock is also an assignment under this paragraph that requires the
Lessor's approval. All the obligations of this Agreement will extend to the legal representatives,successors
and assigns of the Lessee and Lessor.
17. Hold Harmless. Notwithstanding any minimum insurance requirements prescribed
elsewhere in this Agreement, Lessee (the "Indemnifying Party") shall defend, indemnify and hold the
Lessor and Lessor's employees, its elected and appointed officers(the"Indemnified Party")harmless from
and against (i) any claims, actions or causes of action, (ii) any litigation, administrative proceedings,
appellate proceedings, or other proceedings relating to any type of injury (including death), loss, damage,
fine,or penalty,and(iii)any costs or expenses(including,without limitation,costs of remediation and costs
of additional security measures that the Federal Aviation Administration, the Transportation Security
Administration or any other governmental agency requires by reason of, or in connection with a violation
of any federal law or regulation, reasonable attorney's fees and costs, court costs, fines and penalties)that
may be asserted against, initiated with respect to,or sustained by,the Indemnified Party(Subsections 17(i)-
(iii) referred to herein, collectively, as a "Claim") by reason of, or in connection with, (A) any act or
omission of the Indemnifying Party or any of its employees,agents,contractors or other invitees during the
term of this Agreement, (B) the negligence or willful misconduct of Indemnifying Party or any of its
employees, agents, contractors or other invitees, or(C)the Indemnifying Party's default in respect of any
of the obligations that it undertakes under the terms of this Agreement,except to the extent the Claims arise
from the intentional or negligent acts or omissions of the Indemnified Party. Insofar as the Claim relates
to events or circumstances that occur during the term of this Agreement, this section will survive the
expiration of the term of this Agreement or any earlier termination of this Agreement.
18. Nondiscrimination. Lessee agrees that there will be no discrimination against any person,
and it is expressly understood that upon a determination by a court of competent jurisdiction that
discrimination has occurred,this Agreement automatically terminates without any further action on the part
of any party, effective the date of the Court order. Lessor and Lessee agree to comply with all Federal and
Florida statutes, and all local ordinances, as applicable, relating to nondiscrimination. These include but
are not limited to: 1)Title VII of the Civil Rights Act of 1964(PL 88-352)which prohibits discrimination
on the basis of race,color or national origin; 2)Title IX of the Education Amendment of 1972,as amended
(20 USC ss. 1681-1683, and 1685 -1686), which prohibits discrimination on the basis of sex; 3) Section
504 of the Rehabilitation Act of 1973, as amended(20 USC s. 794), which prohibits discrimination on the
basis of handicaps; 4) The Age Discrimination Act of 1975; as amended (42 USC ss. 6101-6107) which
prohibits discrimination on the basis of age; 5)The Drug Abuse Office and Treatment Act of 1972(PL 92-
255),as amended,relating to nondiscrimination on the basis of drug abuse; 6)The Comprehensive Alcohol
Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act of 1970 (PL 91-616), as amended,
relating to nondiscrimination on the basis of alcohol abuse or alcoholism; 7)The Public Health Service Act
of 1912, ss. 523 and 527 (42 USC ss. 690dd-3 and 290ee-3), as amended, relating to confidentiality of
alcohol and drug abuse patent records; 8)Title VIII of the Civil Rights Act of 1968 (42 USC s. et seq.),as
amended, relating to nondiscrimination in the sale, rental or financing of housing; 9) The Americans with
Disabilities Act of 1990 (42 USC s. 1201 Note), as may be amended from time to time, relating to
nondiscrimination based of disability; 10) Monroe County Code Chapter 14, Article 11, relating to
discrimination based on race, color, sex, religion, disability, national origin, ancestry, sexual orientation,
gender identify or expression, familial status or age; 11) Any other nondiscrimination provisions in any
Federal or state statutes which may apply to the parties to,or the subject matter of,this Agreement.
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19. Severability. If any term, covenant, condition or provision of this Agreement (or the
application thereof to any circumstance or person) shall be declared invalid or unenforceable to any extent
by a court of competent jurisdiction, the remaining terms, covenants, conditions and provisions of this
Agreement shall not be affected thereby; and each remaining term, covenant, condition and provision of
this Agreement shall be valid and shall be enforceable to the fullest extent permitted by law unless the
enforcement of the remaining terms,covenants,conditions and provisions of this Agreement would prevent
the accomplishment of the original intent of this Agreement. Lessor and Lessee agree to reform the
Agreement to replace any stricken provision with a valid provision that comes as close as possible to the
intent of the stricken provision through a written amendment signed by both parties.
20. Binding Effect.The terms,covenants, conditions,and provisions of this Agreement shall bind
and inure to the benefit of Lessor and Lessee and their respective representatives, successors,and assigns.
21. Authori . Each party represents and warrants to the other that the execution, delivery and
performance of this Agreement have been duly authorized by all necessary county and corporate action,as
required by law.
22. Adjudication of Disputes or Disagreements. Lessor and Lessee agree that all disputes and
disagreements shall be attempted to be resolved by meet and confer sessions between representatives of
each of the parties. If no resolution can be agreed upon within 30 days after the first meet and confer
session, the issue or issues shall be discussed at a public meeting of the Board of County Commissioners.
If the issue or issues are still not resolved to the satisfaction of the parties, then any party shall have the
right to seek such relief or remedy as may be provided by this Agreement and/or by Florida law.
23. Cooperation. In the event any administrative or legal proceeding is instituted against either
party relating to the formation, execution, performance, or breach of this Agreement, Lessor and Lessee
agree to participate, to the extent reasonably required by the other party, in all proceedings, hearings,
processes, meetings, and other activities related to the substance of this Agreement or provision of the
services under this Agreement. Lessor and Lessee specifically agree that no party to this Agreement shall
be required to enter into any arbitration proceedings related to this Agreement.
24. Covenant of No Interest. Lessor and Lessee covenant that neither presently has any interest,
and shall not acquire any interest,which would conflict in any manner or degree with its performance under
this Agreement,and the only interest of each is to perform and receive benefits as recited in this Agreement.
25. Code of Ethics. Lessor agrees that officers and employees of the County recognize and will
be required to comply with the standards of conduct for public officers and employees as delineated in
Section 112.313, Florida Statutes, regarding, but not limited to solicitation or acceptance of gifts; doing
business with one's agency;unauthorized compensation;misuse of public position,conflicting employment
or contractual relationship; and disclosure or use of certain information.
26. No Solicitation/Pgyment. Lessor and Lessee warrant that, in respect to itself, it has neither
employed nor retained any company or person, other than a bona fide employee working solely for it, to
solicit or secure this Agreement and that it has not paid or agreed to pay any person,company,corporation,
individual,or firm,other than a bona fide employee working solely for it,any fee,commission,percentage,
gift or other consideration contingent upon or resulting from the award or making of this Agreement. For
the breach or violation of this provision, the non-breaching party shall have the right to terminate this
Agreement without liability and,at its discretion,to offset from monies owed,or otherwise recover,the full
amount of such earned fee,commission, percentage, gift or consideration.
27. Non-Waiver of Immunity. Notwithstanding the provisions of Sec. 768.28,Florida Statues,the
participation of the Lessor and the Lessee in this Agreement and the acquisition of any commercial liability
insurance coverage, self-insurance coverage, or local government insurance pool coverage shall not be
8
deemed a waiver of immunity to the extent of liability coverage, nor shall any contract entered into by the
Lessor be required to contain any provision for waiver.
28. Privileges and Immunities. All of the privileges and immunities from liability, exemptions
from laws, ordinances, and rules and pensions and relief, disability, workers' compensation, and other
benefits which apply to the activity of officers, agents, or employees of any public agents or employees of
the Lessor,when performing their respective functions under this Agreement within the territorial limits of
the Lessor shall apply to the same degree and extent to the performance of such functions and duties of
such officers, agents,volunteers, or employees outside the territorial limits of the Lessor.
2 . Le al Obligations and Responsibilities:Non-Delegation of Constitutional or Statutory Duties.
This Agreement is not intended to, nor shall it be construed as, relieving any participating entity from any
obligation or responsibility imposed upon the entity by law except to the extent of actual and timely
performance thereof by any participating entity, in which case the performance may be offered in
satisfaction of the obligation or responsibility. Further, this Agreement is not intended to, nor shall it be
construed as,authorizing the delegation of the constitutional or statutory duties of the Lessor,except to the
extent permitted by the Florida Constitution, state statute, and case law.
30. Non-Reliance by Non-Parties.,No person or entity who is a non-party to this Agreement shall
be entitled to rely upon the terms, or any of them, of this Agreement to enforce or attempt to enforce any
third-party claim or entitlement to or benefit of any service or program contemplated hereunder, and the
Lessor and Lessee agree that neither the Lessor nor Lessee or any agent,officer,or employee of either shall
have the authority to inform,counsel,or otherwise indicate that any particular non-party individual or group
of individuals, entity or entities, have entitlements or benefits under this Agreement separate and apart,
inferior to, or superior to the community in general or for the purposes contemplated in this Agreement.
31. Attestations. Lessee agrees to execute a Public Entity Crime Statement, an Ethics Statement,
and a Drug-Free Workplace Statement in a form reasonably agreed upon by the parties.
32. No Personal Liability. No covenant or agreement contained herein shall be deemed to be a
covenant or agreement of any member, officer, agent or employee of either party in his or her individual
capacity, and no member, officer, agent or employee of either party shall be liable personally on this
Agreement or be subject to any personal liability or accountability by reason of the execution of this
Agreement.
33. Execution in Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be regarded as an original,all of which taken together shall constitute one and the same
instrument and any of the parties hereto may execute this Agreement by signing any such counterpart.
34. United States' Requirements. This Agreement shall be subject and subordinate to the
provisions of any existing or future agreement between the Lessor and the United States relative to the
operation or maintenance of the Airport, and execution of which has been or may be required by the
provision of the Federal Airport Act of 1946, as amended, or any future act affecting the operation or
maintenance of the Airport; provided, however, that Lessor shall, to the extent permitted by law, use its
best efforts to cause any such agreement to include provisions protecting and preserving the rights of Lessee
in and to the demised Premises and improvements thereon,and to compensation for the taking thereof,and
payment for interference therewith and for damage thereto, caused by such agreement or by actions of the
Lessor or the United States pursuant thereto.
35. Other Use. Lessee shall not use or permit the use of the demised Premises or any part
thereof for any purpose or use other than an authorized by this Agreement.
36. Paragraph Headings. Paragraph headings herein are intended only to assist in reading
identification and are not in limitation or enlargement of the content of any paragraph.
9
37. Notices. Any legal notice from either party to the other pursuant to this Agreement is
sufficiently given or communicated if sent by registered mail, with proper postage and registration fees
prepaid,addressed to the party for whom intended, at the following addresses:
For Lessor:
Director of Airports
Key West International Airport
3491 S. Roosevelt Blvd.
Key West, FL 33050
For Lessee:
Coca-Cola Beverages Florida, LLC
10117 Princess Palm Avenue, Suite 100
Tampa, Florida 33610
Attn: Thomas Benford, Executive Vice President and Chief Commercial Officer
with a copy to:
Deborah Pond, Senior Vice President and General Counsel
at the address above
or to such other address as the party being given such notice shall from time to time designate to the other
by notice given in accordance herewith.
38. Governing Law, Venue, Interpretation. This Agreement shall be governed by and
construed in accordance with the laws of the State of Florida applicable to contracts made and to be
performed entirely in the State.
In the event that any cause of action or administrative proceeding is instituted for the
enforcement or interpretation of this Agreement, the Lessor and Lessee agree that venue will lie in the
appropriate court or before the appropriate administrative body in Monroe County, Florida.
The Lessor and Lessee agree that, in the event of conflicting interpretations of the terms or
a term of this Agreement by or between any of them the issue shall be submitted to mediation prior to the
institution of any other administrative or legal proceeding.
39. Reasonable Attorney's Fees and Costs. The Lessor and Lessee agree that in the event any
cause of action or administrative proceeding is initiated or defended by any party relative to the enforcement
or interpretation of this Agreement, the prevailing party shall be entitled to its reasonable attorney's fees,
court costs, investigative, and out-of-pocket expenses, as an award against the non-prevailing party, and
shall include reasonable attorney's fees,courts costs, investigative,and out-of-pocket expenses in appellate
proceedings. Mediation proceedings initiated and conducted pursuant to this Agreement shall be in
accordance with the Florida Rules of Civil Procedure and usual and customary procedures required by the
circuit court of Monroe County.
40. Mutual Review.This Agreement has been carefully reviewed by the Lessee and the Lessor.
Therefore,this Agreement is not to be construed against either party on the basis of authorship.
41. Final Understanding.This Agreement is the parties'final mutual understanding. It replaces
any earlier agreements or understandings, whether written or oral. This agreement cannot be modified
or replaced except by another written agreement signed by both parties.
10
IN WITNESS WHEREOF, each party has caused this Agreement to be executed by a duly
authorized representative.
(SEAL) BOARD OF COUNTY COMMISSIONERS
ATTEST: KEVIN MADOK, CLERK OF MONROE COUNTY, FLORIDA
By
Mayor/Chairman
LESSEE:.
ATTEST: By
By: Title
Title:
A ®RNEY
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ASSIST tXXJN7Y ATTO EY
Date
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Grant Assurances
Airport Sponsors
A. General.
1. These assurances shall be complied with in the performance of grant agreements
for airport development, airport planning, and noise compatibility program grants
for airport sponsors.
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. As used herein, the term "public agency sponsor" means a public
agency with control of a public-use airport; the term "private sponsor" means a
private owner of public-use airport; and the term "sponsor" includes both public
agency sponsors and private sponsors.
3. Upon acceptance of this grant offer by the sponsor, these assurances are
incorporated in and become part of this grant agreement.
B. Duration and Applicability.
1. Airport development or Noise Compatibility Program Projects Undertaken
by a Public Agency Sponsor. The terms, conditions and assurances of this grant
agreement shall remain in full force and effect throughout the useful life of the
facilities developed or equipment acquired for an airport development or noise
compatibility program project, or throughout the useful life of the project items
installed within a facility under a noise compatibility program project, but in any
event not to exceed twenty(20) years from the date of acceptance of a grant offer
of Federal funds for the project. However, there shall be no limit on the duration
of the assurances regarding Exclusive Rights and Airport Revenue so long as the
airport is used as an airport. There shall be no limit on the duration of the terms,
conditions,and assurances with respect to real property acquired with federal
funds. Furthermore, the duration of the Civil Rights assurance shall be specified
in the assurances.
2. Airport Development or Noise Compatibility Projects Undertaken by a
Private Sponsor. The preceding paragraph 1 also applies to a private sponsor
except that the useful life of project items installed within a facility or the useful
life of the facilities developed or equipment acquired under an airport
development or noise compatibility program project shall be no less than ten (10)
years from the date of acceptance of Federal aid for the project.
Airport Sponsor Assuran s(412012) ARP Page 1 of 17
3. Airport Planning Undertaken by a Sponsor. Unless otherwise specified in this
grant agreement, only Assurances 1, 2, 3, 5, 6, 13, 18, 30, 32, 33, and 34 in
section C apply to planning projects. The terms, conditions, and assurances of
this grant agreement shall remain in full force and effect during the life of the
project.
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 se .1
C. Federal Fair Labor Standards Act-1 29 U.S.C. 201, et seg.
d. Hatch Act—5 U.S.C. 1501,q1eq.-
C. Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970 Title 42 U.S.C. 4601,gL5.e ."
f. National Historic Preservation Act of 1966 - Section 106 - 16 U.S.C.
470(f).'
9. Archeological and Historic Preservation Act of 1974 - 16 U.S.C. 469
through 469c*I
h. Native Americans Grave Repatriation Act -25 U.S.C. Section 3001, et
§gq-.
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 d4.
0. Age Discrimination Act of 1975 -42 U.S.C. 6101,g!-Le-q.
P. American Indian Religious Freedom Act, P.L. 95-341, as amended.
q. Architectural Barriers Act of 1968 -42 U.S.C. 151, et se .1
r. Power plant and Industrial Fuel Use Act of 1978 - Section 403- 2 U.S.C.
8373.'
S. Contract Work Hours and Safety Standards Act -40 U.S.C. 327, et,seq.1
t. Copeland Anti kickback Act - 18 U.S.C. 874.1
U. National Environmental Policy Act of 1969 -42 U.S.C. 4321, et se .I
V. Wild and Scenic Rivers Act, P.L. 90-542, as amended.
w. Single Audit Act of 1984 - 31 U.S.C. 7501,gLLe_q.1)
X. Drug-Free Workplace Act of 1988 -41 U.S.C. 702 through 706.
Executive Orders
Airport Sponsor Assurances(412012) ARP Page 2 of 17
Executive Order 11246 - Equal Employment Opportunity
Executive Order 11990 - Protection of Wetlands
Executive Order 1 ]998— 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 I - 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.`
r. 29 CFR Part 5 - Labor standards provisions applicable t(,,,i,contracts
covering federally financed and assisted construction (also labor standards
provisions applicable to non-construction contracts subject to the Contract
Work Hours and Safety Standards Act).'
9. 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.3
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 of the Civil Rights
Act of 1964.
k. 49 CFR Part 23 - Participation by Disadvantage Business Enterprise in
Airport Concessions.
I. 49 CFR Part 24 - Uniform relocation assistance and real property
acquisition for Federal and federally assisted programs.'2
in. 49 CFR Part 26—Participation By Disadvantaged Business Enterprises in
Department of Transportation Programs.
n. 49 CFR Part 27 -Nondiscrimination on the basis of handicap in programs
and activities receiving or benefiting from Federal financial assistance.)
0. 49 CFR Part 29—Government wide debarment and suspension
(non procurement)and government wide requirements for drug-free
workplace (grants).
p_ 49 CFR Part 30 - Denial of public works contracts to suppliers of goods
and services of countries that deny procurement market access to U.S.
contractors.
Airport Sponsor Assurances(412012) ARP Page 3 of 17
+ 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
I These laws do not apply to airport planning sponsors.
2 These laws do not apply to private sponsors.
3 49 CFR Part 18 and OMB Circular A-87 contain requirements for State
and Local Governments receiving Federal assistance. Any requirement
levied upon State and Local Governments by this regulation and
circular shall also be applicable to private sponsors receiving Federal
assistance under Title 49, United States Code.
Specific assurances required to be included in grant agreements by any of the
above laws, regulations or circulars are incorporated by reference in this grant
agreement.
2. Responsibility and Authority of the Sponsor.
a. Public Agency Sponsor: It has legal authority to apply for this 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.
b. Private Sponsor: It has legal authority to apply for this grant and to
finance and carry out the proposed project and comply with all terms,
conditions, and assurances of this grant agreement. It shall designate an
official representative and shall in writing direct and authorize that person
to file this application, including all understandings and assurances
contained therein; to act in connection with this application; and to
provide such additional information as may be required.
3. Sponsor Fund Availability. It has sufficient funds available for that portion of
the project costs which are not to be paid by the United States. It has sufficient
funds available to assure operation and maintenance of items funded under this
grant agreement which it will own or control.
4. Good Title.
a. It, a public agency or the Federal government, holds good title,
satisfactory to the Secretary, to the landing area of the airport or site
thereof, or will give assurance satisfactory to the Secretary that good title
will be acquired.
Airport Sponsor Assurances(412012) ARP Page 4 of 17
b. For noise compatibility program projects to be carried out on the property
of the sponsor, it holds good title satisfactory to the Secretary to that
portion of the property upon which Federal funds will be expended or will
give assurance to the Secretary that good title will be obtained.
5. Preserving Rights and Powers.
a. It will not take or permit any action which would operate to deprive it of
any of the rights and powers necessary to perform any or all of the terms,
conditions, and assurances in this grant agreement without the written
approval of the Secretary, and will act promptly to acquire, extinguish or
modify any outstanding rights or claims of right of others which would
interfere with such performance by the sponsor. This shall be done in a
manner acceptable to the Secretary.
b. It will not sell, lease, encumber, or otherwise transfer or dispose of any
part of its title or other interests in the property shown on Exhibit A to this
application or, for a noise compatibility program project, that portion of
the property upon which Federal funds have been expended, for the
duration of the terms, conditions, and assurances in this 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 this grant agreement and to have the power, authority, and
financial resources to carry out all such obligations, the sponsor shall
insert in the contract or document transferring or disposing of the
sponsor's interest, and make binding upon the transferee all of the terms,
conditions, and assurances contained in this grant agreement.
C. For all noise compatibility program projects which are to be carried out by
another unit of local government or are on property owned by a unit of
local government other than the sponsor, it will enter into an agreement
with that government. Except as otherwise specified by the Secretary, that
agreement shall obligate that government to the same terms,conditions,
and assurances that would be applicable to it if it applied directly to the
FAA for a grant to undertake the noise compatibility program project.
That agreement and changes thereto must be satisfactory to the Secretary.
It will take steps to enforce this agreement against the local government if
there is substantial non-compliance with the terms of the agreement.
d. For noise compatibility program projects to be carried out on privately
owned property, it will enter into an agreement with the owner of that
property which includes provisions specified by the Secretary. It will take
steps to enforce this agreement against the property owner whenever there
is substantial non-compliance with the terms of the agreement.
e. If the sponsor is a private sponsor, it will take steps satisfactory to the
Secretary to ensure that the airport will continue to function as a public-
use airport in accordance with these assurances for the duration of these
assurances.
f. If an arrangement is made for management and operation of the airport by
any agency or person other than the sponsor or an employee of the
sponsor, the sponsor will reserve sufficient rights and authority to insure
_A_Irwri_SPO"n,_s_o_r Assurances(412012) ARP Page 5 of 17
that the airport will be operated and maintained in accordance Title 49,
United States Code, the rcgulations and the terms, conditions and
assurances in this grant agreement and shall insure that such arrangement
also requires compliance therewith.
g. Sponsors of commercial service airports will not permit or enter into any
arrangement that results in permission for the owner or tenant of a
pn,')perty used as a residence, or zoned for residential use, to taxi an
aircraft between that property and any location on airport. Sponsors of
general aviation airports entering into any arrangement that results in
permission for the owner of residential real property adjacent to or near
the airport must comply with the requirements of Sec. 136 of Public Law
112-95 and the sponsor assurances.
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.
2. Consideration of Local Interest. It has given fair consideration to the interest of
communities in or near where the project may be located.
Consultation with Users. In making a decision to undertake any airport
development project under Title 49, t.fnited States Code, it has undertaken
reasonable consultations with affected parties using the airport at which project is
proposed.
9. Public Hearings. In projects involving the location of an airport, an airport
runway, or a major runway extension, it has afforded the opportunity for public
hearings for the purpose of considering the economic, social, and environmental
effects of the airport or runway location and its consistency with goals and
objectives of such planning as has been carried out by the community and it shall,
when requested by the Secretary, submit a copy of the transcript of such hearings
to the Secretary. Further, for such projects, it has on its management board either
voting representation from the communities where the project is located or has
advised the communities that they have the right to petition the Secretary
concerning a proposed project.
10. Air and Water Quality Standards. In projects involving airport location, a
major runway extension, or runway location it will provide for the Governor of
the state in which the project is located to certify in writing to the Secretary that
the project will be located,designed, constructed, and operated so as to comply
with applicable air and water quality standards. In and case where such standards
have not been approved and where applicable air and water quality standards have
been promulgated by the Administrator of the Environmental Protection Agency,
certification shall be obtained from such Administrator.Notice of certification or
refusal to certify shall be provided within sixty days after the project application
has been received by the Secretary.
11. Pavement Preventive Maintenance. With respect to a project approved after
January 1, 1995, for the replacement or reconstruction of pavement at the airport,
Airport Sponsor Assurances(412012) ARP Page 6 of 17
it assures or certifies that it has implemented an effective airport pavement
maintenance-management program and it assures that it will use such program for
the useful lire of any pavement constructed, reconstructed or repaired with
Federal financial assistance at the airport. It will provide such reports on
pavement condition and pavement management programs as the Secretary
determines may be useful.
12. Terminal Development Prerequisites. For projects which include terminal
development at a public use airport, as defined in Title 49, it has, on the date of
submittal or the project grant application, all the safety equipment required for
certification of such airport under section 44706 of Title 49, United States Code,
and all the security equipment required by rule or regulation, and has provided for
access to the passenger enplaning and deplaning area of such airport to passengers
enplaning and deplaning from aircraft other than air carrier aircraft.
13. 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 this grant, the
total cost of the project in connection with which this grant is given or
used, and the amount or nature of that portion of the cost of the project
supplied by other sources, and such other financial records pertinent to the
project. The accounts and records shall be kept in accordance with an
accounting system that will facilitate an effective audit in accordance with
the Single Audit Act of 1984.
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 this 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 this grant was given or used, it shall file
a certified copy of such audit with the Comptroller General of the United
States not later than six (6) months following the close of the fiscal year
for which the audit was made.
14. Minimum Wage Rates. it shall include, in all contracts in excess of$2,000 for
work on any projects funded under this 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.
15. Veteran's Preference. It shall include in all contracts for work on any project
funded under this grant agreement which involve labor, such provisions as are
necessary to insure that, in the employment of labor(except in executive,
administrative, and supervisory positions), preference shall be given to Vietnam
Airport Sponsor Assurances(412012) ARP Page 7 of 17
era veterans, Persian Gulf veterans, Afghanistan-Iraq war veterans, disabled
veterans, and small business concerns owned and controlled by disabled veterans
as defined in Section 47112 of Title 49, United States Code. However, this
preference shall apply only where the individuals are available and qualified to
perform the work to which the employment relates.
16. Conformity to Plans and Specifications. It will execute the project subject to
plans, specifications, and schedules approved by the Secretary. Such plans,
specifications, and schedules shall be submitted to the Secretary prior to
commencement of site preparation, construction, or other performance under this
grant agreement, and, upon approval of the Secretary, shall be incorporated into
this grant agreement. Any modification to the approved plans, specifications, and
schedules shall also be subject to approval of the Secretary, and incorporated into
this grant agreement.
17. Construction Inspection and Approval. It will provide and maintain competent
technical supervision at the construction site throughout the project to assure that
the work conforms to the plans, specifications, and 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.
18. Planning Projects. In carrying out planning projects:
a. It will execute the project in accordance with the approved program
narrative contained in the project application or with the modifications
similarly approved.
b. It will furnish the Secretary with such periodic reports as required
pertaining to the planning project and planning work activities.
C. It will include in all published material prepared in connection with the
planning project a notice that the material was prepared under a grant
provided by the United States.
d. It will make such material available for examination by the public, and
agrees that no material prepared with funds under this project shall be
subject to copyright in the United States or any other country.
e. It will give the Secretary unrestricted authority to publish, disclose,
distribute, and otherwise use any of the material prepared in connection
with this grant.
F. It will grant the Secretary the right to disapprove the sponsor's
employment of specific consultants and their subcontractors to do all or
any part of this project as well as the right to disapprove the proposed
scope and cost of professional services.
9. It will grant the Secretary the right to disapprove the use of the sponsor's
employees to do all or any part of the project.
h. It understands and agrees that the Secretary's approval of this project grant
or the Secretary's approval of any planning material developed as part of
Airport Sponsor Assurances(412012) ARP Page 8 of 17
this grant does not constitute or imply any assurance or commitment on
the part of the Secretary to approve an), pending or future application for a
Federal airport grant.
19. Operation and Maintenance.
a. The airport and all facilities which are necessary to serve the aeronautical
users of the airport, other than facilities owned or controlled by the United
States, shall be operated at all times in a safe and serviceable condition
and in accordance with the minimum standards as may be required or
prescribed by applicable Federal, state and local agencies for maintenance
and operation. It will not cause or permit any activity or action thereon
which would interfere with its use for airport purposes. It will suitably
operate and maintain the airport and all facilities thereon or connected
therewith, with due regard to climatic and flood conditions. Any proposal
to temporarily close the airport for non-aeronautical purposes must first be
approved by the Secretary. In furtherance of this assurance, the sponsor
will have in effect arrangements for-
t) Operating the airport's aeronautical facilities whenever required;
2) Promptly marking and lighting hazards resulting from airport
conditions, including temporary conditions; and
3) Promptly notifying airmen of any condition affecting aeronautical
use of the airport.Nothing contained herein shall be construed to
require that the airport be operated for aeronautical use during
temporary periods when snow, flood or other climatic conditions
interfere with such operation and maintenance. Further, nothing
herein shall be construed as requiring the maintenance, repair,
restoration, or replacement of any structure or facility which is
substantially damaged or destroyed due to an act of God or other
condition or circumstance beyond the control of the sponsor.
b. It will suitably operate and maintain noise compatibility program items
that it owns or controls upon which Federal funds have been expended.
20. Hazard Removal and Mitigation. It will take appropriate action to assure that
such terminal airspace as is required to protect instrument and visual operations to
the airport(including established minimum flight altitudes) will be adequately
cleared and protected by removing, lowering, relocating, marking, or lighting or
otherwise mitigating existing airport hazards and by preventing the establishment
or creation of future airport hazards.
1. Compatible Land Use. It will take appropriate action, to the extent reasonable,
including the adoption of zoning laws, to restrict the use of land adjacent to or in
the immediate vicinity of the airport to activities and purposes compatible with
normal airport operations, including landing and takeoff of aircraft. In addition, i
the project is for noise compatibility program implementation, it will not cause or
permit any change in land use, within its jurisdiction, that will reduce its
compatibility, with respect to the airport, of the noise compatibility program
measures upon which Federal funds have been expended.
Arport Sponsor Assurances(4M 12) ARP Page 9 of 17
22. Economic Nondiscrimination.
a. It will make the airport available as an airport for public use on reasonable
terms and without unjust discrimination to all types, kinds and classes of
aeronautical activities, including commercial aeronautical activities
offering services to the public at the airport.
b. In any agreement, contract, lease, or other arrangement under which a
right or privilege at the airport is granted to any person, firm, or
corporation to conduct or to engage in any aeronautical activity for
furnishing services to the public at the airport, the sponsor will insert and
enforce provisions requiring the contractor to-
e) furnish said services on a reasonable, and not unjustly
discriminatory, basis to all users thereof, and
2) charge reasonable, and not unjustly discriminatory, prices for each
unit or service, provided that the contractor may be allowed to
make reasonable and nondiscriminatory discounts, rebates, or other
similar types of price reductions to volume purchasers.
C. Each fixed-based operator at the airport shall be subject to the same rates,
fees, rentals, and other charges as are uniformly applicable to all other
fixed-based operators making the same or similar uses of such airport and
utilizing the same or similar facilities.
d. Each air carrier using such airport shall have the right to service itself or to
use any fixed-based operator that is authorized or permitted by the airport
to serve any air carrier at such airport.
e. Each air carrier using such airport(whether as a tenant, non tenant, or
subtenant of another air carrier tenant) shall be subject to such
nondiscriminatory and substantially comparable rules, regulations,
conditions, rates, fees, rentals, and other charges with respect to facilities
directly and substantially related to providing air transportation as are
applicable to all such air carriers which make similar use of such airport
and utilize similar facilities, subject to reasonable classifications such as
tenants or non tenants and signatory carriers and non signatory carriers.
Classification or status as tenant or signatory shall not be unreasonably
withheld by any airport provided an air carrier assumes obligations
substantially similar to those already imposed on air carriers in such
classification or status.
f. It will not exercise or grant any right or privilege which operates to
prevent any person, firm, or corporation operating aircraft on the airport
from performing any services on its own aircraft with its own employees
[including, but not limited to maintenance, repair, and fueling] that it may
choose to perform.
9. In the event the sponsor itself exercises any of the rights and privileges
referred to in this assurance, the services involved will be provided on the
same conditions as would apply to the furnishing of such services by
commercial aeronautical service providers authorized by the sponsor
under these provisions.
Airport Sponsor Assurances(412012) ARP Page 14 of 17
h. The sponsor may establish such reasonable, and not unjustly
discriminatory, conditions to be met by all users of the airport as may be
necessary for the safe and efficient operation of the airport.
i. The sponsor may prohibit or limit any given type, kind or class of
aeronautical use of the airport if such action is necessary for the safe
operation of the airport or necessary to serve tlhe civil aviation needs of the
public.
. Exclusive Rights. It will permit no exclusive right for the use of tile airport by
any person providing, or intending to provide, aeronautical services to the public.
For purposes of this paragraph, the providing of the services at an airport by a
single fixed-based operator shall not be construed as an exclusive right if both of
the following apply:
a. It would be unreasonably costly, burdensome, or impractical for more than
one fixed-based operator to provide such services, and
b. If allowing more than one fixed-based operator to provide such services
would require the reduction of space leased pursuant to an existing
agreement between such single fixed-based operator and such airport. It
further agrees that it will not, either directly or indirectly, grant or permit
any person, firm, or corporation, the exclusive right at the airport to
conduct any aeronautical activities, including, but not limited to charter
fights, pilot training, aircraft rental and sightseeing, aerial photography,
crop dusting, aerial advertising and surveying, air carrier operations,
aircraft sales and services, sale of aviation petroleum products whether or
not conducted in conjunction with other aeronautical activity, repair and
maintenance of aircraft, sale of aircraft parts, and any other activities
which because of their direct relationship to the operation of aircraft can
be regarded as an aeronautical activity, and that it will terminate any
exclusive right to conduct an aeronautical activity now existing at such an
airport before the grant of any assistance under Title 49, United States
Code.
. Fee and Rental Structure. it will maintain a fee and rental structure for the
facilities and services at the airport which will make the airport as self-sustaining
as possible under the circumstances existing at the particular airport, taking into
account such factors as the volume of traffic and economy of collection.No part
of the Federal share of an airport development, airport planning or noise
compatibility project for which a grant is made under Title 49, United States
Code, the Airport and Airway Improvement Act of 1982,the Federal Airport Act
or the Airport and Airway Development Act of 1970 shall be included in the rate
basis in establishing fees, rates, and charges for users of that airport.
25. Airport Revenues.
a. All revenues generated by the airport and any local taxes on aviation fuel
established after December 30, 1987, will be expended by it for the capital
or operating costs of the airport; the local airport system; or other local
facilities which are owned or operated by the owner or operator of the
Airport Sponsor Assurances(412012) ARP Page 11 of 17
airport and which are directly and substantially related to the actual air
transportation of passengers or property; or for noise mitigation purposes
on or off the airport. The following exceptions apply to this paragraph:
I If covenants or assurances in debt obligations issued before
September 3, 1982, by the owner or operator of the airport, or
provisions enacted before September 3, 1982, in governing statutes
controlling the owner or operator's financing, provide for the use of
the revenues from any or the airport owner or operator's facilities,
including the airport, to support not only the airport but also the
airport owner or operator's general debt obligations or other
facilities, then this limitation on the use of all revenues generated
by the airport (and, in the case of a public airport, local taxes on
aviation fuel) shall not apply.
2) If the Secretary approves the sale of a privately owned airport to a
public sponsor and provides funding for any portion of the public
sponsor's acquisition of land, this limitation on the use of all
revenues generated by the sale shall not apply to certain proceeds
from the sale. This is conditioned on repayment to the Secretary
by the private owner of an amount equal to the remaining
unamortized portion (amortized over a 2 -year period) of any
airport improvement grant made to the private owner for any
purpose other than land acquisition on or after October 1, 1996,
plus an amount equal to the federal share of the current fair market
value of any land acquired with an airport improvement grant
made to that airport on or after October 1, 1996.
3) Certain revenue derived from or generated by mineral extraction,
production, lease, or other means at a general aviation airport (as
defined at Section 47102 of title 49 United States Code), if the
FAA determines the airport sponsor meets the requirements set
forth in Sec. 813 of Public Law H 2-95.
b. As part of the annual audit required under the Single Audit Act of 1984,
the sponsor will direct that the audit will review,and the resulting audit
report will provide an opinion concerning, the use of airport revenue and
taxes in paragraph (a), and indicating whether funds paid or transferred to
the owner or operator are paid or transferred in a manner consistent with
Title 49, United States Code and any other applicable provision of law,
including any regulation promulgated by the Secretary or Administrator.
C. Any civil penalties or other sanctions will be imposed for violation of this
assurance in accordance with the provisions of Section 47107 of Title 49,
United States Code.
26. Reports and Inspections. It will:
a. submit to the Secretary such annual or special financial and operations
reports as the Secretary may reasonably request and make such reports
Airport Sponsor Assurances(4/2012) ARP Page 12 of 17
available to the public; make available to the public at reasonable times
and places a report of the airport budget in a format prescribed by the
Secretary;
b, for airport development projects, make the airport and all airport records
and documents affecting the airport, including deeds, leases, operation and
use agreements, regulations and other instruments, available for inspection
by any duly authorized agent of the Secretary upon reasonable request;
C. for noise compatibility program projects, make records and documents
relating to the project and continued compliance with the terms,
conditions, and assurances of this grant agreement including deeds, leases,
agreements, regulations, and other instruments, available for inspection by
any duly authorized agent of the Secretary upon reasonable request; and
d. in a format and time prescribed by the Secretary, provide to the Secretary
and make available to the public following each of its fiscal years, an
annual report listing in detail:
1) all amounts paid by the airport to any other unit of government and
the purposes for which each such payment was made; and
2) all services and property provided by the airport to other units of
government and the amount of compensation received for
provision of each such service and property.
27. Use by Government Aircraft. It will make available all of the facilities of the
airport developed with Federal financial assistance and all those usable for
landing and takeoff of aircraft to the United States for use by Government aircraft
in common with other aircraft at all times without charge, except, if the use by
Government aircraft is substantial, charge may be made for a reasonable share,
proportional to such use, for the cost of operating and maintaining the facilities
used. Unless otherwise determined by the Secretary, or otherwise agreed to by the
sponsor and the using agency, substantial use of an airport by Government aircraft
will be considered to exist when operations of such aircraft are in excess of those
which, in the opinion of the Secretary, would unduly interfere with use of the
landing areas by other authorized aircraft,or during any calendar month that—
a. Five (5) or more Government aircraft are regularly based at the airport or
on land adjacent thereto; or
b. The total number of movements (counting each landing as a movement) of
Government aircraft is 300 or more, or the gross accumulative weight of
Government aircraft using the airport(the total movement of Government
aircraft multiplied by gross weights of such aircraft) is in excess of five
million pounds.
28. Land for Federal Facilities. It will furnish without cost to the Federal
Government for use in connection with any air traffic control or air navigation
activities, or weather-reporting and communication activities related to air traffic
control, any areas of land or water, or estate therein, or rights in buildings of the
sponsor as the Secretary considers necessary or desirable for construction,
operation, and maintenance at Federal expense of space or facilities for such
Airport Sponsor Assurances(412012) ARP Page 13 of 17
purposes. Such areas or any portion thereof will be made available as provided
herein within four months after receipt of a written request from the Secretary.
29. Airport Layout Plan.
a. It will keep up to date at all times an airport layout plan of the airport
showing (1) boundaries of the airport and all proposed additions thereto,
together with the boundaries of all offsite areas owned or controlled by the
sponsor for airport purposes and proposed additions thereto; (2) the
location and nature of all existing and proposed airport facilities and
structures (such as runways, taxiways, aprons, terminal buildings, hangars
and roads), including all proposed extensions and reductions of existing
airport facilities; (3) the location of all existing and proposed nonaviation
areas and of all existing improvements thereon; and (4) all proposed and
existing access points used to taxi aircraft across the airport's property
boundary. Such airport layout plans and each amendment, revision,or
modification thereof, shall be subject to the approval of the Secretary
which approval shall be evidenced by the signature of a duly authorized
representative of the Secretary on the face of the airport layout plan. The
sponsor will not make or permit any changes or alterations in the airport or
any of its facilities which are not in conformity with the airport layout plan
as approved by the Secretary and which might, in the opinion of the
Secretary, adversely affect the safety, utility or efficiency of the airport.
b. If a change or alteration in the airport or the facilities is made which the
Secretary determines adversely affects the safety, utility, or efficiency of
any federally owned, leased, or funded property on or off the airport and
which is not in conformity with the airport layout plan as approved by the
Secretary, the owner or operator will, if requested, by the Secretary (1)
eliminate such adverse effect in a manner approved by the Secretary; or
(2)bear all costs of relocating such property (or replacement thereof)to a
site acceptable to the Secretary and all costs of restoring such property(or
replacement thereon to the level of safety, utility, efficiency, and cost of
operation existing before the unapproved change in the airport or its
facilities except in the case of a relocation or replacement of an existing
airport facility due to a change in the Secretary's design standards beyond
the control of the airport sponsor.
30. Civil Rights. It will comply with such rules as are promulgated to assure that no
person shall, on the grounds of race, creed, color, national origin, sex, age, or
handicap be excluded from participating in any activity conducted with or
benefiting from funds received from this grant. This assurance obligates the
sponsor for the period during which Federal financial assistance is extended to the
program, except where Federal financial assistance is to provide, or is in the form
of personal property or real property or interest therein or structures or
improvements thereon in which case the assurance obligates the sponsor or any
transferee for the longer of the following periods: (a)the period during which the
property is used for a purpose for which Federal financial assistance is extended,
or for another purpose involving the provision of similar services or benefits, or
kirport Sponsor Assurances(412012) ARP Page 14 of 17
(b)the period during which the sponsor retains ownership or possession of the
property.
31. Disposal of Land.
a. For land purchased under a grant for airport noise compatibility purposes,
including land serving as a noise buffer, 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 be, at the discretion of the Secretary, (1) reinvested in another
project at the airport, or(2) transferred to another eligible airport as
prescribed by the Secretary. The Secretary shall give preference to the
following, in descending order, (1) reinvestment in an approved noise
compatibility project, (2) reinvestment in an approved project that is
eligible for grant funding under Section 47117(e) of title 49 United States
Code, (3) reinvestment in an approved airport development project that is
eligible for grant funding under Sections 47114,47115, or 47117 of title
49 United States Code, (4)transferred to an eligible sponsor of another
public airport to be reinvested in an approved noise compatibility project
at that airport, and (5) paid to the Secretary for deposit in the Airport and
Airway Trust Fund. If land acquired under a grant for noise compatibility
purposes is leased at fair market value and consistent with noise buffering
purposes, the lease will not be considered a disposal of the land.
Revenues derived from such a lease may be used for an approved airport
development project that would otherwise be eligible for grant funding or
any permitted use of airport revenue.
b. For land purchased under a grant for airport development purposes (other
than noise compatibility), it will, when the land is no longer needed for
airport purposes, dispose of such land at fair market value or make
available to the Secretary an amount equal to the United States'
proportionate share of the fair market value of the land. That portion of
the proceeds of such disposition which is proportionate to the United
States' share of the cost of acquisition of such land will, (1) upon
application to the Secretary, be reinvested or transferred to another eligible
airport as prescribed by the Secretary. The Secretary shall give preference
to the following, in descending order: (1) reinvestment in an approved
noise compatibility project, (2) reinvestment in an approved project that is
eligible for grant funding under Section 47117(e) of title 49 United States
Code,(3) reinvestment in an approved airport development project that is
eligible for grant funding under Sections 47114,47115, or 47117 of title
49 United States Code, (4)transferred to an eligible sponsor of another
public airport to be reinvested in an approved noise compatibility project
at that airport, and (5) paid to the Secretary for deposit in the Airport and
Airway Trust Fund.
C. Land shall be considered to be needed for airport purposes under this
assurance if(1) it may be needed for aeronautical purposes(including
runway protection zones) or serve as noise buffer land, and (2)the revenue
Airport Sponsor Assurances(412012) ARP Page 15 of 17
from interim uses of such land contributes to the financial seir-sufficiency
or the airport. Further, land purchased with a grant received by an airport
operator or owner before December 31, 1987, will be considered to be
needed for airport purposes if the Secretary or Federal agency making
such grant before December 31, 1987, was notified by the operator or
owner of the uses of such land, did not object to such use, and the land
continues to be used for that purpose, Such use having commenced no later
than December 15, 1989.
d. Disposition of such land under(a) (b) or(c)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.
32. Engineering and Design Services. It will award each contract, or sub-contract
for program management, construction management, planning studies, feasibility
studies, architectural services, preliminary engineering, design,engineering,
surveying, mapping or related services with respect to the project in the same
manner as a contract for architectural and engineering services is negotiated under
Title IX of the Federal Property and Administrative Services Act of 1949 or an
equivalent qualifications-based requirement prescribed for or by the sponsor of
the airport.
33. 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.
34. Policies,Standards, and Specifications. It will carry out the project in
accordance with policies, standards, and specifications approved by the Secretary
including but not limited to the advisory circulars listed in the Current FAA
AdvisoryCirculars for AIP projects, dated.................................................................................................................................................................................................................. (the latest
approved version as of this grant offer) and included in this grant, and in
accordance with applicable state policies, standards, and specifications approved
by the Secretary.
35. Relocation and Real Property Acquisition. (1) It will be guided in acquiring
real property,to the greatest extent practicable under State law, by the land
acquisition policies in Subpart B of 49 CFR Part 24 and 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 Subpart D and E of 49 CFR Part 24. (3) It will make available
within a reasonable period of time prior to displacement, comparable replacement
dwellings to displaced persons in accordance with Subpart E of 49 CFR Pan 24.
36. Access By Intercity Buses. The airport owner or operator will permit, to the
maximum extent practicable, intercity buses or other modes of transportation to
Airport Sponsor Assurances(412012) ARP Page 16 0117
have access to the airport; however, it has no obligation to fund special facilities
for intercity buses or for other modes of transportation.
37. Disadvantaged Business Enterprises. The recipient shall not discriminate on the
basis of race, color, national origin or sex in the award and performance of any
DOT-assisted contract or in the administration of its DBE program or the
requirements of 49 CFR Part 26. The Recipient shall take all necessary and
reasonable steps under 49 CFR Part 26 to ensure non discrimination in the award
and administration of DOT-assisted contracts. The recipient's DBE program, as
required by 49 CFR Part 26, and as approved by DOT, is incorporated by
reference in this agreement. Implementation of this program is a legal obligation
and failure to carry out its terms 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. 100 1 and/or
the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801).
38. Hangar Construction. If the airport owner or operator and a person who owns an
aircraft agree that a hangar is to be constructed at the airport for the aircraft at the
aircraft owner's expense, the airport owner or operator will grant to the aircraft
owner for the hangar a long to lease that is subject to such terms and conditions
on the hangar as the airport owner or operator may impose.
39. Competitive Access.
a. If the airport owner or operator of a medium or large hub airport(as
defined in section 47102 of title 49, U.S.C.) has been unable to
accommodate one or more requests by an air carrier for access to gates or
other facilities at that airport in order to allow the air carrier to provide
service to the airport or to expand service at the airport, the airport owner
or operator shall transmit a report to the Secretary that-
I) Describes the requests;
2) Provides an explanation as to why the requests could not be
accommodated; and
3) Provides a time frame within which, if any, the airport will be able
to accommodate the requests.
b. Such report shall be due on either February I or August I of each year if
the airport has been unable to accommodate the request(s) in the six month
period prior to the applicable due date.
Airport Sponsor Assurances(412012) ARP Page 17 of 17