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Item Q - ---;0 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY ..EMERGENCY ADD-ON.. Meeting Date: Wed.. S~tember 7. 2005 Division: HaCC Bulk Item: Yes _ No -XX. Department: Commissioner David Rice. District 4 Staff Contact Person: Tamara Lundstrom AGENDA ITEM WORDING: Approval by BOCC to accept DOT Small Community Air Service Development grant award and certification by Mayor of award agreement with DOT (SCASD) Grant Program FY2005 in the amount of $750,000 (Seven-hundred fifty thousand doUars) to develop commercial air service at the Florida Keys Marathon Airport. ITEM BACKGROUND: This is an emergency item due to the very close time-frame provided by DOT for return receipt of grant award agreement. Monroe County applied for the DOT SCASD grant in April 2005. The grant award was recently announced on August 25, 2005. Agreement was received yesterday (9n /OS); DOT has requested return receipt by overnight delivery or the signed award agreement by September 14, 2005 for compliance with FAA requirements for the end of fucal year 2005 on September 30, 2005. PREVIOUS RELEVANT BOCC ACTION: CONTRACT/AGREEMENT CHANGES: STAFF RECOMMENDA nONS: TOTAL COST: BUDGETED: Yes No COST TO COUNTY: SOURCE OF FUNDS: REVENUE PRODUCING: Yes No AMOUNT PER MONm_ Year APPROVED BY: County Atty XX OMBlPurchasing _ Risk Management _ DMSION DIRECTOR APPROVAL: !i)aDid [}. 9lke (David P. Rice, Commissioner) ~ . _.,--P' e-~'1./-. DOCUMENTATION: Included XX Not Required_ DISPOsmON: AGENDA ITEM #-a- Revised 2/05 o u.s. Department of Transportation Office of the Secretory of Transportation 400 Seventh St., S.w. Washington, D.C. 20590 Mr. David Rice District 4 Commissioner Monroe County BOCC 9400 Overseas Highway Suite #210 Marathon, Florida 33050 Re: Monroe County Board of County Commissioners Grant Award Small Community Air Service Development Program, Docket OST-2005-20127-151 Dear Mr. Rice: This is in reference to the grant award made to the Montgomery Airport Authority, by Order 2005-8-19 under the Small Community Air Service Development Program, Docket OST -2005-20127. Enclosed are two copies of the Grant Offer and Agreement issued in response to your application. This offer is in the amount of $750,000. You have previousl y advised of your willingness to accept the Grant Offer and Agreement. Please therefore have your attorney certify that the acceptance complies with state and local laws and constitutes a legal and binding obligation on the part of the sponsor. Please sign all sections of both copies of the Grant Agreement, ~~_~~for the J:,ower TierCertification.. Return one fully-signed copy of the Grant Agreemen.tt~o~me> viao~~~~Tght--e~:Pi~_~~g~nY~!Y.2!1.9E~~fore Septemb~r _1~. r: -,~._ L -'O'c__-..:-~"'i~c-co--="_"_ .__'___'_.___ '_ _-.~ ---...;_~, .__.-'~c." c______-',.....'... -'-_.. -"__..OL -", ,. _:,-,:,,,,,_:-,=",,."~,_=",,_.;-:~~_=-.-::._-,-,-" c,__~'_':.. '_ _ '" Sincerely yours, (--. ......- ';,.-----,g D () \ QUl2::H~~ , ~(t-''------. Teresa B. Bingham Associate Director Office of Aviation Analysis U. S Department of Transportation Office of Aviation Analysis, X-50 400 Seventh Street, SW, Room 6401 Washington, DC 20590 Tel. 202-366-1053 Enclosures GRANT OFFER AND AGREEMENT BETWEEN THE U.S. DEPARTMENT OF TRANSPORTATION AND MONROE COUNTY BOARD OF COUNTY COMMISSIONERS, ACTING FOR THE COMMUNITY OF MARA THON, FLORIDA, AND MONROE COUNTY, UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM WHEREAS, the Monroe County Board of Commissioners (hereinafter referred to as the Sponsor), on behalf of the community of Marathon, Florida, and Monroe County, has applied for a Grant lUlder the Small CommlUlity Air Service Development Program; now THEREFORE, the U.S. Department of Transportation, hereinafter referred to as the DOT, acting for the UNITED STATES, offers the Sponsor a grant in the amolUlt of $750,000 to assist in the Sponsor's efforts to address the air service needs of the community. THIS OFFER IS MADE ON AND SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS: A. GENERAL CONDITIONS 1. The maximum obligation of the United States payable lUlder this Offer shall be $750,000. 2. Payment of the United States' share of the agreed project costs will be made pursuant to and in accordance with the provisions of such regulations and procedures as the DOT may prescribe. Final determination of the United States' share may be based upon a final review of the total amolUlt of agreed project costs and settlement will be made for adjustments to the United States' share of costs. 3. The Sponsor shall cany out and complete the Projects without undue delays and in accordance with the terms hereof, and such regulations and procedures as the DOT may prescribe. 4. The DOT reserves the right to amend or withdraw this offer at any time prior to its acceptance by the Sponsor. 5. This offer shall expire and the United States shall not be obligated to pay any part of the costs of the project lUlless the Sponsor accepts this offer on or before September 9, 2005, or such subsequent date as may be prescribed in writing by the DOT. 6. The Sponsor shall take all steps, induding litigation, if necessary, to recover Federal flUlds when DOT determines, after consultation with the Sponsor, that such flUlds have been spent fraudulently, wastefully, or in violation of Federal laws, or misused in any manner in any project upon which Federal flUlds have been expended. For the purposes of this agreement, the term "Federal flUlds" means funds however used or disbursed by the Sponsor that were originally paid pursuant to this DOT Grant Agreement (hereinafter referred to as the Grant Agreement). 7. The Sponsor shall retain all docwnents relevant to the grant award for a period of three years from completion of all proj ects undertaken pursuant to the Grant Agreement and recei pt of final reimbursement from the U. S Treasury. It shall furnish the DOT, upon request, all documents and records pertaining to the determination of the amount of the Federal share or to any settlement, litigation, negotiation, or other efforts taken to recover such funds. All settlements or other final positions of the Sponsor, in court or otherwise, involving the recovery of such Federal share shall be approved in advance by the DOT 8. The United States shall not be responsible or liable for damage to property or injury to persons that may arise from, or be incident to, compliance with this Grant Agreement. 9. The Sponsor shall ensure compliance with Federal regulations requiring conduct of a Federally-approved audit of any expenditure of funds of $500,000 or more in a year in Federal awards. 10. The provisions of 49 CFR Part 18 (DOT's procurement standards for grants) will apply to the extent that the Sponsor procures property and services in carrying out the approved grant proj ect(s). B. SPECIAL CONDITIONS 1. Subject to terms set forth in this agreement, the DOT reserves the right to terminate the Grant Agreement, and the DOT's obligations thereunder, on 90 days' written notice, unless otherwise agreed between the Sponsor and the DOT, if any of the following occurs: a. The Sponsor fails to provide the local contribution as provided in its application, or alternatives approved in writing by the DOT; b. The Sponsor does not meet the conditions and obligations specified under this Grant Agreement; c. The DOT determines that termination is in the public interest. 2. Either party may seek to amend or modify this Grant Agreement on 30 days' written notice to the other party. The Grant Agreement will be amended or modified only on mutual written agreement by both parties. 3. At any time, on 30 days' written notice, the Sponsor may request termination of this Grant Agreement. 4. Subject to the terms set forth in this Grant Agreement, and unless otherwise agreed between the Sponsor and the DOT, this Grant Agreement will expire two years from the date of execution. C. PROPOSAL SPECIFIC CONDITIONS 1. Legal Sponsor: The Monroe County Board of County Commissioners, designated by the community of Marathon, Florida, and Monroe County, as the legal Sponsor under the Small Community Air Service Development Program, shall administer the Grant according to the conditions set forth in this Grant Agreement. 2 Sponsor Contact: Other Project Contact: David Rice District 4 Commissioner Monroe County BOCC 9400 Overseas Highway Suite #210 Marathon, Florida 33050 Peter 1. Horton Director of Airports Key West International Airport Key West, FL 33040 Phone: 305-289-6000 Fax: 305-289-6306 Email: hOlion- p.~1~I@mQ.DIQ_~~_mill1Y::n,gQY Phone: 305-292-3518 Fax: 305-292-3578 2. Proiect Goals and Objectives . Improve access to the national transportation system by recruiting and marketing new network air carrier service from underutilized Florida Keys Marathon Airport. . Work in conjunction with the co-terminal point, Key West International Airport, to help alleviate congestion at that facility, while improving overall air service capacity for the region. . Achieve reduced fares as a result of an increase in available departure seats. 3. Funding a. Total Project Cash Costs: $1,240,000 Federal Share: $ 750,000 Local Share: $ 490,000 b. Payment by DOT shall not exceed $750,000 for the total project cash costs, which include marketing and a revenue guarantee/subsidy/financial incentive. c. The Sponsor shall pay the costs associated with the grant project prior to seeking reimbursement from the DOT. d. To seek reimbursement from the DOT, the Sponsor shall submit documentary evidence of all expenditures associated with the grant project set forth in paragraph b., above, and included in the total project costs set forth in paragraph a., above (those to be covered by the local and/or state contribution, as well as those covered by the Federal contribution) on a monthly basis. The DOT will reimburse the Sponsor on a monthly basis for 60.48 percent of all valid expenditures submitted (Federal share of total project costs set forth in paragraph a., above), subject to paragraph e, below. All reimbursement requests to the DOT shall include sufficient documentation to justify reimbursement of the Sponsor, including invoices and proof of payment of the invoice. 3 e. Payment of the final 10 percent of the Federal funding for the project will be made after receipt by the DOT of the final report set forth in Section C.4, below. f No reimbursement by the DOT for the revenue guarantee/subsidy/financial incentive will be made until the Sponsor has provided the DOT with a copy of the revenue guarantee/subsidy/financial incentive agreement, including the cost and revenue bases for the compensation required. g. At the sole option of the DOT, funding may terminate nine months after the execution of this Grant Agreement if the Sponsor has not executed an agreement with Delta Air Lines or other carrier for air service to Atlanta, Orlando, or other hub, unless otherwise agreed between the Sponsor and the DOT. h. At the sole option of the DOT, funding may terminate three months after execution of an agreement with an air carrier for new service at Marathon, if the marketing program to support the service has not been developed and implemented, unless otherwise agreed between the Sponsor and the DOT. i. At the sole option of the DOT, funding under this agreement may terminate if no air service by a new air carrier has commenced within one year after the execution of this grant agreement, unless otherwise agreed between the Sponsor and the DOT. J. If during the revenue guarantee/subsidy/financial incentive period, the carrier stops providing the subject service, the DOT may choose to terminate reimbursement for that component. k. The Sponsor shall ensure that the funds provided by the DOT are not misappropriated or misdirected to any other account, need, project, line- item, or the like. 1. Any Federal funds not expended in conjunction with the project by the date of expiration (Section B.4) of the Grant Agreement will remain with the DOT, unless otherwise agreed between the Sponsor and the DOT. No further reimbursements to the Sponsor for costs incurred after that date will be made or are to be expected. ill. Should this Grant Agreement be terminated prior to the expiration date provided herein, the DOT reserves the right to require that any of the funds reimbursed to the Sponsor be returned to the DOT. 4. Reports a. Project reports, including progress on milestones as set forth in paragraph b., below, shall be reported to the DOT on a quarterly basis, with reports due to the DOT as follows: April 15 for the First Quarter, July 15 for the Second Quarter, October 15 for the Third Quarter, and January 15 for the Fourth Quarter. b. Project reports shall include the following: (i) brief narrative detailing the status of the grant proj ect and the progress being made towards the goals and objectives described in Section C.2.; (ii) status report on the hiring of 4 any consultants in conjW1ction with implementation of the authorized grant proj ect; (iii) status report on progress toward completion of the Fire/Rescue and security requirements set forth in the application; (iv) status report on all marketing or promotional activities W1dertaken; (v) status report on contract negotiations with airlines, including any revenue guarantee/subsidy/financial incentive agreements; (vi) status report on contract negotiations with other third parties; and (vii) comparison of enplanements at the airport generally on a monthly basis beginning with the month of execution of the Grant Agreement with the same month in each of the previous two years and in 2000, (in a format provided by the DOT). c. Final report (in a format to be provided by DOT) of the Sponsor's ass essment of the proj ect shall be made to the DOT within three months after expiration of this Grant Agreement or conclusion of the grant project, whichever occurs earlier. 5. Sponsor Obligations a. Within three months following the date of execution of an agreement with an airline for service at the commW1ity, the Sponsor shall submit to the DOT a detailed marketing plan as set forth in the application, including the types of media to be used, projected expenditures for each marketing component, and timeline for release of the marketing/advertising material. b. The Sponsor shall provide, in its quarterlv Progress Reports, copies of all promotional materials including: (i) copies of any newspaper and/or magazine advertisements/ inserts, direct mailings, and any other promotional material used in implementing its proposal; (ii) copies of billboard advertisements and cities or airports where the billboards will appear; (iii) details of any Internet marketing program, including the sites on which the marketing will take place; and (iv) other samples of marketing materials (e.g., VHS, DVDs, or CDs for commercial television and/or radio advertisements) to be used. c. The Sponsor shall, within IS calendar days of their execution, provide the DOT with a copy of all agreements concluded between the Sponsor and any consultants, air carriers, or other parties with respect to the grant project. The Sponsor shall, within 15 calendar days of execution, also provide the DOT with notice of any amendment to, or termination of such agreements. The Sponsor shall ensure that all agreements entered into with third parties regarding this grant are consistent with this Grant Agreement and the docrnnents incorporated by reference into the Grant Agreement, pursuant to Section E., below. d. The commW1ity and Monroe COW1ty shall ensure that the Marathon airport meets the FAA-mandated rescue and fire fighting capability and security screening requirements as set forth on page 21 of the grant application. 5 e. The Sponsor shall ensure that the obligations set forth in this Grant Agreement are met. D. ASSURANCES The Sponsor shall execute the attached assurances and certifications in conjunction with execution of this Grant Agreement and shall ensure compliance by the grant recIpient with those assurances and certifications. E. DEFINITIONS Agreement: Any written or oral contract, obligation, commitment, or understanding between the Sponsor and/or all parties identified in the community's grant proposal. Application or Grant Application: The complete docwnent submitted by the community/sponsor to the DOT in Docket OST-2005-20127, including amendments. Carrier or Air Carrier or Airline: A citizen of the United States undertaking, by any means, directly or indirectly to provide air transportation, including commuter air carriers and air taxi operators. Community: All parties identified in the grant application as participating in the approved grant project, including the designated Legal Sponsor. DOT: United States Department of Transportation. Execution of Grant Agreement: Signing of the written Grant Agreement by the DOT and the Sponsor. Federal Share: Federal funds authorized for use by the grant recipient in implementing the approved grant project. Grant Agreement: The written agreement between the DOT and the Sponsor for the authorized project under the Small Community Air Service Development Program and DOT Order 2005-8-19, incorporating by reference, except to the extent otherwise inconsistent with the terms of the written agreement, the Application originally submitted to the DOT on April 22, 2005, in Docket OST- 2005-20127-151, including any amendments, as well as any material submitted in the Docket as Confidential Material. Grant Recipient/Grantee: Community entity/entities receiving the SCASDP grant. 6 Local Share: Public, community, state, or private funds, excluding in-kind contributions described in the grant application, committed in the grant application for use in implementing the approved grant project. Party: The Department of Transportation and/or the Sponsor, as the context indicates. Project or Grant Project: The authorized use of Federal and/or local funds to fulfill the goals and objectives described in the community grant application. Proposal: Project defined by the community in its grant application. Quarter or Quarterly: Calendar quarter. Reports or other information required for submission on a quarterly basis are due no later than 15 calendar days after close of the calendar quarter. Small Community Air Service Development Program (SCASDP): A grant-in- aid financial assistance program originally established under the Wendell H. Ford Aviation Investment and Reform Act for the 21 st Century (AIR-21), P.L. 106-181, as amended by Vision 100- The Century in Aviation Reauthorization Act, PL. 108-176, and codified in 49 U.s.e. 41743. Sponsor Obligations: Responsibilities of the Sponsor under this Grant Agreement and those documents incorporated by reference into the Grant Agreement according to B. 1. Sponsor or Legal Sponsor: The designated representative of the grantee to administer and oversee implementation of the Grant Agreement and fulfillment of the authorized grant project. Third Party In-Kind Contribution: property or services which benefit a federally assisted project or program and which are contributed by non-Federal third parties without charge to the grantee, or a cost-type contractor under the grant agreement. Total Project Cash Costs: Sum of the Federal and local cash shares contributed toward completion of the approved grant project, excluding in-kind contributions. 7 OFFER This offer is made in accordance with Public Law 108-176 and Public Law 108-447, according to the above conditions and assurances. C). Executed this~X.,'-\\) , .-- day of >)."l{1>~e.~",~~- , 2005. \. United States Department of Transportation (SEAL) ~c -_.._']._-~' ~ "" ,.--, j."' '. f, (?/ F~_ _ .r",~P ?~/ ;.\ /l -.- \'.'-<'::1 ...._"'. ,'j "~' ,,:~fr'-'............ Teresa B. Bingham "- Associate Director Office of Aviation Analysis ACCEPTANCE The Sponsor agrees to accomplish each element of the project in compliance with the terms and conditions contained herein. Executed this day of ,2005. Monroe County Board of County Commissioners Key West, Florida (SEAL) Signature of Sponsor' s Designated Official Representative Title Attest: 8 Title: CERTIFICA TE OF SPONSOR'S ATTORNEY I, ' acting as Attorney for the Sponsor do hereby certify: That in my opinion the Sponsor is empowered to enter into the foregoing Grant Agreement under the laws of the State (or Commonwealth) of Further, I have examined the foregoing Grant Agreement, and the actions taken by said Sponsor relating thereto, and find that the acceptance thereof by said Sponsor and Sponsor's official representative has been duly authorized and that the execution thereof is in all respects due and proper and in accordance with the laws of the said State (or Commonwealth) and Title 49 U.S.c. In addition, for grants involving projects to be carried out on property not ovvned by the Sponsor or where Sponsor may make payments to others, there are no legal impediments that will prevent full performance by the Sponsor. Further, it is my opinion that the said Grant Agreement, including the Assurances, constitutes a legal and binding obligation of the Sponsor in accordance with the terms thereof Signature of Sponsor's Attorney Date Printed or Typed Name Telephone 9 Attachments OFFICE OF THE SECRETARY DEPARTMENT OF TRANSPORTATION TITLE VI ASSURANCE (Implementing Title VI of the Civil Rights Act of 1964, as amended) ASSURANCE CONCERNING NONDISCRIMINATION ON THE BASIS OF DISABILITY IN FEDERALLY-ASSISTED PROGRAMS AND ACTIVITIES RECEIVING OR BENEFITING FROM FEDERAL FINANCIAL ASSISTANCE (Implementing the Rehabilitation Act of 1973, as amended, and the Air Carrier Access Act of 1986) 49 CFR Parts 21 and 27 and 14 CFR Parts 271 and 382 (the Grant Recipient) HEREBY AGREES THAT, (Name of Grant Recipient) I. As a condition to receiving any Federal financial assistance from the Department of Transportation, it will comply: with Title VI of the Civil Rights Act of 1964, as amended, 42 US.e. 2000d--42 US.e. 2000d-4; all requirements imposed by or pursuant to: Title 49, Code of Federal Regulations, Part 21, Nondiscrimination in Federally-Assisted Programs of the Department of Transportation-- Effectuation of Title VI of the Civil Rights Act of 1964; and other pertinent directives so that no person in the United States shall, on the grounds ofrace, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity for which the Recipient receives Federal financial assistance from the Department of Transportation. This assurance is required by Title 49, Code of Federal Regulations, section 21.7(a) and Title 14, Code of Federal Regulations, section 271.9(c). II. As a condition to receiving any Federal financial assistance from the Department of Transportation, it will comply with: section 504 of the Rehabilitation Act of 1973, as amended (29 US.e. 794); the Air Carrier Access Act of 1986 (49 U.s.e. 1374(c)); and all requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Part 27, Nondiscrimination on the Basis of Handicap in Programs and Activities Receiving or Benefiting from Federal Financial Assistance, Title 14, Code of Federal Regulations, Part 382, Nondiscrimination on the Basis of Handicap in Air Travel; and other pertinent directives so that no otherwise qualified person with a disability, be excluded from participation in, be denied the benefits of, be discriminated against by reason of such handicap in the provision of air transportation, or otherwise be subjected to discrimination under any program for which the Recipient receives Federal financial assistance from the Department of Transportation. This assurance is required by Title 49, Code of Federal Regulations, section 27.9 and Title 14, Code of Federal Regulations, sections 2719(c) and 382.9. III. It ,viII promptly take any measures necessary to effectuate this agreement. The Recipient further agrees that it shall take reasonable actions to guarantee that it, its contractors and subcontractors subject to the Department of Transportation regulations cited above, transferees, and successors in interest will comply with all requirements imposed or pursuant to the statutes and Department of Transportation regulations cited above, other pertinent directives, and the above assurances. IV. These assurances obligate the Recipient for the period during which Federal financial assistance is extended. The Recipient agrees that the United States has a right to seekjudicial enforcement with regard to any matter arising under the statutes and Department of Transportation regulations cited above, other pertinent directives, and the above assurances. V These assurances are given for the purpose of obtaining Federal grant assistance under the Small Community Air Service Development Program and are binding on the Recipient, contractors, subcontractors, transferees, successors in interest, and all other participants receiving Federal grant assistance in the Small Community Air Service Development Program. The person or persons whose signatures appear below are authorized to sign this agreement on behalf of the Grant Recipient. VI. In addition to these assurances, the Recipient agrees to file: a summary of all complaints filed against it within the past year that allege violation(s) by the Recipient of Title VI of the Ci viI Rights Act of 1964, as amended, section 504 of the Rehabilitation Act of 1973, as amended, or the Air Carrier Access Act of 1986; or a statement that there have been no complaints filed against it. The summary should include the date the complaint was filed, the nature of the complaint, the status or outcome of the complaint (i.e., whether it is still pending or how it was resolved). Date Legal Name of Grant Recipient By: Signature of Authorized Official UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY OFFICE OF A VIA TION ANALYSIS CERTIFICATION REGARDING INFLUENCING ACTIVITIES Certification for Contracts, Grants, Loans, and Cooperative Agreements The oodersigned certifies, to the best of his or her knowledge and belief, that: (1) No Federal appropriated foods have been paid or will be paid, by or on behalf of the oodersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. (2) If any foods other than Federal appropriated foods have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the oodersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Influencing Activities," in accordance with its instructions. (3) The oodersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts ooder grants, loans and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. Signature Date Title Grant Recipient UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY OFFICE OF A VIA TION ANALYSIS CERTIFICA TION REGARDING DRUG-FREE WORKPLACE REQUIREMENTS IN THE PERFORMANCE OF SMALL COMMUNITY AIR SERVICE PURSUANT TO GRANT AWARD UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM A. The grant recipient certifies that it will, or will continue, to provide a drug-free workplace by: (a) Publishing a statement notifying employees that the lUllawful manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in the grant recipient's workplace, and specifying the actions that will be taken against employees for violation of such prohibition; (b) Establishing an ongoing drug-free awareness program to inform employees about-- (I) The dangers of drug abuse in the workplace; (2) The grantee's policy of maintaining a drug-free workplace; (3) Any available drug cOlUlseling, rehabilitation, and employee assistance programs; and (4) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; (c) Making it a requirement that each employee to be engaged in the performance of work supported by the grant award be given a copy of the statement required by paragraph (a); (d) Notifying the employee in the statement required by paragraph (a) that, as a condition of employment supported by the grant award, the employee will-- (I) Abide by the terms of the statement; and (2) Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction; (e) Notifying the agency in writing, within ten calendar days after receiving notice under paragraph (d)(2) from an employee or otherwise receiving actual notice of conviction. Employers of convicted employees must provide notice, including position title, to the Office of Aviation Analysis. Notice shall include the order number of the grant award; (t) Taking one of the following actions, within 30 days ofreceiving notice under paragraph (d)(2), with respect to any employee who is so convicted-- (I) Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended, or (2) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State or local health, law enforcement, or other appropriate agency; (g) Making a good faith effort to continue to maintain a drug-free workplace through implementation of paragraphs (a), (b), (c), (d), (e) and (t). B. The grant recipient may, but is not required to, insert in the space provided below the site for the performance of work done in connection with the specific grant. Places of Performance (street address, city, county, state, zip code). For the provision of air service pursuant to the grant award, workplaces include outstations, maintenance sites, headquarters office locations, training sites and any other worksites where work is performed that is supported by the grant award. Check [ ] if there are workplaces on file that are not identified here. Grant Recipient Signature Date SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM GRANT ASSURANCES Certification. The Grantee 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 foods for this project including but not limited to the following: Federal Legislation a. Davis-Bacon Act - 40 USC. 276(a), et seq. b Federal Fair Labor Standards Act - 29 US.e. 201, et seq. Airport Assurances (9/99) c. Hatch Act - 5 USe. 1501, et seq. d. Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 Title 42 US.e. 4601, et seq. e. National Historic Preservation Act of 1966 - Section 106 - 16 US.e. 470(f). f. Archeological and Historic Preservation Act of 1974 - 16 USe. 469 through 469c. g. Native Americans Grave Repatriation Act - 25 USe. Section 3001, et seq. h. Clean Air Act, P.L. 90-148, as amended. i. Coastal Zone Management Act, P.L. 93-205, as amended. j. Flood Disaster Protection Act of 1973 - Section 102(a) - 42 USe. 4012a.l k. Age Discrimination Act of 1975 - 42 USe. 6101, et seq. 1. American Indian Religious Freedom Act, P.L. 95-341, as amended. m. Architectural Barriers Act of 1968 -42 USC. 4151, et seq. n. Power Plant and Industrial Fuel Use Act of 1978 - Section 403 - 42 US.e.8373. o. Contract Work Hours and Safety Standards Act - 40 US.e. 327, et seq. p. Copeland Anti-kickback Act - 18 USe. 874. q. National Environmental Policy Act of 1969 - 42 US.e. 4321, et seq. r. Wild and Scenic Rivers Act, P.L. 90-542, as amended. s. Single Audit Act of 1984 - 31 USe. 7501, et seq. Executive Orders Executive Order 11246 - Equal Employment Opportooity Executive Order 11990 - Protection of Wetlands Executive Order 11998 - Flood Plain Management Executive Order 12372 - Intergovernmental Review of Federal Programs. 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. 29 CFR Part 1 - Procedures for predetermination of wage rates. d. 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. e. 29 CFR Part 5 - Labor standards provisions applicable to 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). f 41 CFR Part 60 - Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor (Federal and federally assisted contracting requirements). g. 49 CFR Part 18 - Uniform administrative requirements for grants and cooperative agreements to state and local governments. h. 49 CFR Part 23 - Participation by Disadvantaged Business Enterprise in Airport Concessions. i. 49 CFR Part 24 - Uniform relocation assistance and real property acquisition for Federal and federally assisted programs. j. 49 CFR Part 26 - Participation by Disadvantaged Business Enterprises in Department of Transportation Programs. k. 49 CFR Part 30 - Denial of public works contracts to suppliers of goods and services of countries that deny procurement market access to US. contractors. Office of Management and Budget Circulars a. A-87 - Cost Principles Applicable to Grants and Contracts with State and Local Governments. b. A-133 - Audits of States, Local Governments, and Non-Profit Organizations Specific assurances required to be included in grant agreements by any of the above laws, regulations, or circulars are incorporated by reference in the grant agreement. 2. Responsibility and Authority of the Grantee. a. It has legal authority to apply for the grant, and to finance and carry out the proposed project; that a resolution, motion or similar action has been duly adopted or passed as an official act of the applicant's governing body authorizing the filing of the application, including all understandings and assurances contained therein, and directing and authorizing the person identified as the official representative of the applicant to act in connection with the application and to provide such additional information as may be required. 3. Fund Availability. It has sufficient funds available for that portion of the project costs that are not to be paid by the United States. It has sufficient funds available to assure operation and maintenance of items funded under the grant agreement that it will own or control. 4. Preserving Rights and Powers. a. It will not take or permit any action that would operate to deprive it of any of the rights and powers necessary to perform any or all of the terms, conditions, and assurances in the grant agreement without the written approval of the DOT, and will act promptly to acquire, extinguish, or modify any outstanding rights or claims of right of others that would interfere with such performance by the sponsor. This shall be done in a manner acceptable to the DOT. 5. Accounting System, Audit, and Record Keeping Requirements. a. It shall keep all project accounts and records that fully disclose the amount and disposition by the recipient of the proceeds of the grant, the total cost of the project in connection with which the grant is given or used, and the amount or nature of that portion of the cost of the project supplied by other sources, and such other financial records pertinent to the project. The accounts and records 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 DOT and the Comptroller General of the United States, or any of their duly authorized representatives, for the purpose of audit and examination, any books, documents, papers, and records of the recipient that are pertinent to the grant. The DOT may require that a recipient conduct an appropriate audit. In any case in which an independent audit is made of the accooots of a sponsor relating to the disposition of the proceeds of a grant or relating to the project in connection with which the grant was given or used, it shall file a certified copy of such audit with the Comptroller General of the United States not later than six (6) months following the close of the fiscal year for which the audit was made. 6. Minimum Wage Rates. It shall include, in all contracts in excess of $2,000 for work on any projects fooded ooder this grant agreement that 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.SC. 276a-276a-5), which contractors shall pay to skilled and ooskilled labor, and such minimum rates shall be stated in the invitation for bids and shall be included in proposals or bids for the work 7. Economic Nondiscrimination. In any agreement, contract, lease, or other arrangement under any project fooded ooder this grant agreement and for 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 Grantee will insert and enforce provisions requiring the contractor to (1) furnish said services on a reasonable, and not oojuStly discriminatory, basis to all users thereof, and (2) charge reasonable, and not oojustly discriminatory, prices for each ooit or service, provided that the contractor may be allowed to make reasonable and nondiscriminatory discOoots, rebates, or other similar types of price reductions to volume purchasers. 8. 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 Grantee. 9. Foreign Market Restrictions. It will not allow funds provided under this grant to be used to food any project that uses any product or service of a foreign coootry during the period in which such foreign country is listed by the United States Trade Representative as denying fair and equitable market opportooities for products and suppliers of the United States in procurement and construction. 10. 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 payor 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 Part 24. 11. Buy America. In accepting this award, the grant recipient agrees to comply with sections 2 through 4 of the Act of March 3,1933 (41 US.c. 10a-lOc, popularly known as the "Buy America Act"). The recipient should review the provisions of the Act to ensure that expenditures made under this award are in accordance with it. In compliance with Section 508 of Public Law 108-447, the grant recipient is hereby notified that it is in the sense of the Congress of the United States that only American-made equipment and products should be purchased with financial assistance provided under this award. Grant Recipient Signature of Authorized Grant Recipient Official Date OFFICE OF THE SECRETARY OF TRANSPORTATION CERTIFICA TION REGARDING DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY MA TTERS -- PRIMARY COVERED TRANSACTIONS Instructions for Certification 1. By signing and submitting this proposal, the prospective primary participant is providing the certification set out below. 2. The inability of a person to provide the certification required below will not necessarily result in denial of participation in this covered transaction. The prospective participant shall submit an explanation of why it cannot provide the certification set out below. The certification or explanation will be considered in connection with the department or agency's determination whether to enter into this transaction. However, failure of the prospective primary participant to furnish a certification or an explanation shall disqualify such person from participation in this transaction. 3. The certification in this clause is a material representation of fact upon which reliance was placed when the department or agency determined to enter into this transaction. If it is later determined that the prospective primary participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the department or agency may terminate this transaction for cause or default. 4. The prospective primary participant shall provide immediate written notice to the department or agency to which this proposal is submitted if at any time the prospective primary participant learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances. 5. The terms covered transaction, debarred, suspended, ineligible, lower tier covered transaction, participant, person, primary covered transaction, principal, proposal, and voluntarily excluded, as used in this clause, have the meanings set out in the Definitions and Coverage sections of the rules implementing Executive Order 12549. You may contact the department or agency to which this proposal is being submitted for assistance in obtaining a copy of those regulations. 6. The prospective primary participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency entering into this transaction. 7. The prospective primary participant further agrees by submitting this proposal that it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and V oluntary Exclusion -- Lower Tier Covered Transaction," provided by the department or agency entering into this covered transaction, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions. 8. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant may decide the method and frequency by which it determines the eligibility of its principals. Each participant may, but is not required to, check the List of Parties Excluded from Federal Procurement and Non-procurement Programs. 9. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. 10. Except for transactions authorized under paragraph 6 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency may terminate this transaction for cause or default. Certification Regarding Debarment, Suspension, and Other Responsibility Matters -- Primary Covered Transactions (1) The prospective primary participant certifies to the best of its knowledge and belief, that it and its principals: (a) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded by any Federal department or agency; (b) Have not within a three-year period preceding this proposal been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; (c) Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State or local) with commission of any of the offenses enumerated in paragraph (1 )(b) of this certification; and (d) Have not within a three-year period preceding this application/proposal had one or more public transactions (Federal, State or local) terminated for cause or default. (2) Where the prospective primary participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal. Name Affiliation Title Date OFFICE OF THE SECRETARY OF TRANSPORTATION CERTIFICA TION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY AND VOLUNTARY EXCLUSION -- LOWER TIER COVERED TRANSACTIONS Instructions for Certification 1. By signing and submitting this proposal, the prospective lower tier participant is providing the certification set out below. 2. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective lower tier participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government the department or agency with which this transaction originated may pursue available remedies, including suspension and/or debarment 3. The prospective lower tier participant shall provide immediate written notice to the person to which this proposal is submitted if at any time the prospective lower tier participant learns that its certification was erroneous when submitted or had become erroneous by reason of changed circumstances. 4. The terms covered transaction, debarred, suspended, ineligible, lower tier covered transaction, participant, person, primary covered transaction, principal, proposal, and voluntarily excluded, as used in this clause, have the meaning set out in the Definitions and Coverage sections of rules implementing Executive Order 12549. You may contact the person to which this proposal is submitted for assistance in obtaining a copy of those regulations. 5. The prospective lower tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency with which this transaction originated. 6. The prospective lower tier participant further agrees by submitting this proposal that it will include this clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion -- Lower Tier Covered Transaction," without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions. 7. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded from covered transactions, unless it knows that the certification is erroneous. A participant may decide the method and frequency by which it determines the eligibility of its principals. Each participant may, but is not required to, check the List of Parties Excluded from Federal Procurement and Non-procurement Programs. 8. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinal)' course of business dealings. 9. Except for transactions authorized under paragraph 5 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension and/or debarment. Certification Regarding Debarment, Suspension, Ineligibility an Voluntary Exclusion -- Lower Tier Covered Transactions (1) The prospective lower tier participant certifies, by submission of this proposal, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency. (2) Where the prospective lower tier participant is unable to certifY to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal. Name Title Affiliation Date