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Q December 15, 2009 U. S. Department of Transportation Federal Aviation Administration TERMS AND CONDITIONS OF ACCEPTING AIRPORT IMPROVEMENT PROGRAM GRANTS This document contains the terms and conditions of accepting Airport Improvement Program (AIP) grants from the Federal Aviation Administration (FAA) for the purpose of carrying out the provisions of Title 49, United States Code. These terms and conditions become applicable when the Sponsor accepts a Grant Offer from the FAA that references this document. The FAA may unilaterally amend the terms and conditions by notification in writing, and such amendment will only apply to grants accepted after notification. DEFINITIONS A. Sponsor-An agency that is legally, financially, and otherwise able to assume and carry out the certifications, representations, warranties, assurances, covenants and other obligations required in this document and in the accepted Grant Agreement. Project-Work as identified in this grant Agreement. Primary Airport-A commercial service airport the Secretary of Transportation determines to have more than 10,000 passengers boarding each year. “this grant" — In this document the term “this grant” refers to the applicable grant agreement or grant agreements that incorporate(s) these Terms and Conditions as part of the grant agreement. CERTIFICATIONS Title 49, United States Code, section 47105(d), authorizes the Secretary to require certification from the Sponsor that it will comply with statutory and administrative requirements in carrying out a project under the AIP. The following list of certified items includes major requirements for this aspect of project implementation However, the list is not comprehensive, nor does it relieve sponsors from fully complying with all applicable statutory and administrative standards. In accepting this grant, the Sponsor certifies that each of the following items was or will be complied with in the performance of grant agreements. If a certification cannot be met for a specific project, the Sponsor must fully explain in an attachment to the project application. A. Sponsor Certification for Selection of Consultants. General standards for selection of consultant services within Federal grant programs are described in Title 49, Code of Federal Regulations (CFR), and Part 18.36. Sponsors may use other qualifications-based procedures provided they are equivalent to specific standards in 49 CFR 18 and Advisory Circular 150/5100-14, Architectural, Engineering, and Planning Consultant Services for Airport Grant Projects. 1. Solicitations were (will be) made to ensure fair and open competition from a wide area of interest. 2. Consultants were (will be) selected using competitive procedures based on qualifications, experience, and disadvantaged enterprise requirements with the fees determined through negotiations. 3. A record of negotiations has been (will be) prepared reflecting considerations involved in the establishment of fees, which are not significantly above the Sponsor's independent cost estimate. 4. If engineering or other services are to be performed by Sponsor force account personnel, prior approval was (will be) obtained from the FAA. 5. The consultant services contracts clearly establish (will establish) the scope of work and delineate the division of responsibilities between all parties engaged in carrying out elements of the project. 6. Costs associated with work ineligible for AIP funding are (will be) clearly identified and separated from eligible items in solicitations, contracts, and related project documents. 7. Mandatory contact provisions for grant-assisted contracts have been (will be) included in consultant services contracts. 8. The cost-plus-percentage-of-cost methods of contracting prohibited under Federal standards were not (will not be) used 9. If the services being procured cover more than the single grant project referenced in this certification, the scope of work was (will be) specifically described in the advertisement; and future work will not be initiated beyond five years. Sponsor Certification for Project Plans and Specifications. AIP standards are generally described in Advisory Circulars 150/5100-6, Labor Requirements for the Airport Improvement Program; 150/5100-15, Civil Rights Requirements for the Airport Improvement Program; and 150/5100-16, Airport Grant Assurance One-General Federal Requirements. A list of current advisory circulars with specific standards for design or construction of airports, as well as procurementinstallation of equipment and facilities, is referenced in standard airport sponsor Grant Assurance 34 in this document. 1. The plans and specifications were (will be) prepared in accordance with applicable Federal standards and requirements; so no deviation or modification to standards set forth in the advisory circulars, or State standard, is necessary other than those previously approved by the FAA. 2. Specifications for the procurement of equipment are not (will not be) proprietary or written so as to restrict competition. At least two manufacturers can meet the specifications?. 1 of 16 The development included (to be included) in the plans is depicted on the airport layout plan approved by the FAA. Development that is ineligible for AIP funding has been (will be) omitted from the plans and specifications. The process control and acceptance tests required for the project by standards contained in Advisory Circular 150/5370-10 are (will be) included in the project specifications. If a value engineering clause is incorporated into the contract, concurrence was (will be) obtained from the FAA. The plans and specifications incorporate (will incorporate) applicable requirements and recommendations set forth in the Federally approved environmental finding. For construction activities within or near aircraft operational areas, the requirements contained in Advisory Circular 150/5370-2 have been (will be) discussed with the FAA, as well as incorporated into the specifications; and a safety/phasing plan has FAA's concurrence, if required. The project was (will be) physically completed without Federal participation in costs due to errors and omissions in the plans and specifications that were foreseeable at the time of project design. Sponsor Certification for Equipment/Construction Contracts. General standards for equipment and construction contracts within Federal grant programs are described in Title 49, CFR, Part 18.36. AIP standards are generally described in FAA Advisory Circular (AC) 150/5100-6, Labor Requirements for the Airport Improvement Program; 150/5100-15, Civil Rights Requirements for the Airport Improvement Program; and 150/5100-16, Airport Grant Assurance One—General Federal Requirements. Sponsors may use State and local procedures provided procurements conform to these Federal standards. ls 2. 3 10. 1 A code or standard of conduct is (will be) in effect governing the performance of the Sponsor's officers, employees, or agents in soliciting and awarding procurement contracts. Qualified personnel are (will be) engaged to perform contract administration, engineering supervision, construction inspection, and testing. The procurement was (will be) publicly advertised using the competitive sealed bid method of procurement. The bid solicitation clearly and accurately describes (will describe): a. The current Federal wage rate determination for all construction projects; and b. All other requirements of the equipment and/or services to be provided. Concurrence was (will be) obtained from FAA prior to contract award under any of the following circumstances: a. Only one qualified person/firm submits a responsive bid; b. The contract is to be awarded to other than the lowest responsible bidder; c. Life cycle costing is a factor in selecting the lowest responsive bidder; or d. Proposed contract prices are more than 10 percent over the Sponsor's cost estimate All contracts exceeding $100,000 require (will require) the following provisions: a. A bid guarantee of 5 percent, a performance bond of 100 percent, and a payment bond of 100 percent; b. Conditions specifying administrative, contractual, and legal remedies, including contract termination, for those instances in which contractors violate or breach contact terms; and c. Compliance with applicable standards and requirements issued under Section 306 of the Clean Air Act (42 USC 1857(h)), Section 508 of the Clean Water Act (33 USC 1368), and Executive Order 11738. All construction contracts contain (will contain) provisions for: a. Compliance with the Copeland “Anti-Kick Back” Act; and b. Preference given in the employment of labor (except in executive, administrative, and supervisory positions) to honorably discharged Vietnam-era veterans and disabled veterans. All construction contracts exceeding $2,000 contain (will contain) the following provisions: a. Compliance with the Davis-Bacon Act based on the current Federal wage rate determination; and b. Compliance with the Contract Work Hours and Safety Standards Act (40 USC 327-330), Sections 103 and 107. All construction contracts exceeding $10,000 contain (will contain) appropriate clauses from 41 CFR Part 60 for compliance with Executive Orders 11246 and 11375 on Equal Employment Opportunity. All contracts and subcontracts contain (will contain) clauses required from Title VI of the Civil Rights Act and 49 CFR 23 and 49 CFR 26 for Disadvantaged Business Enterprises. Appropriate checks have been (will be) made to assure that contracts or subcontracts are not awarded to those individuals or firms suspended, debarred, or voluntarily excluded from doing business with any U.S. Department of Transportation (DOT) element and appearing on the DOT Unified List. Sponsor Certification for Real Property Acquisition. General requirements on real property acquisition and relocation assistance are in Title 49, CFR, Part 24 and the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (Uniform Act). ae 2 3 The Sponsor's attorney or other official has (will have) good and sufficient title and title evidence on property in the project. If defects and/or encumbrances exist in the title that adversely impact the Sponsor's intended use of property in the project, they have been (will be) extinguished, modified, or subordinated. If property for airport development is (will be) leased, the following conditions have been (will be) met: a. The term is for 20 years or the useful life of the project; b. The lessor is a public agency; and c. The lease contains no provisions that prevent full compliance with this grant agreement. Property in the project is (will be) in conformance with the current Exhibit “A” property map, which is based on deeds, title opinions, land surveys, the approved airport layout plan, and project documentation. 2 of 16 5. For any acquisition of property interest in noise sensitive approach zones and related areas, property interest was (will be) obtained to ensure land is used for Purposes compatible with noise levels associated with operation of the airport. 6. For any acquisition of property interest in runway protection zones and areas related to 14 CFR 77 surfaces, property interest was (will be) obtained for the following: a. The right of flight; b. The right of ingress and egress to remove obstructions; and c. The right to restrict the establishment of future obstructions. 7. Appraisals prepared by qualified real estate appraisers hired by the Sponsor include (will include) the following: a. Valuation data to estimate the current market value for the property interest acquired on each parcel; and b. Verification that an opportunity has been Provided the property owner or representative to accompany appraisers during inspections. 8. Each appraisal has been (will be) reviewed by a qualified review

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