1. Presented to: By: Date: Federal Aviation Administration Airport Improvement Program Overview of Grant Assurances & Common Mistakes 2009 Federal Agency Update Joelle Briggs, Regional Compliance Program Mgr. January 14, 2009

2. AIP Program Grant Assurance Overview 2 Federal Aviation Administration January 14, 2009 Airport Sponsor Assurances Part A General Part B Duration and Applicability –Useful life, not more than 20 years –No limit on land Part C Sponsor Certification –39 Assurances to abide by –General Federal Requirements (Legislation, EO, Regulations) Uniform Relocation Assistance & Real Property Acquisition Act of 1970, 42 USC 4601, et seq. Uniform Relocation Assistance and Real Property Acquisition for Federal and Federally Assisted Programs, 49 CFR Part 24 Sponsor Certification

3. AIP Program Grant Assurance Overview 3 Federal Aviation Administration January 14, 2009 Common Mistakes Residential Use Through-the-Fence Access Revenue Diversion Economic Non-Discrimination Exclusive Rights

4. AIP Program Grant Assurance Overview 4 Federal Aviation Administration January 14, 2009 On-Airport Residential Use

5. AIP Program Grant Assurance Overview 5 Federal Aviation Administration January 14, 2009 Is an incompatible land use And must be terminated, even if its making money…

6. AIP Program Grant Assurance Overview 6 Federal Aviation Administration January 14, 2009 Residential Use Grant Assurances Potentially Implicated #5, Rights and Powers #19, Operation and Maintenance #21, Compatible Land Use #24, Fee and Rental Structure #25, Airport Revenue

7. AIP Program Grant Assurance Overview 7 Federal Aviation Administration January 14, 2009 Residential TTF Access

8. AIP Program Grant Assurance Overview 8 Federal Aviation Administration January 14, 2009 Where Does FAA Stand? Residential TTF Access – Incompatible Land Use Grant Assurance Violation Non-Residential – Notify FAA and get review of agreement Minimum Standards AC 150/5190-7

9. AIP Program Grant Assurance Overview 9 Federal Aviation Administration January 14, 2009 Through-the-Fence Access Issues TTF Access in Perpetuity – #5, Preserving Rights & Powers Access Fee Not at Parity – #22, Economic Non-discrimination #24, Fee & Rental Structure Lose hangar leases to TTF operator Access is Not Subordinate to Grant Assurances #5, Preserving Rights & Powers Monitoring compliance Commercial Service TTF #22, Economic Non-discrimination #24, Fee & Rental Structure -- Fuel Flowage Fee

10. AIP Program Grant Assurance Overview 10 Federal Aviation Administration January 14, 2009 #25. Airport Revenues § 47107(L) All revenues generated by the airport and any local taxes on aviation fuel, established after 12/30/87, will be expended for the capital or operating costs of the airport… Policy published in February 1999

11. AIP Program Grant Assurance Overview 11 Federal Aviation Administration January 14, 2009 Airport Revenue Permitted v. Prohibited Uses Permitted Capital or operating costs of the airport Cost of marketing the airport Share of promotional expenses Certain directly or indirectly allocated costs. Reimbursement to sponsor for debts 6 years prior. Prohibited Paying more for services provided by the sponsor than reasonably worth Giving away use of airport property for charitable purposes. Sponsor uses property without paying for it. –Maintenance or storage facility, equipment use

12. AIP Program Grant Assurance Overview 12 Federal Aviation Administration January 14, 2009 #22, Economic Nondiscrimination 47107(a)(1-5) M ake 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.

13. AIP Program Grant Assurance Overview 13 Federal Aviation Administration January 14, 2009 #23, Exclusive Rights 47107(a)(4) AC 150/5190-6 Will not permit or grant, either directly or indirectly, an exclusive right to conduct any aeronautical activities at the airport. Examples – –Exclusive Right in the FBO lease; –FBO leases all available space although not immediately used.

14. AIP Program Grant Assurance Overview 14 Federal Aviation Administration January 14, 2009 Resources www.faa.gov/airports_airtraffic/airports/regional_guidance/northwest_mountain/airport_obligations/ Grant Assurances Compliance Handbook, Order 5190.6A Exclusive Rights AC 150/5190-6 Policy and Procedures on Revenue Use