Presented to: By: Date: Federal Aviation Administration Airport Improvement Program Overview of Grant Assurances & Common Mistakes 2009 Federal Agency

Presented to:

By:

Date:

Federal AviationAdministrationAirport Improvement

Program

Overview of Grant Assurances & Common

Mistakes

2009 Federal Agency Update

Joelle Briggs, Regional Compliance Program Mgr.

January 14, 2009

AIP Program Grant Assurance Overview2Federal Aviation

AdministrationJanuary 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



Common Mistakes

• Residential Use

• Through-the-Fence Access

• Revenue Diversion

• Economic Non-Discrimination

• Exclusive Rights



On-Airport Residential Use



Is an incompatible land use

And must be terminated, even if its making money…



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



Residential TTF Access



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



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 StructureLose hangar leases to TTF operator

Access is Not Subordinate to Grant Assurances#5, Preserving Rights & PowersMonitoring compliance

Commercial Service TTF#22, Economic Non-discrimination#24, Fee & Rental Structure -- Fuel Flowage Fee



#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



Airport RevenuePermitted 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



#22, Economic Nondiscrimination47107(a)(1-5)

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.



#23, Exclusive Rights47107(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.



Resourceswww.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

Documents

Presented to: By: Date: Federal Aviation Administration Airport Improvement Program Overview of Grant Assurances & Common Mistakes 2009 Federal Agency