APPLICATION UNDER
SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT

- OST -2014-0133

SUMMARY INFORMATION 1

All applicants must submit this Summary Information schedule, as the application

coversheet
, a completed standard form SF424 and the full application proposal on www.grants.gov

.
For your preparation convenience, this Summary Information schedule is located at http://www.dot.gov/policy/aviation- policy/small -community- rural

- air

- service/SCA SDP

A. P ROVIDE THE LEGAL SPO NSOR AND ITS DUN AND BRADSTREET (D&B) DATA UNIVERSAL

NUMBERING SYSTEM (DUNS) NUMBER , INCLUDING +4, EMPLOYEE IDENTIFICAT ION NUMBER

(EIN) OR TAX ID

. Legal Sponsor Name:

Name of Signatory Party for Legal Sponsor:

DUNS Number:

EIN/Tax ID:

B. L IST THE N AME OF THE COMMUNITY OR CONSORTIUM OF COM MUNITIES APPLYING :

1.____________________________________________________

2.____________________________________________________

3.____________________________________________________

4.____________________________________________________

C. P ROVIDE THE FULL AIRP ORT NAME AND 3-L ETTER IATA A IRPORT C ODE FOR THE

APPLICANT ( S ) AIRPORT ( S ) (O NLY PROVIDE CODES FOR THE AIRPORT ( S ) THAT ARE ACTUALLY

SEEKING SERVICE ).

1. 2

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3

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1 Note that the Summary Information does not count against the 20

- page limit of the SCASDP application.D OES THE AIRPORT SEEKING SERVICE HOLD AN AIRPORT OPERATING CERTIFICATE ISSUED BY

THE F EDERAL A VIATION A DMINISTRATION UNDER 14 CFR P ART 139? (I F “N O ”, P LEASE

EXPLAIN WHETHER THE AIRPORT INTENDS TO APPLY FOR A CERTIFICATE OR WHETHER AN

APPLICATION UNDER P ART 139 IS PENDING .)

Yes No (explain)

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D. L IST THE 2- DIGIT CONGRESSIONAL DISTRICT CODE APPLIC ABLE TO THE SPONSORI NG

ORGANIZATION , AND IF A CONSORTIUM , TO EACH PARTICIPATING COMMUNITY

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1. 2

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3

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E. A PPLICANT I NFORMATION : (C HECK A LL T HAT A PPLY )

Not a Consortium Interstate Consortium Intrastate Consortium

Community currently receives subsidized Essential Air Service

Community (or Consortium member) previously received a Small Community Air Service Development Program Grant

If previous recipient: Provide year of grant(s) :_______________________________; and, the text of the grant agreement section(s) setting forth the scope of the grant project :

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F. P UBLIC /P RIVATE P ARTNERSHIPS : (L IST O RGANIZATION NAMES )

PUBLIC PRIVATE

1. 1.

2. 2.

3. 3.

4. 4.

5. 5.G. P ROJECT P ROPOSAL :

1. G RANT G OALS : ( CHECK ALL THAT APPLY )

Launch New Carrier Secure Additional Service Upgrade Aircraft

First Service New Route Service Restoration

Regional Service Surface Transportation Professional Services 2

Other (explain below)

2. F INANCIAL T OOLS T O B E U SED : ( CHECK ALL THAT APPLY )

Marketing (including Advertising): promotion of the air service to the public

Start

- up Cost Offset : offsetting expenses to assist an air service provider in setting up a

new station and starting new service (for example, ticket counter reconfiguration)

R evenue Guarantee : an agreement with an air service provider setting forth a minimum

guaranteed profit margin, a portion of which is eligible for reimbursement by the

community

Recruitment of Air Carrier: air service development activities to recruit new air service,

including expenses for airport marketers to meet with air service providers to make the

case for new air service

Fee Waivers : waiver of airport fees, such as landing fees, to encourage new ai r service;

counted as in-kind contributions only

Ground Handling Fee : reimbursement of expenses for passenger, cabin, and ramp (below

wing) services provided by third party ground handlers

Travel Bank: travel pledges, or deposited monetary funds, from pa rticipating parties for

the purchas e of air travel on an air carrier , with defined procedures for the subsequent use

of the pledges or the deposited funds; counted as in-kind contributions only

2 “Professional Services” involve a community contracting with a firm to produce a product such as a marketing plan, study, air carrier proposal, etc.Other (explain below)

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H. E XISTING L ANDING A IDS AT L OCAL A IRPORT :

Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Other (specify)

I. P ROJECT C OST : D O NOT ENTER TEXT IN SHADED AREA

L INE D ESCRIPTION S UB T OTAL T OTAL A MOUNT

1 Federal amount requested

2 State cash financial contribution

Local cash financial contribution

3a Airport cash funds

3b Non

- airport cash funds

3 Total local cash funds ( 3a + 3b )

4 TOTAL CASH FUNDING ( 1+2+3 )

In

- K ind contribution

5 a Airport In

- Kind contribution **

5b Other In

- Kind contribution **

5 TOTAL IN

- KIND CONTRIBUTION

( 5a + 5b )

6 TOTAL PROJECT COST ( 4+ 5 )

J. IN- KIND CONTRIBUTIONS**

For funds in lines 5a (Airport In

- Kind contribution) and 5b (Other In

- Kind contribution), please

describe the source(s) of fund(s) and the value ($) of each.K. I S T HIS A PPLICATION S UBJECT T O R EVIEW B Y AN A FFECTED S T ATE U NDER E XECUTIVE

O RDER 12372 P ROCESS ?

a. This application was made available to the State under the Executive Order 12372

Process for review on (date) _____________.

b. Program is subject to E.O. 12372, but has not been selected by the S tate for review.

c. Program is not covered by E.O. 12372.

L. I S T HE L EAD A PPLICANT OR A NY C O -A PPLICANTS D ELINQUENT O N A NY F EDERAL D EBT ?

(I F “Y ES ”, P ROVIDE E XPLANATION )

No Yes (explain)

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______________________________________________________________________________ APPLICATION CHECKLIST

I NCLUDED ? I TEM

For Immediate Action

Determine Eligibility

New Grants.gov users must r egister with www.grants.gov

. Existing Grants.gov users must verify ex isting www.grants.gov account has not expired
and the Authorized Organization R epresenta tive (AOR) is current

. For Submission by 5:00 PM EDT on July 31, 2014

Communities with active SCASDP grants: notify DOT/X50 of intent to terminate existing grant in order to be eligible for selection in FY2014

Complete Application for Federal Domestic Assistance (SF424) via www.grants.gov

S ummary Information schedule complete and used as cover sheet (see Appendix B )

A pplication of up to 20 one
- sided pages (excluding any letters from the community or an air carrier showing support for the application ) , to include:

• A description of the community’ s air service needs or deficiencies

.

• A strategic plan for meeting those needs under the Small Community Program

.

• A detailed description of the funding necessary for implementation of the community's project.

• An explanation of how the proposed project differs from any previous projects for which the community received SCASDP funds (if applicable).

• Designation of a legal sponsor responsible for adminis tering the program

.

• A motion for confidential treatment (if applicable)

– see Appendix D below.General Wayne A. Downing Peor ia International Airport

Small Community Air Service Grant Application 2014

DOCKET DOT-OST-2014-0113 DUNS 049139736

EXECUTIVE SUMMARY

Peoria and its Central Illinois se rvice area have been adversely a ffected by changes in the airline industry over recent years. Analysis of origin and destination data fo r the Central Illinois and Peoria market areas reveals significant leakage to other airports from the Peoria market area.

Peoria and the surrounding region is served by the General Wayne A. Downing Peoria International Airport (PIA). As the largest city in Central Illinois, Peoria is a critical and vital air transportation link for Central Illinois. The Air port Authority has been wo rking aggressively to improve connectivity and availability of air serv ice, and is currently re vamping its air service development program. The Airport Authority is currently updating its Airport Master Plan, which includes new aviation activity forecasts. Th is forecasting effort for the first time includes air service development as a major component . This complements the recently completed demographics study and route foreca st estimate commissioned for an effort to obtain services from

US Customs and Border Protection to allow co mmercial airline traffic from international

destinations. These studies show that over 1.4 milli on people live within a 70 mile radius of PIA, including all or parts of 25 counties. Peor ia's core MSA population is over 379,000 within 25 miles of the General Wayne A. Downing Peoria Inte rnational Airport. PIA’s market area generates approximately 1,220 Passengers Per Day Each Way (PDEW), yet PIA only captures about 58% of these travelers. The largest “leaks” are to Chicago O’Hare, Chicago Midway, and St. Louis

Lambert.

The current air service climate in Pe oria consists of four airlines providing service from PIA to ten cities. There is a distinct spli t in the market between leisure destinations served by Allegiant Airlines, and combined business/leisure travel provided by the regional partners of American Airlines, Delta Airlines, and United Airlines.

The Metropolitan Airport Authority of Peoria (MAAP ), as the owner and operator of PIA, has had some recent successes in developing air servi ce for the Central Illinois region. During 2012, MAAP was able to attract service by Allegiant to their new focus city of Punta Gorda, FL, serving the Fort Myers market. In addition, PIA used a revenue guarantee to gain service with Delta to

Atlanta. Atlanta service has been critical to PIA’s success in 2012, since it opened major gateways to Europe, Latin Ameri ca, and Africa for Caterpillar, In c., which is headquartered in Peoria and is the region’s largest single employer.

MAAP is currently engage d in a process of revamping our ai r service development program. We are conducting market analysis of our current and projected traffic flows to determine the best application of a revenue guarantee to restore pricing balance and recapture leaked traffic. We anticipate that any of six hubs c ould be selected as a target fo r a revenue guarantee. We are currently analyzing these targets to determine th e best strategic outcome that will result in the highest return of leaked passengers with the least negative impact on existing routes or carriers. The Airport Authority’s request under the SCASDP will involve completing this market analysis with funds for a revenue guarantee to follow.GENERAL WAYNE A. DOWNING PEORIA INTERNATIONAL AIRPORT BACKGROUND

The General Wayne A. Downing Peoria Internati onal Airport is a Non-H ub Airport with service from three legacy carriers (American, Delta, and United) and one LCC (Allegiant). In recent years, passenger counts saw a significant reducti on during the Great Recession, and have bounced back to record highs. Recent records have been the result of a recovering economy, recent service additions, and the removal of unbalanced pricing pressure from a neighboring airport resulting from the departure from the competing market of Air Tran as the result of the Southwest acquisition.

Passenger totals have rebounded from the Gr eat Recession. From a previous high of 564,988 passengers in 2008, including both enplaned and depl aned total passengers, the total number of passengers using PIA dropped in 2009 to 493,856. The following two years saw small recoveries, with 511,513 in 2010, and 513,573 in 2011. New service to Atlanta and Punta Gorda (Ft. Myers) in 2012 boosted the airport’s passenger totals to a record high of 580,530. This was followed by additional growth in 2013 to 592,101 passengers, a new record year. The passenger count at the midpoint of 2014 is currently running over 7.2% higher than the same period in 2013’s record year.

These figures include non-revenue passengers, whic h results in slightly higher numbers than the BTS figures for PIA. (Non-rev passengers make up about between 1.7% to 3.5% of the total, depending on the year). Based on these totals, TSA is considering the re-classification of the airport from Category III to Category II. The Pe oria MSA is home to the world headquarters of Caterpillar, Maui Jim Sunglasses, RLI Insuran ce and many other important economic interests. Peoria’s economy is diversifying and includes ga ins in the medical, retail, finance, and other industries. While Caterpillar, Inc. is the largest single employer in the local economy, the combined employment of the health care sector actually employs nearly twice as many people as does Caterpillar.

MAAP embarked on a process to improve the ai rline terminal infrastructure in 2005. This process resulted in the co nstruction of a new terminal buildi ng which opened in April, 2011. The old terminal was partially demolished and convert ed into a temporary st and-alone Air Traffic Control Tower. Design for the new tower us unde rway, and construction is slated to begin in March, 2016. The Airport Authority just opene d bids for a replacement Federal Inspection Service building to house US Customs and Border Prot ection staff. Peoria is currently a Port of Entry and PIA is a Landing Rights Airport, with a one-person staff. We can currently handle aircraft up to 15 passengers in size. The new FI S will handle today’s general aviation traffic, and will also allow the airport to handle scheduled and charter service by large air carrier aircraft. We are exploring several ways to obtain funding fo r CBP staffing required to accomplish this.

In addition, the Airport Authority is working aggressively on re taining and improving air service for the community. Recent changes include the following:

2014 MAAP engages Ailevon/Pacific as an air serv ice consulting firm to assist with Airport Master Plan Update and to complete separate air service development projects. Traffic levels running over 7% above 2013 record totals. Polar Vort ex weather caused extensive flight cancellations during January and Fe bruary, with monthly passenger counts about average for those two months. Once the weather calmed down, March, April, May, and June set monthly records, with June setting the mark for the all-time busiest month ever experienced at PIA. 2013 Completion of guarantee period for DL flights to Atlanta. Guarantee spent less than the total reserved ($900k vs, $1.2M cap). Second DEN flight discontinued due to pricepressure from nearby Low Cost Carrier. Adj acent airports to the east and west have gained service by mainline large aircraft (A irbus), causing price differential pressures. Full year of service to ATL and PGD pushed pa ssenger totals to reco rd level, exceeding 2012 by 2%. 2012 Addition of second daily flight on United to DEN. Resumption of Atlanta flights on Delta (lost during recession in July, 2009) using re venue guarantee. Addition of Allegiant flights to Punta Gorda, FL. 2011 Third Dallas flight on American Eagle. Shif t of Delta flights from 2 MSP and 2 DTW to 1 MSP and 4 DTW (net increase of 50 seats per day. MAAP initiates feasibility study for constructing a US Customs Federal Inspection Service facility. April, new terminal opens and goes into full operation. 2008 Construction begins on ne w passenger airline terminal. 2007 Secured new non-stop service to Detroit via No rthwest Airlines and new nonstop service to

Denver via United.

2006 Secured additional service from American Eagle to DF W & additional service and increase in aircraft type from United to OR D, both efforts increased the available seat capacity for residents and businesses in Peoria and Central, Illinois. 2006 Secured an additional daily non-stop fli ght to LAS from Allegiant Airlines. 2006 Secured new low-fare non-stop service to PIE (a new destination for PIA) from Allegiant Airlines. This service regained access to Cent ral Florida for the residents and businesses of

Peoria and Central Illinois. 2004 Allegiant Airlines in itiates non-stop low-fare jet servic e to Las Vegas with 5 weekly departures. Daily passengers grew from 10 pa ssengers per day in the 4'n quarter of 2003 (PDEW) to 101 passengers per day (PDEW) in the 2no quarter of 2005. The fare in this
market decreased 31%.

2004 American initiates non-st op service to Dallas-Fort Wo rth, doubling the local PIA-DFW passenger demand.

Existing Service M ap, PIA July 2012MAAP has conducted a market analysis of air service and passenger flows from PIA using 2013 data from credit card records. As one would exp ect, travel patterns at PI A are heavily influenced by Caterpillar, Inc. travel patterns. Caterpillar experienced a pull-back due to the recession at the end of 2008, which impacted travel until late in 2 009. Cat’s travel returned to normal levels in 2010, and has increased again in 2011 and 2012. In a ddition, there is a signi ficant split between the leisure and business markets in Central Illinois. The leisure market has been thriving and is responsible for much of the ai rport’s success in 2012. Business travel has experienced success also, but is much less secure due to price pressure s from neighboring airports and reliability factors associated with the lack of capacity at ORD and the relatively recent “Tarmac Rule”.

Air Service Needs or Deficiencies

PIA has two primary air service deficiencies: fare pricing and reliability of service (completion factors). The business traveler cares most about price, convenience (time), and reliability. At first glance, airfares at PIA appear to be compe titive with other airports across the region and the nation. PIA has enjoyed recent successes in air se rvice development for both business and leisure travel, but is still being hindered in the growth of business travel by high fares and a perception of lower reliability (frequency of cancellations due to issues at the primary hub).

Reliability is a significant fact or impacting air service from PI A. Passengers frequently lodge complaints about the reliability of flights to and from PIA, but what they are really encountering

are cancellations due to the lack of capacity at ORD. PIA’s air service is heavily weighted to service through Chicago’s O’Hare Airport. O’Ha re is the largest connecting hub for PIA, with 44,632 enplaned passengers in the first half of 2014, representing about 28% of the total. Atlanta is second, with 21,362 enplanements in the first half of the year (nearly 13.5%), followed by Dallas-Fort Worth at 20,266 enplanements , for a share of just under 13%.PIA Catchment Area Analysis

When weather systems move th rough the upper Midwest, the cap acity at ORD is significantly diminished, and many airports experience delays and cancellations. ORD seems to be more impacted by these reductions than other hub airports in the region due to th e high level of traffic and capacity usage at that airport. This ha s been exacerbated by construction at ORD.

An additional factor impacting reli ability is the so called “Tarmac Rule”. Airlines cannot afford to risk incurring the heavy fine s associated with long tarmac de lays. When weather systems are forecast to move through the Upper Midwest the airl ines, especially those operating at O’Hare, are cancelling entire an day’s flights more than 24 hours in advance. Since many of Peoria’s travelers are flying internationall y, and many of the conn ecting flights to inte rnational hubs have only one opportunity per day, they are disproportionately impact ed. For this reason, many are choosing to drive to ORD instead of flying from PIA. This ensures that they’ll make the international connection. Due to the short flig ht and close proximity of PIA and ORD, spot cancellations occur more frequently due to adverse c onditions at O’Hare as we ll. Aircraft still on the ground are lower priority in FAA’s flow contro l system than aircraft already flying, so PIA’s close proximity to ORD results in more frequent delays and cancellations than for flights to more

distant hubs.

PIA Catchment Area Map

In 2008, leakage from PIA was estimated to be 51.5% to competing airports (21% to Chicago Airports), mainly to ORD. We have performe d a new leakage study as a part of our Airport Master Plan Update, using credit card information to drive the database. This new study hasshown that leakage in our catchment area is approximately 42%. While some of the difference is the result of service improvements, the two figur es are not directly comparable because the catchment area boundaries are different, with the new study using a smaller area. Leakage to ORD remains at 21%, with the second largest a ttraction for PIA passengers is Bloomington, IL, which captures 12% of passengers from PIA’s catchment area.

Price and class of service are two additional r easons why traffic leaks from the PIA catchment area. Currently, PIA’s business market is served almost exclusively by 50 seat regional jets. Neighboring airports enjoy service by 70 seat RJ s and seasonally, by mainline aircraft (Airbus 319). As shown on the following table, PIA still e xperiences higher fares than other airports in the region, as well as the nation.

MAAP is exploring additional se rvice options with all three le gacy carriers as well as our LCC/leisure oriented carrier. We have targeted six opportunities to explore in detail with the

carriers and with our consultants to refine further. We propose to use a portion of the requested SCASDP funds, along with matching lo cal funds to refine the target and select the city pair that has the best chance of supporting long term servi ce. MAAP will use the remainder of the grant funds to provide a revenue guarantee for service to the selected city. Cities currently being targeted include PIA to PHL and CLT on AA, to JFK and LGA on DL, and IAH and EWR on UA.Average Fare Comparison Comparable Midwestern Airports PDEW>1, Average Gross Fare, CY 2012

w/o G4 BMI $212 $257 EVV $293 $293 FWA $241 $308 IND $251 $251 MDW $162 $162 MLI $236 $305 ORD $254 $254 PIA $227 $318 RFD $132 $0 SBN $213 $272 SPI $211 $242 Average $221 $242

Source: US DOT O&D Data, CY 2012 PIA Proposed Revenue Guarantee Service

Existing routes in gray, proposed AA/US routes in blue, proposed DL routes in red, proposed UA routes in green.

Selection Criteria:

1. Air fares are higher than the nati onal average fares for all communities.

In 2012, PIA’s average fare was $227, compared with a regional average of $221 (see table below). However, PIA supports significant leis ure service by Allegian t Airlines, which has a large portion of the market shar e of the airport. This presen ce of an Ultra-Low Cost Carrier (ULCC) drives the fares downward for leisure destina tions, and paints an unrep resentative picture.

When Allegiant destinati ons are removed from the equation, PIA’s average fare jumps to $318. When removing Allegiant from th e regional average, it only increases to $242, and Chica go O’Hare’s average fare is only $254 for the same period. This demonstrates

that for the business travel er, price pressures drive passengers to fly from ORD and other neighboring airports. The table below illustrates the airports analyzed and the average fares for all passengers in CY 2012 from those airports, as well as the average fare without Allegiant destinations.

Since the completion of th e revenue guarantee with Delta, we have also seen an increase in average size of aircraft at the nearby competing airports. Both BMI and MLI have seen Delta replace regional jet service by code sharing partners with mainline service with
Airbus A319s. The increase in size means additionalseat capacity. The additional seat capacity will tend to drive down fares, which will cause additional pricing disparity.

Existing Service Map, Excluding Allegiant Cities, July, 2012

Service to an additional hub city will provide additional options for connectivity, which will tend to increase competition. Additional competition will tend to decrease fares and result in lower leakage, improved service, and more self-sustaining service.Service becomes more attractive when the “lines to the destination” are shortened. We have conducted an analysis of the curr ent and potential PIA market. This analysis has shown four key

factors.

First, PIA’s demographics are st rong and lead to strong support of air service development. Population trends are strong, and the area shows a significantly higher proportion of households significantly exceeding national and state averages for income. The high income level of households in the area will ge nerate better than average ticket purchasing patterns.

Second, PIA has a high proportion of international tr avel. Due to the location of Caterpillar, a significant number of trips are to international de stinations, which yields higher levels of revenue for the airlines. PIA’s existing level of internati onal travel is over 8%, which is higher than other comparable airports in the region, and is even higher than that of the St. Louis metropolitan region. Currently, PIA generates about 795 passengers daily each way. A total of 730 (91.9%) of these are domestic passengers, and 64 ( 8.1%) are international, a signi ficantly larger proportion than other small-hub or non-hub airports in the state.

Third, our analysis, combined with the requests of Caterpillar, Inc ., have identified the New York area, the southeast, and the south as the best ta rgets for air service development. New York area service would help Caterpillar “straighten out th e lines” to Europe and Africa, where a significant portion of their business is genera ted. Service to the south would help with connectivity to Latin

America.

Fourth, the recent merger of American Airlines and US Airways provides a potential new market for PIA. The Charlotte hub operated by US Airways is now within the American Airlines system, so additional flights to CLT coul d be handled at PIA without addi ng a station. This would keep the risk to a minimum for the airline, and would enhance its chances for success. Caterpillar has

extensive financial and administrative centers in South Carolina and other areas readily accessible

from CLT.

Excerpts from PIA Demographics Study, 20132. The community or consortium will provide a portion of the cost of the activity from
local sources other than airport revenue sources.

The Airport Authority has conducted an analysis of passenger flows, anticipated revenue streams, and an estimate of airline operating costs for flight s to determine the level of support needed in the form of a revenue guarantee. MAAP’s experi ence with the revenue gua rantee to Atlanta has influenced our analysis and calculation of the co sts and likely revenue streams. Based on this experience, a revenue guarantee of between $900,000 and $1.3 million would be anticipated for service to the New York area, the Washington, DC area, Charlotte, NC, or the Houston area.

The Airport Authority is proposi ng a partnership in funding this project with a combination of SCASDP funds, Airport Author ity funds from non-airport revenue sources, and in-kind contributions from the Airport Authority. M AAP is requesting a federal share of $500,000 for this project, matched by local funds in excess of the federal share.

MAAP is prepared to make cash contributi ons of up to $500,000 from non-airport revenue sources. This source is income from the Airport Authority’s proceeds from local property taxes. Local property tax has been reviewed by FAA’s lega l departments, and is not considered to be “airport revenue”. Since it is not derived from activity on the airp ort, but rather is derived by taxes levied on property owners w ithin a given geographic area, th e FAA has not considered it tobe airport revenue. This precedent has been established by multiple airports and SCASDP projects in Indiana (IND, SBN, EVV) and across the nation.

In addition to the cash contribution, MAAP is committing in-kind contributions in marketing, advertising, and promotion of the new service. In the past, the Airport Authority has committed up to $150,000 per year to promote new service of this type. For this project, MAAP is committing to up to $100,000 in marketing and adve rtising support. In addition, MAAP has a standing incentive package that would be applied to this service. This package includes the waiver of all landing fees and seve ral ancillary fees for the period of one year. As an example, this incentive would be worth over $145,000, dependi ng on the weight of the aircraft used.

In addition, PIA has just created a new staff position, the Manager of Marketing and Public Relations. This person’s duties will be primarily focused on air service development, and they will be spending the majority of their time work ing on improving access for the region’s citizens to the national air transportation system.

3. The community or consortium has esta blished or will establish a public-private partnership to facilitate air carrier service to the public.

The Airport Authority has met with Caterpillar, Inc., other local busin esses, the health care industry (second largest employment sector), and has worked exte nsively with the Peoria Area

Chamber of Commerce and the Pekin Chamber of Commerce to set air service development goals and identify this project. We will work in pa rtnership with these groups to establish and support

the new service.

4. The assistance will provide material benefits to a broad segm ent of the traveling public, including businesses, educational in stitutions, and other enterprises, whose
access to the national air trans portation system is limited.

Peoria is home to Bradley University, the Univer sity of Illinois-College of Medicine, two major hospital systems, and a broad industrial and commerc ial base. Caterpillar, Inc. is the region’s largest employer, followed by the health care in dustry. New service to an east coast hub would

benefit all of these sectors. Currently, many travelers from the PIA region are driving long

distances to access the nation’s ai r transportation system, especially those who need access to

international destinations. New service to an east coast hub will increase re liability, decrease fare levels, and provide an incentive for those in th e business, educational sector, and health care industry to fly from PIA instead of driving three hours to ORD to start their trips. This will increase productivity by reducing total travel time, reduce costs, and boost the economic effectiveness of the region.5. The assistance will be used in a timely manner.

MAAP’s new Manager of Marketing and Public Rela tions will be tasked with carrying out this program, under the direct involveme nt and supervision of the Direct or of Airports. This program will have the highest priority within the goals an d objectives of the Airport Authority. The staff members have established relationships with ai rline planning departments, and we have the proven track record to carry out this program in a timely manner.

PIA Top 50 Destinations, CY 2013

Rank Dst Pax Fare Revenue Departures Seats

1 LAS 28,316 104 2,950,568 163 27,018
2 PIE 22,522 79 1,770,346 146 24,272
3 AZA 18,453 91 1,673,848 123 20,066 4 PGD 12,464 88 1,094,997 86 14,136
5 DFW 11,356 226 2,560,660 999 49,719
6 ATL 9,675 214 2,075,280 1,023 51,164
7 DTW 7,205 193 1,392,539 963 48,215
8 IAH 6,263 160 1,004,751 0 0 9 LGA 5,726 171 980,731 0 0 10 BOS 4,958 172 855,202 0 0
11 DEN 4,305 235 1,011,006 331 16,552 12 DCA 4,184 204 851,419 2 326 13 SFO 3,969 247 980,587 0 0
14 PHX 3,787 210 794,375 0 0 15 MSP 3,635 193 700,806 297 15,090
16 LAX 3,546 245 867,290 0 0 17 MCO 3,341 235 786,230 0 0
18 PHL 3,069 239 733,083 0 0 19 SAT 3,017 209 630,338 0 0
20 EWR 2,980 228 678,939 0 0 21 SAN 2,948 217 638,154 0 0 22 RSW 2,854 211 601,469 0 0
23 FLL 2,795 191 533,372 1 137 24 SEA 2,767 228 629,331 0 0 25 AUS 2,754 194 533,643 0 0 26 CLT 2,564 213 545,383 0 0
27 MIA 2,539 213 540,306 0 0
28 RDU 2,387 204 487,324 1 50 29 TUS 2,303 245 563,341 0 0
30 TPA 2,213 194 428,393 1 51
31 BWI 2,096 212 443,644 0 0
32 PDX 2,047 275 562,468 0 0 33 ORD 2,021 139 280,119 2,551 121,923 34 SNA 1,780 225 401,136 0 0 35 CLE 1,750 198 346,653 1 51 36 MSY 1,672 227 378,758 0 0
37 PIT 1,528 194 296,722 0 0 38 SJC 1,387 235 325,734 0 0 39 SMF 1,363 241 328,692 0 0
40 IAD 1,335 219 292,354 0 0
41 BDL 1,288 265 341,095 0 0
42 JAX 1,268 243 307,428 0 0 43 SLC 1,222 300 366,163 0 0 44 GSP 1,083 197 213,516 0 0
45 HNL 1,042 453 471,466 0 0 46 ABQ 1,020 202 205,633 0 0 47 HOU 975 165 160,434 0 0
48 BNA 970 190 184,105 0 0
49 MDT 942 247 232,193 0 0
50 PBI 920 243 223,933 0 0Air Service Development Strategic Plan

The Metropolitan Airport Authority of Peoria has had an air servic e development plan in place for the past six years. The plan works to identify co mmunity air service deficiencies and needs. It works to provide all airlines the support required to ensure short and long term success in Peoria

and Central Illinois.

Our current air service plan pr ovides an effective amount of marketing support and airport operational cost abatements for the first year of new service. This plan also provides incentives for existing airlines to grow thei r service portfolio at PIA.

Our strategic plan for meeting our community's needs through the Small Community Air Service Development Program involves a community outre ach effort between the Metropolitan Airport Authority of Peoria, the local business commun ity, and local Chambers of Commerce to support air service developments funded by recent and future revenue guarantees.

Administrative Issues

The Metropolitan Airport Authority of Peoria w ill be the legal sponsor for this project and the assistance applied for under the SCASDP. The MAAP is a governmental body legally, financially, and otherwise empowered to accept gr ants from the US DOT, and is willing to be bound by the obligations, assurances, and requireme nts of this program. MAAP will ensure compliance with all grant obligations and provisions.ATTACHMENT B TO SCASDP GRANT AGREEMENT

GRANT ASSURANCES

TITLE VI ASSURANCE (Implementing Title VI of the Civil Rights Act of 1964, as amended)

ASSURANCE CONCERNING NONDISCRIMINATION IN FEDERALLY

- ASSISTED
PROGRAMS AND ACTIVITIES RECEIVING OR BENEFITING FROM FEDERAL
FINANCIAL ASSISTANCE

(Implementing the Rehabilitation Act of 1973, as amended, and the Americans With Disabilities Act, as amended)

49 C.F.R. Parts 21, 25, 27, 37 and 38

The United States Department of Transportation (USDOT)

Standard Titl e VI/Non

- D iscrimination Assurances

DOT Order No. 1050.2A

By signing and submitting the Grant Application and by entering into the Grant Agreement under the Small Community Air Service Development Program (SCASDP), t he Grantee (also

herein referred to as the “Recipient”), HEREBY AGREES THAT , as a condition to receiving any Federal financial assistance from the U.S. Department of Transportation (DOT) , the Grantee is subject to and will comply with the following:

Statutory/Regulatory Authorities

• Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq ., 78 stat. 252), (prohibits discrimination on the basis of race, color, national origin);

• 49 C.F.R. Part 21 (entitled Non

- discrimination In Federally

- Assisted Programs Of The Department Of Transportation

— Effectuation Of Title VI Of The Civil Rights Act Of
1964 );

• 28 C.F.R. section 50.3 ( U.S. Department of Justice Guidelines for Enforcement of Title VI of the Civil Rights Act of 1964);

The preceding statutory and regulatory cites hereinafter are referred to as the “Acts” and “Regulations,” respectively.

General AssurancesIn accordance with the Acts, the Regulations, and other pertinent directives, circulars, policy, memoranda, and/or guidance, the Recipient hereby gives assurance that it w ill promptly take any measures necessary to ensure that:

“ No person in the United States shall, on the grounds of race, 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 DOT

.

The Civil Rights Restoration Act of 1987 clarified the original intent of Congress, with respect to

Title VI and other Non

- discrimination requirements (The Age Discrimination Act of 1975, and Section 504 of the Rehabilitation Act of 1973)

, by restoring the broad, institutional

- wide scope and coverage of these non

- discrimination statutes and requirements to include all programs and activities of the Recip ient, so long as any portion of the program is F ederally assisted.

Specific Assurances

More specifically

, and without limiting the above general Assurance, the Recipient agrees with and gives the following Assurance s with respect to its F ederally assis ted SCASDP Discretionary Grant program :

1. The Recipient agrees that each “activity,” “facility,” or “program,” as defined in §§ 21.23 (b) and 21.23 (e) of 49 C.F.R. § 21 will be (with regard to an “activity”) facilitated, or will be (with regard to a “facil ity”) operated, or will be (with regard to a “program”) conducted in compliance with all requirements imposed by, or pursuant to the Acts and the Regulations

.

2. The Recipient will insert the following notification in all solicitations for bids, Requests

For Proposals for work, or material subject to the Acts and the Regulations made in

connection with the SCASDP D iscretionary Grant and, in adapted form, in all proposals for negotiated agreements regardless of funding source:

“ The Grantee , in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 U.S.C. §§ 2000d to 2000d

- 4) and the Regulations, hereby notifies all bidders that it will affirmatively e nsure that any contract entered into pursuant to this advertisement, disadvantaged business enterprises will be afforded full and fair opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, or national origin in consideration for an awar d. ”

3. The Recipient will insert the clauses of Appendix A and E of this Assurance in every contract or agreement subject to the Acts and the Regulations

.

4. The Recipient will insert the clauses of Appendix B of this Assurance, as a covenant running with the land, in any deed from the United States effecting or recording a transferof real property, structures, use, or improvements thereon or interest therein to a Recipient

.

5. That where the Recipient receives Federal financial assistance to construct a facilit y, or part of a facility, the Assurance will extend to the entire facility and facilities operated in

connection therewith

.

6. That where the Recipient receives Federal financial assistance in the form, or for the acquisition of real property or an interest in real property, the Assurance will extend to rights to space on, over, or under such property

.

7. That the Recipient will include the clauses set forth in Appendix C and Appendix D of this Assurance, as a covenant running with the land, in any future deeds , lea ses, licenses, permits, or similar instruments entered into by the Recipient with other parties:

a. for the subsequent transfer of real property acquired or improved under the applicable activity, project, or program; and

b. for the construction or use of , or access to, space on, over, or under real property acquired or improved under the applicable activity, project, or program.

8. That this Assurance obligates the Recipient for the period during which Federal financial assistance is extended to the program , except where the 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 Recipient, or any transferee for the longer of the following periods:

a. the period during which the property is used for a purpose for which the Federal financial assistance is extended, or for another purpose involving the provision of similar services or benefits; or

b. the period during which the Recipient retains ownership or possession of the
property.

9. The Recipient will provide for such methods of administration for the program as are found by the Secretary of Transportation or the official to whom he/she delegates specific authority to give reasonable guarantee that it, other recipients, sub

- recipients, sub

grantees, contractors, subcontractors, consultants, transferees, successors in interest, and other participants of Federal financial assistance under such program will comply with all requirements imposed or pursuant to the Acts, the Regulations, and this Assurance

.

10. The Recipient agrees that the United States has a right to seek judicial enforcement with regard to any matter arising under the Acts, the Regulations, and this Assuran ce.

By signing this ASSURANCE, the Grantee also agrees to comply (and require any sub

recipients, sub

- grantees, contractors, successors, transferees, and/or assignees to comply) with all applicable provisions governing DOT’s access to records, accounts, documents, information, facilities, and staff. You also recognize that you must comply with any program or compliancereviews, and/or complaint investigations conducted by DOT . You must keep records, reports,

and submit the m aterial for review upon request to DOT , or its designee in a timely, complete, and accurate way. Additionally, you must comply with all other reporting, data collection, and evaluation requirements, as prescribed by law or detailed in program guidance.

T he Grantee gives this ASSURANCE in consideration of and for obtaining any Federal grants, loans, contracts, agreements, property, and/or discounts, or other Federal

- aid and Federal financial assistance extended after the date hereof to the recipients by the U.S. Dep artment of Transportation under the SCASDP Discretionary Grants Program . This ASSURANCE is binding on the Grantee , other recipients, sub

- recipients, sub

- grantees, contractors, subcontractors and their subcontractors, transferees, successors in interest, a nd any other participants in the SCASDP Discretionary Grants Program

.

APPENDIX A

During the performance of this contract, the contractor, for itself, its assignees, and successors in interest (hereinafter referred to as the “contractor”) agrees as fol lows:

1. Compliance with Regulations: The contractor (hereinafter includes consultants) will comply with the Acts and the Regulations relative to Non

- discrimination in Federally

assisted programs of the U.S. Department of Transportation, as they may be amen ded from time to time, which are herein incorporated by reference and made a part of this

contract.

2. N on
- discrimination: The contractor, with regard to the work performed by it during the contract, will not discriminate on the grounds of race, color, or n ational origin in the selection and retention of subcontractors, including procurements of materials and leases of equipment. The contractor will not participate directly or indirectly in the discrimination prohibited by the Acts and the Regulations, incl uding employment practices when the contract covers any activity, project, or program set forth in Appendix B of 49 CFR Part

21.

3. Solicitations for Subcontracts, Including Procurements of Materials and Equipment: In all solicitations, either by competiti ve bidding, or negotiation made by the contractor for work to be performed under a subcontract, including procurements of materials, or leases of equipment, each potential subcontractor or supplier will be notified by the contractor of

the contractor’s obl igations under this contract and the Acts and the Regulations relative to

Non

- discrimination on the grounds of race, color, or national origin.

4. Information and Reports: The contractor will provide all information and reports required by the Acts, the R egulations

, and directives issued pursuant thereto and will permit access to its books, records, accounts, other sources of information, and its facilities as may be determined by the Recipient or DOT to be pertinent to ascertain compliance with such Acts, Regulations, and instructions. Where any information required of a contractor is in the exclusive possession of another who fails or refuses to furnish theinformation, the contractor will so certify to the Recipient or DOT , as appropriate, and will

set forth what efforts it has made to obtain the information.

5. Sanctions for Noncompliance: In the event of a contractor’s noncompliance with the

Non

- discrimination provisions of this contract, the Recipient will impose such contract

sanctions as it or DOT ma y determine to be appropriate, including, but not limited to:

a. withholding payments to the contractor under the contract until the contractor complies; and/or

b. cancelling, terminating, or suspending a contract, in whole or in part.

6. Incorporation of Provisions: The contractor will include the provisions of paragraphs one through six in every subcontract, including procurements of materials and leases of equipment, unless exempt by the Acts, the Regulations and directives issued pursu ant thereto. The contractor will take action with respect to any subcontract or procurement as the Recipient or DOT may direct as a means of enforcing such provisions including sanctions for noncompliance. Provided, that if the contractor becomes involve d in, or is threatened with litigation by a subcontractor, or supplier because of such direction, the contractor may request the Recipient to enter into any litigation to protect the interests of the Recipient. In addition, the contractor may request the United States to enter into the litigation to protect the interests of the United States.

APPENDIX B

CLAUSES FOR DEEDS TRANSFERRING UNITED STATES PROPERTY

The following clauses will be included in deeds effecting or recording the transfer of real property, structures, or improvements thereon, or granting interest therein from the United States pursuant to the provisions of Assurance 4:

NOW, THEREFORE, the U.S. Department of Transportation as authorized by law and upon the

condition that the Grante e will accept title to the lands and maintain the project constructed

thereon in accordance with and in compliance with all requirements imposed by Title 49, Code of Federal Regulations, U.S. Department of Transportation, Subtitle A, Office of the Secretar y, Part 21, Non

- discrimination in Federally

- assisted programs of the U.S Department of Transportation pertaining to and effectuating the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252; 42 U.S.C. § 2000d to 2000d

- 4), does hereby remise , release, quitclaim and convey unto the

Grantee all the right, title and interest of the U.S. Department of Transportation in and to said

lands described in Exhibit A attached hereto and made a part hereof.

(HABENDUM CLAUSE)

TO HAVE AND TO HOLD said lan ds and interests therein unto Grantee and its successors forever, subject, however, to the covenants, conditions, restrictions and reservations herein contained as follows, which will remain in effect for the period during which the real property or

struct ures are used for a purpose for which Federal financial assistance is extended or for anotherpurpose involving the provision of similar services or benefits and will be binding on the Grantee

, its successors and assigns.

The Grantee , in consideration of the conveyance of said lands and interests in lands, does hereby covenant and agree as a covenant running with the land for itself, its successors and assigns, that (1) no person will on the grounds of race, color, or national origin, be excluded from part icipation in, be denied the benefits of, or be otherwise subjected to discrimination with regard to any facility located wholly or in part on, over, or under such lands hereby conveyed [,] [and]* (2) that the

Grantee will use the lands and interests in lan ds and interests in lands so conveyed, in compliance with all requirements imposed by or pursuant to Title 49, Code of Federal Regulations, U.S. Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Non

- discrimination in Federally

- ass isted programs of the U.S. Department of Transportation, Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations and Acts may be amended [ , and (3) that in the event of breach of any of the above

- mentioned non

- discrimination condit ions, the Department will have a right to enter or re

- enter said lands and facilities on said land, and that above described land and facilities will thereon revert to and vest in and become the absolute property of the U.S. Department of Transportation an d its assigns as such interest existed prior to this instruction ] .*

(*Reverter clause and related language to be used only when it is determined that such a clause is necessary in order to make clear the purpose of Title VI.)

APPENDIX C

CLAUSES FOR TRANSFER OF REAL PROPERTY ACQUIRED OR IMPROVED UNDER THE ACTIVITY, FACILITY
, OR PROGRAM

The following clauses will be included in deeds, licenses, leases, permits, or similar instruments entered into by the Grantee pursuant to the provisions of Assurance 7(a):

A. The (grantee, lessee, permittee, etc. as appropriate) for himself/herself, his/her heirs, personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree [in the case of deeds an d leases add “as a covenant running with the land”] that:

1. In the event facilities are constructed, maintained, or otherwise operated on the property described in this (deed, license, lease, permit, etc.) for a purpose for which a

U.S. Department of Transp ortation activity, facility, or program is extended or for another purpose involving the provision of similar services or benefits, the (grantee, licensee, lessee, permittee, etc.) will maintain and operate such facilities and services in compliance with a ll requirements imposed by the Acts and Regulations (as may be amended) such that no person on the grounds of race, color, or national origin, will be excluded from participation in, denied the benefits of, or be otherwise subjected to

discrimination in th e use of said facilities.B. With respect to licenses, leases, permits, etc., in the event of breach of any of the above Non

discrimination covenants, Grantee will have the right to terminate the (lease, license, permit, etc.) and to enter, re

- enter, and repossess said lands and facilities thereon, and hold the same as if the (lease, license, permit, etc.) had never been made or issued.*

C. With respect to a deed , in the event of breach of any of the above N on

- discrimination covenants, the Grantee will have the right to enter or re

- enter the lands and facilities thereon, and the above described lands and facilities will there upon revert to and vest in and become the absolute property of the Grantee and its assigns.*

(*Reverter clause and related language to be used only when it is determined that such a clause is
necessary to make clear the purpose of Title VI.)

APPENDIX D

CLAUSES FOR CONSTRUCTION/USE/ACCESS TO REAL PROPERTY ACQUIRED UNDER THE ACTIVITY, FACILITY OR PROGRAM

The following clauses will be included in deeds, licenses, permits, or similar instruments/agreements entered into by Grantee pursuant to the provisions of Assurance 7(b):

A. The (grantee, lic ensee, permittee, etc., as appropriate) for himself/herself, his/her heirs, personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree (in the case of deeds and leases add, “as a cov enant running with the land”) that (1) no person on the ground of race, color, or national origin, will be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities, (2) that in the co nstruction of any improvements on, over, or under such land, and the furnishing of services thereon, no person on the ground of race, color, or national origin, will be excluded from participation in, denied the benefits of, or otherwise be subjected to di scrimination, (3) that the (grantee, licensee, lessee, permittee, etc.) will use the premises in compliance with all other requirements imposed by or pursuant to the Acts and Regulations, as amended, set forth in this Assurance.

B. With respect to (licenses, leases, permits, etc.), in the event of breach of any of the above

Non

- discrimination covenants, Grantee will have the right to terminate the (license, permit, etc., as appropriate) and to enter or re

- enter and repossess said land and the facilities there on, and hold the same as if said (license, permit, etc., as appropriate) had never been made or

issued.*

C. With respect to deeds, in the event of breach of any of the above N on

- discrimination

covenants, Grantee will there upon revert to and vest in and beco me the absolute property of

Grantee and its assigns.*(*Reverter clause and related language to be used only when it is determined that such a clause is
necessary to make clear the purpose of Title VI.)

APPENDIX E

During the performance of this contrac t, the contractor, for itself, its assignees, and successors in interest (hereinafter referred to as the “contractor”) agrees to comply with the following non

discrimination statutes and authorities; including but not limited to:

Pertinent Non

- D iscriminat ion Authorities:

• Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq ., 78 stat. 252), (prohibits discrimination on the basis of race, color, national origin); and 49 CFR Part 21.

• The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. § 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of F ederal or F ederal

- aid programs and projects);

• Federa l

- Aid Highway Act of 1973, (23 U.S.C. § 324 et seq .), (prohibits discrimination on the basis of sex);

• Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. § 794 et seq .), as amended, (prohibits discrimination on the basis of disability); and 49 CFR Pa rt 27;

• The Age Discrimination Act of 1975, as amended, (42 U.S.C. § 6101 et seq .), (prohibits discrimination on the basis of age);

• Airport and Airway Improvement Act of 1982, (49 USC § 471, Section 47123), as amended, (prohibits discrimination based on rac e, creed, color, national origin, or sex);

• The Civil Rights Restoration Act of 1987, (PL 100

- 209), (Broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act
of 1975 and Section 504 of the Reha bilitation Act of 1973, by expanding the definition of the terms “programs or activities” to include all of the programs or activities of the

Federal

- aid recipients, sub

- recipients and contractors, whether such pro grams or activities

are F ederally funded o r not);

• Titles II and III of the Americans with Disabilities Act, which prohibit discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities (42 U.S.C. §§

12131

– 12189) as implemented by Department of Transportation regulations at 49 C.F.R. parts 37 and 38;

• The Federal Aviation Administration ’ s Non

- d iscrimination statute (49 U.S.C. § 47123) (prohibits discrimination on the basis of ra ce, color, national origin, and sex);

• Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low

- Income Populations, which ensures discrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low

- income populations;

• Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes

discrimination because of limited English proficiency (LEP). To ensure compliance withTitle VI, you must take reasonable steps to ensure that LEP persons have meaningful access to your programs (70 Fed. Reg. at 74087 to 74100);

• Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activities (20 U.S.C. 1681 et seq).

Signature Date

Tit le

Grant RecipientUNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY
OFFICE OF AVIATION ANALYSIS

CERTIFICATION REGARDING INFLUENCING ACTIVITIES

Certification for Contracts, Grants, Loans, and Cooperative Agreements

The undersigned certifies, to the best of his or her knowledge and belief, that: (1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the

u ndersigned, 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 contr act, 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 funds other than Federal appropriated funds 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 M ember of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form

- LLL, "Disclosure Form to Report Influencing Activities," in

accordance with its instructions. (3) Th e undersigned 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 under grants, loans and cooperative agreements) and that all subrecipien ts 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 int o 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 RecipientUNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY
OFFICE OF AVIATION ANALYSIS

CERTIFICATION 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 unlawful 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 prohibiti on; (b) Establishing an ongoing drug

- free awareness program to inform employees about

-- (1) The dangers of drug abuse in the workplace; (2) The grant recipient's policy of maintaining a drug

- free workplace; (3) Any available drug counseling, rehabilita tion, 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 th e 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

-- (1) Abide by the terms o f 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 s hall include the order number of the grant award; (f) Taking one of the following actions, within 30 days of receiving notice under paragraph (d)(2), with respect to any employee who is so convicted

-- (1) 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 su ch 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 (f).

B. The gran t 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 s ervice pursuant to the grant award, workplaces include outstations, maintenance sites, headquarters office locations, training sites and any other worksit es where work is performed that is supported by the grant award.

Check [ ] if there are workplace s on file that are not identified here.

______________________________________________ __________________________ Grant Recipient Signature DateOFFICE OF THE SECRETARY OF TRANSPORTATION

CERTIFICATION REGARDING DEBARMENT, SUSPENSION, AND OTHER

RESPONSIBILITY MATTERS

-- PRIMARY COVERED TRANSACTIONS

2 C.F.R. Part 1200, 2 C.F.R. Part 180

Instructions for Certification 1. By entering in the SCASDP Grant Agreement and signing below, the Sponsor is providing the

assurance and ce rtification 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 Sponsor 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 Sponsor to furnish a certification or an explanatio n 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 Sponsor 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 Sponsor shall provide immediate written notice to the department or agency to which this proposal is submitted if at any time the Sponsor 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 Sponsor agrees that it shall not knowingly enter i nto any lower tier covered transaction with a person who is proposed for debarment, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction pursuant to 2 CFR Parts 180 or 1200 or 48 CFR Part 9, Subpa rt 9.4, unless authorized by the department or agency entering

into this transaction.

7. The Sponsor further agrees that it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion

-- Lower Tier C overed Transaction," available from 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 tr ansaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not proposed for debarment, debarred, suspended, ineligible, or voluntarily excluded from the covered transaction pursuant to 2 CFR Parts 18 0 or 1200 or 48 CFR Part 9, Subpart 9.4, unless it knows that the certification is erroneous. A participant may decide the method and frequency by which it determines the eligibility of itsprincipals. Each participant may, but is not required to, check th e 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 c lause. 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, suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction pursuant to 2 CF R Parts 180 or 1200 or 48 CFR Part 9, Subpart

9.4 , 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 Res ponsibility Matters

-- Primary Covered Transactions

(1) The Sponsor 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 Grant Agreement 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 destructio n 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 parag raph (1)(b) of this certification; and

(d) Have not within a three

- year period preceding this Grant Agreement had one or more public transactions (Federal, State or local) terminated for cause or default.

(2) Where the Sponsor is unable to certify to any o f the statements in this certification, such Sponsor shall attach an explanation to this proposal.

_______________________________ _____________________________ Name Affiliation

______________________________ _____________________________ Titl e DateOFFICE OF THE SECRETARY OF TRANSPORTATION CERTIFICATION REGARDING DEBARMENT, SUSPENSION,
INELIGIBILITY AND VOLUNTARY EXCLUSION

-- LOWER TIER COVERED
TRANSACTIONS
Instructions for Certification 1. By entering into the SCASDP Grant Agreement and signing below, the Sponsor is providing the assurance and certification set out below.

2. The certification required by a prospective lower tier participant is a material representation of fact upon which reliance is placed when a trans action is 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 transact ion 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 the certification 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 pro posal is submitted for assistance in obtaining a copy of those regulations.

5. The prospective lower tier participant shall agree that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered

transa ction with a person who is proposed for debarment, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction pursuant to 2 CFR Parts 180 or 1200 or 48 CFR Part 9, Subpart 9.4, unless authorized by the department or agency with which this transaction originated.

6. The prospective lower tier participant shall further agree that it will include this clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary

Exclusion

-- Lowe r 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, debarred, suspended, declared ineligible, or voluntarily excluded from participation in the

covered transaction pursuant to 2 CFR Parts 180 or 1200 or 48 CFR Part 9, Subpart 9.4,

unles s 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 Procur ement
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 part icipant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.

9. Except for transactions authorized under paragraph 5 of these instructions, if a participant in a covered transaction kno wingly enters into a lower tier covered transaction with a person who is proposed for debarment, debarred, suspended, declared ineligible, or voluntarily excluded from participation in the covered transaction pursuant to 2 CFR

Parts 180 or 1200 or 48 CFR P art 9, Subpart 9.4, 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

By entering into the SCASDP Grant Agreement and signing below, the Sponsor is providing the assurance set forth in paragraphs (1) and (2) below.

(1) The Sponsor shall ensur e that any prospective lower tier participant certifies that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in the Grant Project by any Federal departm ent or agency.

(2) Where the prospective lower tier participant is unable to certify to any of the statements in the certification, the Sponsor shall ensure that such lower tier prospective participant attaches an explanation to the certification.

___________________________ Name

__________________________ Title

__________________________ Affiliation

__________________________ Date