Source: http://slideplayer.com/slide/3911927/
Timestamp: 2017-03-23 08:42:13
Document Index: 37970591

Matched Legal Cases: ['§ 47114', 'art 13', 'art 16', 'art 16', 'art16', 'art16']

Federal Aviation Administration Grant Assurance Compliance David Cushing, Manager, Los Angeles Airports District Office Principles & Processes. - ppt download
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Presentation on theme: "Federal Aviation Administration Grant Assurance Compliance David Cushing, Manager, Los Angeles Airports District Office Principles & Processes."— Presentation transcript:
Federal Aviation Administration Grant Assurance Compliance David Cushing, Manager, Los Angeles Airports District Office Principles & Processes
2 Federal Aviation Administration 2 Airport Compliance Program To enforce sponsor commitments to protect the public’s interest in civil aviation; To ensure Surplus Properties and Airport Improvement Program investments serve their intended purposes; To achieve balance between proprietary rights and business goals and the public interest in the aeronautical utility; To be convincing, consistent and legally sufficient. FAA is constantly thinking about our principles abstractly, strategically and in practice. September 13, 2012ACA Fall Conference
3 Federal Aviation Administration 3 Our Grant Assurances are our Principles Surplus Property Deeds are the Same  If an airport has accepted AIP funding or is otherwise obligated, (e.g. surplus property), then it must abide by certain rules.  Sponsors voluntarily agree to this rules.  Grant assurances (and deed covenants) most commonly at issue are 19, 22, 23, 24 and 29.  Revenue-Use Requirements are Federal Law  Civil Rights Requirements are Federal Law Principles of Compliance September 13, 2012ACA Fall Conference3
4 Federal Aviation Administration 4 Principles of Compliance Grant Assurance 19 states: The airport and all facilities which are necessary to serve the aeronautical users of the airport … shall be operated at all times in a safe and serviceable condition... Grant Assurance 29 states that the sponsor will: a)keep up to date at all times an airport layout plan (ALP) of the airport… b)eliminate any change or alteration to the airport that the Secretary determines to be adverse to the airport and inconsistent with the ALP and pay for the change. September 13, 2012ACA Fall Conference4
5 Federal Aviation Administration 5 Grant Assurance 22 states a sponsor must/may: Principles of Compliance a) Must make the airport available as an airport for public use on reasonable terms and without unjust discrimination b) Must apply nondiscriminatory and substantially comparable rules, regulations, conditions, rates, fees, rentals, and other charges to airport businesses…. h) May establish reasonable, and not unjustly discriminatory, conditions on all users necessary for the safety and efficiency… i) May prohibit or limit a type of aeronautical use if such action is necessary for the safe operation of the airport or necessary to serve the civil aviation needs of the public. September 13, 2012ACA Fall Conference5
6 Federal Aviation Administration 6 Principles of Compliance Grant Assurance 23 states a sponsor will NOT: Either directly or indirectly, grant or permit any person, firm, or corporation, the exclusive right at the airport to conduct any aeronautical activities Grant Assurance 24 states a sponsor will: Maintain a fee & rental structure for facilities and services which will make the airport as self-sustaining as possible Revenue Retention is Law and G.A. 25 New exceptions for proceeds of sale of private airport to public entity and some mineral revenues under special circumstances. September 13, 2012ACA Fall Conference6
7 Federal Aviation Administration Standard of Compliance “A sponsor meets its commitments when: (1). The federal obligations are understood; (2). A program (e.g., preventive maintenance, leasing policies, operating regulations, etc.) is in place that the FAA deems adequate to carry out the sponsor’s commitments; (3). The sponsor satisfactorily demonstrates that such a program is being carried out; and, (4). Past compliance issues have been addressed.” FAA Order 5190.6B, 2.8.b. September 13, 2012ACA Fall Conference7
8 Federal Aviation Administration Standard of Compliance Real-Time Compliance Corrective Action “The FAA generally takes punitive compliance actions, such as withholding funds under 49 U.S.C. § 47114, when reasonable efforts have failed to achieve voluntary compliance. [See FAA Order 5190.6B ¶2.4.(a.)] This is because aviation users receive direct benefits from the Federal investments made at public use airports via grants from the FAA to airport sponsors. … September 13, 2012ACA Fall Conference8
9 Federal Aviation Administration Standard of Compliance No Damages Resolution Seeking …The FAA’s decision to withhold these funds can potentially deprive aeronautical users of the benefit of capital improvements which may enhance safety or expand capacity. Such a decision is not made lightly, and this action is not used to penalize sponsors who may have unknowingly breached their commitments, but corrected past errors after becoming aware of their full obligations.” [See Drake Aerial Enterprise, LLC v. City of Cleveland, Ohio, FAA Docket No. 16-09-02, (February 22, 2010) (Director’s Determination) at 12] September 13, 2012 ACA Fall Conference 9
10 Federal Aviation Administration Informal Complaints 14 CFR Part 13.1 FAA Goals (Order 5190.6B, 5.4.a.): 1.Evaluate the facts and identify potential sponsor violations. 2.Clarify the rights and responsibilities of the sponsor and the complainant. 3.Offer assistance to resolve the dispute in a manner consistent with the sponsor’s assurances. 4.Provide the sponsor with the opportunity to comply with its federal obligations voluntarily when a violation is identified. September 13, 2012ACA Fall Conference10
11 Federal Aviation Administration Formal Complaints 14 CFR Part 16 is a formal process Good faith efforts prior to filing Complainant must have standing Appeal process Threshold issue: is the sponsor in violation of its federal obligations? NO DAMAGES It’s not about what’s fair to complainant. It’s about whether the sponsor is within compliance. September 13, 2012ACA Fall Conference11
12 Federal Aviation Administration Formal Complaints Initial Complaint 20 days Docketing Notice 20 days Answer( address the facts and the allegation) 10 days Reply 10 days Rebuttal (address changed argument conglomeration) 120 days Director’s Determination 30 days for Appeal (point out specific error) 20 days for Appeal Reply (just agree with Director!) 60 days for Final Agency Decision 60 days for Court of Appeals appeal. September 13, 2012ACA Fall Conference12
13 Federal Aviation Administration Formal Complaints Lessons for Parties Do Take it seriously Understand the process Respond to each allegation Tell us the story Recognize your obligations Send pertinent supporting documentation Don’t Call names Send a copy of the grant assurances Ignore deadlines Send unnecessary exhibits Bring up unrelated issues Get off track – focus on your obligations Be afraid to admit past mistakes that you have fixed September 13, 2012ACA Fall Conference13
14 Federal Aviation Administration Formal Complaints Lessons for FAA As a result, after 10 years of Part 16, the FAA has initiated a Compliant Process Review Initiative In 2011, we’re looking into our informal and formal processes and we’re listening to our stakeholders, including ACI. We’re considering rulemaking. http://www.faa.gov/airports/airport_compliance/ http://www.faa.gov/about/office_org/headquarters_offices/arp/offices/aco/aco100/ http://part16.airports.faa.gov/http://part16.airports.faa.gov/Dave.Cushing@FAA.gov September 13, 2012ACA Fall Conference14
15 Federal Aviation Administration 15 QUESTIONS ?
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