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IDAHO TRANSPORTATION DEPARTMENT DIVISION OF AERONAUTICS GRANT AGREEMENT TO: CITY OF MOSCOW FROM: (Hereinafter referred to as the "SPONSOR") The State of Idaho, acting through the IDAHO TRANSPORT AT! ON DEPARTMENT, DIVISION OF AERONAUTICS (Hereinafter referred to as the "STATE") WHEREAS, the SPONSOR operates the Pullman-Moscow Regional Airport. a Primary Airport as defined by the Airp011 and Airways Act of 1982 and Amendments; WHEREAS, the Idaho Transportation Board has approved a grant for development of the airport consisting of developments to be mutually agreed upon by the SPONSOR and the STATE, identitled as: Project Number: PUW-2003 NOW THEREFORE, for the purpose of carrying out the provisions of the Uniform State Aeronautics Department Act of 1947, as amended, and in consideration of the SPONSOR acceptance of this offer, as hereinafter provided. The STATE hereby offers this Grant with the following terrns and conditions: I. The maximum obligation of the STATE payable under this Grant shall be $30,000.00. 2. The SPONSOR shall: A. Certify the expenditure of at least $30,000.00 to match STATE participation in said project either as part of this project or match to federal entitlement funds. B. Diligently and expeditiously complete this project and likewise pursue appropriate measures as may be agreed upon by the SPONSOR and the STATE to remedy project delays, including but not limited to litigation or condemnation. C. Carry out and complete the project in accordance with the plans, specifications, and prope11y map, incorporated herein, as they may be revised or modified, with approval of the STATE. 2002-46 ---PAGE BREAK--- D. All contracts for construction involved in this project shall be bid competitively in accordance with bidding procedures otherwise authorized for public entities. E. In connection with the acquisition of real property for the project, the SPONSOR shall comply with all provisions of the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act and associated rules/regulations. F. The SPONSOR agrees to hold said airport open to the flying public for the useful life of the facilities developed under this project The SPONSOR shall grant no exclusive use or operating agreements, to any person, company, or corporation; that failure to abide by such agreement shall automatically obligate the immediate and full return of all State of Idaho money expended in behalf of the project to the State of Idaho. 3. The allowable costs of the project shall not include any costs determined by the STATE to be ineligible. 4. The STATE reserves the right to amend or withdraw this offer at any time prior to its acceptance by the SPONSOR. 5. This offer shall expire and the STATE shall not be obligated to pay any part of the costs of the project unless this agreement has been accepted by the SPONSOR on or before October 11, 2002 or such subsequent date as may be prescribed in writing by the STATE. Except for those projects receiving both State and Federal Aid (submit copies of FAA documents), the following inspection schedule and reporting system will be required: 6. Inspection Schedule and Reporting System: Inspection Schedule and Reporting System will vary for each project The SPONSOR will be required to make reports and be inspected on the following schedule: A. SPONSOR shall report project commencement date. B. SPONSOR shall make periodic progress reports as appropriate. C. SPONSOR shall receive approval prior to any change in the scope of the project D. SPONSOR shall report project completion date and request final inspection and payment ---PAGE BREAK--- E. STATE may make final inspection and shall sign off project as completed. F. STATE may arrange for audit of account in accordance with regularly scheduled audit program. The SPONSOR'S acceptance of this offer and ratification and adoption of the project application incorporated herein shall be evidenced by execution of this instrument by the SPONSOR, as hereinafter provided. Said offer and acceptance shall comprise allocation agreement, constituting the obligation and rights of the State of!daho and the SPONSOR with respect to the accomplishment of the project and the operation and the maintenance of the airport. Such allocation agreement shall become effective upon the SPONSOR acceptance of this offer and shall remain in full force and effect throughout the useful life of the facilities developed under the project but in any event not to exceed twenty (20) years from the date of acceptance. STATE OF IDAHO. lTD Division of Aeronautics ---PAGE BREAK--- ACCEPTANCE THE SPONSOR DOES HEREBY RATIFY AND ADOPT ALL STATEMENTS, representations, warranties, covenants, and agreements contained in the project application and incorporated materials referred to in the foregoing offer and does hereby accept said offer and by such acceptance agrees to all of the terms and conditions thereof. Executed this City of Moscow