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GCC 1495 <br />4. No state funds will be paid to the Public Entity in any case until it certifies in writing that it has Aviation Funds for <br />said airport in an amount equal to the state's participation, or the amount designated in paragraph (1) above, which <br />deposited amount will be used solely for the purpose in question. <br />5. The Public Entity agrees to hold said airport open to the flying public during the useful life of the facilities <br />developed under this project; that no exclusive operating or use agreements shall be granted to any person, company, <br />or corporation; that failure to abide by such agreement shall automatically obligate the immediate and full return of all <br />State of Washington money expended in behalf of the project to the State of Washington with reasonable interest. <br />Further, the Public Entity agrees to keep the facility open during the useful life of the project or for a stated term of <br />years, whichever is longer, as determined by the Aviation Division. <br />6. The Public Entity will make no charge to the State or its agencies for a limited, but reasonable, amount of state <br />agency use or for state activity in search and rescue. And, further, RCW 47.68 is followed to best serve the public. <br />The allowable cost of the project shall not include any cost determined by the State to be ineligible for consideration as to <br />allowability. <br />The State reserves the right to amend or withdraw this offer at any time prior to its acceptance by the Public Entity. <br />This offer shall expire and the State shall not be obligated to pay any part of the costs of the project unless this agreement <br />has been accepted by the Public Entity on such subsequent date as are prescribed in writing by the State, in the approval <br />letter for each project. <br />Except for those projects receiving both state and federal aid, the following inspection scheduled, and reporting system will be <br />required: <br />A. Inspection Schedule and Reporting system will vary for each project. Basically, the inspection schedule will be <br />placed on a quarterly basis. On project taking less than three (3) months, the Public Entity will be required to make <br />reports and be inspected on the following schedule: <br />1. Public Entity project commencement date. <br />2. Public Entity report project completion date and request final inspection. <br />3. State will make final inspection and sign -off project as completed. <br />4. State will arrange for audit of account in accordance with regularly scheduled audit program. <br />B. Projects taking over three (3) months will be set up on a quarterly inspection and progress report system. The <br />Public Entity will be required to make reports and be inspected on the following schedule: <br />1. Report project commencement date. <br />2. Public Entity will make a three (3) months progress report. This will be a letter report giving percentage of <br />project completed, fund expenditures to date, and short narrative of the project progress, problems encountered <br />and plans for project completion. <br />3. State will make quarterly project inspections and prepare the report of inspection. A copy of the report will <br />be delivered to the Public Entity. <br />4. Public Entity will make report of completion of project and request final inspection. <br />5. State will make final inspection and sign -off as completed. <br />6. State will arrange for audit of account in accordance with regularly scheduled audit program. <br />It should be made clear that a violation of any of the terms of the Grant Agreement will leave the State free to choose among <br />one or more of the following remedies: <br />A. The withholding of any future airport aid, and/or <br />B. The return of grant funds awarded as an action for specific performance, and/or <br />C. Enforcement of the commitment made by the applicant. <br />Page 2 of 3 <br />