Yesterday, I did a post about a lawsuit against Humboldt County for violation of the Federal False Claims Act. It is about FAA grants.
I spoke with Doe's attorney, Mr. Phillip Benson today. The last action in the case was an order and stipulation on 12/23/20.
The stipulation is to stay the case to allow the County to get into compliance before the case proceeds into active litigation.
"This was the goal of my client; to get the County into compliance," said Mr. Benson.
"The FAA provides airports money for development and maintenance. In order to get grant funding, there are basic requirements they have to certify to."
The FAA lists these requirements.
"Two of those requirements, in particular relate to this case. Grant assurance number 24 and 25."
Grant assurance number 24 has to do with structured rates for rent. Grant assurance #25 has to do with revenue diversion.
"A lot of airports are owned by local government and they see it as a cash cow."
"Airports cannot divert asets elsewhere. They must keep it at the airport."
"The other county departments were basically draining the airport. For years, the airport was running in the red instead of black."
"The Director of Public Works managed the airport."
Public Works benefitted from this arrangement.
"As far as we know, that relationship has ended"
"The airport has to get funding requests in by March. The next couple of months are an opportunity for the airport to get into compliance."
"Nobody can tell the airport that they cannot rent to other County departments for almost nothing. But if they apply for grants from the FAA, they have to comply with the grant assurances, including having an appropriate rent structure."
If you did not read yesterday's post, details about the entire lawsuit are in the previous post linked below.
The case is listed on this Board of Supervisor's Agenda from 2019. The lawsuit was filed in 2017.
Previous post:
https://johnchiv.blogspot.com/2020/12/if-pigs-could-fly-humboldt-county.html?m=1
Glad you are on this one...
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