Staff requests that the City Council's approve and authorize the Mayor to execute this year's Federal Aviation Administration (FAA) Airport Improvement Program (AIP) Grants.  This year's grants provide the entitlement and carryover funding needed to undertake the engineering and construction for this year's projects. This year's total grant allocation will be a combination of the Airport's annual grant entitlements and previous year's entitlement carryovers. This year's projects and estimated costs include $65,000 for a Pavement Condition Index Survey, $1,300,000 for the Airport Business Park North Parking Ramp project, $450,000 for the Design of the Terminal Concourse Hold Rooms, $200,000 for Safety Management System (SMS) Implementation, and $2,500,000 for boring 2-36 inch tunnels under Runway 10L/28R for Storm Culvert Crossings.  Since the Airport may receive the grant funds for these projects in smaller individual grants as they are released by the FAA, Council is being asked to authorize the Mayor to execute each grant as it is received.

City Council may:

• Approve the acceptance of this year's AIP grants, authorizing the Mayor to execute each Grant offer; or
• Decline to approve the acceptance of this year's AIP grants, and not complete the projects at this time.

The estimated costs of engineering services and construction totals $4,415,000. This will be funded with a 90% FAA AIP Grant and a 10% local match. The Federal share will be $4,063,500, and the Airport's local share will be $451,500 and paid with local capital funds.

Staff recommends that the City Council accept this year's AIP Grants and authorize the Mayor to execute each of the FAA AIP grants as they are received by the Airport.