It is necessary to secure the City Council's approval and authorization for the Mayor to execute this year's Federal Aviation Administration (FAA) Airport Improvement Program (AIP) Grants. This year's Grants provide the entitlement and discretionary funding needed to undertake the engineering, planning, and construction of the scheduled projects at the Airport.  As required by the FAA, the Grant offer is based on the estimated amounts for construction and engineering for these projects.  This year's projects include the relocation and rehabilitation of Taxiway G, the removal and overlay of 2,000 feet of runway pavement surface on the west end of Runway 10L, and the FAA required surface painted hold sign markings for the asphalt taxiways.

Typically, the annual AIP Grant projects are funded with a single FAA Grant. However, since the annual Federal Transportation Appropriations Bill has not passed for fiscal year 2011, the FAA funding has been subjected to prorated amounts authorized by the Continuing Resolutions that Congress has passed to keep the Federal Government operating.  Therefore, the annual grant allocations are impacted and the Airport will receive this year's grant funding in multiple, smaller amounts.  Council is being asked to authorize the Mayor to execute each of these partial grants as they are released by the FAA.  It is anticipated the first grant will be issued in the next few weeks.

The 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 associated projects.

The total estimated costs of the engineering services and the construction associated with this year's Grants are $3,400,000. The Grants will fund 95% of this cost ($3,258,787.85) and the Airport will provide a 5% local share match ($171,515.15). The source of the Airport's match is the Department's capital fund.

Staff recommends that the City Council approve the acceptance of this year's AIP Grants and authorize the Mayor to execute each of the AIP Grant allocations received this year by the Airport as part of the total estimated $3,400,000 FAA AIP Grant.