Staff recommends that the City Council accept this year's Airport Improvement Program (AIP) Grants from the Federal Aviation Administration (FAA) and authorize the Mayor to execute each of the grant offers as they are received.

Each year the Airport seeks Federal grant funding through the FAA - AIP process to fund ongoing capital projects at the Airport.  Annually, the Airport may be awarded a number of AIP grants due to funding allocation, varying projects, and grant scheduling issues.  These grants are normally on a tight timeline for acceptance; subsequently, each year the Airport seeks the approval and authorization from the City Council for the Mayor to execute the FAA provided AIP grant offers as they are received.  This year's grant offers should include funding from the Airport's annual entitlements, discretionary grant funding, and funds from the Bipartisan Infrastructure Law (BIL).  These grants may provide funding for all or some of the following projects; approximately $800,000 for a Master Plan Update, $6,736,700 for a new aircraft cargo ramp, and $840,000 to rehabilitate and repave the Aviation Place Access Road.  Ultimately, Airport staff anticipates at least two grant offers with the potential of a third grant funded with AIP discretionary funds.     

City Council may:

• Approve the acceptance of this year's AIP grants authorizing the Mayor to execute each grant offer as they are received; or,
• Not Approve the acceptance of this year's AIP grants and provide direction to staff on how to proceed.

This year the Airport expects funding from its regular AIP Grant entitlements, AIP discretionary, and funds from the Bipartisan Infrastructure Law (BIL) for a total of up to $8,376,700.  Regardless of the amounts received, the Airport will need to provide a 10% local share match and these funds are available in the Airport's Capital Fund.