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 AIP 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 soon as they are received.  The 2025 grant offers should include funding from the Airport's annual AIP entitlements of $4,000,000, discretionary grant funding of approximately $4,500,000 and funds from the Bipartisan Infrastructure Law (BIL) of $3,000,000.  These grants may provide funding for all or some of the following projects: approximately $9 million to reconstruct and extend Runway 7/25, $1 million for the planning, design and bidding associated with Phase 1 of the Ticket Counter Remodel and new In Line Baggage Belt System, $850,000 to rehabilitate and repave Overlook Drive access road and $75,000 for a Pavement Condition Index (PCI) survey.  Ultimately, Airport staff anticipates at least two grant offers with the likelihood of a third grant funded with FAA 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 Grant and provide direction to staff on how to proceed.

This year the Airport expects funding from its regular AIP Grant entitlements, discretionary grant funding, and funds from the Bipartisan Infrastructure Law (BIL) for approximately $11,500,000.  Regardless of the amounts received, the Airport will need to provide a 5% local share match and these funds are available in the Airport's Capital Account.