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Consent   1.F.
Regular City Council Meeting
Meeting Date:
02/25/2019
TITLE
Annual Acceptance of Federal Aviation Administration Airport Improvement Program Grants
PRESENTED BY:
Kevin Ploehn
Department:
Airport
Presentation:
No

PROBLEM/ISSUE STATEMENT

Each year the Airport seeks Federal grant funding through the Federal Aviation Administration (FAA) Airport Improvement Program (AIP) for capital projects at the Airport.  Annually, the Airport may be awarded a number of AIP grants due to funding allocation, varying projects, and grant timing issues.  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 provided.  This year's grant offers could include funding from our annual entitlements, previous year grant carry overs, and discretionary grant funding. The grants will provide funding for Concrete Ramp Replacement, the Terminal Building Expansion Project, ARFF Protective Gear, and Land Purchase on the West End of the Airport for Runway Protection.  Airport staff anticipates at least two grant offers, with a high likelihood of a third funded with AIP discretionary funds.

ALTERNATIVES ANALYZED

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 
  • Disapprove the acceptance of this year's AIP grants and provide direction to staff on how to proceed. 

FINANCIAL IMPACT

While the amount of the Airport's regular grant entitlement program is around $3,000,000, staff also knows that there is a rollover amount of at least $150,000.  The Airport could also be awarded a grant from the AIP discretionary funding pool for at least $3,000,000.  The discretionary funding would be used for the Concrete Ramp Replacement project, and the entitlement and rollover funds would go toward the Terminal Expansion and other projects.  Additionally, there is an outside chance the Airport could get some discretionary funding for the Terminal Expansion project as well.  Regardless of the amounts for the grant offers received, the Airport will need to provide a 10% local share match. Airport funds are available for that match in the Airport's Capital Fund.

RECOMMENDATION

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

APPROVED BY CITY ADMINISTRATOR