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 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 AIP Grant offers as they are provided.  This year's Grant offers could include funding from the Airport's annual entitlements, previous year Grant carry overs, and discretionary Grant funding. The Grants should provide funding for all or some of the following: Concrete Ramp Replacement, the Terminal Building Expansion Project, Expansion of the Operations Center Maintenance Bay, and operational relief funding from Congressional actions related to COVID-19 impacts.  Airport staff anticipates at least two Grant offers with a high likelihood of a third 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
• Disapprove the acceptance of this year's AIP Grants and provide direction to staff on how to proceed.

While the amount of the Airport's regular Grant entitlement program is around $3,000,000 annually, staff also knows that there is a rollover amount of approximately $150,000.  The Airport could also be awarded a Grant from the AIP discretionary funding pool for an amount between $3 to $5 million for the Terminal Expansion Project.  Regardless of the amounts for the Grant offers received, the Airport may need to provide a 10% local share match, unless it is waived due to a COVID-19 relief package or other legislation.  Airport funds are available for any required match in the Airport's Capital Fund.