Consideration and Approval of Grant Agreement:  Grant Agreement between the City of Flagstaff and the U.S. Department of Transportation, Federal Aviation Administration (FAA) for CARES Act funding for operational and maintenance expenses directly related to the Flagstaff Pulliam Airport.

The acceptance of the FAA Grant offer provides funds for operating expenses, such as payroll and Airport department services.  The grant funds may be used for expenses incurred no earlier than January 20, 2020 and ending four (4 years) or (1,460 calendar days) from the date of acceptance.  The FAA  encourages airports to spend the funds expeditiously to reduce the adverse impacts of the current public health emergency.

 

The funds under the CARES Act are available at a 100% Federal share and there is no local match required.  Specific requirements of the grant require the Airport to continue to employ, through December 31, 2020, at least 90% of the number of individuals employed as of March 27, 2020. These funds will help offset the impacts of declining revenues in the Airport and the reduce the Airport need for General Fund support.

These critical funds will be used to help the Airport stay afloat in an environment where the travel industry—and the airline industry—has been devastated by the COVID-19 outbreak. The flexibility in the use of these funds will allow the Airport to retain employees, spend these important funds on operations, pay utilities, and keep the Airport running until people can start traveling consistently.
 

Goal: Transportation and Other Public Infrastructure: Provide airport infrastructure to enhance tenant and patron experience and secure a second airline.

No

- Accept the Grant Agreement and funding to operate and maintain the Flagstaff Airport.
- Not ratify and accept the Grant Agreement and funding.

On March 27, 2020, the President signed the CARES Act into law. Sections 4005 and 4114(b) of the Act authorize the Secretary to require, “to the extent reasonable and practicable,” an air carrier receiving financial assistance under the CARES Act to maintain scheduled air transportation service as the Secretary deems necessary to ensure services to any point served by that carrier before March 1, 2020 (Service Obligation).

Title XII of Division B of the CARES Act provides approximately $10 billion to support U.S. airports experiencing severe economic disruption caused by the COVID-19 public health emergency. This funding was distributed to airports to prevent, prepare for, and respond to the impacts of the COVID-19 public health emergency.

The CARES Act Airport Grants are for eligible US. airports to prevent, prepare for, and respond to coronavirus impacts, including support for continuing airport operations.  Funds are available to:
-  Keep airports in reliable, safe operation to serve the aviation industry, the traveling public, and support the economy
-  Keep airport and aviation workers, airport police, and other support staff employed
-  Keep support businesses working at the airport
-  Keep airport credit ratings stable

To prevent, prepare for, and respond to coronavirus impacts, including support for continuing airport operation.