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AGENDA RECOMMENDATION |
Consent Calendar 6.L.
City Council Regular Meeting
- Meeting Date:
- 09/08/2025
Agenda Item:
Resolution authorizing the City Manager to execute a grant agreement for Federal funding of the Airport Traffic Control Tower Design (Phase 2) Grant (2025 BIL-AIG).
Recommendation/Action(s):
Adoption of the attached resolution.
Summary:
On February 10, 2025, City Council accepted an EXP proposal to provide professional Architectural and Engineering Services to the City for the design of the New Federal Contract Air Traffic Control Tower at Mankato Airport. The proposal for the work in the amount of $2,622,909.00 is contingent upon funding availability.
As the Council is aware, the consultant firm EXP has begun architectural and engineering services for the Air Traffic Control Tower project. On February 10, 2025, Council approved a request for $911,800 under a separate FAA Airport Infrastructure Grant agreement awarded from the FAA Contract Tower Competitive Grant Program in the federal fiscal year 2024. Those funds were exhausted in July, and work is paused prior to the 45% design.
The City Manager was approved to request grant funds for the remainder of the design work, $1,711,109.41 and $40,682.52 of administrative expenses included in the FAA Reimbursable Agreement to establish telephone service to the tower. That grant request submitted on May 28 has not yet been fulfilled by federal partners with a grant agreement. As the end of the federal fiscal year approaches, there is a September 12 deadline for grant agreements to be executed before the federal fiscal year-end date of September 30. This resolution provides authorization to execute the grant when it arrives if it is in the amount requested.
State funding request of $43,794.80 provides a 2.5% match of the Federal-eligible project expenses. Local funding from the Airport Capital Fund in the amount of $43,795.13 will provide the remaining 2.5% match of the Federal-eligible project expenses.
Background:
Mankato Airport was accepted into the Federal Aviation Administration Contract Tower Program (FCT) on April 19, 2022. To be admitted into the program, the safety and efficiency benefits of a tower must exceed its costs. The FAA is required to perform benefit-cost analysis (BCA) to determine eligibility for participation in the program, Mankato Airport’s BCA is 2.35; a BCA of 1.0 is the minimum threshold. Conditions of acceptance into the FCT program:
The FAA Airport Improvement Program (AIP) was established by the Airport and Airway Improvement Act of 1982. Funds obligated for the AIP are drawn from the Airport and Airway Trust fund, which is supported by user fees, fuel taxes, and other similar revenue sources.
As the Council is aware, the consultant firm EXP has begun architectural and engineering services for the Air Traffic Control Tower project. On February 10, 2025, Council approved a request for $911,800 under a separate FAA Airport Infrastructure Grant agreement awarded from the FAA Contract Tower Competitive Grant Program in the federal fiscal year 2024. Those funds were exhausted in July, and work is paused prior to the 45% design.
The City Manager was approved to request grant funds for the remainder of the design work, $1,711,109.41 and $40,682.52 of administrative expenses included in the FAA Reimbursable Agreement to establish telephone service to the tower. That grant request submitted on May 28 has not yet been fulfilled by federal partners with a grant agreement. As the end of the federal fiscal year approaches, there is a September 12 deadline for grant agreements to be executed before the federal fiscal year-end date of September 30. This resolution provides authorization to execute the grant when it arrives if it is in the amount requested.
State funding request of $43,794.80 provides a 2.5% match of the Federal-eligible project expenses. Local funding from the Airport Capital Fund in the amount of $43,795.13 will provide the remaining 2.5% match of the Federal-eligible project expenses.
Background:
Mankato Airport was accepted into the Federal Aviation Administration Contract Tower Program (FCT) on April 19, 2022. To be admitted into the program, the safety and efficiency benefits of a tower must exceed its costs. The FAA is required to perform benefit-cost analysis (BCA) to determine eligibility for participation in the program, Mankato Airport’s BCA is 2.35; a BCA of 1.0 is the minimum threshold. Conditions of acceptance into the FCT program:
- Five years from the date of the acceptance letter (April 19, 2022) provide a control tower that has successfully completed an Operational Readiness Inspection (ORI).
- Enter into an Air Traffic Control Tower Operations Agreement (TOA).
- Tower funding is subject to availability.
- If the Airport fails to provide a control tower that successfully completes an Operational Readiness Inspection (ORI) within the 5-year period, the Airport returns to Phase 1 (Interest Phase) and can reapply for acceptance into the FCT Program.
The FAA Airport Improvement Program (AIP) was established by the Airport and Airway Improvement Act of 1982. Funds obligated for the AIP are drawn from the Airport and Airway Trust fund, which is supported by user fees, fuel taxes, and other similar revenue sources.