Resolution authorizing the City Manager to apply for the SFY 2025 MnDOT Aeronautics Equipment Grant for the replacement of the airport pickup at the Mankato Regional Airport (MKT).

Adoption the attached resolution.

Every piece of equipment used at a Minnesota public airport is an important part of the overall maintenance and safety of Minnesota’s airport system, and its users/the people it serves. MnDOT Aeronautics announced a competitive solicitation for equipment used for the maintenance and operations at these publicly-owned airports on November 8. Applications must provide all required documentation to be considered for funding. Incomplete applications will not be scored. A total of $2 million is available through this program and funding participation will be according to the State Fiscal Year 2025 Funding Rates Letter.
 
The application timeline is as follows:

• November 8, 2024 – MnDOT Aeronautics announces solicitation.
• December 31, 2024 – Applications due to MnDOT Aeronautics via online form on the website.
• January 31, 2025 – MnDOT Aeronautics will post an awarded Equipment List on Aero website.

General eligibility statements:

• Tugs and trailers are NOT eligible for an equipment grant.
• Equipment grants will not be amended after the grant has been written.
• It is the airport sponsor’s responsibility to verify that the quote submitted is still valid once they are offered a grant. Once the grant is written, it will not be amended.
• If requesting upgrades to standard specifications (for example: larger sized tires, larger engine, etc.) justification must be provided in the application.
• Used heavy/larger equipment (i.e., ARFF vehicles, specialty equipment) is considered on a case by case basis. Smaller pieces of used equipment (i.e. used mowers, used tractors) will not be funded.
• Maximum of $200,000 state funds per piece of equipment.
• Equipment purchased with this funding is for airport use only. It cannot be used, loaned, or rented out.
• The minimum grant amount for a piece of equipment is $5,000.
• The actual request for an equipment grant must be submitted by the airport sponsor.
• Costs that are not eligible for reimbursement under an equipment grant:
  • Sales Tax on equipment.
  • Administrative and/or Consultant fees.
  • Add on warranties 

The current vehicle is a 2012 ¾-ton Pickup with approximately 130k miles that was purchased on 2/7/2012 for $41,800.00 with 2/3rd of the cost funded by the state and 1/3rd of the cost funded by the city under grant agreement 99476 (A0701-94) with MnDOT Aeronautics. According to our system of record, $44,877.00 of LTD depreciation has been charged to this vehicle and for life to date, repairs have cost $28,629.15, or nearly 68% of the original purchase price. The pickup and plow are nearing the end of their useful life and replacement is contemplated in the 2025 budget. If our application is successful, it will be funded under a grant with a 70%/30% MnDOT/City cost shares.
 
At this time, staff seeks authorization to apply for the grant and will not apply if the approved 2025 budget does not include the replacement of the airport pickup due to the tight application window, the holidays and approval of the budget.