Title
Consider a memorandum/resolution authorizing the City Manager to sign an agreement with the Texas Department of Transportation-Aviation Division the for the administration of a Federal Aviation Administration Airport Infrastructure Grant for the new terminal building at Skylark Field.
Body
DATE: June 18, 2024
TO: Kent Cagle, City Manager
FROM: Mike Wilson, Executive Director of Aviation
SUBJECT: Resolution to Authorize the City Manager to Sign an Agreement with the Texas Department of Transportation - Aviation Division for a Federal Aviation Administration Airport Infrastructure Grant
BACKGROUND AND FINDINGS:
The Bipartisan Infrastructure Law (BIL) signed into law on November 15, 2021, provides the Federal Aviation Administration (FAA) with $15 billion in Airport Infrastructure Grants (AIG) over a five (5) year period for airport-related projects as defined under the existing Airport Improvement Program (AIP) and Passenger Facility Charge (PFC) criteria. The funding can be invested in runways, taxiways, safety, and sustainability projects, as well as terminals, airport-transit connections, and roadway projects.
Aviation submitted an BIL AIG application to the Texas Department of Transportation’s (TxDOT) Aviation Division requesting to use BIL AIG funds in the amount of $358,000 to help fund the new terminal building and associated infrastructure at Skylark Field. This Grant will be combined with funding from the Certificate of Obligation Bond previously approved by the City Council in the amount of $2,700,000 and an FAA BIL Airport Terminal Program (ATP) Grant in the amount of $1,500,000.
Since Skylark Field is a general aviation airport, it falls under the FAA’s State Block Grant Program. As such, the TxDOT-Aviation Division will be administering the grant on behalf of the FAA. TxDOT-Aviation Division requires the City Council to approve a resolution authorizing a designated individual to execute the grant agreement and related documents pertaining to this grant.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
This item conforms with to local and state policies.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
$358,000 (BIL AIG Grant)
$1,500,000 (ATP Grant)
$2,700,000 (Certificate of Obligation Bond)
Is this a one-time or recurring revenue/expenditure?
This is a one-time expenditure.
Is this revenue/expenditure budgeted?
Upon approval of the year-end budget amendment, the sum of $358,000 will be allocated in the Aviation AIP Grant Fund, covering both the BIL AIG grant revenue and offsetting expense. The revenue account number is 524-0000-334.15-02, and the expense account number is 524-0515-521.69-03, earmarked for project code 230032, Skylark Field New Terminal Building. Additionally, $2,700,000 has already been allocated in the Certificates of Obligation 2023 Bond Fund expense accounts 327-8905-493.69-01 and 327-8905-493.69-03. Furthermore, $1,500,000 has been previously allocated in the Aviation AIP Grant Fund expense account 524-0515-521.69-03 for the ATP Grant portion under the same project code.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Yes, fund balance is available and will be appropriated upon approval of the yearend budget amendment.
RECOMMENDATION:
That the City Council approve a resolution authorizing the City Manager to execute any and all required documents, including all amendments pertaining to the Federal Aviation Administration Airport Infrastructure Grant being administered by Texas Department of Transportation’s Aviation Division.
DEPARTMENTAL CLEARANCES:
Finance
Purchasing
Legal
ATTACHED SUPPORTING DOCUMENTS:
Designation of Sponsor’s Authorized Representative
Certification of Project Funds
Presentation