Title
Consider a memorandum/resolution authorizing the City Manager to sign an agreement with the Federal Aviation Administration for an Airport Improvement Program Grant for the Terminal Mechanical Improvements Project at Killeen Regional Airport.
Body
DATE: July 2, 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 FEDERAL AVIATION ADMINISTRATION FOR AN AIRPORT IMPROVEMENT PROGRAM GRANT.
BACKGROUND AND FINDINGS:
The City applied for and received a Federal Aviation Administration (FAA) Airport Improvement Program (AIP) grant in the amount of $267,322 on September 12, 2023, to be used for the design of the Terminal Mechanical Improvement project at the Killeen Regional Airport (KRA). This included project administration, design services, bidding services, and other engineering fees.
The FAA has now notified the City that we will receive an AIP grant for the construction phase of the Terminal Mechanical Improvements Project. However, the actual grant will not be issued until after bids have been received and reviewed. The grant offer will then be based on the accepted bid amount.
The construction phase of the project is comprised of various components including the replacement of the baggage claim carousels and associated belt system; upgrading the baggage system control hardware and software; replacing the Preconditioned Air (PCAir) on boarding bridges 1 and 6; and the replacement of the emergency generator.
To comply with the FAA timeline requirements for returning signed grant offers, staff is requesting the City Council approve a resolution authorizing the City Manager, or designee, to execute the grant agreement and related documents pertaining to this grant offer.
The grant will fund 90% of the cost. Matching funds will come from the FAA Passenger Facility Charge (PFC) Program Application that was approved by the FAA on February 16, 2023.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
This item conforms to local and state policies.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
The financial impact of this resolution will be determined after the bids are received and reviewed.
Is this a one-time or recurring revenue/expenditure?
One-time
Is this revenue/expenditure budgeted?
After the bids are received and the construction amount is determined, funding will be appropriated in the year-end budget amendment to the Aviation CIP Fund in account 524-0515-521.69-03 and the required 10% grant match in the Aviation Passenger Facility Charge Fund in account 529-0510-521.69-07.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Funding will be appropriated in the year-end budget amendment based on the grant funds received and the required 10% match.
RECOMMENDATION:
City Council approve a resolution authorizing the City Manager, or designee, to execute any and all required documents, including all amendments, pertaining to the Federal Aviation Administration’s Airport Improvement Program Grant for the Terminal Mechanical Improvements project at Killeen Regional Airport.
DEPARTMENTAL CLEARANCES:
Finance
Legal
Purchasing
ATTACHED SUPPORTING DOCUMENTS:
Pre-Grant Application
Presentation