Title
Consider a memorandum/resolution accepting two (2) Federal Aviation Administration Airport Improvement Grants for the Killeen Fort Hood Regional Airport Taxiway B Rehabilitation.
Summary
DATE: August 16, 2022
TO: Kent Cagle, City Manager
FROM: Mike Wilson, Executive Director of Aviation
SUBJECT: FAA AIP Grant Acceptance-Taxiway B Rehabilitation Project at Killeen-Fort Hood Regional Airport
BACKGROUND AND FINDINGS:
The Killeen-Fort Hood Regional Airport (KFHRA) staff submitted two (2) grant applications to the Federal Aviation Administration (FAA) for the Rehabilitation of Taxiway B. The project will include milling and overlay of Taxiway B, addition of shoulders, updating the edge lighting, reconstruction of Taxiway B 3, and the replacement of all taxiway markings. The intent of the project is to provide a safe operating environment for Airport users and provide long-term economic sustainability for the Airport by decreasing maintenance costs and extending the useful life of the taxiway.
The City has been offered two (2) FAA Airport Improvement Program (AIP) grants. The first grant is for Phase I of the Taxiway B Rehabilitation project. The total amount of this phase of the project is $4,933,062. The grant will fund $4,444,444 of the cost, and the Passenger Facility Charge (PFC) will fund the remaining $488,618.
The second grant is Phase II of the Taxiway B Rehabilitation project. The total amount of this phase of the project is $5,533,409. This grant will fund $5,444,499 of the cost and the PFC Program will fund the remaining $88,910 of the project cost.
The total amount of both grants is $9,888,943. Total project cost is $10,466,471.
The FAA has notified the City that we will be receiving additional year end funding for the second grant, Phase II, which will modify the grant up to $6,348,357 and the additional match would come from the PFC fund.
The City may receive additional year end funding from the FAA for the second grant, Phase II, which would modify the grant up to $6,348,357 and the additional match would come from the PFC fund.
Acceptance of these grants requires the City to make assurances related to the continued availability of the Airport to the public and compliance with several Federal Regulations and standards.
THE ALTERNATIVES CONSIDERED:
Alternatives considered: (1) do not accept the grants; (2) accept the grants.
Which alternative is recommended? Why?
Alternative 2 is recommended. The project is fully funded by AIP grants and PFC funds; there is no cost to the City or impact on the Airport operating fund or fund balance.
CONFORMITY TO CITY POLICY:
Yes
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
The amount of the expenditures in the current year is $10,466,471.
Is this a one-time or recurring expenditure?
One-Time
Is this expenditure budgeted?
Yes, upon approval of the year end budget amendment, funds will be available in the Airport Improvement Program (AIP) Grant Fund and the Passenger Facility Charge (PFC) Fund in accounts 524-0515-521.44-28, 524-0515-521.69-01, 524-0515-521.69-03 and 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 expenditure?
Yes, upon approval of the year end budget amendment.
RECOMMENDATION:
City Council accept both Federal Aviation Administration AIP Grants up to the amount of $10,792,802 and authorize the City Manager or designee to execute all necessary grant documents and any and all amendments within the amounts set by state and local law.
DEPARTMENTAL CLEARANCES:
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Grant Offer Phase I
Grant Offer Phase II