TITLE
Consider a memorandum/resolution accepting a Federal Aviation Administration Airport Improvement Program (AIP) Grant.
SUMMARY
DATE: August 7, 2018
TO: Ronald L. Olson, City Manager
FROM: Matthew Van Valkenburgh A.A.E., Executive Director of Aviation
SUBJECT: FAA Grant Acceptance
BACKGROUND AND FINDINGS:
The Killeen Fort Hood Regional Airport (KFHRA) staff and design team have completed the design and bid for the passenger boarding bridge replacement project. Funding for this project will be primarily through a grant from the Federal Aviation Administration (FAA).
The City has been offered an Airport Improvement Program (AIP) grant in the amount of $4,988,575 to be used for procurement and installation of four (4) passenger boarding bridges and improvements to the terminal building at KFHRA. This grant will fund 90% of the cost of this project; the match for the project is provided though the Passenger Facility Charge (PFC) program.
Acceptance of this grant requires the City to make assurances related to the continued availability of the facility to the public and compliance with a number of Federal Regulations and standards.
THE ALTERNATIVES CONSIDERED:
Alternatives considered: (1) accept the grant and proceed with the project; (2) reject the grant and search for an alternative funding source; or, (3) do not do the project.
Which alternative is recommended? Why?
Alternative 1 is the prudent course of action. The project is 90% funded by the FAA AIP grant; there are no available, reasonable alternative funding sources; and, with the 10% match from the PFC, there is no impact on the Killeen-Foot Hood Regional Airport operating fund.
CONFORMITY TO CITY POLICY:
Yes
FINANCIAL IMPACT:
The total cost of the project is estimated to be $5,542,861. The Airport Improvement Program grant will cover 90% or $4,988,575 of the project cost, and the remaining 10% or $554,286 will be covered by the Passenger Facility Charge (PFC) Fund. The Ki...
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