TITLE
Consider a memorandum/resolution accepting a Federal Aviation Administration Military Airport Program Grant for the Design of a Corporate Aviation Hangar.
SUMMARY
DATE: June 1, 2021
TO: Kent Cagle, City Manager
FROM: Mike Wilson, Executive Director of Aviation
SUBJECT: FAA MAP Grant Acceptance-Design of a Corporate Aviation Hangar
BACKGROUND AND FINDINGS:
The Killeen Fort Hood Regional Airport (KFHRA) staff submitted an application to the Federal Aviation Administration (FAA) to be readmitted into the Military Airport Program (MAP) in 2018. The MAP is a program available to civil airport sponsors of joint-use military airfields or former military airports to assist in the transition of a military airfield to joint-use operations. KFHRA had previous been a recipient of MAP funds for construction of the terminal building, aircraft aprons, parking lot, and fueling facilities. KFHRA was readmitted into the program in 2018 for a five (5) year period and is qualified to receive MAP funds for eligible projects. In 2019 the Airport received a MAP grant to construct a commercial hangar at KFHRA and a second MAP grant in 2020, to help fund the additional cost of the commercial hangar to increase the facility size to accommodate an increase in employees.
The Airport has now been offered a MAP grant in the amount of $349,500 to fund the design of a corporate aviation hangar at KFHRA. The American Rescue Plan Act signed into law on March 11, 2021, increases the federal share to 100 percent for Airport Improvement Program (AIP) grants, including MAP grants, planned for fiscal year 2021. Under normal circumstances, AIP grant recipients contribute a matching percentage of the project costs.
Acceptance of this grant requires the City to make assurances related to the continued availability of the Airport to the public and compliance with a number of Federal Regulations and standards.
THE ALTERNATIVES CONSIDERED:
Alternatives considered: (1) do not accept the grant; (2) accept the grant.
Which alternative is recommended? Why?
Alternative 2 is recommended. The project is 100% funded by the MAP grant; and there is no impact on the Airport operating fund or fund balance.
CONFORMITY TO CITY POLICY:
Yes
FINANCIAL IMPACT:
Acceptance of this grant will provide revenue of up to $349,500 in account number 524-0000-332.15-02. A budget amendment will follow.
What is the amount of the expenditure in the current fiscal year? For future years?
The amount of expenditures in the current year is $349,500.
Is this a one-time or recurring expenditure?
One-time
Is this expenditure budgeted?
Upon approval of the corresponding budget amendment, funds will be available in 524-0515-521.69-01.
If not, where will the money come from?
The corporate hangar is grant funded.
Is there a sufficient amount in the budgeted line-item for this expenditure?
Upon approval of the corresponding budget amendment
RECOMMENDATION:
City Council accept the Federal Aviation Administration MAP Grant in the amount of $349,500 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