TITLE
Recommendation to authorize City Manager to submit applications for Airport Improvement Program Grant(s) for Fiscal Year 2012 to the Federal Aviation Administration (FAA) for funding of the following projects: runway safety area improvements at the southeast end of Runway 12-30, reconstruction of Taxiway D north of Runway 7L-25R, and improvements to the access to Taxiways E and F, Phase 2; and to accept such grant(s), execute grant documents, and amend grant documents and grant amounts from the FAA for entitlement and discretionary funds. (District 5)
DISCUSSION
The Long Beach Airport (Airport) receives grant funds annually from the Federal Aviation Administration's (FAA) Airport Improvement Program (AIP). Entitlement funds are the portion of the AIP funds allocated to the Airport based on the number of passengers enplaned, and are calculated by the FAA using a set formula. Discretionary funds are the portion of AIP funds that are allocated to airports based on need and national priority, as determined by the FAA. Each year, the Airport submits a grant application for entitlement and discretionary funds from the AIP to pay for major airport infrastructure rehabilitation and improvements.
The FAA has recently alerted Long Beach Airport staff that Fiscal Year 2012 grant funds will most likely be dispersed in multiple grants, as done in the past three years, with only a percentage of the entitlement funds released in the second or third quarter. While there is a chance that these initial funds released will be the only funds released this year, FAA staff is hopeful that the remainder of entitlement funds, and potential discretionary funds, will be made available later this summer. Therefore, the Airport is anticipating processing multiple grants this fiscal year.
The projects anticipated to be funded by this year's grants include Runway Safety Area (RSA) Improvements at the Southeast End of Runway 12-30, Reconstruction of Taxiway D North of Runway 7L-25R, and Improvements to the Access to Taxiways E and F, Phase 2. The RSA Improvements at the Southeast End of Runway 12-30 consist of roadway, fencing, grading and drainage improvements. The Reconstruction of Taxiway D and the Improvements to the Access to Taxiways E and F both include the rehabilitation of pavement and improvements to pavement markings, lighting, signage, and storm drain systems.
Funds are pending submittal of formal grant applications to the FAA and receipt of grant offers from the FAA. The grants will require shared financial participation. The estimated cost for the RSA Improvements at the Southeast End of Runway 12-30 is $3,500,000, of which $3,325,000 will be federally funded. The Airport's share, $175,000, will be funded with future Passenger Facility Charges (PFCs). The estimated cost for the Reconstruction of Taxiway D North of Runway 7L-25R is $2,500,000, of which $1,700,000 will be federally funded and $800,000 will be funded with existing approved PFCs. The estimated cost for the Rehabilitation of Access to Taxiways E and F, Phase 2 is $2,800,000, of which $2,660,000 will be federally funded and $140,000 will be funded with future PFCs.
This letter was reviewed by Deputy City Attorney Richard F. Anthony and Budget Management Officer Victoria Bell on January 18, 2012.
TIMING CONSIDERATIONS
City Council action on this item is requested on February 7, 2012, to ensure that the grant applications are filed and the grants fully processed in the time frame required by the FAA. Failure to meet the FAA's deadlines could result in loss of funding.
FISCAL IMPACT
The amount of Federal grant funds requested for these projects is $7,685,000. The obligation of Airport funds for this amount totals $1,115,000 of which $315,000 will be fronted with Airport capital and recovered in a future PFC application to be filed this year and $800,000 will be funded with existing approved PFCs. An appropriation increase will be requested for the actual grant amounts and final participation after the grant offers are received and executed.
The projects included in these AIP applications will support an estimated 120 full-time equivalent (FTE) jobs.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
MARIO RODRIGUEZ
DIRECTOR OR LONG BEACH AIRPORT
APPROVED:
PATRICK H. WEST
CITY MANAGER