TITLE
Recommendation to authorize City Manager to submit applications for Airport Improvement Program Grant(s) for Fiscal Year 2013 to the Federal Aviation Administration for funding of the following projects: Runway 7L-25R Rehabilitation; Rehabilitate Access to Taxiway E and F, Phase 2; and to accept such grant(s), execute grant documents, amend grant documents and grant amounts from the Federal Aviation Administration 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 projects anticipated to be funded by this year's grants include Runway 7L-25R Rehabilitation; and the Rehabilitation of Access to Taxiways E and F, Phase 2. The Rehabilitation of Runway 7L-25R and the Improvements to the Access to Taxiways E and F, Phase 2 both include the rehabilitation of pavement and improvements to pavement markings, lighting, signage and storm drain systems, grading of infield areas, and the reconstruction of adjacent perimeter roads.
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 Runway 7L-25R Rehabilitation is $14,040,000, of which $12,635,000 will be federally funded. The Airport's share, $1,405,000, will be funded with future Passenger Facility Charges (PFCs). The estimated cost for the Rehabilitation of Access to Taxiways E and F, Phase 2 is $2,775,000, of which $2,515,000 will be federally funded and $260,000 will be funded with future PFCs.
This letter was reviewed by Deputy City Attorney Richard F. Anthony on March 6, 2013, and Budget Management Officer Victoria Bell on March 11, 2013.
TIMING CONSIDERATIONS
City Council action on this item is requested on April 2, 2013, 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 $15,150,000. The obligation of Airport funds for this amount totals $1,665,000, all of which will be fronted with Airport capital and recovered in a future PFC application to be filed this year. An appropriation increase will be requested for the actual grant amounts and final participation after the grant offers are received and executed.
It is anticipated that this project will have a positive impact on the local job market.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
MARIO RODRIGUEZ
DIRECTOR, LONG BEACH AIRPORT
APPROVED:
PATRICK H. WEST
CITY MANAGER