TITLE
Recommendation to authorize City Manager, or designee, to execute all documents, including any necessary amendments, with the Federal Aviation Administration, to accept an Airport Improvement Program Grant award for federal Fiscal Year 2023 funding, for capital improvements to the Airport’s Taxilane K Reconstruction and the Construct Taxilane U Projects, in an amount not to exceed $8,836,388. (Districts 4,5)
DISCUSSION
The Long Beach Airport (Airport) receives grant funds annually from the Federal Aviation Administration (FAA) Airport Improvement Program (AIP) for capital improvement projects. The FAA's regular AIP provides more than $3.18 billion annually in entitlement and discretionary grant funds for a network of more than 3,300 eligible airports. Entitlement funds are the portion of AIP funds allocated to airports based on the number of enplaned passengers 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. The Airport submits grant applications for entitlement and discretionary funds from the AIP to pay for major airport infrastructure rehabilitation and improvements.
On May 17, 2022, the City Council awarded a contract to RS&H California, Inc., of Los Angeles, CA, for engineering design services for the Taxilane K Reconstruction and the Construct Taxilane U projects (Projects). On February 14, 2023, the City Council awarded a contract with The Kennard Development Group, dba KDG Construction Consulting, of Glendale, CA, for engineering construction management services for the Projects.
The Taxilane K Reconstruction project includes the reconstruction of approximately 71,500 sq. ft. of pavement and the rehabilitation of approximately 67,650 sq. ft. of pavement. Taxilane K provides airfield access to tenants in the northeast quadrant of the airfield along the Lakewood Boulevard corridor, including multiple hangars at the south end of Taxilane K. A significant portion of the Taxilane K pavement is in poor condition and has reached the end of its useful life. The Taxilane K project includes improvements to pavement, pavement markings, striping, and drainage systems.
The Construct Taxilane U Project repurposes an area that includes portions of decommissioned Runway 16R-34L south of Taxiway F to provide improved access to the airfield. Approximately 42,900 sq. ft. of pavement will be constructed, including pavement markings, lighting, signage, and drainage systems. Taxilane U will provide acess to Taxiway F for general aviation tenants adjacent to the Spring Street vehicle gate.
Funds for the capital improvements to the Projects are pending receipt of the grant offer from the FAA. The estimated total cost for the capital improvements is $11,479,253, of which $8,836,388 is anticipated to be federally funded. The grant requires 9.34 percent shared financial participation by the Airport, which is estimated at $910,345. Of the $11,479,253 estimated project cost, $1,732,520 is not eligible for AIP funding. The estimated total amount of $2,642,865 for the Airport’s share and AIP ineligible project costs will be funded by Airport funds available in the Airport Fund Group in the Airport Department. The final amount of the AIP grant may be slightly higher or lower, depending on the actual construction amount and available FAA funds.
The Airport has completed the construction bid process for the Projects. A City Council action to award a construction contract will be brought forth at a later date for City Council consideration following formal receipt of the AIP grant award.
This matter was reviewed by Principal Deputy City Attorney Richard F. Anthony on April 11, 2023 and by Budget Analysis Officer Greg Sorensen on April 20, 2023.
TIMING CONSIDERATIONS
City Council action is requested on May 9, 2023, so the grant may be fully processed in the timeframe required by the FAA. Failure to meet the FAA’s deadlines could result in loss of funding.
FISCAL IMPACT
The proposed recommendation would authorize the Airport to accept funding up to $8,836,388 from the FAA AIP grant based on the estimated project cost plus a 15 percent project contingency. An appropriation increase for the grant and matching funds will be requested after funding is awarded. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. It is anticipated the projects will have a positive impact on the local job market.
SUGGESTED ACTION
Approve recommendation.
BODY
[Enter Body Here]
Respectfully Submitted,
CYNTHIA GUIDRY
DIRECTOR, LONG BEACH AIRPORT
APPROVED:
THOMAS B. MODICA
CITY MANAGER