TITLE
Recommendation to authorize City Manager to submit an application for Airport Improvement Program Grant(s) for Fiscal Year 2010 to the Federal Aviation Administration (FAA) to fund the Phase 2 Improvements to the Air Carrier Ramp, Improvements to Taxiway G East of Runway 12-30, and Runway 7L-25R Runway Safety Area Improvements; and accept such grant(s), execute and amend grant documents and amounts from the FAA for entitlement and discretionary funds. (District 5)
DISCUSSION
The Long Beach Airport receives grant funds annually from the Federal Aviation Administration's (FAA) Airport Improvement Program (AlP). Entitlement funds are the portion of the AlP 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 AlP 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 AlP to pay for major airport infrastructure rehabilitation and improvements.
The FAA has recently alerted Long Beach Airport staff that 50 percent of Fiscal Year (FY) 2010 entitlement funds will be released early this year. To receive the funds under the first release, the sponsor must submit a grant application and process the grant offer no later than March 16, 2010. While there is a chance that the 50 percent will be the only funds released this year, FAA staff are hopeful that the remainder of entitlement funds, and potentially discretionary funds, will be made available later this summer.
Therefore, the Airport is anticipating processing multiple grants this fiscal year.
The projects that are anticipated to be funded by this year's grant include the Phase 2 Improvements to the Air Carrier Ramp, Improvements to Taxiway G East of Runway 1230, and Runway 7L-25R Runway Safety Area (RSA) Improvements. Phase 2 of the Air Carrier Ramp Improvement project is the next phase in the multi-phase ramp project to reconstruct the pavement, as well as provide environmental enhancements, including the installation of pre-conditioned air and in-ground electrical, so that airlines will not need to run aircraft engines while servicing, loading and unloading aircraft, resulting in lower emissions. The Taxiway G project will include the rehabilitation of pavement and improvements to the pavement markings, and lighting, signage, and storm drain systems. The improvements to the Runway 7L-25R RSA will include grading and the relocation of portions of the airfield perimeter road, fencing and non-frangible items.
Funds are pending submittal of a formal grant application to the FAA and receipt of a grant offer(s) from the FAA. The grant(s) will require shared financial participation in the amount of 95 percent by the FAA and 5 percent by the Airport. The estimated cost for Phase 2 of the Air Carrier Ramp Improvement Project is $4,677,105. The Airport share of this amount, $233,855, will be funded with Passenger Facility Charges (PFCs). The Federal share of this amount, $4,443,250, exceeds the 50 percent of entitlement funds (estimated to be $2,221,625) that are anticipated to be released in the first round of funding. The difference between the federal funds in the first round of funding and the need for the project will be provided in the next entitlement grant, whether it occurs this year or next.
The estimated cost for the Improvements to Taxiway G East of Runway 12-30 is $3,157,900, of which $3,000,000 would be federal funding and $157,894 would be Airport revenue or PFCs from a pending application. The estimated cost for the improvements to the Runway 7L-25R RSA is $1,578,950, of which $1,500,000 would be Federal funding and $78,950 would be Airport revenue. These two projects will only be constructed this year if the FAA provides additional FY 2010 grant(s) with the necessary federal funding.
This letter was reviewed by Deputy City Attorney Richard F. Anthony on February 18, 2010, and Budget Management Officer Victoria Bell on February 19, 2010.
TIMING CONSIDERATIONS
City Council action on this item is requested on March 2, 2010, to ensure that the grant application is filed and the grant(s) are fully processed in the time frame required by the FAA. The first grant offer must be signed no later than March 16, 2010. Failure to meet this deadline could result in loss of funding.
FISCAL IMPACT
The amount of Federal grant funds requested for these projects is $8,943,250. The obligation of Airport funds for this amount totals $470,699, of which $391,749 will be funded with existing or pending Passenger Facility Charges and the remainder with Airport revenue. An appropriation increase will be requested in the Airport enterprise Fund (EF 320) in the Long Beach Airport Department for the actual grant amounts and final participation after the grant offers are received and executed.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
MARIO RODRIGUEZ |
APPROVED: |
DIRECTOR, LONG BEACH AIRPORT |
|
|
|
|
PATRICK H. WEST |
|
CITY MANAGER |