Title
Approval to Submit an Application and Accept a Federal Aviation Administration Airport Improvement Program (AIP) Grant for Federal Fiscal Year 2018 in the Amount of $613,468 for the Construction, Construction Administration, Acceptance Testing and an Update to the FAA Required Disadvantage Business Enterprise (DBE) Program.
Recommended Motion
I move that Council Approve the Submittal of Application and Accept a Federal Aviation Administration Airport Improvement Program (AIP) Grant for Federal Fiscal Year 2018 in the Amount of $613,468 for the Construction, Construction Administration, Acceptance Testing and an Update to the FAA Required Disadvantage Business Enterprise (DBE) Program.
Manager's Recommendation
The County Manager recommends that Council approve the motion as presented.
Body
The existing perimeter fence along the southern and western boundaries of the airport was constructed over 50 years ago and its condition has deteriorated to where it is now inadequate for the safety and security needs of the airport. This grant provides 90% of the funding for the AIP eligible items for construction, construction administration, acceptance testing of the airport perimeter fence, and an update to the airport’s DBE Program for Construction.
Council should note that the bids were higher than anticipated, primarily due to higher steal prices, and the Airport Manager worked with the FAA to secure the necessary additional grant funding. Please see Attachments A and B for additional details on the grant. In addition, staff has prepared an application with NMDOT to provide 5% of the 10% required match on the FAA AIP Grant in the amount of $54,297 plus the allowed 10% contingency if needed.
This project includes an update to the Airport’s Disadvantaged Business Enterprise (DBE) program. The DBE program is federally mandated for airports that receive grant funding and is designed to remedy ongoing discrimination and the continuing effects of past discrimination in federally-assisted construction projects. To meet the stated objectives of the DBE Program Regulation, recipients of FAA grant funds must develop and implement a program that conforms to DOT standards set forth in 49 CFR Part 26. In April of 2018, the FAA issued new guidance that requires airports to update their DBE program. The FAA directs airports to include the update in its next federally-assisted construction project. The FAA and NMDOT are providing 95% funding required for this update - with the remaining 5% provided by the County.
Alternatives
Council could choose to not approve the grant application and identify other sources of funding or cancel the project with the consequence that the existing perimeter fence will continue to deteriorate.
Fiscal and Staff Impact/Planned Item
As part of FY2016 Budget approved by Council, the County provided $100,000 to upgrade the project to vinyl fencing and $20,500 for local match funds. There is $17,000 local match funds remaining after design services for the fence. Therefore, the local budget available for the project is $117,000. The remainder budget needs will be covered by FAA AIP and NMDOT Aviation Grants.
Attachments
A - Grant Analysis and Financial Matrix Form
B - Federal Aviation Administration Airport Improvement Grant Application