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HomeMy WebLinkAboutAgenda Bill 3.I 07/19/2004CITY OF PETALUMA, CALIFORNIA. AGENDA BILL J , AftAgeifil'a Title Resolution Approving Acceptance of FAA Matching Grant for Meeting Date: July 19, 2004 Airport Improvement Program (AIP) 14. (Skladzien/Glose) Meeting Time 3:00 PM ❑ 7:00 PM Category (check one) ,Z Consent Calendar ❑ Public. Hearing ❑ New Business Unfinished Business ❑ Presentation y Department Di'recto`r, Contact Person Phone Number Public Facilities & Ri ck. Sk _' J _ " ' ke 1 ` e ' 77 &4303 Services - Cost. of Proposal $600,000, to :be awarded by F over a four - Account Number 3299 year�period in the amount of $150.,000 per year. Name of Fund: FAA AIP 14 Amount Budgeted $600,000 AIP Funds $ 3'1,580 Matching Funds $631,580 Total Attachments to Agenda Packet Item 1. FAA AIP 14 Grant Offer (Exhibit A) 2. Resolution Summary Statement Each year, the FAA makes available to general aviation airports,, "matching, entitlement grant funding for airport improvements (AIP). Over "the next four years, the Petaluma Municipal Airport has opted to use these funds to help finance 55 pianned hangar units for which the City has received firm deposits. The leasing of them, along .with hangars previously constructed by .the City, will provide for the long -term viability of the airport. This is a: multi- year grant request, which will. encumber the City's entitlement of $150,0.00 per year for four years. All other high priority safety projects have been completed at the airport, and this .multi -year grant for enhanced revenue production will' greatly - assist in keeping the airport enterprise account operating in the black. Recommended City Council Action /Su - Mo Council to approve acceptance of FAA AIP 1'4 matching grant in the; amount of $600000 over afour -year period to be °allocated :: in increments of $,150;000 per year. The City's total matching portion; $31;580, over the same four -year period, or $7,895'per year, for which, funding is available. Re :iw ed by Finance Director: Revie ., ' ne : Approved M ana er: Dater' Date: M ��` JUG 12 2004 .. T'od 's ate: Revision # a e ev sed: File Code': 4 7/9/04 s \pf &s \airpor6agenda\AIP 13 r „ „ CI'T`Y OF 'PETALUMA, CALIFORNIA JULY 19 2003 AGENDA REPORT for RESOLUTION APPROVING ACCEPTANCE OF FAA MATCHING GRANT FOR AIRPORT IMPROV,EMENYPROGRAM (AIP) 14 1. EXECUTIVE SUMMARY Each year.the FAA" rnakes available to general aviation airports matching entitlement grant funding for airport improvements (AIP): - Over. the next four years, the Petaluma Municipal' Airport has, opted ,to use these fund's to' - help finance 55 planned hangar units for which the "City'has received firm deposits. The leasing of them, along with hangars previously constructed. by the City, will provide for the long -term viability of the airport. This is' a multi' -year .grant request, which will encumber the City's entitlement of $150,000 per year for four years. All other -high .priority safety projects have been completed at the; airport, and this multi -year grant for enhanced revenue production will greatly,assist in keeping the airport'enterprise account operating in the black. 2, BACKGROUND In the past, AIP matching. grant' funds were disallowed for revenue- producing projects. Recent changes in.:FAA:policy now allow airports to use these grant monies without restrictions. This; enables the Petaluma Municipal, Airport to use their grant award to help finance the 55'unit hangar complex planned for construction this Fall of 2004. 3. ALTERNATIVES a. Do not a p AIP 14 ,grant. Funds will be lost after July 30, 2004. cce t b. Finance this:portion of.the project internally, which will delay realization of positive cash flow from the new hangar rentals, and put the airport into further debt service. 4. FINANCIAL IMPACTS Acce tance of these ' ant funds will enhance viability f the hangar p roject, which is p �` y o ,. g p extremely'important.as'An integral part of the positive financial'position. .S. CONCLUSION This is a unique opportunity to optimize these funds. Lack of appropriate respons& would..cause a financial burden for the airport'.hangar project. r f. OUTCOMES'ORTERFORMANCE MEASUREMENTS.- HAT'WILL IDENTIFY SUCCESSOR • COMPLETION: These funds will help to facilitate a success'ful' financial outcome for the hangar project. 7. RECOMMENDATION Council to+approve acceptance of FAA AIP, a4 matching grant in the amount of. :$;600,000 over a four -year period, ,to be allocated in °incremen'ts of $15;0,0,0Q per'year. The City's total matching portion is $31,5.80; over the .same four -year. period; or' $7,895.per year, for which funding is available. s \pf &sCairport \agenda \AIP' 14 EXHIBIT A July 6 2004 FEDERAL EXPRESS Mr. Michael Bierman City Manager City of Petaluma 11 English Street Petaluma, California 9495 i Dear Mr. Bierman: San Francisco'Airpoits District Office 831 N ten 'Road,, Room. 210 Burlingame, California 94010-1303 RECEIVED JUL 07 2004 CITY MANAGER . Airport: Petaluma Mun'ieipal., CA; AIP Project Na. 3- 06- 0186 -14; Contract N,o, DTFA0'8'- ,04-C= 31503; Grant :Offer Enclosed are the original and three copies of'the approved Grant Offer for ,the above project. Acceptance of the Grant „Of,fer will obligate the Sponsor to accomplish the • de.s_cribed development. The United States commits itself -, to participate in the allowable cost of the ect 'not :to exceed the .amount shown on Page 2 of _ p r'o j the Grant Offer. The Offer must,be acceptedron.,or before. July 31,, 2004, as specified in Condition 6,, Page 2 -of the Grant Offer. Basic considerations ,are that members of the Sponsor''s governing body know the full content of the Grant Offer and that th'e method of acceptance conforms to local. law. The official of the Sponsor authorized to accept the enclosed Grant Offer shall accept same by signing said offer and inserting the date in the space provided under Part II Acceptance: The Sponsor's attorney shall certify that the acceptance complies_ with all applicable laws and constitutes a legal and binding obligation of the Sponsor by executing the "CERTIFICATE OF SPONSORS ATTORNEY ". The date of said certificate shaft be :the same as, or later than the date -of execution. 1 When the document is fully executed certified, attested and appropriate. seals are impressed; please 'return the,st400ed ORIGINAL and two copies of the executed Grant Agreement to this office. Sincere- / And M. Richards Manager, Airports District Office • Enclosures DEPARTMENT OF TRANSPORTATION FEDERAL. AVIATION ADMINISTRATION GRANT AGREEMENT Part l - ;Offer Date of Offer-;. July 6, 2004 Petaluma Municipal Airport/Planning Area Proj ect.No. 3 -06- 0186=14 . Contract No: DTFA08 -04 -C -31503 TO: City of Petaluma (herein called the "Sponsor") FROM: The ;United: States, of America facfing through the�Federal Aviation Administration,. herein called the "FAA ") WHEREAS; the: Sponsor has submitted to'the FAA. a Project.Applicat on dated:February 2 M4, for a grant of Federal funds for a,project at orossociated with the Petaluma Munic a I'Aiij�ortlPla�uiing Area, which, Project Application. Pass approved, the FAA, is hereb� 'ilcorporated herein and made a part hereof; and • WHEREAS the F.AA'has•approved a projecVfor the A* UP ort.or Planning Area (herein called the "'Projec "t ".) consisting of the following "Construct Hangars (approx. 5 T- hangars) all a& snore particularly described' ih the Project-Application. • Page 1 of 4 J&N.OW THEREFORE; pursuant to aald'for, the purpose of carrying out the provisions of Title 49, United States Code, as amended an , d in co nsiderafion of (a) the'' Sponsor's adoption and ratification, of the representations and assurances contained In id P' roject Application;and, its acceptance of this Offer as Hereinafter provided„ and (b) the benefits to accrue to the United States and the public from the accomplishment ofthe Projectand compliance with the assurances and conditions as here n.provided, THE FEDERAL - AVIATION ADMINISTRATION; FOR AND ON BEHALF OF THE UNITED STATES';, HEREBY OFFERS;' AND.AGREES`to pay, as the United States sliare of the allowable costs incurred in accomplishing the Project, 95.00 percent of the'allowable project costs. The Offer is made on and subject to the °following terms and conditions: Conditions 1. The maximum obligation of the United�fS_.tates payable "under°ihis offer shall be $1.50 For the purposes of any future grant amendments whi'eh may'increas.e the foregoing max Imium obligation of the United States under the provisions of Section 5`12(b) of the Act; the following' amounts are b'eing'specified for this purpose: $0:00 for planning $10,000.00 for, airport development,or noise program implementation. 2. The allowable costs of the project shall not- include any costs determined byihe FAA to be ineligible for consideration as to allowabilit_y'uhder`ihe,Act. Payment of the United States share of tlie. allowable project costs will be made pursuant to and in accordance with the provisions of such regulations and procedures as the Secretary shall prescribe. Final determination of the United States share will be based' audit ofthe total arimunt of allowable project costs and settlement NvIill be made for any upward or downward adjustrrte its to the Tederal share of costs. 4. The sponsor shall carry out arid. complete the Project NN ithout undue delays and in accordance with the terns hereof, and such regulations and "proced'ures as''the Secretary shall prescribe; and agrees to-comply with the assurances which were made part of the project application. 5. The FAA reserves the n to amend or withdraw this offer at any time prior to its acceptance by the sponsor. (. This offer shall ea p ire . and�the Uiirted States sha ' ll.not be obligated.to,pay any „part of the costs of th project unless this offer has been accepted by the: sponsor on or.,before July 31, '2004 or such subsequent date maybe r p escribed in writing by the FAA, 7. The sponsor shall ;take all steps, including litigation if necessary, to ;recover 3 Federal funds spent; fraudulently. wastefully, or in v olation:ofFederal antitrust statutes,,or misused,m any other manner 'in any prgject which. Federal funds have been eapeided. For the purposes of this grant agreement, the tern "Federal funds" means fiutds however used or disbursed by,the,sponsor that Were originally paid pursuant`to this or any other I Federal grant agreement. It shall obtain the approval:of the Secretary as to °any determination of the amount'of the Federal share of such funds. ItAsliall,return the; recovered :Federal,share, including funds recovered by settlement, order or judgment, to the Secretary., It shall„ fu`nii'sh to the Secretary, upon °request, all documents and records pertaining to the determination' ofthe amount of the Federal share or to any settlement, litigation, negotiation, or other efforts advance the recovery of such Federal share shall be approved .'in tions of the sponsor, in court or otherwise, involving taken to recover. such fluids. All settlements or other'fnial pos 4 e by the Secretary. Page 2 of 4 S. The United States' shall not be responsible , or liable for damage to property or injury to persons i which may arise from, or be incident to., with this. grant'dgreement.. 9`. Unless othetwiseapproved by the FAA, , not a.0 -quire or permit any contractor or subcontractor to acquire an3• , stqol,or, 'products aoducod outside the U iiiied'Staids to be used for any project for airport development Or no se - coinpatibil-Ay , for which funds are.provlded under -th 1 sgran-t. 1 0'. Itis understood and agreed byand between thepartles"Mreto this Giant Offer' i§I,'i-nado and accepted: upon the basis 6f in plan's and specificatibris d th, I p ie e a an e tt s gr e that within 1.90 �&vs from -the date . acceptance of th Grant Offer; the Sponsor shall furnish ,final plans and specifications ons to the. FAA that no construction, work will be commenced herdunder,, and that no�contiacvjx beztwyarded. for- t eaccomplisl work unt the e said final plans and sp.ecificatibris have b_eeh,apprdved by ih&FAA, and the furtheragree that any reference made U'l this Grant "Offer or"Aithe aforesaid' App to plans and specifications shall be considered as having reference to said final plans, and specific - d as,,approve H. The soonsor agrees to request cash draw downs on, the letter of credit,only when actually needed' for its d'sbursements and to t1rn6lvrevortih of such disbursements as rpquired, It"Is und that, failure toadhere��to 4 g -1 1. . 1— .11 . required: - n& P. this niMf , provision 'cause, the letter of credit. to be. revoked- 12. it '1 mutuall understood, and agreed . that If, during,the hfe�of the project, the FAA determines; that the, maximum grant.obfigafibn 'the United States; exceeds the needs dfthe Sponsor by $25,000,M: orfive.:pe eel (5 whichever is im �b greater, the m urn obligation of the United Statescan be:uni laterally reduced' v letter from the FAA advising of the -budget change. Conversety,iftliereistaiioverruii iiitlietotal.,actual eligible , project costs, ,FAA may increase the maximum grant obligation, of the United States to cover the, amount of the overnin not exc eed.the statutory percent .limitation and will advise the: Sponsor'by letter ;ofthe, Increase.' It: is further understood ' �andagreed, that if, during the lifeiof the project, the FAA determines that ascharige -in the grant • description , 'm advantageous and in "the besC of the , (1Jn , J i t_ed States,, lbe:1change in: grant description w-i . I I I be .unilaterally anionded'bY letter from thei,FAA. 'Upon 'issuance of the, af6reffientioned letter,, either the grdnt.obl I igation of the'United States isadj to the aiiibijiit pOcifidd.6f'theigtdii description i to: the description specified. H ),. In adcordAntc,'iwith,ScctJon 4.7 108(b),df the Act, dsaftiehddd, the fndkirnuin obligation of - the United Staie§, as stated, in Condition No., I of this Grant Offer a. may not be.increased,f6raplan ct b. : rnay , be?increased not more than 1 percent for development projects; c. may beancreased.by.notmore than 153 or an -amount not'to:exceed'25 percent, of t I heiotal increase ijl:al]OW"Ie costs, attributable tothe,dcquisltiojiof'i and ;or 'riterO§ts�i land, i I in , I s, greater., based on current credible appra a court award ina:cond'' ti di ernna ion procee ing The $pon'spr! . s acceptance of this Qffier and; and a-d0p-tio.ri of—the Pt4cct Appli'catioh, incorporated herein" shall' 'be evidenced by execution of this instrLin the Sponsor; as hereinafter provided, and this Offer and Acceptance shall Page 33-of4, ' ,com rtse,a Grant Agreement as rovid' d b the Act constituten the contractual obligations and rights ~ �n l p P e y g ts• of the United States and° the (Sponsor with; respect °to the' accom lislniient of the Project and with the assurances and conditions as vided.herein. Such Grant Agreement shall become, effective upon the Sponsor's acceptance of this Offer. UNITED STATES OF AMERICA N FEDERAL AVIATION ADMINISTRATION WESTE -PA IFIC REGION drew M. Richards Manager, Airports District Office Part . II - Acceptance , . The Sponsor does hereby ratify and adopt all assurances, statements, representations, warranties, covenants, and agreements contained - in the Project Application and;.porated:materials referred to in the foregoing ',Offer and does hereby accept M - O r this Offer and by such acceptance agrees to comply with all of the terms and conditions in this Offer and in the Project Application. Executed this day of ,20 . City of Petaluma - (NAME OF SPONSOR) EAL) By (SPONSOR'S DESIGNATED OFFICIAL REPRESENTATIVE) Title Attest Title: CERTIFICATE OF SPONSOR'S ATTORNEY acting as Attorney for the Sponsor do hereby certify° `That in. rriy opinion„ the'. Sponsor is empowered °to enter into the foregoing Grant. Agreement under the laws of the State of Further;, I have examined; the foregoing Grant, Agreement and the actions taken by said Sponsor and Sponsor's ,offid al representative has been duly atithon'zed and that the execution thereof is in all respects due and proper with the Iaws. of the said State and:the Act. In :addition, for grants involving projects to be carried out on and in accordance wi property not owned by the Sponsor, there are no iegal'impediments that will prevent full performance:by Sponsor. Further, it is my opinion that the said G_ ra�rt Agreement constitutes a,:Iegal and binding obligation of the Sponsor in accordance with the terms thereof: Dated at this day of C Page 4 WHEREAS, - the City of Petaluma has obtained'. an FAA AIP 14 Airport Improvement 'Program (AI'P) grant to be used airport improvement projects. WHEREAS, the amount of the' grant is $600,000 to: be allocated in increments of $150,000 per year over a four -year period.. The City's total matching portion is $31,580, over the same four -year period,'or $7,895 per year for which funding is available. WHEREAS; new FAA policy changes enable the Petaluma Municipal Airport to use their grant award to Help finance the 55 unit hangar complex planned for construction O this Fall of 2004. WHEREAS, the deadline for accepting and obligating the grant is July 30, 2004. NOW,THERE>FORE, BE IT RESOLVED that the Cit"Council authorizes the City Manager to accept and obligate the FAA AIP Grant 14 matching grant funds .for $600,000, to be used for planned hangar construction..