M&C Review


COUNCIL ACTION:  Approved on 12/11/2018 - Ordinance No. 23518-12-2018

DATE: 12/11/2018 REFERENCE NO.: G-19441 LOG NAME: 55FY19 RUNWAY EXTENSION GRANT
CODE: G TYPE: NON-CONSENT PUBLIC HEARING: NO
SUBJECT:   Authorize Application for and Acceptance of a Grant, if Awarded, from the Federal Aviation Administration in an Amount Up to $11,000,000.00, Authorize the Use of Land Credits in an Amount Up to $1,222,222.22 for the City's In-Kind Local Ten Percent Match for Reimbursement to the North Central Texas Council of Governments for Funds Advanced in Connection with the Runway Extension Project at Fort Worth Alliance Airport, and Adopt Appropriation Ordinance (COUNCIL DISTRICT 7)

RECOMMENDATION:

It is recommended that the City Council:

1. Authorize the application for and acceptance of a grant, if awarded, from the Federal Aviation
    Administration in an amount up to $11,000,000.00 to reimburse the North Central
    Texas Council of Governments for funds advanced in connection with the runway extension
    project at Alliance Airport;

2.  Authorize the use of land credits in the amount up to $1,222,222.22 for the City of Fort Worth's in-kind
     local match of ten percent of the project cost; and

3.  Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
     Municipal Airport Grants Federal Fund in the amount up to $12,222,222.22, subject to receipt of the
     grant.

 
DISCUSSION:

The Alliance Airport runway extension project was a multi-phased project that began in 2001 and was substantially completed in March 2018. The total cost of this project totaled over $250 million and was funded by grants from the Federal Aviation Administration.  The City also received assistance in the amount of $80,000,000.00 to relocate a portion of Burlington Northern Santa Fe Railroad through an Advanced Funding Agreement with the Texas Department of Transportation.  

In February 2013, (CSC No. 39068)  the City entered into an Interlocal Cooperative Agreement with the NCTCOG and the Regional Transportation Council (RTC) for the repayment of $51,300,000.00 in advanced regional toll revenue funds. Execution of this Agreement was approved by Council on January 29, 2013 by M&C C-26078. In this Agreement the RTC and NCTCOG agreed to waive repayment of $28,700,000.00 which reduced the amount to $51,300,000.00 from the original $80,000,000.00.  
Additionally, $15,000,000.00 was allocated to the GE Test Track Project which further reduced Fort Worth's repayment obligation to $36,300,000.00.  

The Aviation Department is seeking grant assistance from the FAA in order to repay the remaining obligation of $36,300,000.00 and will submit a grant application in the amount of $11,000,000.00 for FY 2019.  Reimbursement to the NCTCOG is contingent upon receipt of discretionary grant funds from the FAA designated for the purpose of reimbursing NCTCOG for funds that were advanced in connection with the runway extension project.

This grant is not eligible for the reimbursement of indirect costs because City salaries cannot be charged directly to the grant.

This contract will be with a governmental entity, state agency or public institution of higher education: Federal Aviation Administration.
 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that upon approval of the above recommendations, receipt of the grant and adoption of the attached appropriation ordinance, funds will be available in the current capital budget, as appropriated, of the Municipal Airport Grants Federal Fund and that prior to an expenditure being made, the Aviation Department has the responsibility to validate the availability of funds.  This is a reimbursement grant.

TO
    Fund Department
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

FROM
    Fund Department
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

Submitted for City Manager's Office by:
Fernando Costa  (6122)
Originating Department Head:
Bill Welsted (5402)
Additional Information Contact:
Aya Ealy (5403)

 
 
ATTACHMENTS
  55FY19 RUNWAY EXTENSION GRANT_55003_AO19.docx
  RUNWAY_EXT_PROJECT.pdf