COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

August 6, 2004

BOARD MEETING DATE:

August 31, 2004

TO:

Honorable Board of Supervisors

FROM:

Neil R. Cullen, Director of Public Works

SUBJECT:

Grant Agreements with the Federal Aviation Administration and the California Department of Transportation - Improvements at Half Moon Bay Airport

Recommendation

Adopt resolutions:

a)

authorizing the President of the Board to execute a grant agreement with the Federal Aviation Administration (FAA) that will provide federal funds for maintenance and safety improvements at the Half Moon Bay Airport (Airport); and

b)

authorizing the President of the Board to execute grant agreements with the California Department of Transportation (DOT) for matching grants equal to five percent (5%) of current Federal grants accepted by your Board to finance environmental studies, maintenance and safety improvements at the Airport.

Previous Board Action

Authorized similar grant agreements with the FAA and California DOT that provided federal and state funding to finance improvements at the Airport.

Key Facts

1.

The FAA has notified us that the County is eligible for an FAA Airport Improvement Grant in the amount of $186,200 for the Airport.

2. .

The California DOT has indicated they may provide matching grants equal to five percent (5%) of the FAA’s grant amount for this project and other current Federal grants at the Airport.

Discussion

FAA Grant Agreement

We submitted an application to the FAA requesting funding for safety and maintenance improvements consisting of:

a)

the replacement of the Airport’s existing rotating beacon and support tower which have deteriorated due to their exposure to the coastside weather; and

b)

the installation of an automated weather reporting system to enhance safety for pilots using the Airport.

The FAA on July 14, 2004, offered us the grant as explained in Key Facts above. The grants are made available from funds budgeted in the 2004/05 Federal fiscal year, and the FAA has stated that the accepting of the grant offer has to be made as soon as possible. We explained the earliest that we could have this offer considered by your Board was August 31, 2004, and the FAA staff indicated that receipt of the executed grant agreements following the August 31^st Board meeting would be acceptable to them.

State Matching Grant

The California Department of Transportation has indicated the Division of Aeronautics may provide a State matching grant equivalent to five percent (5%) of the Federal 95 percent (95%) grant, which is equivalent to four and three-quarters percent (4.75%) of the project’s cost. Additionally, the State has indicated they may provide similar matching grants for all current FAA grants for the Airport. We are recommending that your Board authorize the President of the Board to execute State matching grant agreements for all existing FAA funded grant projects, and the Director of Public Works to sign any other documents such as payment requests associated with the grants, since the grants are received on a reimbursable basis.

Vision Alignment

We believe that our recommendation is consistent with the Shared Commitment to “ensure basic health and safety for all” and Goal Number 7, “maintain and enhance the public safety of all residents and visitors,” as the proposed airport improvements will rehabilitate Airport infrastructure and enhance safety for Airport users.

Fiscal Impact

FAA grants require five percent (5%) matching funds from the receiving agency. The California Department of Transportation may provide matching grants equal to five percent (5%) of the FAA grant (4.75% of total project costs). There are sufficient funds in the Airport Enterprise Fund to provide the remaining one-quarter percent (.25%) for the Airport project. The project will be initially financed from the Airport Enterprise Fund as the Federal and State grants are received on a reimbursable basis, and there are sufficient funds available to manage the cash flow of the project which will be accomplished through the competitive bid process.

The final cost distribution will be as shown once the grants are received:

Airport Enterprise Fund:

$ 490

(.25%)

FAA 95% Grant:

$186,200

(95%)

State Matching Grant:

$ 9,310

(4.75%)

Total

$196,000

(100%)

The Airport Enterprise Fund will provide the additional estimated $9,310 proposed to be provided by the State if the State-matching grant is not realized.

We will prepare the necessary environmental documents, apply for a Coastal Development Permit as may be required for work at the Half Moon Bay Airport, and return to your Board with contract plans and specifications for the proposed work.

There is no impact to the General Fund.

Forms of resolutions and agreements have been approved by County Counsel and the FAA has executed the grant agreement.