COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

September 1, 2004

BOARD MEETING DATE:

September 14, 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 San Carlos 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 San Carlos 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 a federal grant that has been previously approved; and the federal grant that we are now recommending be accepted by your Board to finance 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 both Half Moon Bay and San Carlos Airports.

Key Facts

1.

The FAA has notified us that the County is eligible for an FAA Airport Improvement Grant in the amount of $1,857,000 for improvements at 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 to match a previously approved federal grant.

Discussion

FAA Grant Agreement

We submitted an application to the FAA to request funding for safety and maintenance improvements at the Airport. The scope of work for this project includes:

a)

the resurfacing and remarking of the airport’s runway and parallel taxiways; and

b)

the construction of 300-foot stopways on each end of the existing 2,600-foot runway which will enhance safety for airport users by providing an additional stopping distance during emergency conditions such as an aborted takeoff, brake failure or other difficulty requiring additional distance to stop. Stopways are not approved for use as a runway and will be marked as required by the FAA to indicate that they are not to be used during normal takeoffs or landings.

The FAA has requested that your Board consider the grant offer as soon as possible to aid them in their budgetary process. We explained the earliest that we could have this offer considered by your Board was September 14, 2004, and the FAA staff indicated that receipt of the executed grant agreements following your September 14th Board meeting would be acceptable to them.

State Matching Grant

The California DOT has indicated the Division of Aeronautics may provide a State matching grant equivalent to five percent (5%) of the federal 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 as may be offered 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 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%) in matching funds. The California DOT 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 projects. The projects 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:

$ 4,887

(.25%)

FAA 95% Grant:

$1,857,000

(95%)

State Matching Grant:

$ 92,850

(4.75%)

Total

$1,954,737

(100%)

The Airport Enterprise Fund will provide the additional estimated $92,850 proposed to be provided by the State if the State-matching grant is not realized.

We will apply for and obtain any necessary permits before returning to your Board with contract plans and specifications for the proposed work.

There is no impact to the General Fund.

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