COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

August 31, 2006

BOARD MEETING DATE:

September 12, 2006

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

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 (AIP Project No. 3-06-0097-11)

Recommendation

Adopt resolutions authorizing the President of the Board to execute grant agreements with:

a)

the Federal Aviation Administration (FAA) that will provide $1,598,500 in federal funds for the construction of safety and maintenance improvements at Half Moon Bay Airport (Airport); and

b)

the California Department of Transportation (DOT) for a matching grant equal to two and one-half percent (2.5%) of the Federal Grant referenced above.

Vision Alignment

Commitment: Ensure basic health and safety for all.

Goal 7: Maintain and enhance the public safety of all residents and visitors.

Authorizing the execution of the proposed grant agreements will provide funding for Airport improvements that will rehabilitate airport infrastructure and enhance safety for Airport users.

Background

Previous Board Action

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

History

We submitted an application to the FAA requesting funding for the construction of safety and maintenance improvements at the Airport. The scope of work includes the installation of additional security fencing, construction of a transient parking apron and vehicle access road, drainage improvements and the rehabilitation of taxiways.

Discussion

The County received a grant offer from the FAA dated July 24, 2006, in the amount of $1,598,500 for the construction of improvements at the Airport as described above. The FAA grant is financed from funds budgeted in the 2006/07 federal fiscal year and the FAA has requested that your Board consider the grant offer as soon as possible and no later than August 21, 2006. We explained the earliest that we could have this offer considered by your Board was September 12, 2006, and the FAA staff indicated that receipt of the executed grant agreement following the September 12^th Board meeting would be acceptable to them.

The California DOT has indicated the Division of Aeronautics will provide a State matching grant equivalent to two and one-half percent (2.5%) of the federal grant or 2.375% of the total project. We are recommending that your Board authorize the President of the Board to execute the State matching grant agreement as offered for the project, and that the Director of Public Works be authorized to sign any other documents such as payment requests associated with the grants, since the grants are received on a reimbursable basis.

Resolutions and agreements have been approved as to form by County Counsel and the FAA has executed the attached grant agreement.

A recommendation to call for bids for the work will be the subject of a separate staff report to your Board.

Fiscal Impact

The project will be initially financed from the Airport Enterprise Fund, as the Federal and State grants are received on a reimbursable basis. The Airport Enterprise Fund has sufficient funds available to manage the cash flow requirements of the project while monthly grant payments are being requested of the FAA and State.

The estimated final cost distribution, once grant funds are received, is as shown:

FAA Grant:

$1,598,500

(95%)

State DOT Matching Grant:

$ 39,963

(2.375%)

Airport Enterprise Fund:

$ 44,169

(2.625%)

Total

$1,682,632

(100%)

There is no impact to the General Fund.