COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

February 9, 2009

BOARD MEETING DATE:

March 3, 2009

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

James C. Porter, Director of Public Works

SUBJECT:

Future Grant Agreements with the Federal Aviation Administration and the California Department of Transportation for Improvements at the San Carlos and Half Moon Bay Airports

RECOMMENDATION:

Adopt a resolution:

1.

Authorizing the Director of Public Works to execute future grant agreements offered to the County by the Federal Aviation Administration (FAA) and the California Department of Transportation (DOT) to be used for the preparation of planning documents and the study, design and construction of safety, security and maintenance improvements at the San Carlos and Half Moon Bay Airports with the understanding that the Director of Public Works is authorized to apply for the maximum of FAA and California DOT funds available, subject to the review and approval of the County Manager or the Manager’s designee; and

2.

Authorizing the Director of Public Works to execute any other documents associated with the application and acceptance of said grant funds from the FAA and California DOT.

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 future grant agreements by the Director of Public Works will ensure the maximum of FAA and California DOT grant funding for the planning, design and construction of improvements at the San Carlos and Half Moon Bay Airports that will rehabilitate airport infrastructure, improve security and enhance safety for Airport users.

BACKGROUND:

Your Board has authorized similar agreements with the FAA and California DOT in previous years that provided federal and state funding to finance improvements at the Airports. The FAA makes airport improvement grants available to local airport sponsors for ninety-five percent (95%) of the total cost of eligible projects. The DOT currently provides State-matching grants equivalent to two and one-half percent (2.5%) of the FAA grants.

The FAA requires that the County, as a condition of receiving these grant funds, enter into an agreement which provides the conditions governing the use of said grant funds and the obligations for the County to operate the airport in compliance with FAA requirements.

DISCUSSION:

Changes in the way the FAA is now awarding airport improvement grants requires that the County be able to execute and return the grant agreements to the FAA within very tight timelines in order to qualify for the grant funds, sometimes within days of receiving the grant offer. To ensure the County is able to accept the maximum of FAA and State DOT grant funds available, staff is recommending that the Board authorize the Director of Public Works to execute future airport improvement grant agreements offered by the FAA and DOT, and to sign any other documents associated with the application and acceptance of said grant funds.

The resolution has been approved as to form by County Counsel.

FISCAL IMPACT:

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

The current cost distributions, once grant funds are received, is as shown:

FAA Grant Amount:

(95%)

State DOT Matching Grant:

(2.375%)

Airport Enterprise Fund:

(2.625%)

Project Total:

(100%)

There is no impact to the General Fund.